The crypto market moves in cycles, and for anyone who has been in the market long enough, it is easy to predict them.
Any time the market makes a parabolic move in a very short time, it is always followed by a crash. For instance, after the December 2017 crypto rally when Bitcoin topped $20k, the correction that followed saw most cryptocurrencies lose by over 90%. At the time, Bitcoin tested lows of $3100.
The same happened in Q1 of 2021, when the market rallied to a market cap of over $2.3 trillion, from lows of $200 billion in early 2020. What followed was a correction that saw most cryptocurrencies crash by over 70%. Bitcoin, the largest cryptocurrency, shed off over 50% of its value in just two months.
The good thing is that the market always rebounds after such epic crashes. For instance, the entire market is now multiple times higher than it was back in 2017. Similarly, most cryptos have made a rebound from the lows of early 2019. A majority of them went on to make new highs.
With many altcoins now recording double-digit value growth daily, it is safe to postulate that the next hype cycle is close by. As has happened in the past, the market will overheat, and the next crash will follow.
As such, now is an excellent time to start analyzing the market for cryptocurrencies to buy in the next crash. Such cryptocurrencies have the potential to make a huge rebound, make new highs, and in the process, give investors a considerable payoff.
5 Solid Cryptocurrencies To Buy In The Next Market Crash
- Binance coin
- Bitcoin Cash
Cryptocurrency Market Crash #1: Bitcoin
In a market exploding with cryptos that hold the potential to give 100x or more returns, Bitcoin (BTC) may seem pretty boring at this point.
However, it happens to be one of the best cryptocurrencies to buy in times of a market crash. That’s because, from a look at its history, it does not crash as hard as other crypto assets.
In the 2018 crypto crash, Bitcoin dropped by around 70%. At that time, most altcoins lost by over 90%. The same happened in May this year. Bitcoin’s correction saw it lose about 50% of its value at a time when most altcoins lost by between 70% and 95%. Therefore, on a pure percentage basis, one is safer with Bitcoin than most of the altcoins.
But, it’s not just about percentage losses. There is also the potential for recovery. Ideally, anything that goes down must go up at some point. However, this is not always the case in crypto and even in the stock markets. Some cryptocurrencies never recovered from the 2018 crash. Many will never make a full recovery from the crash of May 2021.
This usually happens due to a combination of factors. The biggest ones are a lack of finances and the disappearance of hype. When a project’s development financing is pegged on its own coin/token, then a total value collapse is quite similar to bankruptcy in the context of a company.
Then there is the hype factor. Most cryptocurrencies hit peak prices by riding on hype. Once the market turns bearish, and the hype dies off, investors take off, and the project dies too.
However, this is not the case with Bitcoin. Being the largest and most decentralized crypto project, Bitcoin does not need hype, nor does it need development funds.
In essence, even in times of market downturns, the network continues to operate normally. This prevents Bitcoin from collapse and pretty much guarantees that it makes a rebound due to the forces of demand and supply.
The aspect to actual demand is now higher for Bitcoin than ever before. Unlike in the past, there is institutional demand for Bitcoin. As such, it has the potential to make a strong rebound after a crash.
Based on its fundamentals, Bitcoin is also highly undervalued today, never mind after the next crash. That’s because, aside from its growing adoption, Bitcoin is pretty scarce hence the phrase digital gold.
Not only is its total supply quite low, but the periodic block halvings have also ensured that the total amount of new Bitcoins coming into circulation is ever in decline. This, in an environment of rising demand, guarantees that it will grow in value going into the future.
Due to its supply dynamics, the potential for Bitcoin to trade at over $100k at some point in the future is quite high. This makes it one of the best cryptocurrencies to buy and hold for the long haul.
#2: Binance coin
The second cryptocurrency that one can buy and easily survive the next crash is the Binance coin (BNB). This cryptocurrency has held its value quite well in past bear markets compared to most altcoins.
One of the factors that make Binance coin stand out is that it has actual utility. Like Bitcoin, there is an actual use case to Binance coin that transcends the speculation that dominates the crypto market.
Binance coin is used for transaction fees on the Binance exchange. It is also the fuel that drives transactions on the Binance Smart Chain. Just like one needs Ether to create smart contracts on the Ethereum blockchain, they need BNB to do the same on the Binance Smart Chain. Given that BSC is one of the fastest-growing platforms for DeFi and other applications, it follows that the demand for Binance coin can only grow going into the future.
This can only mean two things. One, even if the market corrects, Binance coin’s percentage losses are likely to mirror those of Bitcoin more than the broader crypto market.
Secondly, if the market makes a bounce back, Binance coin could rally back faster than most other altcoins in the market today.
Even before the next crypto market crash comes, Binance coin makes for a good buy now, as it’s highly undervalued at current prices.
Aside from its high utility, one of the factors that make Binance coin highly undervalued is tokenomics.
Binance coin is deflationary, which is one factor that has made it one of the best performing cryptocurrencies ever. When it first launched, the Binance coin was trading at just a few pennies, and by the bull market’s peak in April 2021, it was trading at close to $700 a coin.
That’s because this crypto has done quarterly coin burns since it launched, and recently announced that it would accelerate this burn from 27-years to just 5 to 8 years. This means in the next few years, there will be a sharp decline in the total supply of Binance coins in circulation.
Considering that its supply is already pretty low, and adoption is high and growing, Binance coin could easily test a five-digit valuation at some point.
It’s a cryptocurrency that offers a perfect mix of bear market survival, and the potential to give exponential value growth in bull markets.
The third cryptocurrency with a high market crash survivability potential is Ethereum (ETH). The second-largest cryptocurrency by market capitalization has many factors playing in its favor in case of a market crash.
One of them is its high levels of adoption. Ethereum is one of the most sophisticated cryptocurrency projects out there, evident in its adoption.
It dominates everything from DeFi to NFTs. Since these are growth markets, the demand for Ethereum will only grow going into the future. In essence, one is pretty much guaranteed that Ethereum can never go to zero.
In fact, in the crypto crash of May/June, Ethereum lost by roughly the same percentage levels as Bitcoin. Its rebound has been strong too.
As its adoption grows, Ethereum will become less susceptible to the volatility that characterizes the broader crypto market. That’s because its price will be driven more by its internal economy’s demand and supply dynamics than broader market speculation.
However, the risk of a market crash aside, Ethereum is highly undervalued at current prices. That’s because besides being the most dominant platform blockchain in the market today, it is in the process of an upgrade to enhance efficiency.
This factor will entrench its position in the market as the engine driving the DeFi and NFT markets going into the future. This will play into its demand for years.
The upgrades that are ongoing also touch on the supply dynamics of this blockchain. For instance, in August, the London hard fork introduced a coin burn for some of the Ether generated during transactions.
For crypto that is in such high demand as Ethereum, this is a factor that could see it rally significantly going into the future. Even high 5-figure valuations could be possible for Ethereum.
Read Also: Pros and Cons of Investing in Ethereum
For an investor looking to survive and bounce off with strong gains after the next crypto crash, Chainlink (LINK) is a good one.
While it can slump a little harder than, say Bitcoin or Ethereum, its potential for a strong recovery is high. That’s all thanks to its strong fundamentals (among the best in the crypto market).
Chainlink is the largest and most dominant decentralized data oracles cryptocurrency in the market. It commands more than half of this market, and its share is growing. That’s because it is being integrated by some of the fastest-growing platform blockchains in the market today. For instance, it was recently adopted by Solana.
This means in the rebound that comes after a crash, Chainlink’s price is likely to be bid up, not just by speculation, but also the strong demand for LINK in the decentralized data markets space.
Essentially, there is an almost 100% guarantee that LINK will never go to zero, and that no matter how low it goes, it will bounce back hard.
Besides its potential to survive a market crash, Chainlink can be considered highly undervalued at current prices. That’s because it has dominance in one of the most important markets in crypto, and that’s decentralized data oracles.
Every smart contract that needs price feeds, or any real-world data for it to execute would find Chainlink useful. Chainlink is also quite innovative, and with things like hybrid smart contracts, it can scale without issues. This guarantees that it will never lose dominance in the market.
Considering that smart contracts will only become the norm going forward, especially in DeFi, the demand. By extension, the price of LINK could shoot up exponentially going into the future.
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#5: Bitcoin Cash
Bitcoin Cash (BCH) closes the ranks for the top 5 cryptocurrencies to buy and survive the next crypto crash.
This crypto tends to move in tandem with Bitcoin. Quite expected since it is a Bitcoin fork. Since Bitcoin tends to correct a little less than altcoins, it follows that by holding BCH, one is safe from the 90% corrections that hit some altcoins during bear markets.
Besides its strong correlation to Bitcoin, Bitcoin Cash adoption is pretty high too. Bitcoin Cash is one of the most adopted cryptocurrencies in the market today. Most platforms that accept Bitcoin for payments also accept Bitcoin Cash.
However, Bitcoin Cash is not just a market crash survivor. It is also one of the fastest and safest cryptocurrencies for payments. This is all thanks to its large block size while also maintaining most of the other Bitcoin features.
Its metrics and large market cap make it one of the cryptos with the highest potential for adoption and, by extension, value appreciation. There is a low risk of being wrong by betting on Bitcoin Cash.
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