3 Cheap Cryptos to Buy Now for Big Gains
The list of cheap cryptos to buy that investors have to choose from right now is vast. This is a sector that’s been beaten down by a series of macro and sector-specific headwinds that have sent most risk assets plummeting this year.
On the other hand, 2021 was a great year for cryptocurrencies. Many tokens gained worldwide adoption and recognition, with the overall crypto market hitting a combined total value of approximately $2 trillion. Today, that same market is worth around $1 trillion.
As sentiment has dissipated, investors have looked to safer-haven assets to park their money. Whether it’s bonds, precious metals or dividend-paying stocks, there are plenty of alternatives that look more appealing than crypto right now. With interest rates on the rise and uncertainty high, this may remain the case for some time.
That said, at some point, the selling is likely to stop. When that is, no one really knows. But waiting for the bottom to be in can mean missing out on a big chunk of the move higher. Thus, for those looking to maintain exposure to this high-growth sector, here are three cheap cryptos to buy right now.
Polkadot (DOT-USD)
Of the many reasons to consider Polkadot (DOT-USD), I think the platform’s aim at solving interoperability issues is the biggest. Typically known for its status as a prominent layer-0 network (providing a base layer for layer-1 networks), Polkadot has a unique model relative to its competition.
Via an open-source sharded multi-chain protocol, Pokadot allows for various blockchains to speak to each other in relative harmony. Currently, the world of crypto is a rather siloed one. Investors looking to invest in one ecosystem don’t really get exposure to other projects out there. That’s partly by design, as attracting capital has meant these networks would be best served by creating closed ecosystems. However, Polkadot has turned this on its head, solving problems related to scalability by providing cross-chain bridges in a user-friendly way.
Developer activity on Polkadot continues to surge. Additionally, the overhaul of this network’s governance system, which will eliminate all technical and council committees, has many investors excited.
Down roughly 72.5% year to date, there’s clearly plenty of upside with this token should the crypto market rebound.
Cardano (ADA-USD)
Next on the list of cheap cryptos to buy during this market downturn is Cardano (ADA-USD).
This crypto is one I’ve been bullish on for some time. Much of this bullish sentiment is a result of this network’s Ouroboros proof-of-stake consensus protocol, which can validate transactions at very low costs. Essentially, Ouroboros enables the Cardano network’s decentralization. It also provides the ability to scale to global requirements sustainably without compromising security.
Cardano has a strong track record so far. By late 2021, it had processed more than 20 million transactions with no downtime. In addition, it recently launched ADACash, a rewards token that gained 10,000 users in less than two weeks. By mid-2022, the network had more than 1,000 projects building on it.
Furthermore, an upcoming upgrade known as Hydra will significantly increase processing speeds. Many experts expect this upgrade could lead to a rally in the token, though we’ll have to see how it goes. Although Cardano has yet to announce a release date, previous statements indicate that it could begin by the end of this year.
Down approximately 69% year to date, ADA is one cheap crypto worth buying right now, in my view.
Polygon (MATIC-USD)
Last on our list of cheap cryptos to buy is Polygon (MATIC-USD). This decentralized network, known for its status as the leading Ethereum (ETH-USD) layer-2 scaling protocol, is very important.
Why’s that?
Well, Ethereum’s network, while massive, is one that’s difficult to transact on. Fees are high, representative of incredible volumes every day. Additionally, this network isn’t as fast as many investors initially envisioned, leading to relatively slow transaction times and high costs.
Polygon effectively solves these issues, expanding the Ethereum ecosystem. Think of a congested highway getting an express lane — that’s what Polygon provides the fast-growing Ethereum network.
All cryptocurrency investments are highly speculative, but MATIC has shown impressive resilience relative to other top cryptos. Down “only” 50% year to date, this crypto has actually held up much better than its peers. Much of that has to do with the transaction volumes taking place on this network and the need for layer-2 solutions like Polygon.
On the date of publication, Chris MacDonald 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.
