The explosion of FTX, a formerly trusted exchange that had a high profile among informal investors thanks to its extensive marketing, has given a black eye to a space that has already made its mess this year.
While many investors have sold their cryptocurrencies during the current crypto winter, there is a buyer for every seller and some of them are long-term investors who are confident in crypto’s potential. The turmoil may present good buying opportunities. Here are three cryptos that risk-tolerant investors should consider buying during the current bear market.
Ethereum (ETH -1.35%) is up 26% from June lows, but FTX sold off after filing for bankruptcy. However, this could be a case of throwing the baby out with the bathwater as Ethereum is a decentralized, established cryptocurrency that has little to do with FTX. No entity controls Ethereum, and over 70 million users around the world help validate transactions and secure the Ethereum network, which is in stark contrast to cryptocurrencies like Ethereum. ftx token and many other new cryptocurrencies issued by exchanges and other centralized entities.
This year, Ethereum users welcomed their long-awaited transition to proof-of-stake consensus, known as The Merge, which significantly reduced Ethereum’s carbon footprint and paved the way for sharding. (which will eventually lead to faster transactions and lower fees when implemented in the next upgrade), and the ability for more Ethereum users to join the network by deploying their positions to validate transactions and secure the network. Opened the possibility to earn rewards for.
The ability to easily earn staking rewards also adds to Ethereum’s appeal as an investment. A user must wager a minimum of 32 Ether to use their own validator, but there are a number of services that wager your Ethereum for you, allowing you to invest in popular dividend stocks, including: Also earn competitive returns with 10 payouts. years of treasury bills.
The $180 billion cryptocurrency is the largest smart contract platform ever, making it a true gateway for large institutional investors looking to enter the world of decentralized finance (DeFi). JPMorgan Chase Recently tested the waters of decentralized finance with its first DeFi company. trade was carried out on polygon Blockchain, a Layer 2 network on Ethereum. large decentralized exchanges such as Uniswap, dYdX, and others are built on Ethereum. As more traditional finance giants get involved in decentralized finance, Ethereum will be their first stop.
With new post-Merge capabilities, such as the ability to earn rewards for staking, and its position at the gateway to the world of DeFi, Ethereum looks like a top cryptocurrency to buy during a bear market.
like ether, Bitcoin (BTC -0.65%) is a decentralized cryptocurrency that stands out from the crowd. The original crypto is also the original decentralized asset. There is no leader or central authority that controls the bitcoin network – meaning there is no single entity that can make bad decisions or act in a way that destroys the value of bitcoin. A global network of miners secure the bitcoin network by solving complex mathematical equations to validate transactions and earn more bitcoins. Bitcoin is also transparent because all transactions on its blockchain are visible and visible to the public.
Bitcoin is the oldest and largest cryptocurrency and will benefit as a gateway to crypto as more institutional investors and companies test the waters of crypto. While the FTX saga has certainly set cryptocurrency adoption back a few steps, the tide is generally turning for bitcoin and cryptocurrency as a whole.
on October 11 Bank of New York MellonThe world’s largest custodian bank has announced that it will offer custody of cryptocurrencies. Alphabet recently announced that it would use coin base To accept bitcoin payments for your Google Cloud services, and master card announced that it will offer its services to enable traditional banks to offer cryptocurrency trading.
As the world moves towards crypto adoption, bitcoin is best suited to advance cryptocurrencies.
Litecoin (LTC -4.12%) is a major cryptocurrency that has managed to avoid being knocked down in the current selloff, with the proof-of-work crypto rising an astonishing 16% over the past month. The $4 billion cryptocurrency, which started as a fork from bitcoin in 2011, is experiencing a bit of a resurgence with a 53% rally since its low in June.
Litecoin is rising as the network hash rate hits new all-time highs, indicating growing interest in Litecoin and more competition to earn Litecoin from mining. Litecoin also benefited from the news that it will join bitcoin and ethereum as digital assets that will be available moneygram internationalpayment platform. Like bitcoin and ethereum, litecoin is one of the cryptocurrencies that Google accepts for cloud payments, making it the 16th largest cryptocurrency by increased credibility based on market capitalization. Perhaps the renewed interest in decentralized, proof-of-work assets and growing adoption will continue to take Litecoin to the next level.
The current crypto winter has been difficult for investors, but this bear market is also an opportune time for risk-tolerant long-term investors to collect more coins at lower prices before market sentiment turns positive again.
JP Morgan Chase is an advertising partner of The Ascent, a Motley Fool company. Susan Frey, an executive at Alphabet, serves on the board of directors of The Motley Fool. Michael Byrne has positions in Bitcoin and Ethereum. The Motley Fool holds positions in and recommends Alphabet (A Share), Alphabet (C Share), bitcoin, Coinbase Global, Inc., Ethereum, JPMorgan Chase, Mastercard, Polygon, and Uniswap Protocol Token. The Motley Fool has a disclosure policy.