3 Cryptos to Buy as Bitcoin Gets Beaten

by James · August 31, 2022

Bitcoin (BTC-USD), the world’s largest cryptocurrency, is often seen as a gauge for the entire sector. In fact, with Bitcoin’s recent decline to less than $20,000 per token, many long-term investors may be worried. Therefore, finding cryptos to buy other than Bitcoin – in an effort to diversify – may be a strategy that some are considering.

There will always be the “all-in-Bitcoin” people who remain convinced that it’s the only crypto that matters. There are certainly reasons to adopt that task.

However, as in stock or bond investments, diversification can help improve risk-adjusted returns over time. In this market, defensive positions are worth pursuing.

That said, those looking to diversify their portfolios away from Bitcoin certainly have a wide range of other cryptos to buy. There are thousands of crypto projects out there, each offering exposure to different catalysts and challenges.

Here are three of my top picks for investors looking for alternatives besides Bitcoin.

Table of Contents

Ethereum (ETH)

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Ethereum (ETH-USD) really needs no introduction. The world’s second largest cryptocurrency by market capitalization, Ethereum is truly the alternative to Bitcoin – which most investors choose. That’s not only because of Ethereum’s large market cap of around $190 billion, but also because of Ethereum’s importance to the world of decentralized finance (DeFi).

In fact, the vast world of DeFi projects is centered around Ethereum. For long-term investors, the network effects that Ethereum has been able to take advantage of due to its ubiquity in DeFi have yielded impressive returns. As a result, in the long term, I believe that this feature will cause growth to remain intact.

In the near to medium term, however, there will be another massive catalyst that investors will be watching. Specifically, the upcoming Ethereum merger, set to take place sometime in September, could be the biggest upgrade the crypto world has ever seen. In the wake of the merger, Ethereum’s protocol will shift to a much more energy-efficient, proof-of-stake network, creating what many hope will be a more scalable platform that will grow faster over time.

Whether or not the merger goes smoothly remains to be seen. However, ETH is a good short-term, medium-term and long-term investment.

Solana (SOL)

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Solana (SOL USD) is one of the leading proof-of-stake smart contract-enabled blockchains out there. Like Ethereum, Solana has placed DeFi near the center of its ecosystem development strategy. In fact, Solana’s venture capital unit recently launched a $100 million fund aimed at supporting decentralized finance startups in South Korea.

The Solana ecosystem is currently home to 77 active DeFi protocols with a total value locked (TVL) of $1.43 billion as of yesterday. Notably, Solana is the sixth largest DeFi chain in terms of total TVL.

Solana recently launched a true, high-end, brick-and-mortar, high-end retail store in Hudson Yards, Manhattan.

According to Vibhu Norby, CEO of Solana Spaces, the physical Solana stores will attract around 100,000 people every month to the Solana ecosystem. Consequently, for those looking for valuable cryptocurrencies with real-world integration, Solana is an exciting alternative at today’s low prices.

Avalanche (AVAX)

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Finally we have Avalanche (AVAX USD). Avalanche is among the fastest smart contract networks in the blockchain space by time to completion. The network is a programmable, open source, smart contract platform purpose-built for affordable, efficient, and solvency-compliant dApps.

Avalanche users will undoubtedly be happy to hear that Coinbase’s (NASDAQ:COIN) wallet declared that it allows direct exchange of Avalanche-related tokens in its app. As a result, tokens on the Avalanche chain can now likely be exchanged directly for lower fees and with a few clicks.

With a market cap of more than $5 billion, Avalanche is one of the top cryptocurrencies globally, with a lot of growth. potential

AVAX has been hit hard lately due to a rather interesting whistleblower report that was released this past week. This report has been refuted by the company, which has called the claims in it “categorically false.”

Personally, based on all the facts I’ve seen, I think the Avalanche’s high potential growth trumps the concerns highlighted in the report. Nevertheless, as with all tokens, investors should use proper risk management protocols when investing in AVAX.

As of 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 author, subject to the InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love of investing led him to earn an MBA in finance and take on a number of leadership roles in corporate finance and venture capital over the past 15 years. His recent experience as a financial analyst, combined with his fervor for finding undervalued growth opportunities, contributes to his conservative, long-term investment outlook.