Analysts from consulting giant The Motley Fool are now discussing the best cryptocurrencies to buy. Answering this question, senior Chris MacDonald chose these 2 crypto giants.
Selections of the ‘best cryptocurrencies’ to buy at current prices, according to experts
When it comes to investments in the crypto sector, Bitcoin really has few competitors. The world’s first cryptocurrency is the clear leader with a market cap currently exceeding $560 billion.
The value of Bitcoin is revealed by the fact that it is a secure, decentralized exchange of value around the world. However, Bitcoin has not yet reached widespread use as a currency. However, the decentralized status and widespread use of this network is seen by many as a hedge against the existing traditional financial infrastructure.
As we reported on Kriptokoin.com, there have been several bank bankruptcies, including the latest crisis seen in First Republic last week. Additionally, as the debt ceiling crisis approaches, risks to the currency increase. This causes many to seek investments that can perform well in such an environment.
In recent days, Bitcoin continues to challenge $30,000. According to analyst MacDonald, “paradoxically, the banking industry may be poised for a higher breakout if things take a turn for the worse.”
The heart of DeFi: Ethereum (ETH)
The second choice, Ethereum (ETH), is a highly preferred cryptocurrency by global investors for various reasons. First, it is the second largest cryptocurrency next to Bitcoin. Second, Ethereum’s massive smart contract-enabled network is becoming the hub of numerous DeFi projects. Analysts predict that this will be a trend that will continue for years.
Ethereum’s rise was almost entirely tied to the network’s smart contract capability. This allows decentralized applications to be built on Blockchain. The growing popularity of cryptos over the years has made possible use cases that were previously thought impossible. Accordingly, many see Ethereum as a Bitcoin alternative that generates real-world value for users.
In recent years, Ethereum’s performance has outstripped Bitcoin. However, during previous dips, Ethereum has also seen larger bearish moves. Therefore, Ethereum’s beta or relative movement in the overall market is higher. Having a mix of low beta and high beta cryptos can benefit long-term investors as risk-adjusted returns can be maximized.
Ethereum’s recent rise has had the same catalysts as Bitcoin’s. However, there are key factors that many Ethereum investors are focusing on, which sets this project apart from its megacap peers. The network has recently completed the Shapella upgrade, which makes changes to Ethereum’s consensus layer. With this upgrade, the ETH withdrawal process started for those staking on the Ethereum network.
Cryptocurrency giants will stay with us for years
There are many reasons why many investors should not touch crypto. From rug pull to scams to more than 90% price drops, this is one that is clearly seen as an extremely high-risk proposition that does not bode well for crypto in times of economic hardship.
However, Bitcoin and Ethereum have shown their resilience. They have the size and scale to continue to support the growth of the industry, according to analysts. Chris MacDonald, one of the Fool analysts, says that the best choices when it comes to investing in cryptocurrencies are BTC and ETH.
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