The idea that cryptocurrencies like Bitcoin BTC would be good inflation hedges formerly held some sway was floated.
However, this did not happen in 2020, contrary to what many had projected.
Cryptocurrencies, on the other hand, tend to be tied to “risk-on” assets, and as a result, the market has ended up with numerous cheap cryptocurrencies.
This is the most challenging portion of the surgery.
Since the inflation-hedge argument didn’t work out, Bitcoin and other cryptocurrencies are risky investments.
This is because the idea was never put into practice.
Recently, cryptocurrency investors have realized that many cryptocurrencies are not worth the hype they once were.
Increased speculation and “the bigger fool idea” caused asset values to rise rather than fall. This resulted in a rise in asset values.
Crashes are happening right in front of our eyes as a result.
However, it doesn’t follow that all these cryptocurrencies are useless.
As a result of the complete wipeout, a slew of excellent bargain coins have been generated.
Let’s focus on just two of them for the time being.
Long-Term Crypto to Invest No. 1: Ethereum ETH
Even if Bitcoin is the most popular cryptocurrency, Ethereum ETH may provide the most robust features in the crypto sphere.
Ethereum has seen several iterations, including Ethereum Classic and Ethereum 2.0.
Ethereum’s transaction speed is superior to Bitcoin’s, which is one of its numerous purposes.
The fact that Ethereum may be used to purchase and trade products and services boost its use.
Additionally, cryptocurrency may be used to execute smart contracts, which pay out predetermined quantities of money when specified milestones are reached.
Consequently, it is contributing to the growth of the NFT sector and is anticipated to do the same in other markets.
Changing Ethereum’s consensus mechanism from proof-of-work to proof-of-stake would significantly drop the network’s overall power usage.
Consequently, its future appeal as a cryptocurrency is likely to increase.
Ethereum was never intended to rival Bitcoin but rather as a tool to improve it.
The majority of market players have not seen Ether in this manner.
Even though Ethereum has a market capitalization of less than $150 billion, I think its value might increase if the cryptocurrency sector rebounds.
Long-Term Crypto to Invest No. 2: Worldwide Asset Exchange WAXP
Despite its greater speculation than the other two, the Worldwide Asset Exchange WAXP, more often known as WAX, should also be on investors’ radar screens.
Currently, WAX is trading at about 9 cents, an all-time high for cryptocurrency. The stock price has risen to over $1 in the recent year.
Due to its speculative character, it has naturally been crushed and ruthlessly liquidated along with the rest of the bitcoin market.
The WAX currency has real-world uses, in contrast to some more speculative alternatives.
Additionally, it has formed strategic alliances with several well-known businesses.
Long-Term Crypto to Invest No. 3: Bitcoin BTC
Regarding cryptocurrencies, Bitcoin stands out as the most prudent option.
Due to its recent market drop, it has emerged as the undisputed leader among discounted cryptocurrencies.
After falling 74.5 percent from its all-time high to its all-time low, there is no assurance that Bitcoin’s price will stop plunging.
A second look is warranted when an item’s value has decreased by 75 percent or more.
Bitcoin is more well-known to investors and the general public than any other cryptocurrency due to its notoriety and brand awareness.
In light of this, a return to the bitcoin market is likely if conditions improve.
The market value of Bitcoin has fallen below $400 billion after its most recent decline.
Because only around 90 percent of all Bitcoins have been mined, investors predict that at some time in the future, demand will exceed supply, resulting in a price rise for Bitcoin.
Instead, I concentrate on high-risk investments, such as technology company equities.
Bitcoin seems to have a stronger link to this group than any other factor. Bitcoin may climb with them if they begin to rise.
To Sum it Up
The market has created a huge number of inexpensive cryptocurrencies because digital assets now under pressure are more closely associated with “risk-on” assets.
After the market stabilizes, the most valuable cryptocurrency in the world, Bitcoin BTC, will almost certainly come back.
Since Ethereum ETH is the best-functioning cryptocurrency right now, demand for it will likely grow again.
Even though Wax WAXP is the riskiest of the three, if the trend continues, there is substantial upside potential.