The crypto market is going through its biggest dips in recent memory. Most of the gains made over the past couple of years have faded. Cryptocurrencies across the board, including Bitcoin, have taken a massive beating. Hence, it is clear that we have entered a bear market.
However, this does not mean we are witnessing the end of the crypto boom. Over the past couple of years, cryptocurrencies have raked up investor interest, partnerships, and immense trading activity. Even though Bitcoin has still held on to its number 1 position in market capitalization, other cryptos (i.e., altcoins) have had to depend more on their use-cases instead of hype. Let us dive a little deeper into the top 5 altcoins worth investing even in the bear market.
Ethereum (ETH)
The bear market has been hard on cryptos like Ethereum (ETH). However, the blockchain network has shown promising signs that a bull market is around the corner. The rate at which the cryptocurrency is going down in value is stabilizing.
While other blockchain networks are limited to the services they offer, Ethereum (ETH) offers an entire financial ecosystem for its users. Most digital assets operate on this blockchain. In addition, the network is inching closer to transitioning towards a proof-of-stake model, which would significantly improve transaction times and user fees. Currently, the platform can only handle roughly 30 transactions per second, but that number could be up to 100,000 transactions per second once the update is complete.
Because of its importance in the crypto world, Ether (ETH) is seen as a safe long-term investment and one of the 5 altcoins that are worth investing even in the bear market.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Polygon (MATIC)
Polygon (formerly known as Matic Network) is a Layer 2 scaling solution for Ethereum scaling and infrastructure development. The project aims to create “Ethereum’s internet of blockchains” by solving scalability issues of existing blockchains and offers developers a set of tools to build ultra-scalable and high-performance blockchains and decentralized applications (dApps).
Polygon is also the only scaling solution that supports the Ethereum Virtual Machine (EVM), which allows different blockchains to exchange value and information. It eliminates the technological barriers between most blockchains. Polygon blockchain can process up to 65,000 transactions per second, with a block confirmation time of fewer than two seconds.
Polygon’s MATIC coin is used for participating in network governance by voting on Polygon Improvement Proposals (PIPs), contributing to security through staking, and paying gas fees. It is among the top cryptos in the world, making MATIC one of the 5 altcoins worth investing even in the bear market.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Monero (XMR)
Monero is an open-source blockchain with roots of creation from a decentralized grass-roots development. Despite being very similar to Bitcoin, Monero focuses more on privacy and anonymity for the users and their transactions. Its native token, XMR, is a blockchain-based altcoin with multiple privacy-enhancing features.
Unlike Bitcoin, where every coin has a serial number, every XMR is fungible, meaning they are completely identical and interchangeable. The network also gives every transaction plausible deniability through ring signatures, an encryption technique that creates multiple decoys for actions on the network.
It also uses stealth addresses, which are one-time crypto addresses that are deleted after each transaction.
Despite using the arguably outdated proof-of-work (PoW) consensus mechanism, where miners update the blockchain by solving computational puzzles, Monero has some pretty impressive specs. The network can handle an estimated 1,000 transactions per second, compared to Bitcoin's five.
It has a well-defined, unique use case, impressive technical specs, and an early-mover advantage, which is why XMR is an altcoin worth investing in even in the bear market.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Uniswap (UNI)
Uniswap is a decentralized exchange built on Ethereum’s blockchain. Decentralized exchanges (DEXs) let investors swap cryptos without making an account with a centralized cryptocurrency exchange like Coinbase or Binance. The platform transacts over a billion dollars in cryptocurrency daily and is the most used decentralized exchange in the world.
There are many benefits of using Uniswap over traditional cryptocurrency exchanges. It allows investors to swap their cryptocurrencies directly from their Ethereum wallets, so there is no need for the exchange to have custody over their funds. This significantly lowers the risk of being hacked, adding a layer of security that centralized exchanges cannot achieve. Some speculators argue that Uniswap is still undervalued and is therefore still prime for a high ROI. This is why we believe that UNI is an altcoin worth investing even in the bear market.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Chainlink (LINK)
Chainlink is a digital platform that links non-blockchain businesses with blockchain-based smart contracts. It was built on Ethereum to make it simpler to transmit data from off-chain platforms to smart contracts on the blockchain.
Enterprises that utilize Chainlink may access blockchains like Ethereum, Solana, and Terra, and the platform facilitates cross-blockchain interoperability. It is a decentralized blockchain oracle network based on Ethereum (ETH) that aims to make it easier to transfer secured data from off-chain sources to smart contracts on the blockchain.
Its native token, LINK, was released at the end of 2017 with an initial coin offering (ICO) price of $0.11. It has had a very positive performance since then, especially throughout the summer of 2020. We believe that this altcoin is worth investing in this current bear market as it has already hit one all-time high of $52.88 in the spring of 2021 and is likely to continue its growth track.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Bottom Line
You may now stop looking and decide to invest in these 5 altcoins that are worth investing even in the bear market. Based on various factors, experts believe ETH, XMR, UNI, LINK, and MATIC to be the tokens to keep an eye on.
Read More:
How To Invest In Ethereum (ETH)
The 5 Best Ways To Buy Polygon (MATIC)
The 5 Best Ways To Buy Chainlink (LINK)
Best Long-Term Crypto Investments
Best 10 New Cryptocurrencies To Invest In
Best Cryptocurrencies To Buy For The Upturn
15 Most Promising Cryptocurrencies To Invest In