3 Cryptocurrencies to Buy in a Bear Market

A bear market is among the greatest alternatives to spend money on crypto, with one key caveat: It is advisable select your investments very rigorously. Bear markets are likely to separate the crypto contenders from the pretenders. Many cryptocurrencies by no means get better from their first downturn.

I am selective about cryptocurrency investments, particularly throughout occasions of financial uncertainty. Even so, there are a number of cash that I believe are well-equipped to outlive a bear market and ship outsized long-term returns.

1. Monero

Monero (XMR 7.43%) is the biggest privateness coin, which means a cryptocurrency that privatizes transactions. Most cryptocurrencies document transactions on a public blockchain that anybody can entry. Monero transactions are nameless and untraceable. If there’s a dependable tracing methodology, it is not public data.

There are a number of causes I like Monero as an funding. It is one of many few cryptocurrencies that has confirmed its endurance by a number of bear markets. Monero launched in 2014 and has been among the many high 25 to 50 cryptocurrencies by market cap since then.

Monero is among the better-performing cryptocurrencies in recent times. It is up 21% to date in 2025 and 90% over the past yr, considerably outperforming Bitcoin (BTC -0.94%) and the S&P 500 over these time spans.

Monero Price information by YCharts.

Final however not least, Monero has a singular and easy-to-understand use case. Numerous cryptocurrency initiatives make use of a lot technical jargon that it feels such as you’re studying one other language. The worth of Monero is quickly obvious: It retains your transactions and your holdings personal. That is a profit that I count on some crypto customers will all the time need.

2. Bitcoin

I understand that Bitcoin is not essentially the most thrilling suggestion. It is essentially the most well-known cryptocurrency, the oldest, and the biggest by a large margin. That is why it is the one I belief essentially the most. No cryptocurrency is fully protected, however Bitcoin is the most secure possibility.

Bitcoin’s worth comes from its built-in shortage. The utmost provide is 21 million Bitcoin, and as soon as these are all mined, there isn’t any solution to make extra of them. Due to Bitcoin’s shortage, proponents see it as a hedge in opposition to inflation and financial uncertainty, making it arguably the perfect crypto play in a bear market.

A few main latest developments might result in extra funding in Bitcoin. Final yr, the Securities and Trade Fee (SEC) accepted the primary Bitcoin ETFs, which has attracted extra institutional buyers. Skilled buyers managing over $100 million held $27.4 billion value of Bitcoin ETFs, as of the fourth quarter of 2024.

As well as, the Trump administration introduced the creation of the Strategic Bitcoin Reserve in March. Not solely will the federal authorities be stockpiling Bitcoin, a number of states have introduced plans to do the identical.

Whereas Bitcoin is just up 1% yr to this point, that appears higher when you think about that the S&P 500 is down 7%. Over the past yr, its worth rose by 41%. Bitcoin has historically gone by prolonged bull and bear cycles, so investing in it may be a wild journey. However with Bitcoin’s shortage and growing adoption, I would not be shocked to see it crack $150,000 throughout the subsequent yr or two.

3. Solana

A market droop is usually a good time to spend money on beaten-down cryptos which can be buying and selling at a reduction. Enter Solana (SOL -1.49%), a top-10 cryptocurrency that is at the moment down 21% on the yr.

Solana is a great contract blockchain that first emerged as a competitor to Ethereum (ETH -0.55%) in 2021, when it returned over 10,000%. What makes it particular are velocity and effectivity. Due to its proof-of-history mannequin, Solana processes over 4,000 transactions per second (tps) and is reportedly able to processing as much as 65,000. Its most up-to-date common transaction charges are $0.004. The typical amongst Layer 1 blockchain networks is about $3, based on Token Terminal.

The truth that it is so low cost to make use of Solana has helped it develop its person base. Whereas Ethereum remains to be the largest sensible contract blockchain, with practically $50 billion in complete worth locked (TVL), Solana is second with $7.7 billion. Solana was additionally the highest blockchain for brand spanking new builders in 2024, when 7,625 new devs explored its ecosystem.

Solana is a dangerous alternative, but it surely might additionally ship larger returns than extra conservative crypto investments. Although the primary few months of 2025 have not been nice for Solana buyers, there are constructive indicators for the long run. President Donald Trump has introduced that Solana will probably be a part of the U.S. Strategic Bitcoin Reserve, and the SEC goes to evaluate functions for Solana ETFs. In the event that they’re accepted, it might result in extra institutional investments in Solana.

These three cryptocurrencies have been round lengthy sufficient that they need to be capable of make it by a bear market. They usually all have distinctive promoting factors giving them aggressive benefits over different cryptocurrencies. Monero is essentially the most trusted privateness coin, Bitcoin has a small provide and the primary mover benefit, and Solana’s effectivity is second to none. I’ve all three in my pockets, and whereas the crypto market is unpredictable, I count on them to be long-term winners.

Lyle Daly has positions in Bitcoin, Ethereum, Monero, and Solana. The Motley Idiot has positions in and recommends Bitcoin, Ethereum, and Solana. The Motley Idiot recommends Monero. The Motley Idiot has a disclosure policy.