These three cryptocurrencies offer the optimal combination of upside potential and downside protection in 2026.
As 2026 approaches, crypto investors have plenty of reasons to be nervous. Overall, major cryptocurrencies are down 10% to 50% for the year.
With that in mind, I’ve put together a list of three cryptocurrencies that are expected to hold up the best in 2026. In a best-case scenario, the value of these cryptocurrencies could absolutely skyrocket next year, thanks to strong underlying fundamentals.
Image source: Getty Images.
1.Bitcoin
My first choice is Bitcoin (BTC +0.57%)which continues to be the market barometer. As Bitcoin evolves, so does the rest of the crypto market. Indeed, Bitcoin still represents 60% of the value of the entire crypto market.
Today’s change
(0.57%) $495.53
Current price
$87841.00
Key Data Points
Market capitalization
$1.8 billion
Daily scope
$86855.00 -$88037.00
52 week range
$74604.47 -$126079.89
Volume
35B
There are many things to like about Bitcoin as we approach 2026. On the one hand, the pace of institutional adoption of Bitcoin continues to accelerate. It is not only large institutional investors who allocate part of their portfolios to Bitcoin. Companies are now adding Bitcoin to their balance sheets, led by Bitcoin cash companies who are snapping up the world’s leading cryptocurrency as fast as they can.
Better yet, the US government has also adopted Bitcoin. 2025 saw the creation of Bitcoin’s strategic reserve, and I have no doubt that things could accelerate even faster in 2026. The Trump administration has repeatedly hinted that it is closely monitoring the price of Bitcoin, given its new status as a “strategic asset.”
If the price of Bitcoin begins to weaken next year, I’m confident the Treasury Department will find a “budget-neutral” way to stock up on Bitcoin without using taxpayer dollars. If sovereign countries around the world follow suit, it could cause the price of Bitcoin to rise significantly.
2. Ethereum
What makes Ethereum (ETH +1.62%) Its highly diverse blockchain ecosystem is so attractive as a potential investment target in 2026. I have always viewed Ethereum as a sort of crypto conglomerate that has its hands in every important niche in the blockchain and crypto world.
Decentralized finance (DeFi) is arguably the most important of these niches. Ethereum remains a powerhouse in this space and sits head and shoulders above other layer 1 blockchain networks as Wall Street’s preferred blockchain.
Today’s change
(1.62%) $47.60
Current price
$2979.24
Key Data Points
Market capitalization
$359 billion
Daily scope
$2916.29 -$2996.16
52 week range
$1398.62 -$4946.05
Volume
18B
In 2026, if Wall Street banks adopt blockchain technology, they will likely adopt Ethereum as well. With that in mind, two major fintech trends could help give Ethereum a major boost next year.
One of them is the extraordinary growth of stablecoins. These are digital currencies pegged 1:1 to the US dollar. As such, they are really just “digital dollars” that can be deployed across various blockchains and DeFi protocols.
The other major trend is the tokenization of real-world assets (RWA). This refers to the transformation of real-world assets such as stocks and bonds into digital assets hosted on the blockchain. This is potentially a multi-billion dollar market opportunity, and Ethereum stands out as the only blockchain where these digital assets will be actively managed and traded.
3. Bittensor
My last choice is Bittenseur (TAO 0.91%)which became the highest market cap AI coin in 2025. Plain and simple, an investment in Bittensor is a bet on the intersection of blockchain technology and artificial intelligence.
Note that I used the word “bet” here. That’s exactly what it is. Bittensor is down 50% in 2025, and it is by no means a certainty that it will continue to be the best AI coin in 2026.
Image source: Getty Images.
However, there is one feature of Bittensor that catches my attention: a maximum lifetime supply of 21 million coins. Long-time crypto investors will immediately recognize the significance of this number: it’s the exact same lifetime coin supply as Bitcoin.
So, if you accept the scarcity argument as a major reason to invest in Bitcoin, then you must buy into the same argument for Bittensor. For comparison, other top AI coins have supplies that are measured in the billions.
No guarantee in 2026
Just keep in mind: there are no guarantees for crypto investors heading into 2026. Just take a look at this year. Wasn’t this the year Bitcoin was supposed to double in value, buoyed by all the pro-crypto talk coming out of the Trump administration? Instead, Bitcoin is down 6% for the year, disappointing crypto investors around the world.
As a result, I’m avoiding speculative altcoins and ultra cheap meme coins next year. I’m sticking with blue-chip names like Bitcoin and Ethereum, while tackling an area – artificial intelligence – that is almost unanimously considered one of the fastest-growing sectors in the tech industry. This should provide the optimal combination of upside potential and downside protection for any crypto portfolio.
