The best is yet to come for Bitcoin, so make sure you own these other cryptos that are riding its wave
This year saw landmark moments for cryptos. This included 11 new spot Bitcoin (BTC-USD) ETFs boosting mainstream adoption. Despite optimism from Bitcoin’s halving, recent months saw subdued markets, with added volatility driven by Germany’s $75 million Bitcoin sale and Mt. Gox creditor repayments. These moves led to significant near-term price impacts from market movements.
The crypto market has corrected sharply recently, especially in the altcoin space, with Bitcoin holders less affected. Despite low fear and greed index levels, altcoins have plunged, prompting potential for recovery if Bitcoin rallies amid supply scarcity from the halving event.
Here are three cryptos I think could have the most to gain from a recovery in Bitcoin toward new all-time highs. Make sure you buy these cryptos before they start to skyrocket.
Top Cryptos to Buy: Ethereum (ETH-USD)
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Investors shouldn’t panic over Ethereum (ETH-USD), despite recent volatility. This token has seen a similar decline as Bitcoin in recent weeks. Now trading below its 50-day and 20-day moving averages, the $3,100 support line is crucial to avoid a drop to $2,900. Some see this dip as a buying opportunity, anticipating the approval of U.S. spot Ethereum ETFs.
Ethereum recently planned its first-ever hackathon, the “Attackathon,” with a $2 million reward pool, targeting the largest crowdsourced security audit. For four weeks, security researchers would search for protocol vulnerabilities, following specific rules for impactful findings. The event began with a technical walkthrough of the blockchain’s code. Bug bounty platform Immunefi would compile a report detailing discovered vulnerabilities post-event.
All that said, Ethereum appears to remain a smart choice for investors looking for exposure crypto. It has the most name recognition after Bitcoin, making the project a central player that can continue to rise as digital stores of value gain steam.
Bitcoin Cash (BCH-USD)
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An effective derivative of Bitcoin, Bitcoin Cash (BCH-USD) was created as an electronic peer-to-peer cash system aiming to become global money. In many respects, this project can be thought of as Bitcoin in terms of how many initially saw the token.
With a larger block size than Bitcoin and smaller fees (as well as arguably better security), Bitcoin Cash is often viewed as a true transaction crypto. The utility of this fact alone should not be lost on investors looking for a true reason “why” to own any specific token.
Created as an effective alternative to Bitcoin, Bitcoin Cash has continued to live in its shadows. That said, there are plenty of investors who still clearly believe in this project, with BCH retaining the 16th spot in the crypto rankings by market capitalization. For those who believe that the future of crypto is transactions, and low fees and higher processing speeds are important, this could be among the key beneficiaries of the next boom in digital assets.
Litecoin (LTC-USD)
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Launched in October 2011 by Charles Lee, Litecoin (LTC-USD) was created as a derivative of Bitcoin’s open-source code. It became a faster block generation option that uses Scrypt algorith. Moreover, Litecoin also aims to improve on Bitcoin’s model by offering a more decentralized global payment system for small transactions.
Litecoin’s price traded within a falling wedge pattern, delineated by a trendline connecting various swing highs and lows. On July 3, LTC encountered resistance near the upper boundary of the trendline around $77.33, leading to a subsequent decline of 19.43% over the following two days. It later tested weekly support near $56.61, rebounding by 5%, and is presently trading at $65.20.
Sitting third as the largest crypto by market cap, Litecoin aims for faster transaction capacity for Bitcoin. As the third-largest cryptocurrency by market cap, Litecoin aims to enhance Bitcoin. It plans to do this with faster transaction speeds and a higher supply cap. It’s considered a solid option for seasoned crypto investors. CFTC recently classified LTC as a commodity. LTC surged 32% last month, marking one of the strongest performances this year. Analysts now foresee potential gains up to $400, reflecting renewed bullish sentiment. This is easily one of the top cryptos you can buy.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
On the date of publication, Chris MacDonald did not hold (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.