- These are the best cryptos that will lead the rebound rally for the sector.
- Bitcoin (BTC-USD): still king of the cryptos.
- Ethereum (ETH-USD): the king of transactions a bit longer still.
- Solana (SOL-USD): a legitimate challenger looking for a piece of the Ethereum pie.
- Cardano (ADA-USD): a secondary but also strong challenger looking for a piece of the Ethereum’s business.
- USD Coin (USDC-USD): a stable coin that help me beat inflation.
- Decentraland (MANA-USD): demand should increase with the rise of the metaverse.
- Sandbox (SAND-USD): a secondary trade on the metaverse concept.
Despite having a giant basket of skeptics, cryptocurrency dips have provided excellent buying opportunities. The crypto space is currently presenting another one, so the goal now is to find the best cryptos to buy. Because these assets move fast, investors should leave room for error. We should never assume that we can time the bottom perfectly, but the rally back should be a fun ride for the brave.
Investors have used this method of averaging into positions with gold for decades. It works for cryptos too, so I am always ready to pounce. The thesis for this 60% correction presented itself last November. The best cryptos have corrected this much in 2018, 2019 and twice in 2021. Every dip resulted in a phenomenal opportunity.
Those who avoided the draw-downs reaped tremendous rewards on the rebounds. There is such an opportunity from here, or slightly below. The idea is to start to buy now, and add more a bit later. The potential rewards if the past is a guide should be substantial.
Some new technical threats emerged in the last two weeks. For that I am reopening the door for more potential downside with my picks for the best cryptos to buy now. There could be another flush lower to shake out all the weak hands As such, I am looking for the coins with a working thesis, and avoiding the novelty ones. It’s not because they don’t have upside potential, but I prefer fundamental basis for ownership.
With that in mind, here are some of the best cryptos to buy now.
First and always atop of every list of best cryptos is Bitcoin (BTC-USD), the chief coin in charge. Whatever happens to BTC-USD will happen to the rest to varying degrees. The whole sector moves in unison with a few occasional exceptions. The argument for owning an investment asset is usually simple. You buy it low for the hopes of selling it higher. Except in this case, the masses have a mental block against it. Ignorance is fueling a lot of apprehension stopping investors from engaging.
Like it or not, the opportunity for investing in BTC-USD is real. It may take a slight learning curve, but it is not rocket science. The riskiest part of the adventure is finding a reliable broker. And for those who are completely averse to foreign companies, they can invest in ProShares Bitcoin Strategy ETF (NYSEARCA:BITO). This is an exchange-traded fund that we can trade on any conventional platform. This would thereby eliminate the broker security threat, allowing us to just focus on the price action.
Bitcoin just retested the 2020 footing and the 2017 all-time high levels. These are pivotal enough to invite buyers soon. Therefore, the odds of a strong rebound increase. Sometime this year, Bitcoin will have another astonishing rally that would deliver great returns.
In order of importance, Ethereum (ETH-USD) comes in second place just behind Bitcoin. This is the dominant network for crypto transactions. It is the giant that the rest are chasing, so it can still enjoy a healthy early mover advantage. Since it’s not the best, its competitors have a legitimate chance at challenging it. It will be years before they beat it, so for now all crypto traders need to own it.
For that reason, and deserves the second spot on the list of best cryptos to buy. In fact, I needed to buy some before the correction in order to move some assets around. I dragged my feet long enough that now it’s about four times cheaper to complete the transactions. I took advantage of this incredible dip to cut my expenses down to a nominal fee.
The goal for this crypto is to catch up to BTC in its market cap. It has a long way to go, but that’s an important part of its thesis. The two next best cryptos on my list are its best competitors. If the ETH bulls can take it above $1,280, then can extend another 35% from there.
Solana (SOL-USD) is a serious contender for the crypto transaction throne. In reality I think the sector will eventually become a community of companies serving it. The dominance of the Ethereum network should wane to open up for more companies like Solana to exist. The addressable market is large enough to accommodate many major providers.
This team has roots from silicon valley type thinkers. So they approach their method from a different perspective called proof of history. Regardless, they are also gaining steam with the non fungible token (NFT) community. That alone entices me to own some for the long haul. The popularity of NFT’s is merely just getting starting. And the applications for it is all over main street. From art to sports or even just crazy fun every day people are getting into it. SOL-USD was my largest and easiest investment win last week. I bought it for $27.6 and it rallied to $42. My goal is to double the size on the next dip and hold some for years.
Cardano (ADA-USD) is also trying to rival Ethereum. It too claims advantage, but in reality they all are good in their own way. Including ADA as part of a best of cryptos collection of coin makes sense. The process is early enough that we should not assume absolute winners yet. Cardano’s market cap is slightly larger than Solana, but they are both in the thick of it. The market cap chase is important, and their leader Ethereum is still about 10 times larger.
Cardano blockchain platform relies on the proof-of-stake. It’s more than five years old, so it’s an oldie in relative terms. Ethereum predates it by only two years. They have developed a strong reputation for security and maneuverability through side chains. In addition, it cannot be mined, so those who want to save the earth love that.
USD Coin (USDC-USD)
Most cryptos prices are very active, but some are stable because they track a secondary asset. My pick today is USD Coin (USDC-USD) because it tracks the U.S. dollar. It’s my way of carrying cash for my crypto purchases. I could use actual fiat dollars, but the USDC has paid me a handsome reward of 10% from staking. Sadly, recent government regulations have reduced it down to 3%, but that’s still very competitive. And since it continually seeks to be $1, I am relatively at ease with it.
I don’t expect any actual growth from holding this coin. But I absolutely need it to pounce on the other opportunities that I tackle in the rest. With the inflation problem creeping up on us in the past year, my 10% dividend has been a blessing. My alternative there is to accept the measly 0.6% from U.S. banks. And that sounds about as fun as a dentist appointment.
The Decentraland (MANA-USD) metaverse game has been around for over seven years. But it has only been public since 2020. Users have been at it for a long while, since the concept resembles that of other games. This time, they are taking the socioeconomic gaming interactions totally into an immersive setting. The digital living opportunity is now closer to reality than ever.
MANA-USD is the token that players can use to build their electronic lives. This is the currency for those neighborhoods, so the more users will result in more demand. And with the help that Meta Platforms (NASDAQ:META) will provide, the evolution into Decentraland’s domain is imminent. Facebook currently has billions of users, so the potential pool of metaverse inhabitants can explode quickly.
And for that reason the demand for MANA-USD should also remain robust. I took a starter position, since I am still getting up to speed with the metaverse concept. What is clear is with the sharp pivot that Meta took, there is no use fighting it. I am forcing myself to embrace the change and learn early.
Since the metaverse is so new, investors in its components should diversify risks. While Decentraland presents a legitimate opportunity, it would be better if we split the trade into at least one other option. In comes Sandbox (SAND-USD), which is a token supporting another metaverse game. Keep in mind that these games may eventually be ways of life. The human imagination is an incredible driver of future themes.
The Sandbox project has partners with household names like Atari and Lionsgate. These alliances make for great sound bites, and will bring notoriety to a new thing. Leveraging what is already famous is a quick way to ubiquity. But I have to warn investors that since this is a concept that is in its infancy stage. So while they all have very impressive renderings, not all will make it. So to avoid betting on the one losing horse, it’s better to choose more than one contender.
On the date of publication, Nicolas Chahine held ETH, USDC, SOL, CRO and MANA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.