A bear market is one of the best opportunities to invest in crypto, with one key caveat: You need to choose your investments very carefully. Bear markets tend to separate the crypto contenders from the pretenders. Many cryptocurrencies never recover from their first downturn.
I’m selective about cryptocurrency investments, especially during times of economic uncertainty. Even so, there are a few coins that I think are well-equipped to survive a bear market and deliver outsized long-term returns.
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Monero(CRYPTO: XMR) is the largest privacy coin, meaning a cryptocurrency that privatizes transactions. Most cryptocurrencies record transactions on a public blockchain that anyone can access. Monero transactions are anonymous and untraceable. If there is a reliable tracing method, it’s not public knowledge.
There are a few reasons I like Monero as an investment. It’s one of the few cryptocurrencies that has proven its staying power through multiple bear markets. Monero launched in 2014 and has been among the top 25 to 50 cryptocurrencies by market cap since then.
Monero is one of the better-performing cryptocurrencies in recent years. It’s up 21% so far in 2025 and 90% over the last year, significantly outperforming Bitcoin(CRYPTO: BTC) and the S&P 500 over those time spans.
Last but not least, Monero has a unique and easy-to-understand use case. Lots of cryptocurrency projects employ so much technical jargon that it feels like you’re reading another language. The value of Monero is readily apparent: It keeps your transactions and your holdings private. That’s a benefit that I expect some crypto users will always want.
I realize that Bitcoin isn’t the most exciting recommendation. It’s the most well-known cryptocurrency, the oldest, and the largest by a wide margin. That’s why it’s the one I trust the most. No cryptocurrency is entirely safe, but Bitcoin is the safest option.
Bitcoin’s value comes from its built-in scarcity. The maximum supply is 21 million Bitcoin, and once those are all mined, there’s no way to make more of them. Because of Bitcoin’s scarcity, proponents see it as a hedge against inflation and economic uncertainty, making it arguably the best crypto play in a bear market.
A couple of major recent developments could lead to more investment in Bitcoin. Last year, the Securities and Exchange Commission (SEC) approved the first Bitcoin ETFs, which has attracted more institutional investors. Professional investors managing over $100 million held $27.4 billion worth of Bitcoin ETFs, as of the fourth quarter of 2024.
In addition, the Trump administration announced the creation of the Strategic Bitcoin Reserve in March. Not only will the federal government be stockpiling Bitcoin, several states have announced plans to do the same.
While Bitcoin is only up 1% year to date, that looks better when you consider that the S&P 500 is down 7%. Over the last year, its value rose by 41%. Bitcoin has traditionally gone through lengthy bull and bear cycles, so investing in it can be a wild ride. But with Bitcoin’s scarcity and increasing adoption, I wouldn’t be surprised to see it crack $150,000 within the next year or two.
A market slump can be a good time to invest in beaten-down cryptos that are trading at a discount. Enter Solana (CRYPTO: SOL), a top-10 cryptocurrency that’s currently down 21% on the year.
Solana is a smart contract blockchain that first emerged as a competitor to Ethereum(CRYPTO: ETH) in 2021, when it returned over 10,000%. What makes it special are speed and efficiency. Thanks to its proof-of-history model, Solana processes over 4,000 transactions per second (tps) and is reportedly capable of processing up to 65,000. Its most recent average transaction fees are $0.004. The average among Layer 1 blockchain networks is about $3, according to Token Terminal.
The fact that it’s so cheap to use Solana has helped it grow its user base. While Ethereum is still the biggest smart contract blockchain, with nearly $50 billion in total value locked (TVL), Solana is second with $7.7 billion. Solana was also the top blockchain for new developers in 2024, when 7,625 new devs explored its ecosystem.
Solana is a risky choice, but it could also deliver greater returns than more conservative crypto investments. Even though the first few months of 2025 haven’t been great for Solana investors, there are positive signs for the future. President Donald Trump has announced that Solana will be part of the U.S. Strategic Bitcoin Reserve, and the SEC is going to review applications for Solana ETFs. If they’re approved, it could lead to more institutional investments in Solana.
These three cryptocurrencies have been around long enough that they should be able to make it through a bear market. And they all have unique selling points giving them competitive advantages over other cryptocurrencies. Monero is the most trusted privacy coin, Bitcoin has a small supply and the first mover advantage, and Solana’s efficiency is second to none. I have all three in my wallet, and while the crypto market is unpredictable, I expect them to be long-term winners.
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Lyle Daly has positions in Bitcoin, Ethereum, Monero, and Solana. The Motley Fool has positions in and recommends Bitcoin, Ethereum, and Solana. The Motley Fool recommends Monero. The Motley Fool has a disclosure policy.
