- Here are seven cheap cryptos to buy after the steep selloff in the crypto market in tandem with weak global capital markets.
- XRP (XRP-USD): Bet on the future of global payments.
- Cardano (ADA-USD): Try to make the world better for all.
- Tron (TRX-USD): An interesting approach to social media monetization.
- Polygon (MATIC-USD): Build scalable dApps.
- Cronos (CRO-USD): Get considerable cashback and rewards.
- Stellar (XLM-USD): A holistic approach to storing and moving money.
- Algorand (ALGO-USD): Support the economic models of the future.
The cryptocurrency market’s year-to-date performance has been dismal. The CMC Crypto 200 index, an index of CoinMarketCap tracking the performance of a portfolio of the top 200 cryptocurrencies by market capitalization, was at 1,200 points when the year began and reached a low price below 630 points on May 12. There are several cheap cryptos to invest in now if you consider the high risk to be worth it for potentially high returns and you have a very strong stomach for extreme and continuous volatility.
The following seven cheap cryptos to buy now are pure speculative bets, as the nascent cryptocurrency market has not matured yet. It is always a good idea in investing to buy low and sell high, and these cryptos have been chosen not only because of their low prices but also for their potential, features, prospects and odds for a mass adoption.
A word of caution: Many crypto investors hope to “go to the moon,” achieving unrealistic returns. The exact opposite can happen with very little warning, so be realistic with your expectations and your risk tolerance. As they say, no one ever went broke with profits; do not become greedy in the case you get a decent return investing in these cheap cryptos.
XRP (XRP-USD) is a very popular cryptocurrency. It is the native cryptocurrency of Ripple, a digital payment network that supports global payments. The main advantages of XRP in terms of financial transfers and payments are low costs and high speed, making it a fast and secure way to transfer money. It has built a network consisting of large institutions using it, adding reliability, and there are no mining pools.
Mining pools have the disadvantage of consuming a lot of energy. The Ripple network is designed to be effective for use by large enterprises.
XRP started in 2022 near 84 cents and now is trading at 42.5 cents. One year ago, it was trading at $1.59.
It is an open-source platform with code written in the Haskell programming language, allowing for creativity, and flexibility for developers to create apps. It is an advanced third-generation blockchain that focuses on decentralization, providing very important features to people around the globe and offering the opportunity to have a digital identity.
Cardano uses a proof of stake protocol, an environmentally friendly system that supports sustainability.
The price of ADA in early 2022 was near $1.33. It made an early rally to $1.60 and is now trading at 56.8 cents.
Tron (TRX-USD) is a coin developed by the Tron Foundation using blockchain and peer-to-peer technology to promote decentralized entertainment and content sharing. The goal is to help creators of digital content get rewarded for their ideas and work. Therefore, it is suitable for people active on social media who happen to create content regularly.
Tron has several advantages to consider. It has very low transaction fees, it is efficient even with large transaction volume and transactions resolve quickly. Tron began the year at 7.6 cents and has spent the year so far mostly between 5.2 cents and 9 cents.
Polygon (MATIC-USD) is a decentralized Ethereum (ETH-USD) platform that enables developers to build scalable dApps. Polygon has several notable features, such as very low transaction fees and very fast transactions. It is ideal for developers looking to build new powerful decentralized finance apps. It also supports scalability and offers staking rewards.
Polygon is a layer-2 network, working as an add-on layer to Ethereum. Its versatility is very important to developers. Having a finite supply of 10 billion is another benefit, as many other cryptocurrencies have an infinite supply. A distinctive feature of Polygon is its vast number of partnerships, one of them being with DraftKings (NASDAQ:DKNG).
Polygon has been trading at $2.58 in early 2022 and has declined nearly 73%. Its latest price was approximately 70 cents.
Cronos (CRO-USD) is a token developed by Crypto.com, a trading and financial services company. Crypto.com wants to support and even accelerate mass adoption of the cryptocurrency market.
The blockchain technology behind Cronos enables smart contracts and supports EVM compatibility and interoperability. It offers scalability for the DeFi and DApp ecosystem.
Cronos offers high APY interest for staking on the Crypto.com exchange and further discounts on exchange fees. Users can get meaningful cashback by paying merchants in CRO. Crypto.com states that you can get 8% back on purchases made with the Crypto.com card and receive 14.5% rewards on crypto assets.
Cronos was trading at 56 cents in early 2022 and now has a price of 19.6 cents.
Stellar (XLM-USD) is a peer-to-peer decentralized network for storing and moving money. Its main feature is facilitating all forms of money transfers in different currencies or digital coins by connecting the world’s financial systems.
The Stellar blockchain allows other tokens to be created on its network, supporting very fast transaction speeds and very low transaction fees. Stellar can help developing countries that do not have a well-organized financial system get access to the broader global economy by allowing fast and cheap transactions. Stellar is an open-source blockchain with a focus on simplicity.
Stellar has been very cheap throughout 2022. From its price of 27 cents at the start of 2022, it now trades at nearly 13.7 cents, a decline of nearly 50%.
Algorand (ALGO-USD) is a decentralized, scalable blockchain infrastructure that powers economies of the future. It has partnered up with FIFA and supports a plethora of applications.
Like other cryptocurrencies mentioned in this list, Algorand supports fast transactions and improves efficiency and is environmentally friendly by using a proof-of-stake (PoS) blockchain protocol. Scalability and security are also key features. Algorand allows its users to vote on changes, and the more tokens users hold, the better their chances to get chosen to vote.
Other notable features include low transaction fees and applications in several business sectors like payment processing, real estate and healthcare.
Algorand’s price was $1.69 at the start of 2022 and has declined to a current price of nearly 48.5 cents, a decline of 71%.
On the date of publication, Stavros Georgiadis, CFA did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.