Should I Buy These 5 Cryptocurrencies Today?
The crypto market is on a rebound, and the market is now inching closer to the $2 trillion market capitalization mark.
However, most cryptocurrencies including Bitcoin are still far off from their all-time highs. This means it is a perfect time to go shopping for growth cryptos to add to an investment portfolio.
There are a couple of cryptos that look quite attractive at current prices. These cryptos are having quite a good run at the moment.
The question is, can they sustain this momentum, and possibly retest and surpass their all-time highs?
High Utility Cryptos with Growing Adoption
The crypto market is getting pretty crowded at the moment, and adoption seems to be the best metric to gauge potential value appreciation.
With over 5000 cryptos now available, many of them having duplicate roles, only the ones with actual usage are likely to thrive.
The price action dynamics are already pointing in this direction. Top cryptos by adoption are peaking recovery speed faster than the rest of the market.
Investors don’t have to look so far out in the crypto market to see the correlation between adoption and growth.
Over the past few weeks, some of the most adopted cryptocurrencies such as Bitcoin, Ethereum, Chainlink, Filecoin, and Uniswap have all recorded double-digit growth in value.
They have given investors a hefty return in a few weeks, and their upside momentum does not seem to be slowing down.
Should You Buy Ethereum?
Ethereum has been a star performer so far. The number two crypto has been on a roll for the past three weeks.
From lows of around $1700, Ethereum is now close to testing $3000. Ethereum’s rally has primarily been due to the hype around the London fork that became a reality on August 5th.
The hype has a very valid basis to it, as the upgrade makes the Ethereum blockchain more useable for dApps development.
One of the benefits of the upgrade is that it makes gas fees more predictable and more practical for Ethereum users.
High gas fees have been a problem for this blockchain for years and have even been the key selling point for its competitors.
It is a factor that is likely to spur growth on the Ethereum blockchain. However, it is not like Ethereum adoption was not on the rise before the fork.
In 2021, Ethereum has surpassed Bitcoin in the total number of new addresses. Its transaction volumes have also outpaced Bitcoin’s by a considerable magnitude.
With this fork and the complete transition to Ethereum 2.0 by 2022, adoption will only grow. That’s because Ethereum will become more scalable and cheaper to use.
There is also the fact that the hard fork that took place on August 5th could have a significant impact on Ethereum’s token economy going forward.
That’s because it has introduced a gas burn feature. Essentially, this means Ethereum tokens will keep getting scarce even as adoption grows.
When understood in the context of basic economics, this is a factor that places Ethereum in pole position for growth going into the future.
All these factors make Ethereum one of the top 5 cryptocurrencies to buy today and have in an investment portfolio today.
Should You Buy Bitcoin?
Alongside Ethereum, Bitcoin has been a star performer in the last few weeks. It bounced off significant support at $29k and is now trading at $41,000.
If it sustains the current momentum, Bitcoin is likely to test $50k in coming weeks, if not days.
The key driver to Bitcoin’s momentum has been the huge institutional uptake of this crypto.
Major investment firms such as Ark Invest have not been shy about their investments and positive outlook for Bitcoin.
However, one institution that has shown how big money is accumulating on Bitcoin is Microstrategy.
The company has been aggressively buying Bitcoin for over a year, and now has a Bitcoin portfolio of over $3 billion.
Many companies are warming up to the idea of including Bitcoin as a payment method too. Amazon is the latest and most exciting one to give hints at such a move.
While all these are pointers to the growing adoption of Bitcoin, the adoption of Bitcoin as legal tender by a country brings a whole new dynamic to its future direction.
El Salvador recently announced that it would be accepting Bitcoin as legal tender. While this faced a lot of opposition from the IMF and the World Bank, it has created a lot of excitement around Bitcoin’s potential.
This growing adoption has helped Bitcoin weather the China mining ban’s negativity and created lots of potential for the future.
It is one of the top cryptocurrencies to buy today, and hold for many years to come.
Should You Buy Chainlink?
Chainlink also looks like worthwhile crypto to buy now. Over the last two weeks, chainlink is up by double digits, and it doesn’t seem to be slowing down.
Chainlink is one of the most adopted cryptocurrencies in the market today, and due to its unique use case, this is unlikely to slow down.
Chainlink has become the dominant player in helping smart contracts interact with real-world data, which is necessary for their operations.
The use case for Chainlink is growing pretty fast, primarily due to the growing number of nodes providing data to the Chainlink network.
Recently, there has been an upsurge of credible institutions supplying data to the Chainlink network.
For instance, AccuWeather recently announced that it would be running a node to supply real-time weather data on the Chainlink network.
This means any smart contract that needs such data for its execution can now do as effectively as it would while using a centralized company for data.
However, one of the most exciting players to announce the running of a Chainlink node recently is Swisscom.
Swisscom is one of the biggest telecommunications companies in Switzerland and brings a whole load of useful data to the Chainlink network. It helps grow Chainlink’s place in crypto, especially in the fast-growing DeFi market.
Essentially, Chainlink is becoming one of the most important players in the smart economy, and that’s a big deal for its value.
Its value appreciation so far has been pretty impressive, and it still has room for growth since decentralization is still in its infancy.
It is a crypto that looks pretty logical to include in a long-term investment portfolio.
Should You Buy Filecoin?
Filecoin looks pretty good, too, in terms of its use case and adoption. Over the last few weeks, Filecoin has been one of the biggest gainers and is up by double-digit percentages.
However, the most significant upside to Filecoin is its potential to disrupt the cloud storage market that big tech companies currently dominate.
The file storage market is currently worth around $46 billion and could be worth $220 billion by 2027.
Filecoin’s edge in this market is its lower storage costs and the fact that users fully control their data. That’s because there is no single entity in charge of the data, as is the case with centralized storage.
From an investor perspective, a lot is going for Filecoin. As more people use Filecoin to store data, those mining it make more, and in the process, the value of Filecoin increases.
It’s a cycle that makes this coin pretty much a value hold given how big of a use case it has going forward.
Should You Buy Uniswap?
Uniswap also makes for excellent crypto to buy now. Like the other cryptos discussed above, Uniswap has a pretty huge and growing use case.
For context, Uniswap is the largest decentralized exchange in the world. It easily beats all the other DEXs by volume on any given day.
Uniswap dominance is only likely to grow as Ethereum 2.0 makes developing on the Ethereum blockchain easier. That’s because most of the transactions that take place on Uniswap are for Ethereum-based tokens.
This potential, coupled with the regulatory risks that face centralized exchanges, makes Uniswap a pretty good cryptocurrency to buy this August and hold.
Should I buy top crypto assets?
If current prices are anything to go by, then all crypto assets with a strong use case are poised for growth going forward.
However, given how volatile the crypto market is, having a more comprehensive basket of cryptocurrencies always makes sense.
Timing is key, and even a pretty useless meme coin can make you good money in a bull cycle.
That said, adoption remains the key driver to crypto value appreciation, and it makes sense to give these highly adopted cryptocurrencies more weight in a crypto portfolio.
Since they also represent a significant portion of the total crypto market cap, they offer an amazing way to have wide exposure to overall market performance in just a few clicks.
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Virtual currencies are highly volatile. Your capital is at risk.