3 Of The Best Cryptocurrencies To Buy In August

Last Updated July 27th 2022
5 Min Read

The crypto market is on the rise after more than two months in the red. No matter where one looks in this market, everything seems to be on an uptrend.

The institutional buying of crypto, coupled with multinational corporations like Amazon expressing an interest in crypto for payments has triggered the bounce back.

When searching for the best crypto to buy, two key things to look for are adoption and coin supply. Cryptos with strong adoption metrics and a relatively low supply have performed well over time.

Best 3 Cryptocurrencies To Buy In August

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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Bitcoin

Adoption by institutional money and even countries

For instance, Bitcoin has been gaining in adoption for a while now.

However, it is only in 2021 that institutional money has shown a massive interest in Bitcoin.

Through platforms like the Grayscale Bitcoin Trust, major institutions have taken up Bitcoin in high numbers. Others like Microstrategy have been buying billions of dollars worth of Bitcoin directly.

The biggest aspect of Bitcoin adoption this year was the move by El Salvador to adopt it as legal tender.

This is a move that has significantly uplifted the profile of Bitcoin and places it in a good position for even more adoption going forward. Its price action at the moment is pointing to growing confidence in this crypto.

However, the biggest bullish signal for Bitcoin is Amazon. The tech giant announced that it was looking to integrate cryptocurrencies into its systems. Bitcoin is among the cryptocurrencies that Amazon has indicated it would be integrating.

It is a move set to grow Bitcoin’s profile and could see its value keep growing going forward.

All this increased demand is coming against an ever declining supply of Bitcoin, creating strong upside pressure in the near term.

Bitcoin’s price action is also pointing to growth in the short term. Bitcoin is holding above $20k.

With all the positive news flying around, Bitcoin can test prices above $50k in the short term. This makes Bitcoin one of the best cryptocurrencies to buy in August and hold.

Check Out: Bitcoin (BTC) Price Predictions

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Ethereum

Crypto that is in the process of improving efficiency

While Bitcoin is having a good run now, Ethereum is in an even better position. In 2021, it was one of the best performers going up by over 400%.

Ethereum operates in the fast-growing smart contracts market and is currently the number one dApps platform in the crypto ecosystem.

However, it has faced the challenge of scalability for many years now. This is the challenge that it is looking to solve with the shift to Ethereum 2.0.

One of its major upgrades was the London Fork, which happened on the 5th of August 2021 and has created lots of excitement in Ethereum.

That’s because it will lower Ethereum gas fees, making the blockchain more efficient for dApps developers and traders.

However, it is not just the improved efficiency that is making Ethereum one of the most-watched cryptocurrencies at the moment.

There is also the fact that this fork has created an element of scarcity in Ethereum. As currently structured, Ethereum is already scarce because of its mining difficulty.

The London fork has introduced the element of a coin burn. A substantial amount of Ether was burned during the fork, and more will be burned with each transaction.

This is likely to have an impact on the value of Ethereum going forward as it creates scarcity for an asset that is already highly in demand.

This is a factor that could set Ethereum on an upward trajectory not just now, but for many years to come.

If bullish sentiment continues in the next couple of days, Ethereum could test prices above $2000 in the coming weeks.

By the end of August, Ethereum could easily be trading at upwards of $2,000. ETH is one of the best cryptocurrencies to buy this August.

Read Also: Ethereum (ETH) Price Predictions

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Binance coin

A high-risk, high return play

Cryptocurrencies are inherently risky, but due to individual crypto-related factors, some present a higher risk. One crypto that is fundamentally strong but is a high-risk play at the moment is Binance coin.

Binance coin is one of the best performers in crypto history. It went from under a dollar less than 5-years ago to a high of $690 in May 2021.

Binance coin’s value has primarily been driven by the exemplary performance of the Binance exchange. This is quite expected since it is the crypto that powers the Binance exchange.

Its quarterly coin burn feature also boosts Binance coin. This has seen BNB’s supply drop over time, even as its demand keeps rising.

However, there is an increasing regulatory risk with regard to the Binance exchange. Over the past couple of months, Binance has faced regulatory scrutiny in most major economies where it has operations.

If regulators decide to go after the exchange, it could create panic selling of BNB and hurt its value in the short term.

The good news is that nothing of the sort has happened so far. Regulators have only been giving warnings to investors about using the Binance exchange.

Binance coin has been pretty stable all through too, and largely trading in the direction of the broader market. That’s where the good news is for investors.

The market is currently on an upward trajectory, which means Binance coin is likely to keep gaining all through August.

On top of that, if the regulatory issues surrounding Binance coin cool off, then it stands to outperform most cryptos by a huge margin.

That’s due to the coin burn feature that has driven its value for years now.  While the risk is a little higher, Binance coin is one of the best crypto coins to buy in August.

Don't Miss: Binance Coin (BNB) Price Predictions

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.