Top Cryptos to Invest In: Why the Best Are Still the Best
Cryptocurrency remains the most explosive investment opportunity out there. This despite the fact that the S&P 500 has seen more than a 25% return year-to-date. But the top cryptos to invest in are wildly outperforming the stock market’s bull run.
Check this out. Bitcoin is up more than 116% this year. Ethereum is up an impressive 530% on the year. And the so-called Ethereum killer, Solana is up roughly 15,065% so far this year! If you’ve had a stake in any of these coins for a while, all you have to do is take a look at your portfolio. This year truly has been the year of crypto. And this despite several drawbacks through the year.
This year, the crypto community faced a lot of headwind. Enfant terrible, Elon Musk warned everyone that Bitcoin is bad for the environment. China shut down 90% of its Bitcoin mining capacity. Then the FBI recovered a big chuck of the crypto ransom paid to hacker group DarkSide, which was responsible for the Colonial Pipeline attack. While that last one was sort of good news, it stoked some fears that maybe crypto isn’t quite as secure as everyone thinks. All of this (as well as some other minor storylines) sent crypto crashing.
Prices of many of the big cryptos were halved. But as the saying goes, “Be fearful when others are greedy and greedy when others are fearful.” And the greedy took full advantage of the fear. That dip turned out to be a great buying opportunity. And there are several reasons why…
Why the Top Cryptos to Invest in Remain the Top Cryptos
The Federal Reserve has been printing money like crazy since the beginning of the pandemic. In its attempt to prop up the economy, the Fed has been injecting cash into the banking system like never before. The central bank has purchased trillions of dollars in mortgage-backed securities in the past year and a half. This (in addition to other factors) has pushed interest rates to their lowest levels in generations.
In other words, there’s a whole lot of free money out there. This is one of the reasons inflation is on the rise. And those that saw this coming made out like bandits. A recent study took a closer look at the relationship between cryptocurrency and forward inflation rates. And it concluded that aggressive fiscal and monetary stimulus programs led to investors looking to investments like crypto.
While the debate as to whether crypto is actually a hedge against inflation will go on, it’s fairly clear that a lot of powerful people think of it as such. Case in point, venture capitalists threw $4.3 billion into crypto in all of 2020. But only in the third quarter of 2021, they invested a record $6.5 billion in crypto. That’s a stunning rise. And it’s not even including other institutional money pouring into crypto. All of which only sweeten the deal for the top cryptos to invest in.
There is now a Bitcoin ETF listed on the New York Stock Exchange. Crypto hedge funds are being created. You can now set up an individual retirement account with crypto. And on top of this, it’s never been easier to actually pay for things with cryptocurrency. There’s good reason to believe the best is yet to come for crypto.
So, Where to Invest?
Volatility will continue to scare away a lot of retail investors. And that’s a bummer for them. If you plan on being in the market for a while and know how to avoid crypto scams, there’s still a lot of money to be made. Plenty of analysts are still predicting Bitcoin will hit $100,000 before the end of the year. And in all honesty, that doesn’t seem so far-fetched. That in of itself is a strong case for why Bitcoin is one of the top cryptos to invest in. Anything with the potential to increase by more than 50% in a couple months certainly looks worth the risk.
And that goes double for the aforementioned Ethereum. While you shouldn’t expect them to hit the $100,000 mark this year, the way they’ve been outpacing Bitcoin this year suggests they’ve still got a lot of momentum behind them. And that makes them both worthwhile investments to consider.
Top Cryptos to Invest In: The Bottom Line
We know people like to get served up a quick list of tokens to invest in. But the top cryptos to invest in really run the gamut. The only questionable crypto that comes to mind immediately is Tether. But that has more to do with how it’s backed by some risky Chinese debt than anything else. But if you’re just dying to find some cheap crypto to buy now, we have some suggestions for you. Just click that link.
However, if you’re looking for more detailed analysis on what’s moving the crypto markets (and some investment opportunities to boot), we suggest signing up for Manward Financial Digest. In it, crypto expert Andy Snyder delivers to his subscribers all of the information needed to make smart cryptocurrency investments. All you have to do is enter your email address in the box below to get started.
About Matthew Makowski
Matthew Makowski is a senior research analyst and writer at Investment U. He has been studying and writing about the markets for 20 years. Equally comfortable identifying value stocks as he is discounts in the crypto markets, Matthew began mining Bitcoin in 2011 and has since honed his focus on the cryptocurrency markets as a whole. He is a graduate of Rutgers University and lives in Colorado with his dogs Dorito and Pretzel.