It’s been a long, cold and dark crypto winter this year, with most tokens down well over 50% since their November highs. Finding cryptocurrencies to buy in this environment may seem like an exercise in masochism.
That said, with downside volatility comes the potential for big gains in the future. Accordingly, for those who believe in the long-term viability of the crypto sector, in terms of its innovation and transformative nature, picking high-quality tokens now, when no one wants them, seems like a good idea.
We’ve seen what can happen to nearly all digital assets when investors are bullish. This sector’s boom last year was incredible to watch. What preceded this boom, however, was a long period of rather dim performance.
Those looking to time the market may be waiting for quite a while for a rebound. It’s possible we could be in this low-price environment for some time. That said, at these discounted levels, investors may want to start looking at these three cryptocurrencies to buy.
Bitcoin (BTC-USD) is often the first cryptocurrency investors look to buy in times like these based on its historical performance. There have been a number of 50%-plus declines over the token’s 13-year history (the oldest in the books). However, every single time, Bitcoin has roared back to new highs.
Now, there’s always the group that will say “this time is different.” And perhaps it is. However, assuming for a minute that growth in the crypto sector will continue as crypto enthusiasts suggest, Bitcoin could stand as the gauge of this growth over time. It has been, thus far, anyway.
As the most established cryptocurrency, Bitcoin has seen the most institutional adoption of any token. This is one of the key reasons many investors choose to hold Bitcoin. When big money wants to move into the sector, a Bitcoin ETF is waiting for those dollars. So, as far as capital flows go, Bitcoin is still the top dog.
Over time, those who believe the value of digital currencies will continue to climb have a simple thesis to buy and hold Bitcoin. At these levels, it certainly looks a lot more attractive than it has in some time.
The Sandbox (SAND)
For metaverse-related project investors, The Sandbox (SAND-USD) may be an attractive buy before crypto winter thaws.
The Sandbox is an Ethereum-based project, similar to countless other crypto endeavors. This blockchain-based metaverse game is heavily tied to the development and trading of NFTs. Accordingly, for those taking the long-term view that NFTs are here to stay, The Sandbox is an intriguing project to consider.
Using SAND tokens, which are limited (similar to Bitcoin) to a supply of 3 billion, users can have a say in how this project is run. Thus far, the developments The Sandbox has made are impressive, with a virtual reality world bringing in a host of high-profile gaming brands and partnerships.
This token has been beaten up, now trading at an 87% discount to its peak. Those looking for future growth may want to consider SAND at these levels.
Avalanche (AVAX-USD) is a smart contract-based proof-of-stake blockchain that has soared in popularity. Much of this is due to Avalanche’s unique subnet structure, which allows for impressive scalability relative to peers in this space.
Indeed, the search for a truly scalable (and stable) blockchain network is always on. Developers will tend to gravitate toward blockchains that can provide what they’re looking for. In this context, Avalanche appears to be one of the most compelling cryptocurrencies to buy for those thinking about the long-term growth of the sector.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
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