Cryptocurrencies are digital financial instruments that rely on cryptography for security instead of being physical currencies like dollars or pounds. Bitcoin (BTC-USD), the first cryptocurrency, was introduced over ten years ago and has since paved the way for numerous other cryptocurrencies. Today, there are thousands of cryptos to buy, making investors’ heads spin when considering all the options.
Due to the banking crisis and the possibility of a U.S. debt default, investors are considering cryptocurrency as a safe-haven asset to survive the current economic turmoil. This sharply contrasted the view just six months ago when many believed that the “crypto winter” would last well into 2023.
Is it currently a wise decision to purchase any cryptocurrencies? And if yes, which ones should investors consider adding to their portfolios this month? Here are three top cryptos to buy, or at least think about, right now.
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During the early morning session on Tuesday, Bitcoin’s price fell slightly by over half a percent in the last 24 hours and has decreased by over 2% in the past seven days. Like other cryptocurrencies, Bitcoin has been struggling lately and has fallen below its 50-day moving average of $28,483. Currently, the price fluctuates around $27,000.
Bitcoin has surprised market experts, as its value dropped to around $16,000 in 2022 from its 2021 high of $66,000. The pessimistic outlook caused by this decline led to headlines branding Bitcoin as a Ponzi or pyramid scheme. There was legitimate concern that Bitcoin would drop below $10,000.
In early March, regional bank collapses caused a bearish outlook for the stock market. Still, they proved to be a positive catalyst for cryptocurrencies, as they became a hedge for investors who lost trust in traditional financial systems. As a result, Bitcoin is seen as a promising investment for the remainder of 2023.
Additionally, Bitcoin’s realized price is the mean value of its supply based on the last on-chain movement, while the long-term holder realized price is the mean on-chain acquisition price of coins held outside exchanges for at least 155 days.
According to Blockware Solution’s newsletter published on May 12th, the long-term holder realized price and realized price is approaching a bullish cross that has previously signaled bear market bottoms.
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Ethereum (ETH-USD) follows Bitcoin’s trends and is considered a ‘safe’ option in the volatile crypto market. It suffered similarly during the market collapse but remains a promising investment in 2023 for similar reasons to Bitcoin. Any additional shocks to traditional finance could lead to an opportunity to invest in ETH, which rose by 35% after Silicon Valley Bank’s (OTCMKTS:SIVBQ) collapse. However, Bitcoin may be a better hedge, as it jumped by roughly 50%.
Despite the current situation, examining its technological developments provides a better perspective of its future potential. Its large size and appeal to institutional investors make it a haven during uncertain periods. The platform improves its scalability, security, and dependability through various upgrades. Roll-ups, a clever scaling solution, speed up transactions while lowering user fees.
Ethereum is expected to have a positive outlook in 2023 due to various factors. The growth of the cryptocurrency sector and the vital role of Ethereum in it provide a promising investment outlook. Future upgrades to enhance transaction speed and reduce fees are among the many catalysts that could work in Ethereum’s favor this year, making it a top crypto to purchase.
Similar to other cryptocurrencies, Solana (SOL-USD) experienced a significant drop in value last year, losing over 90%. Although it has been performing well since the beginning of the year, it remains uncertain whether Solana can maintain its upward trend in 2023. Nevertheless, Solana’s expanding ecosystem has various applications, including decentralized finance, gaming, and non-fungible tokens (NFT). Solana’s Layer 1 blockchain network has consistently outperformed Ethereum in all major cryptocurrency areas.
On May 11, the price of a certain asset bounced at a support level created by multiple support methods. This confirms the level’s validity and indicates a bullish trend if the price stays above it and a bearish trend if it falls below.
In other SOL news, Solana co-founder Anatoly Yakovenko believes that stablecoin legislation in the US could lead to a surge in digital asset adoption, attracting users worldwide, particularly those in countries with struggling currencies that require access to digital dollars. He suggests that stablecoins may be the “killer app” that drives growth in the crypto industry.
On the date of publication, Chris MacDonald has a position in ETH, SOL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris MacDonald’s love for investing 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 investing perspective.