3 Safe Cryptos to Buy That Are Perfect for the Bank Meltdown


  • Here are three safe cryptos to buy that are perfect for the bank meltdown.
  • Bitcoin (BTC-USD): The largest crypto by market cap is up 70% so far in 2023 despite regulatory crackdowns.
  • Ethereum (ETH-USD): This crypto is rallying following its upgrade to a more energy efficient operating protocol.
  • Litecoin (LTC-USD): One of the leading altcoins, this crypto has seen its price rise 75% in the last six months.
safe cryptos - 3 Safe Cryptos to Buy That Are Perfect for the Bank Meltdown

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Cryptocurrencies continue to rally and have outperformed all other asset classes through the year’s first quarter — stocks, bonds, and commodities. The ProShares Bitcoin Strategy ETF (NYSEARCA:BITO) that tracks the performance of Bitcoin (BTC-USD), the largest cryptocurrency by market capitalization, is up 67% year to date. The gains in cryptocurrencies have been broad-based and have only been helped by the recent crisis in the traditional banking sector. With lenders in the U.S. and Europe failing, digital coins and tokens suddenly appear a little less risky to investors. This year’s rally also comes despite regulators such as the U.S. Securities and Exchange Commission cracking down on stablecoins and several pieces of legislation working their way through Congress that would bring new regulatory oversight to crypto. Of course, not all cryptocurrencies are the same or safe. With thousands of digital coins and tokens now available to investors, some are more established and reliable than others. Here are three safe cryptos to buy that are perfect for the bank meltdown.

Symbol Cryptocurrency Price
BTC-USD Bitcoin $28,024.30
ETH-USD Ethereum $1796.03
LTC-USD Litecoin $91.84

Safe Cryptos: Bitcoin (BTC)

Up trend Technical graph of Bitcoin (BTC-USD) in futuristic concept, BITI ETF is a Bitcoin short fund for investors betting against Bitcoin.
Source: Sittipong Phokawattana / Shutterstock.com

The largest and most mature cryptocurrency, Bitcoin, has rallied 70% to start 2023. In the month of March, as the banking sector was rattled by the failure of several regional banks in the U.S. and Credit Suisse (NYSE:CS) in Europe, the price of BTC gained 20%. Bitcoin is now on the cusp of breaching $30,000, a level it has not been at in nearly a year, and many analysts see the momentum continuing. Bitcoin has been steadily rising this year after a brutal selloff in 2022 that saw its price fall below $16,000 last December.

What’s interesting is the way that BTC continues to gain despite increased regulatory scrutiny of the cryptocurrency sector. Bitcoin’s price actually jumped recently on news that the U.S. Commodity Futures Trading Commission (CFTC) has filed a lawsuit against Binance, the world’s biggest cryptocurrency exchange. Proponents say that Bitcoin is benefitting from the banking crisis, which has shifted focus back to cryptocurrencies as a store of value in times of economic turmoil.

Ethereum (ETH)

Concept graphic of Ethereum Classic (ETC) crypto logo in green techno style
Source: shutterstock.com/BT Side

BTC is not the only crypto on a hot streak this year. Ethereum (ETH-USD), the second-largest digital token, has also rallied during Q1. So far this year, ETH is up 52%, at levels last seen in August 2022. Some advocates think Ethereum should be up even more following its shift last September to a new, more energy-efficient proof-of-stake protocol. The switch to a proof-of-stake operating model, completed through a process known as “the merge,” cut the energy used to secure new Ethereum tokens by about 99%.

Today, ETH is the most energy-efficient cryptocurrency, and industry experts say its upgrade is a revolution for the entire industry. Beyond its environmental pedigree, Ethereum also plays a major role in decentralized finance (DeFi) and can be used to validate smart contracts. These attributes give Ethereum a utility and purpose, lacking in many other cryptocurrencies. For all these reasons, crypto experts say Ethereum is among the safest and best digital tokens to buy. Some people expect ETH’s price to surpass that of Bitcoin eventually.

Litecoin (LTC)

Image of one litecoin in front of many stacks of litecoins. Litecoin price predictions
Source: Wit Olszewski / Shutterstock.com

Litecoin (LTC-USD) is known as an “altcoin,” a cryptocurrency created from a fork in Bitcoin. Litecoin is viewed as one of the safer and more credible altcoins. It was created in 2011 by Charlie Lee, a former engineer at Alphabet (NASDAQ:GOOGGOOGL), and it contains some enhancements meant to improve the original design of BTC. Like other cryptos, LTC is enjoying a strong rally right now. Over the past six months, Litecoin’s price has risen 75%, including a YTD gain of 30%.

Beyond being one of the more trustworthy altcoins, Litecoin is also viewed as a sturdy peer-to-peer payment system and an important part of decentralized finance networks. DeFi networks allow users to carry out digital transactions without the need for an intermediary such as a bank or credit union. The turmoil in the global banking sector has shone a light on DeFi, which many crypto advocates see as the future, and LTC as a central part of its development. This explains why Litecoin trades near $100 while many altcoins trade for pennies.

On the date of publication, Joel Baglole held a long position in GOOGL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.

Article printed from InvestorPlace Media, https://investorplace.com/2023/04/3-safe-cryptos-to-buy-that-are-perfect-for-the-bank-meltdown/.

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