2 Top Cryptocurrencies Worth Considering on This Dip

Here’s why Solana (CRYPTO:SOL) and Bitcoin (CRYPTO:BTC) are two top cryptocurrencies investors should consider buying on this dip.

| More on:
cryptocurrency, crypto, blockchain

Image source: Getty Images

The “buy-the-dip” principle is based on the assumption that price declines are temporary aberrations which correct themselves over time. In general, risk assets mostly go up. Accordingly, during periods of decline, investors can reap outsized long-term returns by buying assets such as top cryptocurrencies when they’re beaten up.

Indeed, the crypto sector has been hit hard of late. This so-called crypto winter everyone is talking about is real. Many top tokens are now more than 50% below their all-time highs, reflecting a stark sentiment shift in this space.

That said, for those who believe the night is darkest before the dawn, here are three tokens worth looking at right now.

Top cryptocurrencies: Solana

Solana (CRYPTO:SOL) is a fast-growing crypto network which has surprisingly only been around for roughly two years. At its peak, Solana’s native token SOL surged 130,000% over its initial coin offering (ICO) price. Those are some incredible gains for investors in such a short period of time.

The key driver of Solana’s outperformance has been its technological advantage over rival networks. Using a unique proof-of-history consensus validation mechanism, Solana has found a way to provide incredible throughput and very low costs per transaction. These metrics are some of the best in the crypto world, and have enticed investors to consider this project for a long time.

Solana Labs, the team behind the Solana project, hasn’t been sitting on its hands either. Solana Labs recently unveiled its Web3 Android smartphone named Saga. This phone comes with integrated “Solana Pay” to facilitate on-chain payments based on QR code, a Web3 dApp store, and a “seed vault,” which will store private keys deep within the phone’s recesses and a mobile wallet adapter. Coming at a price tag of $1,000, this phone will be available for delivery in early 2023. 

For those who believe the growth story with this network is intact, this is an interesting option to consider right now.

Bitcoin

I suppose no list of top cryptocurrencies is complete without mentioning Bitcoin (CRYPTO:BTC). Indeed, this token is the oldest and arguably the most prolific digital asset ever created. Created as a result of financial instability following the Great Recession, Bitcoin’s creators wanted to envision a world in which digital money could reign supreme.

As it happens, this movement has caught on.

Two countries have adopted Bitcoin as legal tender. Many expect others to follow suit. Additionally, the surging interest from institutional investors in crypto is largely focused on Bitcoin. Indeed, asset managers looking to put their money to work typically focus on the lowest-risk assets out there. Bitcoin remains the top option in this regard.

This crypto’s long-standing nature, as well as its fixed supply, remain variables long-term investors continue to focus on. In my view, these two top cryptocurrencies are certainly worth a look for investors with a long-term investing time horizon.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Chris MacDonald has positions in Solana. The Motley Fool recommends Bitcoin and Solana.

More on Investing

Investing

$1,000 Ready to Deploy? 3 Quality TSX Stocks for Canadian Investors

Amid improving investors sentiments, the following three Canadian stocks offer excellent buying opportunities.

Read more »

Blocks conceptualizing the Registered Retirement Savings Plan
Dividend Stocks

RRSP Investors: 3 Canadian Dividend Stocks to Buy on Dips

These stocks have strong track records of dividend growth and now trade at discounted prices.

Read more »

concept of real estate evaluation
Dividend Stocks

Beyond Real Estate: These TSX Income Generators Could Deliver Superior Passive Income for Canadians

These two TSX dividend stocks could offer Canadian investors a reliable income stream and strong long-term upside, without relying on…

Read more »

Confused person shrugging
Dividend Stocks

Better TSX Dividend Stock to Own: Manulife or Sun Life?

While Sun Life stock has outpaced Manulife in the last two decades, which dividend-paying insurance giant is a good buy…

Read more »

A plant grows from coins.
Energy Stocks

Got $25,000? Turn it Into $200,000 in a TFSA as Canadian Dollar Gains

This energy stock may not have a high dividend, but it certainly has a high rate of growth to look…

Read more »

coins jump into piggy bank
Dividend Stocks

How to Use Your TFSA to Earn $1,057/Year in Tax-Free Income

Investing $5,000 in each of these high-yield dividend stocks can help you earn over $1,057 per year in tax-free income.

Read more »

data analyze research
Tech Stocks

Is BlackBerry (TSX:BB) a Buy in May 2025?

While its recent downturn might not look pretty, it might be the best opportunity to buy BlackBerry (TSX:BB) stock and…

Read more »

Piggy bank with word TFSA for tax-free savings accounts.
Investing

Where I’d Invest the New $7,000 TFSA Contribution Limit in 2025

If you have $7,000 for the new TFSA contribution increase, here are three stocks I would contemplate adding to the…

Read more »