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7 Cryptos to Buy Before the Bull Market Returns

7 Cryptos to Buy Before the Bull Market Returns

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Investors looking for cryptos to buy before the bull market returns have a number of tokens to choose from that are now trading at much more attractive valuations.

Indeed, the most recent bull market has seen a surge in interest in cryptocurrencies, which most investors did not expect. However, with higher interest rates and an unfavorable macroeconomic environment, this has been a tough year for crypto fans.

That said, in recent weeks sentiment has started to turn increasingly bullish.

Currently, the valuation of all crypto market sits at around $1.08 trillion. Although it has risen considerably from lows of around $800 billion just a few weeks ago, this is still a long way from the peak of this $3 trillion sector at the end of last year. As a result, it remains to be seen whether this market represents an incredible buying opportunity or more downside.

For those with an optimistic view of where the crypto might go, here are seven coins to consider buying right now.

Cryptos to buy: Bitcoin (BTC-USD)

A bitcoin coin frozen in ice.

Source: Shutterstock

Bitcoin (BTC-USD) is undoubtedly the most watched cryptocurrency in the world. And for good reason. This mega-cap crypto holds a market capitalization of around $450 billion, or around 40% of the overall market.

Bitcoin is a cryptocurrency for most investors.

Bitcoin maximalists touted BTC as the solution to inflation and the depreciation of the US dollar. While we have seen inflation soar, the US dollar has done anything but depreciate. Additionally, the idea that Bitcoin could be a market hedge has been refuted, with the crypto showing high levels of correlation with stock markets.

So if Bitcoin isn’t an inflation hedge or a low-beta way to gain exposure to rising asset values, what is?

Well, many view Bitcoin in the same way as digital gold. Gold prices have also suffered during this period of US dollar strength and rising yields. So, perhaps Bitcoin’s price action will more closely follow that of gold.

For those thinking long term and looking for a way to play crypto in a less volatile way, Bitcoin is still the way to go.

Ethereum (ETH-USD)

Another stylized version of the Ethereum logo

Source: Shutterstock

Next to Bitcoin, Ethereum (ETH-USD) ranks second in terms of market capitalization, with an astonishing valuation of over $200 billion. This valuation is usually derived from an ecosystem of decentralized applications and other projects built on top of Ethereum. Indeed, a long-standing thesis that the value of a cryptocurrency should equal the value of projects based on its blockchain should make Ethereum very valuable over time.

As more and more projects revolve around Ethereum, there is an easy-to-understand thesis for holding this coin. However, there is another catalyst that many investors are watching right now. It’s Ethereum upcoming merger.

The Ethereum merger will combine the Ethereum blockchain with its proof-of-stake Beacon chain, to create a new iteration of Ethereum. Ethereum 2.0 is what many call this proof-of-stake version, which will make mining on this blockchain obsolete and improve network efficiency (and its environmental footprint). It’s a win for everyone involved (except Ethereum miners).

Those betting on the long-term value provided by Ethereum can rightly be excited about this merger, which now has a tentative date of September 19.

Cryptos to buy: BNB (BNB-USD)

A Binance coin sits in front of the trading charts.

Source: Shutterstock

BNB (BNB-USD) is the native coin of the world’s largest crypto exchange, Binance. This crypto is next on the list by market capitalization, with an aggregate Evaluation over $61 billion.

Since the launch of BNB in ​​2017, this project has succeeded in magnifying its offers. Binance has become the largest crypto exchange in the world, guided by a holistic approach. BNB plays an important role for investors, who use this coin to pay trading fees and transaction costs.

Thus, the supply and demand of BNB are directly correlated to the use of the Binance exchange. As a trusted exchange, Binance and the BNB coin are expected to see increasing investment over time.

Thus, those with a long-term view of this sector may want to consider this coin as a beneficiary of the next bull market, whenever it presents itself.

Cardano (USD-ADA)

The Cardano token with other gold and silver tokens in the background.

Source: Shutterstock

gimbal (ADA-USD) is another top crypto project that has been getting a lot of attention lately. This is mainly due to the Vasil hard fork of this network, which will bring a number of upgrades to Cardano.

Indeed, Cardano is a project that has been clear and deliberate about its roadmap for developments and improvements. The developer team thought about upgrading this network to improve five areas. These include scalability, decentralization, foundation, smart contracts, and governance. The steady and significant improvement in these metrics is one of the reasons why many investors are focusing on Cardano.

Moreover, this proof-of-stake blockchain is much more energy-efficient than other big competitors. For those looking for an eco-friendly project with growth potential, Cardano ticks all the boxes.

In this age of optimization, I think Cardano might be worth considering at these levels.

Cryptos to buy: Solana (SOL-USD)

Macro shot of a physical Solana cryptocurrency coin (a class=SOL-USD

)” width=”300″ height=”169″ /> Source: Rcc_Btn / Shutterstock.com

Solana (SOL-USD) had one of the most impressive runs of the last bull market. Indeed, user adoption of this blockchain network has increased for two main reasons.

First, Solana happens to be among the fastest blockchains. It can handle thousands of transactions per second. Compared to Ethereum and other more established blockchains with throughput metrics of around a dozen (or less) transactions per second, that’s pretty darn good.

Moreover, the cost per transaction on the Solana blockchain is negligible. Users typically pay a fraction of a penny in fees on the Solana network. This can compare to hundreds of dollars (or more) on the Ethereum blockchain, for example. Thus, Solana’s status as an Ethereum Killer has been noted by users.

That said, downtime on the Solana network has raised concerns. Solana developers will need to improve the security and efficiency of this network in the future. If they can do it, Solana looks like one of the best ways to play the next crypto bull market.

Polygon (MATIC-USD)

A phone, above a laptop keyboard, displaying the Polygon logo

Source: sdx15 / Shutterstock.com

Polygon (MATIC-USD) is another coin that is hard to talk about without talking about Ethereum. It’s not because Polygon is a competitor to Ethereum per se. On the contrary, this layer 2 scaling solution aims to accelerate transactions on the Ethereum blockchain in an efficient manner.

Polygon, like other scaling solutions, can be thought of as another lane on a congested highway. For those working in NFT, the scalability that Polygon has added is a boon. Indeed, high levels of congestion on the Ethereum blockchain have made NFT transactions slow and expensive. Indeed, for projects seeking to promote less valuable NFTs, this is not a good thing.

Polygon has also seen increased interest in some of the corporate partnerships and other marketing events it has engaged in. Specifically, a partnership with Coca Cola (NYSE:KO) and the publication of a NFT series pride collection on Reddit aroused interest. Additionally, Polygon has announced plans to open an NFT marketplace on its network.

That’s a lot of positive activity. For long-term investors looking for a compelling opportunity at these beaten levels, Polygon certainly piques my interest.

Cryptos to buy: Tether (USDT-USD)

Image of four pieces of tehter

Source: Wit Olszewski / Shutterstock.com

Now for a rather unconventional choice. Attached (USDT-USD) is a stablecoin, which has actually been a rather controversial topic of discussion for investors. Indeed, unlike other stablecoins, Tether has been less transparent in disclosing what is supporting it.

Given the recent turmoil in the stablecoin space, investors have reason to be concerned. Regulators are probing this sector and may at some point crack down on stablecoins. These are inherent risks.

However, Tether’s status as the leading stablecoin means it is tied to an incredible amount of liquidity in the crypto world. As a result, investors looking to park money in turbulent times, while maintaining reserves on the blockchain, often look to Tether as a place to hide.

Accordingly, for those looking for a short-term place to park their money and avoid volatility, Tether may be one way to do so. Although not without risk, it is one of the crypto alternatives that has outperformed most of the market this year, due to its dollar peg.

As of publication date, Chris MacDonald was long in SOL-USD and ETH-USD. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.

The post office 7 Cryptos to Buy Before the Bull Market Returns appeared first on InvestorPlace.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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