3 Stable Cryptos to Buy to Weather the Banking Storm

There’s a banking storm brewing alongside various macro headwinds investors are factoring in. Indeed, rising interest rates, surging inflation, geopolitical concerns, and other issues continue to plague risk assets. In the world of cryptocurrencies, this has led to declining valuations. That’s true for the most speculative tokens and the most stable cryptos in this market.

Of course, when the next bull market takes off, we’re likely to see this asset class come roaring back. Investors have short-term memories, but the impressive post-pandemic rally is fresh in many investors’ minds. Thus, given the macro backdrop, many investors may be seeking exposure to digital assets through relatively stable cryptos.

For those looking to do so, here are three of the best options in this market right now, in my view.

Bitcoin (BTC)

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Bitcoin (BTC-USD) takes the top spot on our list of recommended stocks and cryptocurrencies to invest in, defying market expectations and maintaining a market capitalization exceeding $500 billion throughout 2022. BTC has soared from $16,000 to $28,000 in Q1 2023, driven by reduced inflation and institutional capital inflows, solidifying its position as the leading cryptocurrency.

Bitcoin’s correlation with the stock market appeared to be on an upward trajectory until regional bank failures in early March disrupted the stock market. However, this setback turned out to be a favorable catalyst for the crypto market, as investors sought refuge in reliable cryptocurrencies amid concerns about traditional financial systems.

Bitcoin achieved a historic milestone as its mining difficulty surged by 3.22% on Thursday, indicating increased competition among miners. This rise in difficulty affects their profitability, which is closely linked to Bitcoin’s spot price, as more participants join the network.

With a resurgence in sentiment, Bitcoin holds great promise as a lucrative investment for the remainder of 2023.

Monero (XMR)

XMR logo

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Monero (XMR-USD) is a renowned cryptocurrency known for its emphasis on privacy, introduced in 2014. With its opaque blockchain, Monero ensures transaction details remain concealed, setting a new benchmark for anonymity and confidentiality.

Because it prioritizes confidentiality and respects the core concepts of decentralization and transaction anonymity, Monero shines apart among other cryptocurrencies. Monero, in contrast with numerous other cryptocurrency initiatives, is unwavering in its dedication to upholding the fundamental purpose of coins. By maintaining privacy and decentralization, Monero resists the trend toward centralization and aligns with the core ideals of the crypto movement.

On Monday, the coin experienced a 0.47% surge and received favorable ratings for low volatility and risk/reward ratio from InvestorsObserver, indicating resilience against price manipulation. As Monero progresses, it brings us closer to achieving a truly private and secure digital economy.

Privacy and confidentiality, considered to be essential components of any monetary system, are highly valued concepts in Monero. With its past price surges and a renewed focus on these paradigms, now presents a favorable moment to explore the potential of this token.

Ethereum (ETH)

Concept graphic of Ethereum Classic (ETC) crypto logo in green techno style

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Ethereum’s (ETH-USD) pioneering role in the blockchain space has given it a significant advantage across various sectors. As the creator of smart contracts, it continues to dominate areas like NFTs and DeFi. Most top-selling NFT collections are Ethereum-based, solidifying its position as the leading blockchain in NFT sales volume.

Ethereum surged to a yearly high of $2,151 in April but failed to maintain the momentum, dropping below the $1,950 resistance level. This reversal indicates a bearish trend, with the closest support at $1,600.

Despite this, the weekly Relative Strength Index remains in bullish territory. RSI is a momentum indicator traders use to assess market conditions and decide on buying or selling assets.

Ethereum continues to soar following its successful implementation of The Merge, which has been likened to changing an airplane’s engine mid-flight, setting high expectations for innovation. Investors seek revolutionary advancements rather than marginal improvements.

On the date of publication, Chris MacDonald has a position in ETH. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.