What Crypto to Buy Now That the Markets Are Down
The crypto markets started out the year red-hot, but they’ve cooled off substantially. The big price drops have investors asking what crypto to buy now… Here at Investment U, the answer seems obvious. But it’s also contingent on how much risk you’re willing to take. So first, let’s unpack a little more about what’s going on.
Bitcoin fell to a low of less than $29,000 in June. That triggered the crypto bears to come out in full force. Investors were spooked. To be fair, though, let’s remember that not long ago, a single Bitcoin was worth around $65,000.
Naturally, trading volume plummeted, falling by more than 40% on the biggest exchanges. Daily volume dropped from a whopping $138.2 billion to just over $78 billion. In a market fueled by headlines, speculation, and of course, supply and demand, it all makes perfect sense. The crypto markets had a target on their backs. And it seemed like every keyboard warrior out there took aim and fired. You can read the rundown on what caused crypto’s crash here.
By the time the dust settled, there were a lot of headlines to unpack. It wasn’t just the so-called China crypto ban. We can’t blame enfant terrible Elon Musk this time either. There were some actual damaging things that happened that we need to take note of.
Titan crypto collapsed under its own weight. The stablecoin Tether began to look a lot less stable. On top of this, the FBI was able to track down the Bitcoin ransom paid to the hacker group DarkSide. (While that last one is largely positive, it did instill some uncertainty in the secret nature of cryptos.) Then there was a glitch in the Coinbase exchange. But all of that is behind us now…
What Crypto to Buy Now Before the Markets Recover
The seemingly ceaseless supply of damaging headlines has started to slow down. And we’re starting to see a recovery. But that’s not stopping the media from delivering FUD to its readers. News feeds are already filling up with stories about the start of a crypto winter.
While we’re not denying the trend exists, we’re not panicking quite yet. Worst case, crypto markets are in a bear market. But that’s actually good news for investors with a little scratch to invest. Even though there are signs of a recovery, lots of our favorite cryptos are still trading near their 52-week lows.
The key to figuring out what crypto to buy now is to pick a crypto with a purpose. Underperforming markets can be enough to send fringy altcoins to an early grave. The cryptos built to last are the ones that have intentions beyond serving investors.
Take Ethereum, for instance. Spooked investors and reduced volume have sent it tumbling to less than half of its all-time high. But Ethereum isn’t going anywhere. Too any products and services depend on its blockchain technology. It’s used to create and share business. Scores of decentralized apps are powered by the Ethereum blockchain. Heck, practically the entire nonfungible token (NFT) marketplace is built around Ethereum. So, when it comes to figuring out what crypto to buy now, Ethereum should be near the top of the list. It’s selling at a discount.
The other big one is, of course, Bitcoin. The king of the cryptos has only grown more popular over the years. You can buy and sell it in your PayPal account. Morgan Stanley is now offering its elite customers access to it. Hedge funds are getting in on the action. And we’re likely to see a Bitcoin-backed ETF in the U.S. before the end of the year.
The Bottom Line on Cryptos Now
“Be fearful when others are greedy and greedy when others are fearful.”
– Warren Buffett
It doesn’t always make sense to apply stock market logic to the crypto markets. But in this case, it makes perfect sense. Bitcoin is down, but it’s far from out. Same goes for Ethereum. The crypto markets are pretty quiet of late. Retail investors are quietly backing out of the crypto markets, but they’ll be back. They came back after the massive crypto crash in 2018. In fact, they came back in even larger numbers. And they’ll be back when the rally becomes more obvious. That makes choosing what crypto to buy now very easy.
Those altcoins with a quadrillion tokens in circulation may last, but not all of them will. The big boys that have been through this before will, though. Bitcoin and Ethereum are the easy examples. But there are a whole lot of other cryptos worth your consideration. For more investment opportunities in the crypto markets, we suggest signing up for the Manward Financial Digest e-letter. In it, Andy Snyder guides crypto rookies and veterans towards the tokens built to last. Volatility is a crypto characteristic. The markets ebb and flow. But Andy Snyder can help you buy the ebb and sell the flow.
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 dog, Dorito.