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2 Top Cryptocurrencies Worth Considering on This Dip

cryptocurrency, crypto, blockchain

cryptocurrency, crypto, blockchain

Written by Chris MacDonald at The Motley Fool Canada

The “buy-the-dip” principle is based on the assumption that price declines are temporary aberrations which correct themselves over time. In general, risk assets mostly go up. Accordingly, during periods of decline, investors can reap outsized long-term returns by buying assets such as top cryptocurrencies when they’re beaten up.

Indeed, the crypto sector has been hit hard of late. This so-called crypto winter everyone is talking about is real. Many top tokens are now more than 50% below their all-time highs, reflecting a stark sentiment shift in this space.

That said, for those who believe the night is darkest before the dawn, here are three tokens worth looking at right now.

Top cryptocurrencies: Solana

Solana (CRYPTO:SOL) is a fast-growing crypto network which has surprisingly only been around for roughly two years. At its peak, Solana’s native token SOL surged 130,000% over its initial coin offering (ICO) price. Those are some incredible gains for investors in such a short period of time.

The key driver of Solana’s outperformance has been its technological advantage over rival networks. Using a unique proof-of-history consensus validation mechanism, Solana has found a way to provide incredible throughput and very low costs per transaction. These metrics are some of the best in the crypto world, and have enticed investors to consider this project for a long time.

Solana Labs, the team behind the Solana project, hasn’t been sitting on its hands either. Solana Labs recently unveiled its Web3 Android smartphone named Saga. This phone comes with integrated “Solana Pay” to facilitate on-chain payments based on QR code, a Web3 dApp store, and a “seed vault,” which will store private keys deep within the phone’s recesses and a mobile wallet adapter. Coming at a price tag of $1,000, this phone will be available for delivery in early 2023.

For those who believe the growth story with this network is intact, this is an interesting option to consider right now.

Bitcoin

I suppose no list of top cryptocurrencies is complete without mentioning Bitcoin (CRYPTO:BTC). Indeed, this token is the oldest and arguably the most prolific digital asset ever created. Created as a result of financial instability following the Great Recession, Bitcoin’s creators wanted to envision a world in which digital money could reign supreme.

As it happens, this movement has caught on.

Two countries have adopted Bitcoin as legal tender. Many expect others to follow suit. Additionally, the surging interest from institutional investors in crypto is largely focused on Bitcoin. Indeed, asset managers looking to put their money to work typically focus on the lowest-risk assets out there. Bitcoin remains the top option in this regard.

This crypto’s long-standing nature, as well as its fixed supply, remain variables long-term investors continue to focus on. In my view, these two top cryptocurrencies are certainly worth a look for investors with a long-term investing time horizon.

The post 2 Top Cryptocurrencies Worth Considering on This Dip appeared first on The Motley Fool Canada.

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Fool contributor Chris MacDonald has positions in Solana. The Motley Fool recommends Bitcoin and Solana.

2022


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