business

3 Cryptos to buy on the dip, or you’ll kick yourself later


The cryptocurrency market is one that has proven to be volatile. Over the past few years, much of this volatility has been on the upside. As a result, retail investors explored different cryptos to buy on the downside for outsized returns.

That said, this year’s bear market has dramatically transformed that sentiment. Investors have mainly tried to reduce the risks of their portfolios, choosing safe havens rather than hypergrowth assets. So, more and more investors are looking to sell cryptocurrencies these days.

Of course, macroeconomic factors such as rising rates combined with regulatory and geopolitical concerns are not helping. However, from an industry perspective, the collapse of various crypto lenders, stablecoins, and other structural issues have come to the fore.

That said, for those looking to take a long-term view of the crypto industry, there are options to consider. Here are the three best cryptos to buy on the dip:

Cryptos to buy: Ethereum (ETH)

Source: shutter

Ethereumit is (ETH-USD) unexpected decline this year has been remarkable, as has the volatility of this token. Since peaking at around $4,900 per token about a year ago, Ethereum’s price has recently dropped to $900. However, with ETH now trading at around $1,300 per token, long-term investors may be excited about the prospects for this token, given its enhanced risk-reward ratio at these levels.

One of the main reasons for the optimism of long-term investors is the recent Ethereum update called “the Merge.” This upgrade essentially integrated the network’s Proof-of-Stake Beacon chain into the mainnet, creating a much more energy-efficient network. This is great news for those concerned about the environmental impact of this project. Moreover, this upgrade bodes well in a long-term perspective regarding future upgrades that may take place.

Additionally, founder Vitalik Buterin has repeatedly stated that this merger lays the groundwork for many efficiency improvements that could improve Ethereum’s speed and cost profile. For those who have used this network, this is a big deal. Indeed, one of the main concerns of many ETH investors is the impending competition from other proof-of-stake networks.

Over time, I think Ethereum will likely maintain its second place in the crypto rankings. Some believe that a “reversal” or Ethereum taking the top spot is also possible. In any case, Ethereum certainly looks like a much more solid long-term bet with its current prices.

Solana (SOL)

Concept art of the Solana blockchain (SOL-USD).

Source: Shutterstock

Like Ethereum, Solana (SOL-USD) was specifically designed as a building block of decentralized finance. This network is among the main competitors of Ethereum, known for its speed and scalability.

In particular, Solana can treat thousands of transactions per second. This speed advantage has led to significant developer interest in the Solana network. With the arrival of more and more developers on decentralized applications, Solana’s ecosystem has grown considerably.

Currently, it is estimated that Solana market share in the NFT space, in particular, is around 1.1%. This is impressive, considering that the network’s market share at the start of 2021 was just 0.01%. This type of exponential growth is what long-term investors want to see.

Additionally, Solana saw incredible daily transaction growth during the second quarter. More than 40 million daily transactions took place on the Solana network, compared to 1 million daily transactions for Ethereum between April and June. Thus, the Solana blockchain is often seen as more utilitarian than an investment vehicle.

Gimbal (ADA)

Cardano (ADA) token with blue and orange digital background.

Source: Stanslavs / Shutterstock

gimbal (ADA-USD) is a proof-of-stake blockchain generally considered a competitor to Ethereum. The project is among the oldest to adopt a pure proof-of-stake model. Thus, the developers, users and investors of this project are among the most stable in the sector.

Cardano founder Charles Hoskinson is one of the leading minds in the crypto world. Many attribute some of this blockchain’s great successes to its core team. Indeed, I think it’s a great selling point to consider.

However, this network also has several other advantages to consider. The network is recent Vasil hard fork, a significant upgrade similar to the Ethereum merger, was implemented very recently. This upgrade will improve network efficiency and scalability. Therefore, for those looking for another blockchain with the excitement of an upgrade, Cardano certainly has potential for momentum from here.

Additionally, I think this token is an intriguing long-term investment. Like all chips, it was hit hard. But from a risk-reward perspective, ADA is starting to look a lot more attractive.

As of the date of publication, Chris MacDonald holds positions in Ethereum and Solana. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.

Chris MacDonald’s love of investing has led him to pursue an MBA in finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative long-term investment outlook.

InvestorPlace

Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor.
Back to top button