雅虎香港財經 3 Compelling Cryptos to Buy in March
Investors have plenty of reason to search for information about cryptos to buy in March. This sector’s global market capitalization has risen in 2023 from under $800 billion, and is currently approaching $1.1 trillion. The market closely follows the stock market’s trajectory, and with participants broadly optimistic that the worst is over, both could continue to rise.
The crypto market comprises digital assets, leading cryptocurrencies, and thousands of other altcoins. The market is decentralized, but operates under increasing regulatory scrutiny that will alter the industry.
The crypto market is known for its volatility, and prices will remain volatile dependent upon broad economic and market sentiment. With 2023 starting strongly, here are a few compelling cryptos to buy.
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Bitcoin (BTC-USD)
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Bitcoin (BTC-USD), along with other leading cryptos on this list, should form the bulk of any serious investment into the cryptocurrency market. In terms of cryptos to buy, Bitcoin comes first on most investors’ lists.
Bitcoin is the first and most well-known cryptocurrency and was created in 2009 by the still-unknown Satoshi Nakamoto. It utilizes blockchain technology to record transactions to ledgers that serve as records that participants validate.
History lesson aside, the point is that Bitcoin is a fundamental part of the cryptocurrency industry. It is well-established, and that status means it is much more stable in that it is almost too big to fail. Its price movement is dependent on the broad economic outlook. That means it has a high correlation with the stock market, as 2023 has shown.
In some sense, investing in Bitcoin is a boring play on crypto growth: It’s big, well known, and moves with the overall economy. But it also moves very quickly despite its size. January saw Bitcoin run from $16,500 to over $23,000. That’s a 40% return over a month. It’s a very simple, easy-to-understand investment that outpaced an S&P 500 that grew a mere 6.6% during January.
Ethereum (ETH-USD)
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The month of March will be much the same for Ethereum (ETH-USD). If the economy continues to improve as measured by the broader stock market, it too should provide outsized gains. That pattern held true throughout 2023: The S&P 500 rose by 6.6%, and ETH rose by 32.5%. Again, a positive correlation leads to outsized gains for well-established cryptocurrencies leading the market.
The cryptocurrency market remains a guessing game at this point. So too does the stock market. The difference is the degree of volatility: it’s higher in crypto. Again, a simple pattern to follow.
Of course, Ethereum has a lot going for it. Ethereum enables developers to build and deploy decentralized applications (DApps) using smart contracts. Ethereum’s native cryptocurrency, Ether, is used to power the platform and pay for transaction fees.
Accordingly, Ethereum underpins many of the transactions that occur across the entire cryptocurrency space. That’s why it’s been likened to oil for the crypto market, which isn’t a bad analogy.
Solana (SOL-USD)
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Solana (SOL-USD) is a decentralized blockchain platform that provides scalable infrastructure for decentralized applications (DApps). Notice that this description is very similar to that of Ethereum. That’s part of its allure – it is challenging Ethereum’s dominant position within the cryptocurrency sector.
Solana is designed to handle thousands of transactions per second. That makes it one of the fastest blockchains in the industry. Solana’s native cryptocurrency, SOL, has gained popularity for its transaction speed and its low transaction fees, both of which have become legitimate gripes for Ethereum.
Like Ethereum, Solana boasts interoperability with other blockchains. If the crypto sector is to live up to its promise of revolutionizing finance, business, and society generally, Solana is highly likely to be a part of that transformation. So, rather than trying to find the next cryptocurrency that can multiply in value overnight, why not stick with SOL on the notion that it can provide still impressive gains, while being far less of a crapshoot.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks.Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.
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