Thinking About Investing in Crypto in 2026? Here Are My Top Picks

During the past 90 days, only a dozen of the top 100 cryptocurrencies (as ranked by market cap) are in positive territory. But that just makes it easier to find beaten-down cryptocurrencies trading at discount prices.

The following three cryptocurrencies all have high upside potential, and provide some downside protection as well. If the market is headed higher this year, these cryptocurrencies will likely lead the way.

Bitcoin

First up is Bitcoin (CRYPTO: BTC), the market bellwether. The world's most popular cryptocurrency, currently valued at about $1.8 trillion, still accounts for a stunning 60% of the total market cap of the crypto market. It's hard to imagine any scenario where the broader crypto market rallies without the participation of Bitcoin.

Admittedly, though, things look a bit dicey for Bitcoin right now. It's down a stunning 30% from its all-time high of $126,000 in October. Moreover, if you buy into the idea of the four-year Bitcoin cycle, then 2026 is shaping up to be a disappointing year. Every four years, Bitcoin plunges in value, and we're now heading into year four of the current cycle.

On the other hand, the industry outlook for Bitcoin is still bullish. According to a roundup of Bitcoin predictions from CNBC, some crypto industry insiders still think that Bitcoin can reach a price of $200,000 or higher this year. At a recent price of about $88,000, that implies a gain of 127%. That's in line with what Bitcoin delivered in both 2023 and 2024, so it's certainly within reach.

Solana

Of all the smart contract blockchain networks, Solana (CRYPTO: SOL) remains the top challenger to Ethereum (CRYPTO: ETH). Ever since its launch back in March 2020, Solana has been billed as a potential "Ethereum-killer," and signs are everywhere that Solana is now growing faster than Ethereum.

Image source: Getty Images.

For example, during the 12-month period ended in September 2025, the Solana blockchain ecosystem generated $2.85 billion in revenue. According to research from 21Shares, this revenue came from a variety of sources.

Solana is not just relying on revenue from speculative meme coin trading. The Solana blockchain ecosystem is now generating revenue from fast-growth areas such as decentralized finance (DeFi), decentralized physical infrastructure (DePIN) and artificial intelligence (AI).

If I'm right, then Solana should be able to close the market cap gap with Ethereum in 2026. Right now, Solana has a market cap of about $70 billion, while Ethereum has a market cap of $360 billion. Those numbers don't make sense to me. Is Ethereum really five times more valuable than Solana? I don't think so.

Keep in mind: at this time last year, Solana was a $300 crypto. It's currently trading for about $125. So it could easily double in value this year without the need for a major new catalyst.

Pax Gold

You want a defensive crypto? Then how about Pax Gold (CRYPTO: PAXG), one of the top gold stablecoins in the world. Unlike dollar-backed stablecoins, Pax Gold is pegged to gold. It's already up 19% in January, and will continue to rise as long as gold soars higher.

Of course, you could get your exposure to gold in a variety of different ways that don't involve crypto. For example, you could invest in a gold exchange-traded fund (ETF), such as the iShares Gold Trust (NYSEMKT: IAU). But gold-backed stablecoins are tradable 24/7, and also come without the management fees of an ETF. So, for some investors, stablecoins are preferable to ETFs.

During the past 90 days, Pax Gold is up an impressive 30%. That makes it one of the top performing cryptocurrencies during that period.

So if you're feeling a bit wary these days (and many crypto investors are), then a gold-backed stablecoin could be one way to get some peace of mind. Every day seems to bring yet another geopolitical crisis, and it could make sense to buy gold until things simmer down.

No guarantees for crypto investors in 2026

Just keep in mind: a sure thing in the crypto market doesn't exist. Last year, Bitcoin was supposed to skyrocket to $200,000. Instead, it ended the year at less than $100,000. The star performers last year were privacy coins, which is something that nobody could have foreseen at the start of 2025.

So keep your expectations in check for 2026. Investing in crypto is still highly unpredictable and risky. For that reason, I'm sticking to two names that I trust -- Bitcoin and Solana -- and adding a little gold for defensive purposes. Even if the crypto market goes nowhere this year or declines, this basic crypto portfolio should outperform the market.

Dominic Basulto has positions in Bitcoin, Ethereum, and Solana. The Motley Fool has positions in and recommends Bitcoin, Ethereum, and Solana. The Motley Fool has a disclosure policy.