3 ways to protect your profits during the crypto winter
While many cryptocurrencies have rallied significantly from their June lows, it is too early to declare crypto winter over.
Investors who take a long-term view of the sector may not want to liquidate their crypto portfolios. Instead, to retain as much value as possible during this crypto winter, they should consider upgrading the quality of their portfolio.
Given the hit in crypto asset prices almost across the board, many of the highest quality tokens are trading at a discount. Consequently, those looking for more defensive options (if there is such a thing in this sector) have a good opportunity right now.
Here are three great options for building a solid crypto portfolio amid this upswing.
Binance Coin (BNB)
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Binance coin (BNB-USD) is the world’s most liquid and perhaps most popular cryptocurrency exchange tool. It is also the native token for the Binance Smart Chain, one of the fastest growing smart contract platforms.
Binance recently announced an exclusive multi-year partnership with soccer legend Cristiano Ronaldo. Other notable partnerships include the deal with TikTok star Khaby Lame. These moves have already influenced Binance’s popularity and will benefit token holders as BNB becomes more mainstream. Binance plans to launch NFT collections with these celebrities in an effort to increase market share.
Over time, I believe BNB is a token that could gain significant market share as more focus shifts to cryptocurrency exchanges. With the Binance exchange as the dominant global player, investors who take a long-term approach to this sector can benefit from holding BNB.
Ethereum (ETH)
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The world’s second largest cryptocurrency by market capitalization, Ethereum (ETH-USD), has undoubtedly been one of the big winners of the recent crypto winter thaw. Much of that has to do with that network’s upcoming merger, which is slated for sometime next month.
Investors bullish on the future iteration of Ethereum have been buying up tokens and staking ETH in anticipation of this event. The merger will transform the Ethereum blockchain into a more energy-efficient proof-of-stake network. In addition, many expect the tokenomics of this network to improve, as well as the cost and throughput metrics.
For those using the Ethereum blockchain, this upgrade is a big deal. For long-term investors looking to take advantage of what could be the biggest upgrade the crypto world has ever seen, Ethereum could be a good buy heading into the merger.
Solana (SOL)
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Solana (SOL USD) is a rapidly growing smart contract platform designed to become one of the most preferred smart contract platforms next to Ethereum.
Almost anything that can be done on Ethereum can be done on Solana. In fact, Solana’s ecosystem growth has been impressive, with many users and developers shifting their focus to this network. Users can find NFTs, DeFi applications, meme coins and metaverse play-t0-earn games on Solana. Given the amount of growth Solana has seen, this token’s long-term chart reflects how powerful network effects are in this area.
I should note that a series of network outages has worried some investors in Solana. They are a big part of why this token is down more than 80% from its peak last year. But for long-term investors looking to buy quality tokens at a discount, this is certainly an interesting option to consider.
As of the publication date, Chris MacDonald held positions in Ethereum and Solana. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Guidelines for publication.
