Bitcoin
3 cryptocurrencies to buy instantly
Following a significant market correction, opportunities abound in the crypto market.
Over the past few days, the broader crypto market has seen a massive sell-off. While these corrections are not abnormal, they were the first to occur in some time.
The total crypto market capitalization is still up 40% year to date, so after seemingly rising for most of the spring, this correction may have been a little more painful than usual and caught some investors off guard.
However, it is during these corrections that there are typically the most opportunities. This was not the result of any great development, but mainly of a natural blush. Think of it as taking one step back to take two steps forward.
For those looking for an opportunity to acquire some cryptocurrencies with long-term potential, here are three that I am buying in the dive.
Image source: Getty Images.
1.Bitcoin
There’s not much to be said here. Bitcoin (Bitcoin 0.13%) has been the leader of the crypto asset class for the past 15 years and will likely remain so for decades to come. Even though it is the most valuable cryptocurrency, that doesn’t mean it doesn’t have room to grow.
Various predictions claim that Bitcoin will reach $100,000, $500,000 or even US$1 million someday. As sensational as it sounds, the general theme that Bitcoin’s value is likely to grow is probably not wrong.
With its finite supply, a decreasing inflation rate, and demand on an increasing trajectory, the price of Bitcoin will continue to experience upward pressure as it is pushed and pulled by the basic laws of supply and demand. While this doesn’t mean there won’t be some bear markets and corrections along the way, there is no safer option for growing cryptocurrency portfolios than Bitcoin for investors with a long-term horizon.
Bitcoin recently fell as low as $57,000, but has since recovered some of those losses and currently trades for around $63,000. Although it has increased in recent days, there is still opportunity for investors. Just as the days of Bitcoin trading under $10,000 are over, the days of Bitcoin trading under $100,000 are likely numbered.
2. Stacks
I’m a big fan of Stacks (STX -0.86%). As a Bitcoin-compatible Layer 2 blockchain, it introduces new functionalities that Bitcoin does not naturally have, i.e. DeFi capabilities.
The thesis for Stacks is clear: it effectively unlocks Bitcoin’s $1.5 trillion market value to be used beyond the traditional buy-and-hold strategy. Its layered architecture offers the benefit of Bitcoin’s security and decentralization, but with the added ability to participate in several popular DeFi uses, such as lending protocols, purchasing non-fungible tokens, and productive agriculture.
To quantify Stacks’ potential, take a look at Layer 2 blockchains built on top of Ethereum (CRYPTO: ETH). Today, Ethereum-compatible Layer 2s are collectively worth around $23 billion. If Stacks were to reach utility levels similar to those found in Ethereum’s comparable ancillary tokens, then its price would increase handsomely sevenfold.
Compared to Bitcoin, Stacks’ price was hit particularly hard during the recent correction. Over the past few weeks, it has fallen by more than 30%. Like Bitcoin, it has recovered some of those losses, but its price still remains far from its high of $3.48.
A rebound from its previous high would net investors a generous 50% gain, but when considering its potential as the leading Layer 2 Bitcoin and its ability to grow as much as Ethereum’s Layer 2 blockchains, there is still plenty of upside for Stacks.
3. Airfield
If you haven’t heard of it, probably the most popular blockchain on the market today is Base. That’s it Coinbase Global(NASDAQ: COIN) has its own blockchain and has been optimized to have a user-friendly interface, along with extremely low fees and lightning-fast speeds.
It might be a little technical, but Base doesn’t have its own cryptocurrency. This project is probably the result of trying to stay out of reach of the Security and Exchange CommissionBut that doesn’t mean there isn’t an opportunity to make money.
Instead of investing in a native cryptocurrency on Base like you would with Ethereum or Bitcoin, the next best option to give your portfolio some exposure to Base’s growing potential is to invest in the most valuable cryptocurrency built on Base: Aerodrome (AERO).
The aerodrome is known as decentralized exchange (DEX). Users can exchange tokens, provide liquidity to earn yield, and even earn rewards for participating in voting processes. As it stands, Aerodrome represents almost half of Base’s total value, making it the ideal proxy for gaining exposure to the growing blockchain.
The airfield has fallen by around 40% in the last week. This may sound pessimistic, but this type of correction is probably long overdue. Since launching in February this year, the Aerodrome has grown by more than 1,100%.
With its unique technology that encourages user and home participation in one of the most popular and emerging blockchains, it could be a hidden gem in the market. But the Aerodrome is still new and has a lot to prove, so proceed with caution.