3 cryptocurrencies to buy during a stock market crash

The market decline we have seen this year has not been good for cryptocurrencies. As a result, the search for the best cryptocurrencies to buy may be what some investors put off. All while waiting for the market to resume its upward trend.

Unfortunately, we have been in a bear market in the cryptocurrency world for essentially the whole year. It has also been a while since many investors have seen green on their screens. For those who arrived earlier this year, it was a tough ride.

However, as the saying goes, money is earned when you “buy low and sell high”. True belief in a long-term bet requires buying when everyone else is selling. As it turns out, the market crash may just be the buying opportunity that long-term cryptocurrency investors have been waiting for.

Could these tokens drop further? Of course. But for those with a fairly long investment time horizon, here are three options that I think are at least worth a look right now.

Bitcoin (BTC-USD)

Source: Viacheslav Lopatin / Shutterstock.com

Many experts believe this Bitcoin (BTC-USD) is one of the safest long-term cryptocurrencies to buy in the industry. Indeed, from a historical perspective, this thesis has remained true.

Bitcoin is the oldest and most well-known cryptocurrency in circulation. With more than a decade of rankings to look at with this top token, one thing has always proved true. Every single major drop in the past has been met with new all-time highs.

The question many investors have during this bear market is, “Is this time different?”

This is a fair question. After all, the cryptocurrency industry hasn’t officially gone through a recession yet. Bitcoin was born out of the Great Recession. It remains to be seen how this token will perform in what could be an impending recession.

The size and attractiveness of this token for institutional investors remains one of the main reasons long-term investors hold this cryptocurrency. Furthermore, the number of exchange-traded funds (ETFs) that have been set up to provide investors with access to Bitcoin gives this cryptocurrency access to institutional investors like no other.

For those who are bullish in the long-term thesis behind cryptocurrencies, Bitcoin remains the primary option that retail and institutional investors gravitate towards. If we are headed for a prolonged stock market crash, this may be the only token that many choose first. This is reason enough for many to consider Bitcoin above all other tokens in this market.

Ethereum (ETH-USD)

Another stylized version of the Ethereum logoSource: Shutterstock

There is a reason why Ethereum (ETH-USD) always seems to be on the list of the best cryptocurrencies that investors can buy. Whether it’s a bull market or a bear market, Ethereum’s vast ecosystem continues to function and generate utility for its users. In fact, the key underlying growth metrics that support this network provide some of the strongest fundamental reasons for owning any long-term cryptocurrency.

The second largest cryptocurrency in the world, Ethereum is a decentralized and open source network that implements smart contracts on a scale like no other. In terms of DeFi, NFT collections, and a wide range of other interesting utility generation projects, the Ethereum network is the lifeblood upon which the vast majority of utilities are generated via the blockchain.

A series of altcoins arose to challenge Ethereum’s dominant market position. However, over time, the Ethereum network has held up relatively well. The size and scale of this network in itself provides a defensive position for an investor looking to get through these difficult times.

Additionally, Ethereum’s recent massive update, “Merge”, now brings staking to this network along with a reduction in power consumption of around 99%. For many who were skeptical of the developer talent behind this project, or its carbon footprint, the upgrade could be a catalyst for more investor intervention.

Binance Coin (BNB-USD)

A Binance Coin sits in front of the trading charts.Source: Shutterstock

Binance coin (BNB-USD) is one of the largest digital currencies in the cryptocurrency industry in terms of both trading volume and market capitalization. This is also one of the best cryptocurrencies to buy and has the support of Binance, the largest cryptocurrency exchange in the world.

Admittedly, an increasing number of exchanges in this sector are facing financial problems. However, Binance has the resources to weather any cryptocurrency storm.

Furthermore, this platform attracts a trading volume of tens of billions of dollars every day between millions of customers. Furthermore, this project is involved in a number of other utility generating functions such as liquidity financing, cryptocurrency derivatives, loans, NFT, etc.

The BNB token is part of a much larger ecosystem that includes Binance Smart Chain (BSC). For the uninitiated, Binance Smart Chain is an independent blockchain network that supports several emerging tokens. More importantly, any trade made on the BSC should be settled in BNB. This creates an ever increasing demand for this cryptocurrency.

In the long run, those looking to build a portfolio may want to start with these mega-cap cryptocurrencies.

As of the date of publication, Chris MacDonald has a position in Ethereum. The views expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love of investing has led him to pursue an MBA in Finance and take on a number of executive roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his zeal for undervalued growth opportunities, contribute to his conservative long-term investment outlook.

Leave a Reply

%d bloggers like this: