Navigating the vast crypto landscape of nearly 25,000 options for potential gain in August 2023 can be challenging. Despite numerous claims of superior solutions, only a handful possess the potential for substantial growth and benefits for investors.
Selecting a cryptocurrency for investment has become increasingly complex. This guide highlights the top three crypto coins to buy in August, providing insights into their features and appeal to investors this year.
Bitcoin (BTC-USD)
Bitcoin (BTC-USD) is the dominant cryptocurrency by market cap, impacting the entire crypto ecosystem. Its $575 billion market cap influences the market significantly.
BTC near $29,000, correction ideal for accumulation. Up 75% year-to-date, huge upside in strong bull market. Standard Chartered predicts $50,000 by year-end, potential $120,000 by 2024. BTC could yield significant returns.
Amid 2023’s rapid growth, Bitcoin presents an enticing opportunity. Despite a recent price drop, it’s surged from $17,000 to $31,000, showcasing resilience. Its unique attributes, limited supply, and steady transactions make it stand out, appealing to retail and institutional investors seeking stability. With a 2024 halving on the horizon, backing Bitcoin aligns with a reliable path to gains.
Ethereum (ETH-USD)
Ethereum (ETH-USD), second in market cap, holds $220 billion or 18% share. Ethereum and Bitcoin dominate, comprising 70% of crypto. Ethereum offers diverse use cases, fast payments, smart contracts for automated payments upon milestone completion.
Moreover, Ethereum’s leadership in smart contracts is pivotal due to its initial adoption and developer community. Switching hurdles deter competitors, giving Ethereum an edge. Its transition to proof-of-stake promises energy efficiency, aiding compliance with energy regulations.
Ethereum’s potential 5-year growth could surpass Bitcoin, powered by the ongoing merge completing 55% of its development, offering eco-conscious advantages. With faster transactions and lower costs within 24 months, Ethereum could yield 3x to 5x returns.
Solana (SOL-USD)
Solana (SOL-USD) has surged remarkably by 150% this year, overshadowing Bitcoin and Ethereum’s gains. Although Bitcoin and Ethereum dominate, other cryptos like Solana hold potential. Despite its top 10 market cap, Solana commands less than 1% market share.
As an “Ethereum rival,” SOL eyes substantial 2025 expansion due to its affordability, scalability, and adaptability. Its strength lies in decentralized finance and NFTs, attracting developers with stability improvements and the Helium shift.
Solana emerged to challenge Ethereum in Web 3.0, but fell short of expectations after a strong 2021 start. Trading under $25 now, far from its $260 peak, Solana faces downtime issues affecting reliability. Despite this, improvements are in focus for 2023, with progress in the NFT market. Overall, Solana’s potential shines for the next rally.
On the date of publication, Chris MacDonald has a LONG position in ETH, SOL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
