What Are The Most Secure Cryptos?

By Bfab | Good vibes | 21 Feb 2022

We may have entered a bear market. Nobody knows. There are usually two possible behaviors in such a case:

1) To sell your cryptos for fiat currencies or stablecoins.

2) To sell your most volatile cryptos for more secure ones.

If you prefer the option #1, you may go for it. However, most of crypto hodlers will prefer the option #2 since they believe in crypto long term potential.

Therefore, the question is: what are the most secure cryptos?

Key parameters to determine whether or not a crypto is secure

There are many possible parameters. In order to keep it simple, you can start looking at the following ones:

Market cap: the higher the market cap, the more secure the crypto. Why? Because in case of crash, most of the hodlers will swap low and mid-cap coins for high cap ones. The top 10 in market cap is currently: BTC, ETH, BNB, XRP, ADA, SOL, LUNA, AVAX, DOT, DOGE (stablecoins excluded).
Volatility: crypto volatility can be found on messari.io. The lower the value, the more stable the coin. The top 10 cryptos in market cap can be ranked as follows from the most stable to the least stable one (over 30 days):
- BTC: 0.62
- DOGE: 0.71
- BNB: 0.73
- ADA: 0.73
- DOT: 0.80
- ETH: 0.81
- LUNA: 0.92
- XRP: 1.09
- SOL: 1.14
- AVAX: 1.19
Staking proportion: the more a coin is staked, the more stable it is. Why? Because most of the stakers do not intend to immediately resell the coin. They stake it in order to earn rewards. The total stake for each coin can be found on statista.com. The top 10 coins in relative staked value are:
- MINA: 98.12%
- BNB: 82.11%
- SOL: 77.03%
- XTZ: 72.52%
- ADA: 70%
- FTM: 63.82%
- AVAX: 59.25%
- ATOM: 58.83%
- DOT: 53.24%
- FLOW: 51.24%

Conclusion

While the most stable, i.e., less volatile crypto, is still BTC, there are other options to be considered if you are looking for the most secure cryptos:

BNB offers an excellent trade-off between high market cap, low volatility and high staking proportion.
SOL and AVAX are also in the top 10 in market cap, offer higher volatility and hence higher risks or rewards, and also have many stakers.
ETH is not in the top staked coins, since staking ETH 2.0 is a real bet on the expected merge date, but offers higher stability then SOL and AVAX.
Among the other coins having a high staking proportion, XTZ, FTM and ATOM offer excellent alternatives to the top 10 coins in market cap.
Some coins not listed there also offer a good compromise between market cap, volatility and staking, for instance MATIC, EGLD and CRO.

The key is to find the right balance between these coins. Looking at volatility and staking proportion makes sense in all the cases in order to rebalance your portfolio when needed.

Below a few referral links to earn more cryptos...