Cryptocurrencies are digital financial instruments based on cryptography for security and are not physical currencies like dollars or pounds. Bitcoin (BTC USD), the first cryptocurrency, was launched over a decade ago and has since paved the way for numerous other cryptocurrencies. There are thousands of cryptos to buy these days, making investors’ heads spin as they consider all the options.
Due to the banking crisis and the possibility of a US debt default, investors are looking to cryptocurrencies as a safe haven to weather the current economic turmoil. This is in stark contrast to the view just six months ago, when many believed the “crypto winter” would last well into 2023.
Is it a wise decision to buy cryptocurrencies right now? And if so, which ones should investors add to their portfolios this month? Here are three top cryptocurrencies to buy or at least consider buying right now.
Bitcoin (BTC)
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During Tuesday’s early morning session, bitcoin price is slightly down over half a percent over the past 24 hours and is down over 2% over the past seven days. Like other cryptocurrencies, bitcoin has been struggling lately, falling below its 50-day moving average of $28,483. The price is currently hovering around $27,000.
Bitcoin has surprised market experts as its value fell from its peak of $66,000 in 2021 to around $16,000 in 2022. The bearish outlook caused by this drop led to headlines branding Bitcoin as a Ponzi scheme or pyramid scheme. There were legitimate concerns that Bitcoin would fall below $10,000.
In early March, collapses in regional banks led to 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 had lost faith in traditional financial systems. Therefore, Bitcoin is considered a promising investment for the rest of 2023.
Additionally, The realized price of bitcoin is the median of its supply based on the last movement on the chain, while the price realized by the long-term holder is the median purchase price on the chain of coins held off exchanges for at least 155 days.
According to Blockware Solution’s newsletter published on May 12, the long-term holder’s realized price and the realized price are approaching a bullish cross that previously signaled bear market bottoms.
Ethereum (ETH)
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ether (ETH USD) follows the trends of Bitcoin and is considered a “safe” option in the volatile crypto market. It suffered similarly during the market slump, but remains a promising investment in 2023 for reasons similar to Bitcoin. Any further shock to traditional finance could lead to an investment opportunity in ETH, which surged 35% thereafter The Silicon Valley Bank (OTCMKTS:SIVBQ) to collapse. However, Bitcoin could be a better hedge as it is up about 50%.
Despite the current situation, examining its technological developments offers a better perspective on its future potential. Its size and appeal to institutional investors make it a haven in uncertain times. The platform improves its scalability, security and reliability through various upgrades. A clever scaling solution, roll-ups speed up transactions while lowering usage fees.
Ethereum is expected to have one positive outlook in 2023 due to various factors. The growth of the cryptocurrency sector and the crucial role of Ethereum in it offer promising investment prospects. Future upgrades to increase transaction speeds and lower fees are among the many catalysts that could bode well for Ethereum this year and make it a top cryptocurrency to buy.
Solana (SUN)
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Similar to other cryptocurrencies, Solana (SOL USD) experienced a significant drop in value over the past year, losing over 90%. While Solana has performed well year-to-date, it remains uncertain whether Solana can maintain its uptrend in 2023. Still, Solana’s growing ecosystem has diverse 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 11th, the price of a particular asset rallied to a support level created by multiple support methods. This confirms the validity of the level and indicates an uptrend if the price stays above it and a downtrend if it falls below it.
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 and attract users around the world, especially in countries with troubled currencies that need access to digital dollars. He suggests that stablecoins could be the “killer app” driving growth in the crypto industry.
At the time of publication, Chris MacDonald has a position at ETH, SOL. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com’s publication guidelines.
Chris MacDonald’s love of investing led him to pursue an MBA in finance and has held a number of leadership positions in corporate finance and venture capital over the past 15 years. His past experience as a financial analyst coupled with his eagerness to find undervalued growth opportunities contribute to his conservative, long-term investment perspective.
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