Downturns have rocked the broader cryptocurrency market since prices peaked in late 2021. This long stretch of depressed valuation has settled in as a crypto winter—the crypto equivalent of a bear market. In times like these, investors who are willing to change their strategies can still find terrific ways to preserve value and discover emerging growth opportunities. Here are five tokens that merit consideration for any crypto winter investment strategy.
Volatility isn’t just a threat—it can also unlock new opportunities. Investors looking to trade on emerging opportunities should consider BudBlockz (BLUNT), a cannabis-related cryptocurrency with one of the best sets of use cases we’ve seen. Rather than promising to revolutionize the field, BudBlockz has gone all in on supporting the cannabis industry’s evolving financial infrastructure, making it easier for consumers to invest in companies along the entire supply chain. It’s a remarkably levelheaded approach to an industry that has proven itself to be extraordinarily resilient to the last few years of broader economic malaise.
Stablecoins peg their value to that of a fiat currency, making them extraordinarily resilient during market downturns. USD Coin (USDC) has emerged as the very safest stablecoin available. Pegged to the US dollar, it is also backed by reserves of USD, unlike its largest competitors. Better yet, USD Coin is part of the influential Centre consortium, which seeks to unite fiat and crypto currencies, giving it another dimension of stability. Preserving value is key during bear markets and crypto winters alike, and USD Coin is our favorite way to do so.
In a down market, diversification is nearly as important as risk management. The Cosmos platform represents a way to play large swaths of the crypto space by facilitating the creation of blockchains themselves. Its native token, ATOM, allows all elements of the Cosmos network to interoperate. This might all be a bit abstract, especially for casual crypto investors, but the proof of ATOM’s resilience is in the charts: while many other major tokens have struggled to find new footing, ATOM has surged from late August into early September.
When investors scramble, financial systems can gain. Payment-settlement pioneer Ripple (XRP) is proof of that, making it a compelling option during tough economic times. It has remained resilient despite relatively high operating overhead and vanishingly low transaction fees, proving the wisdom of its position as a high-volume platform. Institutions also use Ripple—Bank of America and Banco Santander to name just two—giving XRP a strong foothold in the fiat world that only stablecoins can match.
Most investors make room in their portfolios to play the entire market, even when the market is soft. Binance Coin (BNB) is issued and used by Binance Exchange, the world’s largest cryptocurrency exchange, putting it squarely in the middle of the action. To the extent that you wish to keep any cryptocurrency in your portfolio, BNB should be a consideration while the entire sector looks to rebound.
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