Despite what appears to be a rather bleak setup for cryptocurrencies at this point, there are plenty of investors looking to add risky assets right now. Indeed, if inflation is peaking and macro headwinds could give way to a monetary policy pivot, perhaps adding riskier assets and looking for cryptos to buy is the right move in this environment.
One can certainly make the case that if investors’ sentiment improves going forward, it may be one of the best times to buy quality cryptos in many years.
Most top projects are down significantly more than 50% from their highs, and I’ve included some of the best cryptos in this column.
And while each of these digital assets carry significant risk, historically these tokens have provided great returns. As a result, buying these cryptos on weakness makes sense for long-term investors.
For long-term investors looking to take a risk-on approach to 2023, here are three top cryptos to buy right now.
When investors think about cryptos to buy and hold forever, there’s a reason why Bitcoin (BTC-USD) is typically the first token to come to mind. The world’s first (and largest) cryptocurrency, Bitcoin remains the gold standard against which most other projects are measured. Indeed, in the crypto world, most other tokens are priced in terms of both U.S. dollars and BTC, a fact that should not be overlooked.
In order for the crypto world to truly take on fiat currency over the long term, a ubiquitous token seen as the gold standard needs to exist. Over the past 13 years, Bitcoin has been such a token and will likely remain so over the long-term.
Thus, for those who are bullish on the continued adoption of crypto by both retail and institutional investors, Bitcoin remains the top option to consider right now. This crypto has a market capitalization of more than $320 billion for a reason, as significant capital has been invested in this project by some of the “smartest money in the room.”
The world’s second-largest cryptocurrency by market capitalization, Ethereum (ETH-USD) is generally viewed similarly to Bitcoin by many investors. Specifically, ETH, like Bitcoin, is seen as being among the best digital assets, for good reason.
The lifeblood of the world of decentralized finance (DeFI), non-fungible tokens (NFTs), and other useful aspects of the crypto world, Ethereum ‘s blockchain is central to the crypto sector. Thus, for those looking for a benchmark to value other tokens, Ethereum may be the best option.
Ethereum’s incredible ecosystem continues to grow and attract new users, despite the rise of many competing layer-1 networks. As more capital flows into blue-chip crypto projects over the coming year, I think Ethereum will probably outperform its peers.
Thus, for aggressive investors, Ethereum will likely remain a top option in 2023, and for many years to come.
One project which can certainly be put in the higher-risk camp on this list of cryptos to buy is Solana (SOL-USD). Although I’ve been mostly bullish on SOL in the past, it was one of the hardest hit cryptos in 2022, for good reason.
A series of network outages have led to concerns around Solana’s overall security profile. And while its network provides relatively fast transactions for just a fraction of a penny, its security issues are worrying many investors and developers. Consequently, some of Solana’s top NFT projects have decided to jump ship for a rival blockchain, Ethereum.
That said, despite concerns around Solana’s ties to FTX, Ethereum founder Vitalek Buterin has spoken out about Solana’s potential value at these levels.
Accordingly, I think investors taking an aggressive risk-on approach to digital assets may want to consider buying Solana at its current, very depressed prices. Now down more than 95% from its peak, SOL could provide some of the highest returns among this group if it simply regains its all-time highs. For those projecting another bull market on the horizon, that’s certainly something to consider.
On the date of publication, Chris MacDonald has positions in ETH and SOL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.