Here’s Why This Might Be the Best Cryptocurrency to Buy in 2022

While cryptocurrencies trade cheap, now is an excellent time to find some of the best coins that you can buy and hold through 2022 and beyond.

| More on:
crypto blockchain

Image source: Getty Images

After two incredible years where cryptocurrencies have massively outperformed stocks, 2022 could be the best year yet to buy these high-quality investments.

In addition to gaining tonnes of popularity in recent years, with the selloff in the industry to start 2022, investors can buy some of the highest-potential cryptocurrencies at a significant discount today.

So, if you’re looking to find a high-quality cryptocurrency to buy in 2022 and hold long term, here’s why Avalanche (CRYPTO:AVAX) might just be the best to consider.

What is Avalanche?

Avalanche is a blockchain platform with smart contract functionality, meaning it can support decentralized apps such as NFTs, play-to-earn video games, and decentralized finance (DeFi) projects.

It’s not just any smart contract platform, though. Avalanche is one of the fastest blockchains at the moment, which, as the industry explodes, is one of the most important factors in determining a cryptocurrencies success.

It’s also why Avalanche is already among one of the most valuable cryptocurrencies. So, if you’re looking to find some of the best cryptocurrencies to buy in 2022, Avalanche has a tonne of potential to be another top performer again.

Three reasons why AVAX could be the best cryptocurrency to buy in 2022

First off, one of the biggest advantages that Avalanche has is that it’s compatible with Ethereum (CRYPTO:ETH) and its ecosystem, which several other highly popular blockchain networks are also compatible with.

This is crucial because Ethereum’s ecosystem is already massive, and the bigger it gets, the more incentivized developers are to build their projects in the Ethereum ecosystem. And because Avalanche has some of the best technology and is one of the fastest blockchains, naturally, many projects will launch there first.

That brings me to the second point. There is so much development happening right now, especially on Avalanche, that it’s only natural that the demand for AVAX should continue to increase, leading to Avalanche being one of the best cryptocurrencies to buy in 2022.

Avalanche’s network only launched in September of 2020. Already, in just 16 months, it’s risen to be the 11th most valuable cryptocurrency, with a market cap north of US$23 billion. That’s impressive growth, but it also leaves more room to rally.

Third, if you look at the price of AVAX right now, it’s clear it’s one of the best cryptocurrencies to buy. Avalanche offers an attractive price today, down roughly 35% from its all-time high. However, compared to some of its competitors, the cryptocurrency is not as cheap. This isn’t necessarily surprising, though, as Avalanche is one of the best cryptocurrencies to buy in 2022, and its price has therefore been a lot more resilient than its competitors.

Even during the recent selloff in the industry, Avalanche has passed popular coins such as Shiba Inu and Dogecoin in value.

Bottom line

Right now, with the selloff in cryptocurrencies, it’s an excellent time to find high-quality assets that are worth an investment. The key is to find the best cryptocurrencies to buy in 2022 that you can hold for a decade. That’s why high-quality blockchains are some of the best investments.

And given all the advantages Avalanche has coupled with the potential for the industry to continue gaining popularity, it looks like one of the best investments to make this year.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Daniel Da Costa owns Ethereum. The Motley Fool owns and recommends Ethereum.

More on Cryptocurrency

crypto blockchain
Cryptocurrency

How Cheap Can Crypto Mining Stocks Get Before They Are Worth a Buy?

Over the last two years, during the significant rallies in the crypto industry, some of the biggest gainers and best …

Read more »

Big Bitcoin logo.
Cryptocurrency

2 Cryptocurrencies That Could Outpace Bitcoin in 2022

The S&P 500 more than doubled between March 2020 and December 2021. In this period, the cumulative market cap of …

Read more »

question marks written reminders tickets
Cryptocurrency

Can Ethereum Recover From its Early 2022 Beatdown?

Ethereum (CRYPTO:ETH) is one of the most prominent picks among cryptocurrency investors worldwide. It is the second-largest crypto in terms of …

Read more »

crypto blockchain
Cryptocurrency

Cryptocurrency: Are Alt-Coins Riskier Than Bitcoin?

In crypto circles, it’s not uncommon for people to tout the virtues of Bitcoin (CRYPTO:BTC) over all other coins. Citing …

Read more »

crypto blockchain
Cryptocurrency

Solana Funds: Yet Another Reason This Is the Best Crypto Stock to Buy Now

The cryptocurrency industry has gone through its fair share of ups and downs over the last decade. However, despite the …

Read more »

Business success with growing, rising charts and businessman in background
Cryptocurrency

Why Hut 8 Mining Jumped 13% on Wednesday

Hut 8 Mining (TSX:HUT)(NASDAQ:HUT) saw shares jump 13% on Wednesday. The tech crash seems to be on the rebound, and …

Read more »

crypto blockchain
Cryptocurrency

3 of the Best Cryptocurrencies to Buy in This Massive Selloff

Any time the market moves in a big way, it’s essential to take a step back and look at the …

Read more »

Diagonal chain made of zeros and ones. Cryptocurrency and mining.
Cryptocurrency

Shiba Inu vs. Dogecoin: Which Will Win in 2022?

Cryptocurrencies are all the rage right now. For meme tokens such as Dogecoin (CRYPTO:DOGE) and Shiba Inu (CRYPTO:SHIB), this goes double — especially …

Read more »