The recent banking distress was awful for most banks and the stock market, but it helped kick-start a major rally in the crypto market.
While many people believe cryptocurrencies are speculative investments, some believe the blockchain is safer right now because of its decentralized nature and security. Cryptos have insulation from banking institutions.
Of course, that’s not a major concern right now because of the Federal Reserve stepping in to stabilize the banking sector. Excluding a few regional banks, there’s little to worry about.
Some investors are still afraid of the market since the crypto market has been trading sideways. Most projects are highly risky, with little to no utility, and prone to flash crashes.
That even includes stablecoins, as we’ve recently seen with USD Coin (USDC-USD) and last year with Terra Luna’s crash. However, there are some cryptos out there that are genuinely safe with time-tested fundamentals.
Excluding the no-brainer pick Bitcoin (BTC-USD), here are three less-known safe-haven cryptos that investors are “flocking” to in this environment:
| PAXG-USD | Paxos Gold | $1,988.00 |
| USDT-USD | Tether | $1.00 |
| XMR-USD | Monero | $158.85 |
Paxos Gold (PAXG)
Paxos Gold (PAXG-USD) is backed by physical gold, which has protected it. Each PAXG token represents one troy ounce of gold, securely stored in Brink’s vaults. With the price of gold surging amidst the banking “crisis,” PAXG has experienced a notable rally, making it an attractive option for investors seeking to diversify.
Of course, you can buy physical gold, but there are several advantages to investing in Paxos Gold over physical gold.
For starters, PAXG offers increased liquidity, allowing investors to easily trade their holdings without the logistical challenges typically associated with gold transactions.
The downside is that it is on the Ethereum (ETH-USD) network, which can make smaller transactions less worthwhile.
Safety is the biggest factor that draws me to Paxos Gold. Since it’s backed by physical gold, PAXG offers a stable investment option amidst economic turbulence.
If you are an investor simply seeking stability for your decentralized assets, incorporating PAXG will give you the best of both worlds: the security of gold and the decentralized nature of cryptocurrencies.
All things considered, Paxos Gold has emerged as an interesting investment opportunity in the banking crisis. Combining the stability of gold with the flexibility of digital currencies, PAXG is certainly among the top safe-haven cryptos.
Tether (USDT-USD)
If you are purely looking for stability without worrying about any upside or downside potential, stablecoins are your friend.
There has been an interesting shift in investor sentiment toward Tether (USDT-USD), as it has become an increasingly attractive option following the recent depegging of USD Coin (USDC-USD).
The depegging of USDC has caused some concerns among investors, who seek alternatives to maintain stability in their portfolios.
As a result, many are flocking to Tether, which has kept its peg to the U.S. dollar and continues to offer a stable store of value. The crypto’s market cap has risen by nearly $15 billion, a 22% jump in the last three months.
Although there is scrutiny, the stablecoin has never depegged for an extended period of time. And unlike USDT, the assets backing Tether are not yet affected by ripples in the banking sector.
The primary goal of stablecoins is to provide stability amidst the cryptocurrency market’s volatility, and Tether does that the best right now.
Monero (XMR)
Unlike its more popular counterpart, Bitcoin, Monero (XMR-USD) is a privacy-focused coin that consistently shows resilience during bear markets.
It has essentially traded sideways in the past year. Thus, Monero has proven to be a reliable option for investors seeking safe-haven cryptos.
The core strength of Monero lies in its unparalleled privacy features. Employing advanced cryptographic techniques Monero ensures the sender, receiver, and transaction amount remain completely obscured. This privacy-focused coin has garnered attention from investors looking to preserve their anonymity while keeping their funds stable.
Interestingly, Monero’s robust privacy features have also attracted the attention of law enforcement agencies.
The Internal Revenue Service offered $625,000 in September 2020 for anyone who could crack Monero. A month later, the IRS contracted Chainalysis and Integra with up to $1.25 million to break Monero.
So far, there hasn’t been any news about any of them succeeding in “breaking” Monero.
On the date of publication, Omor Ibne Ehsan held Tether USDT. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
