3 cryptos to buy in a bear market

[ad_1]

Crypto investors have been in a bear market for most of 2022. The two major digital assets, Bitcoin (BTC -0.93%) and Ethereum (ETH -1.82%), are down 65% and 68% since the beginning of the year, respectively. While many crypto investors will be happy to put 2022 in the rearview mirror, it wasn’t all bad news in 2022.

Recall that it was only last September that Ethereum developers pulled off The Merge (Ethereum’s transition from proof-of-work to proof-of-stake), a feat that many observers have likened changing the engine of an airliner in mid-flight. Meanwhile, as the price of Bitcoin has fallen, the Bitcoin network itself has performed well in 2022, with no downtime and no hacks or exploits, while processing billions of dollars in transactions daily. And there are also many reasons to believe that 2023 will be better than last year for crypto investors. Here are three cryptos to accumulate during the bear market as the New Year approaches.

Image source: Getty Images.

1.Bitcoin

As mentioned above, the Bitcoin network ran smoothly in 2022 and proved its worth as a secure network without hacks or breaches. Additionally, the fall of other cryptocurrencies like Terra Luna and the implosion of centralized exchanges like FTX have highlighted the value of holding a truly decentralized and trustless asset like Bitcoin.

And there’s reason to be excited about 2023. While some Bitcoin critics say it’s lagging behind Ethereum and other cryptocurrencies that enable smart contracts, developers are working on Bitcoin’s response. to that. If successful, a new protocol, called Taro, will allow Bitcoin users to mint assets like stablecoins and even non-fungible tokens (NFTs) on the Bitcoin blockchain. This would bring a whole new set of use cases to Bitcoin and spur new activity on the network. Can you imagine the amount of fanfare the first round of Bitcoin NFT will generate?

As the oldest, largest and most valuable cryptocurrency, with a secure and stable network, and with some interesting under-the-radar developments on deck, Bitcoin is a top cryptocurrency to buy during the bear market.

2.Ethereum

But Bitcoin isn’t the only blockchain gearing up for more updates. While Ethereum’s Merge upgrade is in the rearview mirror, Ethereum developers are working on the next round of improvements, dubbed Shanghai, and it could arrive as early as March 2023. Although The Merge has turned Ethereum into a proof-of-stake asset, allowing users to earn rewards for staking their Ether to validate transactions and secure the Ethereum network, Shanghai will allow such holders to withdraw that staked Ethereum and withdraw the staking rewards, which will provide more flexibility to Ethereum users. After that, the next update, Ethereum Improvement Protocol 4844 (EIP-4844), is expected this summer, and it will pave the way for sharding, which should significantly increase Ethereum’s capacity by allowing users to “roll” large batches of transactions in “shards”, which will increase the throughput of the Ethereum network and reduce the so-called gas fees, or usage fees.

Ethereum is the largest blockchain for smart contracts, and it underpins the majority of decentralized finance (DeFi). It is also by far the largest ecosystem for NFTs, with at least $31 billion in trading volume of all time. Ethereum has over 200 million users worldwide, and the Ethereum network processed its highest number of transactions on December 9, with over 1.9 million transactions. As the largest proof-of-stake cryptocurrency with a solid track record of continuous improvement and a roadmap for more upgrades to come, Ethereum is another top cryptocurrency to add to your wallet during the crypto winter.

3.Tron

Tron (TRX -0.80%) may not appreciate the glamor and glitz of some of its rival cryptocurrencies, but that’s not necessarily a bad thing. It has held its value longer than most in 2022. Its 28% year-to-date decline is actually slightly better than the Nasdaq’s performance this year, and much better than Bitcoin’s aforementioned declines. and Ethereum, not to mention the 90% declines other more hyped cryptos like Avalanche and Solana have endured. With this contrast in performance, it’s no surprise that Tron has overtaken Avalanche and Solana in terms of market capitalization this year.

Also, to say that many people around the world use Tron seems like an understatement. With its fast transaction times and low transaction fees, Tron continues to be a popular choice for sending and receiving payments in stablecoins like Tether and USDC for people around the world, especially in developing markets. . For example, Tron currently has over 130 million active users and its mainnet has seen 4.5 billion transactions with a total value of over $6 trillion. In terms of stablecoins, at the time of writing, in the past 24 hours, over $11 billion worth of Tether has been moved onto the Tron network.

Tron has been around for a long time; it survived the previous crypto winter and offers a compelling use case to a large global user base, making Tron one of the best cryptos to accumulate during the bear market.

Although 2022 was not a banner year for cryptocurrency, top cryptos like these three continued to push forward, their developers continued to rely on them, and they continued to serve large user bases. worldwide for a variety of uses. Next year should see better times for Bitcoin, Ethereum, Tron and their holders.

[ad_2]