Top Cryptocurrencies to Buy and Hold

0
140

It is often said that if you’re not up for dealing with a roughly 20% loss in the stock market, you shouldn’t really bother making an investment. But, when it comes to how you buy and sell crypto, there’s no rulebook yet because the market remains fairly new. That said, you should take into consideration your appetite for risks when investing in cryptocurrency as the digital asset market is notorious for its volatility.

buy and sell crypto

If we look at how the crypto market has been performing in 2022, the price dips in Bitcoin’s rate that fell below $26,000 in May have been alarming. In addition to these, the steady rise in interest rates along with the shocker that came in the stable coin market due to Terra USD (UST) collapse has been a cause of worry among investors. Yet, experts suggest that this decline is estimated to be around 45% and should not be a reason to step away from crypto investments as these are mere teething issues of an emerging industry. Hence, if you can remain undeterred by volatility and have it in you to stand strong amidst the losses, cryptocurrencies can turn out to be rewarding.

1. Bitcoin (BTC)

Keep Bitcoin at the top of your list if you like to buy and sell crypto because you have a thorough understanding of the market. The total market cap of Bitcoin is over $882 billion which explains why the name Bitcoin has become synonymous with cryptocurrency. Not just this, Bitcoin continues to dominate the market and is also valued on the lines of gold. Did you know that this is also a reason why Bitcoin is referred to as ‘digital gold’?

Despite enjoying the glory of being the number one cryptocurrency globally, Bitcoin is undergoing a tough phase because of the overall slump in the crypto market. Typically, since Bitcoin has a large market share, it remains relatively less volatile than the others in the market. Well, at least this has stayed true so far where the market dropped by 45% but the Bitcoin registered a low of 39%, making its investors feel somewhat better?

What is unnerving in this case is that this dip has surfaced in spite of a major announcement made by Fidelity Investments, which is the largest retirement plan provider in the U.S. In April, Fidelity Investments stated that they would let 401k investors buy Bitcoin in their accounts directly if their employers choose to allow it. To put this into perspective, over 23,000 companies offer retirement plans through Fidelity which covers over 20 million people. This roughly accounts for assets worth $2.7 trillion and the number would only rise depending upon the number of people who choose to opt-in. While the picture would become clearer in 2023 when this goes live, it is an important step towards bringing cryptocurrency into the mainstream.

2. Ethereum (ETH)

Developed as an alternative to Bitcoin, Ethereum quickly rose to become the second-largest cryptocurrency which today has a market share of more than $447 billion. It has an edge over Bitcoin as it supports smart contracts which even operate as non-fungible tokens or NFTs if certain specs are met. Given its functional applications and robust design, Ethereum has been a favourite among developers.

Ethereum hit its peak in November 2020 when each token was worth $4,891.70. It came down to the $3,000 level before dipping further to go below $2,000. Did you know that it is not Bitcoin but the Ethereum blockchain network that is widely used around the world? In fact, the credit for acing decentralized finance of DeFi in fact goes to Ethereum which eliminated the need for middlemen and intermediaries that are common in traditional exchanges. Even though there are several cryptocurrencies that are entering the market and have the potential to give Ethereum’s Ether tough competition, this crypto can prove to be a good investment. It doesn’t just have a wide network to its credit but an upcoming event called “The Merge” can prove to be a gamechanger.

3. Solana (SOL)

If one is to look at the leading cryptocurrencies, everything else simply follows Bitcoin and Ether. In the world of altcoins, Solana or SOL is giving strong competition to Ethereum. It has turned out to be a rather promising alternative in the DeFi space and has also managed to get a considerable market share. While many cryptocurrencies are based on Ethereum’s blockchain network, Solana operates on its own blockchain which has its native SOL crypto token. Compared to BTC’s entry in 2009, and Ether’s in 2015, SOL is a newbie that has entered the crypto market in 2020. But don’t make the mistake of underestimating this new player–it demonstrated a solid growth from $1.50 to over $170 at the end of 2021. Though Solana is also going through a slow phase and is now priced at around $45, until The Merge concludes, Solana has the potential to draw more of Ethereum’s users.

4. Binance Coin (BNB)

If you do not mind paying a little extra on Binance and trading the BNB crypto, the Binance coin or the BNB is a good choice. BNB was launched in 2017 and from then, it grew by roughly 520,000% by 2022. With a market cap of $86 billion, BNB is perhaps the third-best cryptocurrency to invest in after BTC and ETH. While it can be traded freely on Binance’s online exchange platform, BNB can also be traded with Bitcoin and Ethereum. Binance has had a rather solid start when it comes to buying and selling cryptocurrency. As per the latest data for the month of May, it has reportedly witnessed a trailing 24-hour volume of over $47 billion.

Multibank.io offers several cryptocurrencies to trade. You can buy and sell crypto hassle-free. To get started, sign-up here.

5. Tether (USDT)

The reason why most cryptocurrencies are so risky is because the market they’re traded in is extremely volatile. Stablecoins like Tether or USDT thus have an edge because they’re backed by fiat currencies like the US dollar or Euro. This ensures that the price fluctuations aren’t dramatic and thus their value remains largely stable. Hence, Tether is preferred by those who feel very uncomfortable with the market’s volatile nature which keeps them from investing in BTC or ETH. Launched in July 2014, Tether’s market cap is now well over $78 billion.

6. Shiba Inu

Shiba Inu has the face of the Japanese Shiba Inu dog as it was launched as a joke. Known as the meme coin, this altcoin witnessed solid growth in a short span of time from its launch in 2020. From the time it was upon centralized exchanges to its rise in 2021, Shiba Inu grew by 16M%. This was a jump of a good five zeroes from $0.0000000005 to $0.00008.

7. Dogecoin

One of the most undervalued cryptocurrencies in 2022 and a top shitcoin to invest in. In 2013, Dogecoin was a comical take on the growing popularity of Bitcoin and the altcoins that kept emerging. Today, this coin is believed to rule the crypto ecosystem especially after it got a rather solid push from Tesla and SpaceX’s Elon Musk.

LEAVE A REPLY

Please enter your comment!
Please enter your name here