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Best Crypto to Buy Now in 2022

Will Ellis
Last Updated on July 28, 2022
Money

The market is straining to stay together right now. Two of the three superpowers are undergoing a massive housing bubble, while the third is dealing with its own leadership turning the world against it.

Fiat currency is the most volatile it has been in years. But what does this mean for the world of crypto?

Well, crypto is going down as well. Reports show that about 75% of cryptocurrency holders have less value in their currency than they did two months ago. Does this mean that crypto is crashing?

Not any more than the rest of the market is crashing. One might notice that those are some very carefully chosen words. Is that meant to imply that the market is crashing? Well, it depends on what you mean by “crash”. Stocks, crypto, and currency are certainly dropping massively in value in a short time.

But when you think of the 2008 financial collapse, it was triggered by the discovery that about 1/4th of the value in the world was discovered to not actually exist. Around that percentage of stocks, loans, and currencies were bought with money that could not be paid back. This led to a collapse.

The markets are losing value due to inflation. But it is not a case of 1/4th of the economy not being real. 

That means that what we are dealing with is not a financial crash, but a financial fall. It sucks, and people are losing a lot of money… But one of the great things about markets for stocks and crypto is that it also makes it easier for people to buy into these markets now and profit later.

Table of Contents:

How do Markets Recover?


Stock Markets

In April of 2022, Bitcoin was traded at $41,000 per token. A month later, it was traded at $31,000 per share. A $10,000 loss is pretty harsh. Does this spell the end for the legendary rise of Bitcoin?

Simply put, no. And if you want to understand why, consider this: Indeed, Bitcoin fell $10,000 per token. But it only fell $10,000. Why did it not fall $15,000? Or $20,000? The funny thing about cryptocurrencies (and fiat currencies, and stocks…) is that if they lose value, but don’t crash, that can be good for them.

Because it proves that they can survive a loss of value. And the security that such an event brings might be more valuable than $10,000. The same applies to every other cryptocurrency. They are all suffering due to the current economic instability. But if they can suffer and survive, they will be more valuable.

So, what is the Best Crypto to Buy Now?


Since the market can always, eventually be relied on to recover at some point (even if that point is not any time soon), you can evaluate the most valuable cryptos by a few metrics. We will be looking at what cryptocurrency is dealing with the market issues the best, as well as what will launch back up in time.

1. Binance Coin – Best Overall Crypto to Buy Now


This being the #1 is going to surprise some people. In fact, it would probably even surprise the people that made it. So, what is our log here? Well, consider that Binance Coin is not a normal cryptocurrency.

Binance Coin

Binance Coin is tied to the Binance trading platform. It is meant to work as a “translator currency”, meaning that it helps you trade between currencies that are otherwise difficult to trade between. 

For instance, you cannot always find a person who is trading Bitcoin for Australian Dollars, or Solana for DogeCoin. But since the Binance platform itself will buy anything for Binance Coin, you can always trade what does not sell for something that does sell.

In order to keep the coin stable, Binance works hard to keep its value as close to $1 in United States Dollars as possible. That means getting rid of their own holdings when it is too cheap and releasing more currency to artificially inflate it if it gets too valuable. So, how does that work when the market falls?

The result is amusing. Basically, while Binance Coin does lose value just like everything else, it actually loses less value than almost every other currency, including the USD that it ties its value to. The end result is that Binance has to work overtime in order to lower Binance Coin’s value.

The short version of this evaluation is that once the rest of the market bounces back, Binance Coin will be far more valuable simply because it will reflect the strength of the market. That, and you can rely on Binance to increase its value when that time comes (or rather, stop decreasing its value).

2. Avalanche – Best Staking Coin to Buy Now


This is another dark horse among cryptocurrencies. Avalanche has lost half its value in the last month. If ever there was a time to be nervous, it is now. But at the same time, it is also a time to seize the chance.

Avalanche

One thing that should be clear about Avalanche is that we are not advising you to buy it and sell it later. It lost half of its value, but it would be a low-level read of the situation to assume it will simply get that value back as fast as it lost it. No, it is much easier to lose value than it is to gain value in crypto.

Avalanche is not valuable because of the fact that you trade it, but because of how you trade it. Specifically, it is most valuable through staking. But what is staking? Well, it has to do with the blockchain. You see, most crypto is slow because it has to validate all purchases with the blockchain.

Validating a purchase with every link in the chain can take up to twenty minutes. Staking allows that process to speed up by giving “stakeholders” a chance to loan people their own pre-validated currency. In exchange, you get credited small amounts of the staked currency back to you.

The biggest obstacle in your path to making money through staking is having the right volume of currency for staking. Some staking platforms require more Avalanche than others in order for you to get started on it. But remember: Your money now buys twice as much Avalanche as it did before.

That means you can buy into a large amount of Avalanche and start staking it now and get started building up your holdings before its value goes back up. That way, when you do sell you will have much more than you actually spent money on.

3. Bitcoin – Best Crypto to Buy Fractionally


We had to get to Bitcoin eventually. The problem with Bitcoin has always been that it is hard to recommend. When it was first launched, it was hard to recommend because it was such a strange concept. And then, it exploded in value. Now it is hard to recommend because it is too valuable.

Bitcoin logo

As we mentioned earlier, the market stumbling is good for people who have little to no investment in it. Most people who hold Bitcoin have simply lost money in the last month. But people who are interested in Bitcoin, but have never had the money to get into it are suddenly starting to pay attention to it.

It has lost $10,000 in value, down from $41,000 to $31,000. We also mentioned that it is easier to lose value than it is to gain value, so it will not recover $10,000 that fast. But what if it recovers $2,000 in value? And what if rather than owning one $31,000 coin, you instead own $100 of one coin? What then?

$100 is .32% of $31,000. That is about one-third of a single percentage. That means for every $1 increase in Bitcoins value, you get one-third of a penny. But it also means that for every $3 increase in its value, you get a whole penny. For every $300 increase in value, you get a dollar.

It seems a bit obvious to say, “the more you put in, the more you get out”, but people often assume that this line of thinking demands you always go all-in on whatever currency you are buying. Not true. You can buy a fraction of a currency, especially an incredibly expensive one, and still, reap rewards.

Bitcoin is the best currency to do that with. There are obviously quite a few things you can do with Bitcoin, but that is the method of making money off of it that most people are going to be able to do.

4. Tether – Best Stablecoin to Buy Now


Tether is a stablecoin, meaning that rather than having its value determined by the market, it is instead always tied to the price of the United States Dollar. This makes it similar to Binance Coin, but with one key difference: While Binance Coin is tied to the Binance trading platform, Tether is not.

Tether

That means Tether can go places Binance Coin cannot and be spent in ways that Binance Coin cannot be spent. Perhaps most importantly, it means that Tether is a little more volatile. You see, part of cryptocurrency’s value comes from the “luxury buying” theory of currency evaluation.

Most people like the “gold standard” method of evaluating currency because it has a real-world resource that is easily tracked that serves as a benchmark for the value of a currency. But when the United States abandoned that in 1971 (as did Australia and many other countries), they went to a new system. This system is called “luxury buying”, and it is what crypto operates on as well.

The idea is that a currency is basically worth as much luxury as it is capable of buying you. The value is then reliant on the methods of making purchases (such as online storefronts and payment methods) , the efficiency of making purchases, and the supply lines of the luxury goods you are buying.

That is a lot of variables to keep track of. And that is what makes Tether worth buying. There are tons of different factors that can separate it from the USD, at least temporarily. And when that happens, you can sell your holdings to make a neat profit.

5. Solana – Best Crypto to Day Trade


Solana launched in 2020, making it one of the newest currencies on this list. It started small, trading for less than a dollar, before shooting up to $200 a coin in the November 2021 crypto boom.

Solana

And while it has fallen greatly since that boom in 2021, the interesting thing about Solana is that it has fallen far less in value than almost every other cryptocurrency in the last two months. Why is that?

The simple answer homes in on Solana’s main appeal: Their security protocols. From its inception, Solana was meant as a highly secure decentralized finance coin meant to compete with Ethereum and Bitcoin. It sought out this challenge by using its security measures to protect users against fraud.

Fraud is common in banks (certainly far more common than the banks would like to admit), both internally and externally. Part of the appeal of cryptocurrency is that it is far more resilient against fraud. But while that is true within the blockchain, not every currency has protocols to protect users outside of it. That is what Solana seeks to address: Protecting the 99% of people who do not hold millions of coins.

This security translates into a high amount of stability. And stability translates into a great opportunity for day trading. This surprises some people to hear, as volatility is also good for day trading, in a way. But whereas volatility helps day traders make it big, stability helps day traders trade safely.

That means Solana can help you build a steady, low-risk day trading strategy that other currencies are simply too volatile to help you with. It can even go into staking if you want to try that.

6. Terra Luna – Best Crypto to Short


Short selling has achieved quite a bad reputation in recent years, and not without cause. It is a highly complex and volatile method of making money that not everyone has perfectly equal access to trying.

Terra Luna

But as with all volatility, the risks associated with short selling also come with commensurate rewards. You might be wondering, however: How does one short a cryptocurrency?

Shorting usually relies on you being able to borrow a stock and sell it before you are scheduled to give it back, buying it for the difference between the price you sold it at and its new price when you were meant to return it.

“Borrowing” cryptocurrency does not work in exactly the same way. There are security measures that make it difficult to establish a contract that allows for the normal methods of short selling. They are possible, but they are essentially reliant on the person or group you are shorting to make a mistake.

No, the more common method of shorting cryptocurrency is through its derivatives, such as options for the currency. These are not on the blockchain and therefore work just like normal options. You can short sell these all day. And when it comes to Terra Luna, you should short sell them.

There are a great many articles calling the death knell of just about every cryptocurrency that exists. One market dip and every crypto site feel obligated to ask: “Is this the end of [insert currency here]?!”

Well, the analysts in the industry seem to be the most worried about Terra Luna. It has not just seen a drop in value. It is the proprietary currency of the Terra trading platform, and that trading platform has seen a loss in revenue and value due to incompatibility with recent crypto regulations.

This means that while everything is dropping in value due to market issues, Terra Luna stands to lose a lot more. Shorting the options on the currency might be the most value it can yield you in the coming days.

7. Ethereum – Best Smart Crypto


Ethereum is the constant second-place finisher to Bitcoin and with good reason. Where Bitcoin is intuitive, Ethereum satisfies the market’s need for an advanced cryptocurrency.

It does this with its smart contracts, as well as its ability to constantly keep up with developments like staking and NFTs.

Ethereum

The economic downturn has been gentler on Ethereum than on other cryptocurrencies for this reason. Since the currency tends towards planning for the future, it has been able to deal with what is clearly a temporary market slump better than currencies that are traded by people looking for short term gains.

This is especially true due to its recent integration of NFTs, which have been mostly spared from economic instability in general. NFTs deal with their own kind of instability instead: Public perception.

But while the public view of NFTs has generally been negative, they are still security that has made millionaires even in the short time they have existed. For this reason, allowance for their investment has been a profitable move for the value of Ethereum, even as NFTs’ value has fluctuated greatly.

In short, you do not have to get into NFTs in order to profit off of the fact that Ethereum allows for NFTs. All you need to do is invest in it like normal, now when it is cheaper than before.

8. XRP – Best Low-Cost Crypto


There are a good number of cryptocurrencies with prices exceeding $50, and some even exceeding values in the thousands of dollars. This lack of accessibility is crippling to some investors. What if you want to get into the crypto market, but are too sceptical to invest more than $10?

XRP logo

There is a currency that will allow you to essentially practice trading even on an incredibly small initial investment: XRP. This is a cryptocurrency from the developers of Ripple. It is a by-product of their payment operating system, which has sped up the accounting of tons of cryptocurrencies.

The value that this new payment system produces is its own currency, called XRP. It started trading at $.07 per coin and currently sits at $.50 per coin. This makes it one of the cheapest currencies still seeing growth. That cheapness translates to two things: Accessibility, and stability.

Most currencies see an initial surge in value at some point after they are first introduced. The interesting thing about XRP is that it is so new that it is still experiencing that surge, even as the market stumbles. This means that it is fighting against a downward force and still gaining value.

It is entirely possible for the coming market recovery to translate into an even greater gain in value. That means spending a few dollars on XRP now might translate into huge gains later. It is not a huge probability that this will happen. But the possibility of it is exciting, especially with how cheap it is.

XRP can be bought for cheap, and then held to be sold off later. If it follows the trends of similar cryptocurrencies, then it will not take more than a year to spike, and then less than a month to dip back down. So, be ready to sell when the time comes.

Conclusion


Cryptocurrency

The market is not in the most attractive place right now, but anyone who has been around crypto for more than a month can tell you that it is still ripe for the picking. The most important thing to remember is that you have to be patient.

You might feel like a fool for buying when the market is falling, but the old adage of “buy low, sell high” still holds true. And, well, the market is lower than it has been in a while.

Just be sure to trade responsibly. The more niche the currency and the more advanced the trading strategy, the more you are opening yourself up to risk in a volatile economy.


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