The global cryptocurrency market cap has fallen below $1 trillion from the peak of over $3 trillion recorded in November last year. On Sunday night, Celsius announced that it was halting withdrawals, swaps, and transfers because of extreme market conditions. This announcement stressed coins that were yet to recover following last month’s Terra crash.
With most, if not all, of the cryptocurrencies trading in the red zone, investors have a hard choice to make between the coins to buy and the ones to sell.
Coins to buy during the crash
Bear markets usually put stress on weak projects. The current downtrend could trigger massive dips in coins that do not have strong fundamentals. Therefore, the best cryptos to buy during the recent crash are those with strong technological backing.
Bitcoin
Bitcoin makes for a safe choice during bear markets. Bitcoin has been through intense bear markets in the past, and it has always remained strong. The current selloff is affecting altcoins more than it is affecting Bitcoin.
Bitcoin’s dominance has increased to 45%, showing that it is occupying the market share left behind by crashing altcoins. Moreover, the collapse of Terra and the current issues with Celsius have only strengthened the argument of Bitcoin maxis that the asset is safer and more reliable than altcoins.
Cryptoassets are a highly volatile unregulated investment product.
Ethereum
Ethereum is among the altcoins with strong fundamentals. Its price has not been spared during the current bleed, and it has dropped to $1200. However, there are strong reasons why it still makes a good buy.
Ethereum will migrate into a proof-of-stake (PoS) network once The Merge is completed in August. This event could trigger notable gains for Ether, as it is expected to solve the issues with congestion and high gas fees on the network, and people could be prompted to buy Ethereum.
Cryptoassets are a highly volatile unregulated investment product.
Coins to sell
The decentralized finance sector is raising eyebrows because of the failure of some of the two largest projects in the field. With Terra investors counting losses, Celsius users are worried about suffering the same fate. Some coins linked to the DeFi sector and those with weak fundamentals could fail to survive the bear crash.
CEL
One lesson from Terra is that once investors lose confidence in a project, selling pressure could trigger unimaginable losses. Since Celsius announced halting withdrawals, CEL has dipped by around 50%. Failure of the project to provide a solid solution could cause more losses.
TRX
The USDD algorithmic stablecoin is currently showing signs of stress, trading at a 1.1% discount from its dollar peg. USDD is an algorithmic stablecoin for the Tron ecosystem, and TRX serves the same purpose as LUNA did to sustain the UST peg. If USDD depegs further, it could trigger a downtrend for TRX.
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