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3 cryptos to buy at multi-year lows


This year hasn’t been the party that 2021 has been for the economy, and the crypto market has been particularly terrible. While many investors looked for cryptos to buy to maximize investment gains last year, most investors in 2022 seem to have focused on finding defensive places to hide.

Makes sense. Interest rates are on the rise as inflation continues to climb. Geopolitical conflicts abound. And regulatory issues from various jurisdictions around the world have become unfavorable for most cryptos. That’s to say nothing about the much publicized meltdowns of people like FTX, Traveler, Celsiusand others in this space.

That said, the crypto market has always been volatile. And although this sector trades at a market capitalization of around $850 billion, it is worth considering that about a year ago this valuation was closer to the $3 trillion mark. So, with the entire sector down around 70%, there are bound to be cryptos to buy at multi-year lows.

Right now, the most prudent decision for investors seeking exposure to this high-risk asset class might be to focus on large-cap tokens. Here are three such cryptocurrencies that I believe fit the long-term growth mandates of most investors.

Bitcoin (USD-BTC)

Source: Shutterstock

The largest cryptocurrency in the world, Bitcoin (BTC-USD) is certainly on the list of cryptos to buy for most bullish investors in this sector. There are several reasons for this.

Bitcoin is the main cryptocurrency, with a current market value of around $325 billion. Bitcoin remains the top dog in the crypto asset class, and some 13 years after its launch, it still managed to hold the top spot among the thousands of cryptocurrencies available today.

One particular trend Bitcoin has shown recently is its lack of volatility. This is a very strange trait, considering the past volatility of this digital currency. Even though he crossed the $20,000 level the previous month, Bitcoin’s daily price action showed much smaller fluctuations than usual.

Some foresee that it may be due to the size of the crypto. As Bitcoin’s market capitalization has increased, its proportion of buy-and-hold investors has also increased. Thus, the number of wallets that have held Bitcoin (and done nothing with it) over the past five years has reached new all-time highs.

When it comes to sustainable digital currencies, Bitcoin remains my top choice. Often considered “digital gold” by many in the long-term crypto investor community, Bitcoin’s historical performance suggests that this token will weather any environment we head into.

Ethereum (ETH-USD)

Ethereum Classic (ETC) crypto logo concept graphic in green techno style

Source: shutterstock.com/BT Side

The second largest cryptocurrency in the world by market capitalization, Ethereum (ETH-USD) is another mega-cap token that most investors seek out for safety.

This Bitcoin alternative may be the easiest option for investors looking to start their crypto journey. Valued at around $150 billion, Ethereum’s market capitalization reflects the enormous size of its ecosystem, which continues to grow over time.

The main reason investors hold Ethereum is the importance of this network to the world of decentralized finance (DeFi). Almost every project that “does something” in the crypto world is related to Ethereum. Of course, there are alternatives. But when it comes to large-scale safety and security, Ethereum remains the best dog.

Using smart contracts, a whole world of utility-generating projects has emerged. All thanks to the Ethereum developer team, led by founder Vitalek Buterin. So the recent Network Merge upgrade, which moved the entire network to proof-of-stake, was a big deal. With more upgrades, including the so-called Shanghai Upgrade, slated for 2023, there’s plenty to be excited about in this massive ecosystem.

Avalanche (AVAX-USD)

Crypto CBDC: A person touching the center of a virtual monitor displaying several currency symbols linked to a central bank

Source: Dilok Klaisataporn/Shutterstock

A token that fell out of the top 10 by market capitalization, avalanche (AVAX-USD), is on this list of best cryptos to buy for a reason.

Avalanche is relatively new to the crypto mega-cap family, and its rapidly growing market size makes it worth including in this list. Additionally, Avalanche’s Layer 1 blockchain provides unique properties that enhance its core protocol and make its network more scalable than its peers.

Indeed, Avalanche is one of the oft-mentioned Ethereum alternatives that has been making waves over the past couple of years. The three independent blockchains in this network authenticate transactions autonomously. Thus, Avalanche has the propensity to process more transactions more efficiently and less expensively. For those who use Ethereum and are used to gas fees on this network, this is a big deal.

AVAX started its journey in 2020. Its price dropped to $11.49 and $127.42 in the previous two years. Currently, AVAX is trading at a value of around $13.

So, in terms of valuation, Avalanche is trading near its lows, despite two years of network growth. For those looking for high picks in this space, Avalanche has to be a top pick right now.

As of the date of publication, Chris MacDonald holds a position at Ethereum. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.

Chris MacDonald’s love of investing has led him to pursue an MBA in finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative long-term investment outlook.

InvestorPlace

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