- These cryptos to buy hold immense long-term value for investors willing to stomach the risk
- Bitcoin (BTC): Undisputed king of the crypto space and a darling for institutional investors.
- Solana (SOL): Quickly gaining a foothold in the DeFi industry and becoming a major threat to Ethereum.
- Polkadot (DOT): Deutsch Telekom’s purchase points to mainstream adoption ahead.
- Binance (BNB): Will continue to grow in value in line with the expansion of the Binance platform.
- Cardano (ADA): Stellar development process solidifies its long-term bull case.
Cryptocurrencies have been one of the hottest investments over the last few years. Unfortunately, recent market conditions have been tough on digital assets. In 2022, cryptos’ market capitalization has fallen more than 58%. Yet, despite the recent losses, cryptos still have a lot of potential. Hence, there are multiple opportunities for investors to load up on different cryptos to buy.
When choosing which cryptos to invest in, it is important to consider both the potential upside and the risks involved. Some cryptos are much riskier than others, so it is important to find a balance between growth potential and safety
Perhaps the most compelling argument to invest in cryptos at this time is that they are remarkably discounted. This year, markets have taken a monumental beating as the Fed continues to wage its battle against inflation by raising interest rates. Nevertheless, there are a few cryptos that you can load up on for long-term gains. Most experts point to incredible gains from current levels for all the cryptos to buy, discussed in the piece.
Cryptos to Buy: Bitcoin (BTC-USD)
Bitcoin (BTC-USD) has been the most popular and talked-about cryptocurrency. While its price is often volatile, it has shown significant growth over the past few years, becoming a viable investment for many people. One of the key reasons for Bitcoin’s success is its underlying blockchain technology, which allows for secure and transparent transactions. Moreover, the limited supply of BTC gives it a scarcity value. Consequently, some of the biggest names in the investing world have gravitated towards Bitcoin, which has made it the go-to digital investment for institutional investors.
Although Bitcoin still dominates the market in terms of overall market capitalization, its lead has been diminishing in recent years. Multiple high-growth projects have arisen and have all seen explosive growth in the pandemic years. Nevertheless, BTC remains the clear leader in price and liquidity and is unlikely to lose its position as one of the top cryptos to buy anytime soon.
Cryptos to Buy: Ethereum (ETH-USD)
Ethereum (ETH-USD) is among the top two most valuable cryptocurrencies in terms of market capitalization. Certainly, the platform powers the biggest technologies in the blockchain space and is essentially a separate ecosystem with its own currency (Ether), governance model, and developer community. It’s hard to overstate the importance of Ethereum in the DeFi and NFT space; without it, most of the projects currently in operation would not exist.
Perhaps the biggest news for the platform this year was the completion of its hotly anticipated 2.0 update. As part of the ‘Merge,’ it can effectively process transactions with 99.5% less energy usage. Moreover, its co-founder Vitalik Buterin points to more updates ahead that could further strengthen the platform’s efficiency. Hence, ETH is a no-brainer for those seeking exposure to the crypto space.
Cryptos to Buy: Solana (SOL-USD)
While Ethereum has dominated the DeFi space for years, a new challenger has emerged that promises to provide a better experience for end users. Solana (SOL-USD) is a layer-1 blockchain that boasts incredibly fast transaction speeds and low costs. Based on a unique proof-of-history validation mechanism, the platform can process thousands of transactions per second at a fraction of a penny each.
These advantages have already led to a significant amount of DeFi activity taking place on Solana, and many investors believe that the platform has the potential to dethrone Ethereum as the leading DeFi protocol. Moreover, its lead in the NFT space has been growing at an incredible pace, with record trading activity this year. Hence, with its strong foundation, Solana is well-positioned to become the leading platform in the DeFi and NFT space.
Cryptos to Buy: Polkadot (DOT-USD)
Polkadot’s (DOT-USD) unique architecture allows different blockchains to interoperate while maintaining each chain’s individuality. This allows for impeccable flexibility and efficiency for each blockchain. In addition, its parachains provide a high level of security for all the chains connected. Hence, the platform allows complex projects spanning multiple blockchains to run efficiently. It’s an extremely powerful and secure platform that can support a wide range of applications.
Polkadot was in the news recently due to Deutsch Telekom, Europe’s largest telecom business, which recently bought a ton of DOT. The move potentially signals a new era of mainstream adoption for cryptocurrencies. Moreover, at its current levels, DOT is more attractive than ever. As a result, Polkadot could have a bright future if adoption like this continues to take hold.
The Sandbox (SAND-USD)
The Sandbox (SAND-USD) is a blockchain-based metaverse game. In its virtual world, players can create, sell, collect and buy digital assets as non-fungible tokens. Moreover, it’s powered by the Ethereum blockchain, ensuring that all assets are securely stored on the blockchain. Also, it is intended to be a fully immersive experience where users can explore the Metaverse and interact with other users in various ways.
The SAND token witnessed immense growth late last year but, since then, has shed a ton of value. Nevertheless, it remains an ambitious project that has the potential to change the way we think about online gaming and virtual worlds. SAND could be a fascinating play in the niche for investors looking to capitalize on the metaverse trend.
Binance Coin (BNB-USD)
Binance Coin (BNB-USD) is the top crypto exchange by volume. The platform was processing $76 billion in transaction value per day at one point last year. Perhaps the most intriguing element for BNB for investors is that it takes a portion of BNB transactions and burns them at regular intervals. It effectively decreases the supply of BNB, increasing its value over time.
The real edge for BNB is Binance’s position as a juggernaut in the crypto space. The bigger the platform grows, the higher the transaction volumes. That effectively leads to more fees for the company. Hence, as Binance continues to grow its fee base, BNB will witness healthy growth in its value. Therefore, it presents itself as one of the rare long-term plays in the crypto industry.
Cardano (ADA-USD) is another leading cryptocurrency developed with an emphasis on sustainability and scalability. Its tremendous development process, which effectively targets network bottlenecks, separates it from the pack. Once the development process is complete, the network could potentially process a mind-boggling 3 million transactions per second.
Cardano is built on a unique peer-reviewed secure blockchain protocol called Ouroboros. The protocol allows for relatively speedy transactions at lower costs than its peers. Moreover, with new updates, Cardano continues to add new features that have strengthened its long-term positioning. With its novel Alonzo upgrade, the blockchain effectively supports smart contracts that allow developers to build decentralized applications (dApps) and explore the DeFi and NFT realms. Consequently, over 1,000 dApps are running on its platform, with new additions each month.
On the date of publication, Muslim Farooque held a LONG position in Solana and Ethereum. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.