It’s no secret that it’s been a struggle to find cryptos to buy, especially in parallel with the stock market in 2022.
The S&P 500 and the Nasdaq remain off by 14.4% and 22.4%, respectively, and that’s after a moderate upturn that began in mid-June. Meanwhile, the global market capitalization of the cryptocurrency market has fallen to a much more pronounced 53.3% in 2022. It too has experienced an upturn since mid-June, although one which has been less pronounced than similar upturns in the stock market.
Despite those positive signs, investors remain skeptical of whether there are worthy cryptos to buy after has been dubbed the crypto winter.
That said, there is still more than $1 trillion of capital collectively invested in the crypto market. That’s a strong signal that there still are cryptos to buy and that the market is worthy of being taken seriously.
| BTC-USD | Bitcoin | $20,164.82 |
| ETH-USD | Ethereum | $1,531.38 |
| SOL-USD | Solana | $31.55 |
| ADA-USD | Cardano | $0.45 |
| DOT-USD | Polkadot | $7.18 |
| CHZ-USD | Chiliz | $0.086 |
| SHIB-USD | Shiba Inu | $0.000012 |
Bitcoin (BTC)
Bitcoin (BTC-USD) remains a bellwether of the larger cryptocurrency space and a necessary entry on any list of the best cryptos to buy. So, for investors that take the market seriously in 2022, it remains a solid choice. Bullish crypto investors almost have to invest in Bitcoin by default.
The good news is that the so-called crypto winter has given investors certain metrics by which they can judge things moving forward. Bitcoin fell to $19,000 per coin during the deepest depths of the winter, back in June.
That was at a time when things were particularly bad. Optimistic investors who believe the markets have somewhat stabilized since then should take that price level as a strong guiding metric.
Bitcoin prices are now between $20k and $21k meaning there’s lots of room for growth and previous upswings have seen BTC run up above $40k quickly on multiple occasions. Perhaps Bitcoin won’t run to $65k anytime soon but it’s clear that the potential is there based on previous highs.
Ethereum (ETH)
Many of the same broad arguments in favor of Bitcoin also apply to Ethereum (ETH-USD).
It’s a great bellwether for the broader crypto space and its past price movements give investors reasonable guiding metrics. Like Bitcoin, it is a pioneering force in the cryptocurrency industry.
All of those arguments make Ethereum a relatively safe choice in the higher-risk crypto markets.
But what puts ETH so high on the list of cryptos to buy is its upcoming merge set to occur on Sept. 6. On that date the Bellatrix upgrade will galvanize the switch from a proof-of-work network to a proof-of-stake network. The new method of validating transactions will lead to a 99.95% reduction in energy use.
That’s a big deal as proof-of-work cryptocurrencies have been long maligned for their contribution to pollution and other environmental issues. In short, interest in Ethereum is likely to spike following the switch. That interest is analogous to demand. So, rising demand should lead to rising prices.
Solana (SOL)
Solana (SOL-USD) had an amazing run in 2021, a precipitous decline this year, and looks like one of the more attractive cryptos to buy at this point.
Solana almost certainly can’t run up 9900% as it did in 2021 based on current prices. But at the same time, there’s also a strong case to be made for Solana. It currently trades for $33 and the possibility that it doubles or triples is not absurd at all.
Solana has established a strong presence in the crypto space. It is noted for its speed and has drawn countless comparisons to Ethereum on that basis. I like to think of it not as an Ethereum killer but rather as a strong competitor in the overall space. Both can coexist and the story has yet to be written.
Solana is also noted for its unique hybrid consensus mechanism that combines proof-of-history and proof-of-stake. That has made Solana attractive to institutions and individuals alike. That institutional interest has cemented its place moving forward and makes it a solid choice overall.
Cardano (ADA)
Cardano (ADA-USD) continues to have lots of potential. That said, it takes a certain type of investor to stick with Cardano. I always like to make comparisons between the stock market and the cryptocurrency market.
In that vein, Cardano can be likened to value stock investing. In other words, success is going to take a long-term approach requiring patience. Cardano was born out of a fundamental disagreement regarding crypto project development.
Its founder, Charles Hoskinson was a co-founding member of Ethereum. He believed Ethereum’s development was done too hastily. That led him to leave the project and he went on to develop Cardano. Cardano takes an entirely different approach based on deep research and evidence-based, iterative development.
So, in that sense, it is much more analogous to value investing which relies on fundamentals and a more evidence-based approach.
Polkadot (DOT)
Polkadot (DOT-USD) is another cryptocurrency that simply makes a lot of sense in the long term. Utility should be the name of the game for investors looking to win over a longer period of time.
Polkadot represents utility to be certain. The project is essentially a hub via which other blockchain projects can connect. This leads many pundits to believe that Polkadot will provide massive utility as an intermediary for all of the disparate blockchain data being created. In turn, this intermediary function will allow new DApps to be built that leverage various data from various chains.
It also provides utility as a validator node in that all participants in the network validate the work of others.
Chiliz (CHZ)
The value of Chiliz (CHZ-USD) tokens derives from a powerful notion: It allows fans to participate in the governance of their sports brands and teams. Sports fans are noted for their passion and loyalty. So, a token that seizes upon that latent demand should have a lot of potential.
As an example, fans can vote in polls that ask questions such as what message should a player write on their headband.
The company is also leaning into NFTs, Defi and the Metaverse as well according to its website. It’s clear that the company wants greater development to occur in those areas.
Chiliz partnerships include many world sports teams but soccer is a clear area of great potential based on its blog.
Shiba Inu (SHIB)
Shiba Inu (SHIB-USD) is the first and last token on this list that is purely speculative. That said, there’s a place for speculation in any portfolio. So, if cryptos rise rapidly again in 2022 then an extremely cheap play like Shiba Inu can provide outsized gains.
Shiba Inu trades for fractions of a penny.
That minuscule valuation implies that Shiba Inu is nearly worthless in some sense. But on the other hand, it also means that a tiny fluctuation on the order of fractions of a penny can lead to quick windfalls.
Investors can’t discount that even as all markets sway toward value plays in an environment of quantitative tightening. That makes Shiba Inu worthwhile despite its obvious weaknesses.
On the date of publication, Alex Sirois 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.
