2 buy cryptos to buy now

Cryptocurrencies have gained immense popularity over the past decade, attracting investors from all over the world. However, with excellent profit potential comes significant risk. Cryptos are known for high volatility, making them a risky investment for many. Thus, many investors choose to stick it out in a more traditional 60/40 portfolio of shares and bonds respectively, or a mixture of the two that makes sense.

That said, it’s also true that most investors who have allocated a portion of their portfolio to cryptocurrency (even a small amount) have likely outperformed their more conservative counterparts over the past decade. This high-growth asset class is one that has produced many duds, but also some incredible winners.

In addition, it appears that institutional capital continues to be selective with how it flows into the crypto sector. Some of the more stable projects with historical results and consistent price performance over time have received the lion’s share of this pie. Whether it’s because of the aforementioned returns this sector has provided, the diversification of digital assets, or newfound banking woes, these are reasons why investors are looking at the best digital assets out there.

In my book, the following two cryptos should be viewed as buying opportunities in this current environment. Personally, I think a banking crisis could be the so-called tide that lifts all crypto boats. If that is the case, these two cryptos should see significant capital inflows, from both institutional and private investors.

1. Bitcoin

When it comes to conservative investments in the crypto sector, few can really compete Bitcoin (BTC -0.00%). The world’s first cryptocurrency, Bitcoin remains the dominant player in this sector, with a market capitalization of more than $560 billion at the time of writing.

Bitcoin’s value is often derived from this project’s historical performance and stability, as a secure, decentralized means of value exchange around the world. Consequently, while Bitcoin has yet to achieve widespread adoption as a currency, this network’s decentralized status and widespread use is seen by many as a hedge against the existing traditional financial infrastructure.

With various bank failures behind us, including the most recent problems we have seen First Republic During the last week, it is clear that investors want to secure their portfolios against systemic risk that was previously thought impossible. In addition, as the debt ceiling crisis approaches, currency-related risks increase, leading many to search for asset classes that can perform well in such an environment.

In recent days, Bitcoin’s performance seems to indicate that this token, often referred to as “digital gold”, may have some value in this regard. Bitcoin continues to challenge $30,000 and could be poised for a breakout higher if, paradoxically, things get worse in the banking sector.

2. Ethereum

Ethereum (ETH -0.00%) is a highly preferred cryptocurrency by investors worldwide for various reasons.

First, it is the second largest crypto out there, next to Bitcoin. Second, Ethereum’s massive smart contract-enabled network happens to be the hub of decentralized finance for a plethora of crypto projects. I don’t see that changing anytime soon.

Ethereum’s rise is almost entirely due to the network’s early adoption of smart contracts, which enable decentralized applications to be built on top of blockchains. The increasing popularity of cryptocurrencies over the years has enabled a number of use cases that were previously not thought possible.

Consequently, many see Ethereum as a Bitcoin alternative that produces real value for its users.

I think a mix of the two in any long-term investment portfolio should yield good results. In recent years, Ethereum’s performance has surpassed that of Bitcoin. However, during previous declines, Ethereum also saw larger downside moves. Thus, the beta of Ethereum, or the relative movement it makes to the overall market, is higher. Having a mix of lower beta and higher beta cryptos can benefit long-term investors, as risk-adjusted returns can be maximized.

Ethereum’s recent rise has been fueled by many of the same catalysts as Bitcoin’s. However, there is one key factor that many Ethereum investors are focusing on that sets this project apart from its megacap counterparts: The network recently completed the so-called Shapella upgrade (actually two upgrades, Shanghai and Capella), which made changes to Ethereum’s consensus layer and allowed for the which bets on the Ethereum network to redeem crypto.

In addition to last year’s The Merge upgrade, Ethereum appears to be on the right track in terms of network innovation and providing a platform that can grow alongside the burgeoning ecosystem. For those who think long term, this has to be one of the best choices to buy.

Bitcoin and Ethereum are here to stay

There are a number of reasons why many investors don’t want to touch crypto. From carpet pulling to outright scams and 90% plus price declines, this sector is one that is clearly seen as an extremely high risk proposition, which may not bode well for crypto in times of economic hardship.

That said, Bitcoin and Ethereum have shown their staying power and have the size and scale to continue to support the growth of the sector. For those looking to diversify into this asset class, these are the two symbols I would own right now.