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Best Cryptos to Buy Right Now (2022)
Whereas half a decade ago you could go months without hearing about cryptocurrency, these days you will scarcely go one day without hearing about some person making a killing off of it, or some company offering up a new cryptocurrency.
Each new millionaire and currency gets people increasingly excited.
But cryptocurrency is such a huge market, and the idea of it is so complex. How is anyone supposed to invest deliberately and profitably under those conditions? Well, we will tell you how. Just because cryptocurrency is new and confusing does mean it is impenetrable. It can be learned and mastered.
Let’s start by talking briefly about how most cryptocurrency works, as well as currency in general.
Table of Contents:
- How Cryptocurrency Works
- How to Evaluate Crypto’s Value
- What to Buy Now
- A Brief Tutorial on Trading Crypto
How Cryptocurrency Works ➡️
There are lots of nuances to how each cryptocurrency works, but here are the basics that the technology is founded upon: Cryptocurrency is reliant on a technology called “blockchain”. Blockchain apps are applications that can be loaded onto a device. All they do is communicate with other blockchain apps.
Rather than existing in your pocket (or, more often these days, in a bank) as paper money does, cryptocurrency exists on the blockchain. That means each app connected to the blockchain is constantly confirming the location and history of each “token” of a given currency on that blockchain.
Cryptocurrency, at its core, gets its value from being constantly verified by the ever-growing blockchain. The more you think about it, the more similar this is to paper money. Crypto might not have a physical presence in the world, but you don’t pay for Amazon or Netflix with paper money, do you?
When you make a purchase, businesses authorize the payment with your bank. This means whether your money exists or not is up to the individual voice of your bank. Crypto works differently. Whether or not your crypto holdings exist is up to the blockchain, and the blockchain is made up of thousands of different entities. A bank is a business. The blockchain is a collection of disinterested third parties.
So, in short, crypto exists because the blockchain says it exists. And it gets its value because of the security the blockchain provides. Just like paper money, it has value because people say it does.
How to Evaluate Crypto’s Value 💰️
Pop quiz: What is the Australian Dollar tied to? What gives the currency its value? We abandoned the gold standard in 1971, as did a lot of the rest of the world. So, how does it work now?
The gold standard was a measure of currency that many countries used because it was easy and intuitive. The basic idea was that a currency’s value could be determined by how much gold someone was willing to trade for it on average. But since 1971, Australia has instead been tied to the US Dollar.
The US Dollar’s current standard is not based on gold, but on luxury. It gets its value by how much consumer goods it can buy. That means that rather than being based on one commodity, both the US Dollar and the Australian Dollar are based on a great many commodities.
The same can be extended to cryptocurrencies. More and more businesses have started accepting cryptocurrency. But for the most part, they do not accept crypto universally. That means as a cryptocurrency goes from being obscure to more and more accepted, it will grow in value.
What to Buy Now 🛒️
With all that out of the way, let’s take a look at the top five cryptocurrencies to buy right now.
1. Ethereum – Best Overall Cryptocurrency
Ethereum is one of the most consistent cryptocurrencies on the planet. It tends to be second only to Bitcoin in terms of value (an important benchmark, as Bitcoin is the crypto the public at large judges crypto by), meaning that it has a wide reach while still being free from the closest scrutiny.
What this means is that Ethereum has value, to begin with but is still allowed to experiment in ways that Bitcoin cannot. The most recent development in Ethereum that makes it worth getting into is its “Ethereum 2.0” update. This allows Ethereum holders to put their tokens up for stake.
Stake is a unique way of gaining value from your cryptocurrency. It is built off the fact that cryptocurrency payments tend to be slow to authorize. This makes sense; you have to get validation from the whole blockchain, after all. Stake speeds this process up by allowing you to use pre-validated currency that a “stakeholder” puts forward. After the transaction clears, you are paid a transaction fee.
This innovation was originally done by a different cryptocurrency, but Ethereum has since adopted it, allowing Ethereum transactions to happen much faster. So, buy into Ethereum if you want to profit off of this new development, as it will only get more profitable as Ethereum gets bigger.
The best part about Ethereum though is the fact that you do not have to stake it in order to make money off of it. You can buy it and let it grow on its own. It is also valuable enough that one Ethereum token will trade for multiple tokens of a different cryptocurrency.
Ethereum 2.0 means that they have a plan to make the currency grow. It opens new doors for you to get in on that, but it also means that you can just make income through normal trading as well.
2. Solana – Best Cheap Staking Currency
Speaking of staking, let’s talk about Solana. This is a currency that also sees a lot of action in staking. The core difference between Ethereum and Solana, however, is that Solana is much cheaper to buy.
This makes a big difference. It takes much less market action for Solana to increase in value than for Ethereum to increase in value. This is a simple matter of the fact that Solana is cheaper, and it is easier for a currency to go from being worth $1 a token to $1.1 per token than from $10 to $11.
It helps that Solana came about after the invention of staking cryptocurrency. This means that there are a lot more platforms for staking it than for staking Ethereum. The most important thing about Solana’s value, however, has to do with most platforms’ rules on how staking works.
In order to stake a currency, most platforms require you to have a certain amount of currency, to begin with. This amount varies, and it should be noted that there are platforms that require only one token of a currency. They will just usually have poor rates of return due to taking an amount of your earnings.
Most platforms will ask that you have more than 100 tokens of a currency, while others can go as high as an 800 token minimum. The difference between each platform usually involves how much of your transaction fee they take for themselves. The higher the minimum amount, the less they take.
Since Solana is so cheap per token, getting the number of tokens you need in order to begin staking is far easier than doing the same thing with Ethereum. There are other currencies that are even cheaper, but Solana has the advantage of having a much larger share of the market than them.
In short, Solana has the best of both worlds. It is on the cheaper side of things, while still being popular enough that you can make a good amount of money staking it in large amounts.
3. Bitcoin – Best Currency for Day Trading
Of course, no list of buyable cryptocurrencies would be complete without Bitcoin. It is easy to take Bitcoin for granted. It is the industry leader in cryptocurrency and has led the way for all the rest to be taken seriously and used in actual transactions. So, what is it doing these days that is worth investing in?
Well, the answer is actually quite simple. You see, most cryptocurrencies are still struggling so hard to be accepted that they barely respond to market forces. For the most part, they are responding to their own internal workings. Can they get people to trade them? Can they get on platforms? Those kinds of things.
Bitcoin does not have to worry about that. People trade Bitcoin constantly. No platform is complete without Bitcoin. It is so commonplace that it responds to external forces instead: Are people able to buy the computer parts needed to store and trade crypto? Is crypto trading legal or regulated?
These factors represent daily changes in value, and daily changes in value are easy to get earnings out of. If Bitcoin costs $39,000 at the beginning of the day, then $40,000 at the end of the day, then you can reliably buy it at the beginning of the day and sell it at the end of the day for a profit.
In fact, there is very little stopping you from doing this quite frequently. This makes it a great currency for buying and selling within the same day and making a good profit. If you can afford it, of course.
4. The Graph – Best Small Cryptocurrency
One of the interesting things about cryptocurrency is the fact that you can find value in lots of different places with it. The Graph was originally an indexing algorithm for different blockchain networks, but it has since gone on to become a cryptocurrency in itself.
How did this happen? Essentially, the Graph app was helping crypto miners mine faster. This added value to the crypto mining process. Crypto mining, for those that do not know, is the process of dedicating a device (usually a high-end computer) to helping resolve calculations in the blockchain.
A single instance of calculating 2 + 2 is not a big deal. But when there are literally millions of math equations, from simple problems to complex calculations, all of them going on every second, that can add up fast. Crypto mining helps the blockchain run faster. And, as a reward, you are credited currency.
Because the Graph is a program that helps with this process by indexing information within the blockchain, it is recognized for producing a certain amount of value. That value eventually became Graph, a cryptocurrency representing what the Graph app contributed to the blockchain.
This is a small cryptocurrency that is primarily used to trade for other cryptocurrencies. But the advantage to it is that the Graph has proven itself highly scalable. As the blockchain gets larger and larger, apps like the Graph become more and more necessary.
This means that it is pretty easy to see how Graph can grow over time. The more the rest of the crypto industry grows, the more Graph will be worth as demand for the app it makes increases.
5. Luna – Best Complex Trading Cryptocurrency
While most cryptocurrencies trade for other cryptocurrencies (with the ultimate goal being to make a profit on a trade with a more widely recognized currency like Bitcoin, which can be traded for cash), some cryptocurrencies simply work differently. Luna is one of the more complex cryptocurrencies.
The reason why is related to the fact that Luna is the native currency of Terra, a cryptocurrency trading platform. This platform is unique, as it emphasizes the trade between cryptocurrency and “fiat” currency (what normal people call “paper money” like the Australian or the US Dollar).
Terra has tons of currencies exclusive to the platform, such as TerraUSD, a cryptocurrency that is continually bought and released by the platform so that it is always the same price as the US Dollar.
Luna is used as an in-between currency of all of these currencies. This allows a person to buy into the platform using their fiat currency at a one-to-one ratio. So, if you have $50 of Australian Dollars to spend, then you can get $50 of TerraAUD. Then, you can trade for Luna.
Once you have Luna, dozens of Terra fiat currency pairs open up. In short, it is foreign currency trading with extra steps. However, those extra steps create buffers against risk. Since rather than buying pips in a foreign currency pair, you are wholesale buying a cryptocurrency tied to a single currency.
Like we said, it is a complex process. Whether or not you can find ways of getting consistent value out of it is totally up to you. But one of the great things about complex currencies is that they have a lot of small nuances that make it possible for you to maximize the value you get from them.
A Brief Tutorial on Trading Crypto 📖️
Now that you know what cryptocurrency to look for, let’s go over some of the where, how, when, and why you should trade cryptocurrency. This is important, as it is not always an intuitive process.
Even if you are an experienced trader of stocks, you can still find yourself lost as to how it all works.
Where to Trade Crypto 📊️
Cryptocurrency is traded through online trading platforms. Most of these trading platforms will be specially designed around cryptocurrency. That means they will have access to lots of cryptocurrencies and the different ways they can be traded, as well as the different ways you can get value out of them.
How to Trade Crypto
It is important that the platform you use to be connected to the blockchain in some provable way. This is because the blockchain is the only real means to trade cryptocurrency.
Besides trading, you can also stake your crypto, as mentioned before. Not every currency can do this, but many can these days. You can also practice what is called “yield farming”. This is the process of contributing your holdings to a loan and profiting from a portion of the loan’s interest payments.
Trading, staking, and yield farming are the three main ways to make money off of cryptocurrency.
When to Trade Crypto ⏰️
While the crypto market is generally different from the normal stock markets of the world, some underlying principles are similar. For instance, the idea of “bullish” markets and “bearish” markets. These are terms that identify the general trend in a market to be rising or falling in value.
For instance, if you see a news story about legislation being passed in the European Union regulating crypto mining, then you can expect that to shrink the crypto sector. This will turn it, temporarily, bearish. That will make it sink in value. But since the demand for crypto is still there, it will bounce back eventually. When it becomes bullish and gains value, that is a time to sell your holdings.
Why Trade Crypto
This question is the easiest to answer of them all. Do not be swindled by anyone who claims to trade crypto due to a deep, abiding love for decentralized currency. Nobody is so ideological that they will throw away the money they need to live over their ideals, no matter what they say.
The best reason to trade crypto is to make money. That is what all of these currencies will help you do.
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