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Bitcoin (BTC USD) rose more than 10% last week after the consumer price index came in weaker than expected, raising hopes of interest rate cuts later this year. Given the relatively cool inflation data for April, Mr.Market may be expecting two rate cuts in the next few months. Therefore, with increased investment activity in the blockchain space, now is the perfect time to think about investing in the top cryptocurrencies to buy.
The crypto market has been largely in the green this year, with BTC up more than 50% year-to-date (YTD). However, it is important to understand that not all cryptos are created equal. Therefore, for investors looking for cryptos to buy, factors such as network effects and solid fundamentals are crucial. However, here are three standout cryptos you should buy for the long term:
Cryptos to Buy: Bitcoin (BTC-USD)
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Bitcoin is inherently an easy crypto investment and has established itself as the undisputed leader in this niche. The fourth halving will take place in April, effectively reducing the rewards for mining new blocks by 50%. In the past, the event has resulted in significant increases in BTC’s market value.
Additionally, smart money is flowing into BTC after 11 spot Bitcoin ETFs were approved back in January. Four months later, these ETFs have collectively accumulated a whopping $53 billion in the US, indicating strong institutional interest.
Additionally, we have seen financial heavyweights like BlackRock’s Robert Mitchnick and Ark Invest’s Cathie Wood hint at a run-up for BTC. Wood, in particular, thinks the digital asset could which exceed $3.8 million brand by the end of the current decade. Maverick entrepreneur Jack Dorsey’s forecast supports this optimism and expects BTC to surpass $1 million in the same period. I believe BTC will continue to grow rapidly with institutional capital for the foreseeable future.
Ethereum (ETH-USD)
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ether (ETH-USD) may have caught up to Bitcoin in the last decade, but this dynamic could change in the future. Ethereum’s long list of use cases in NFTs, decentralized finance (DeFi), smart contracts, and other lucrative blockchain verticals make it a juggernaut in the crypto space. Furthermore, it is peaked above $4,000 earlier this yearand with possible spot ETF approval imminent, ETH is expected to continue its rise.
Ethereum’s fundamentals are incredible and its insane utility to the blockchain industry is unmatched. Its extensive use in NFTs and DeFi indicates its incredible versatility and far-reaching potential. Additionally, it aims to expand its powerful smart contracts network, potentially reaching $12.55 billion by 2032.
As a result, many investment moguls like Cathie Wood remain pessimistic, if not more pessimistic, about ETH’s long-term potential. Wood notes that Ethereum stands out from its competitors in terms of utility and adoption. Therefore, it is expected that ETH will reach new heights as it innovates and scales.
BNB (BNB-USD)
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BNB (BNB-USD) is affiliated with Binance, the world’s leading crypto exchange, and plays a key role in its ecosystem. Perhaps the main purpose of BNB is to reduce trading fees for its holders, which is an important use case in itself. In addition, it plays a crucial role on the Binance Smart Chain (BSC) by waiving transaction fees while making it easier to participate in token sales via the Binance Launchpad. These functionalities increase the value and long-term appeal of BNB for users in the cryptocurrency space.
Another plus point of the BNB token is that Binance regularly burns part of its treasury to reduce supply, increasing its value over time. This deflationary model and its utility in the Binance ecosystem make it one of the best altcoins to bet on right now. With the crypto bull market expected to intensify in the coming year, the BNB token is likely to reap the rewards.
At the time of publication, Muslim Farooque 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 and are subject to InvestorPlace.com’s publication policies.
