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 Investing

stock analysis
Dividend Stocks

1 Dividend Superstar I’d Buy Over TD Bank Stock

TD (TSX:TD) stock may look undervalued, but there are reasons for the price drop. Meanwhile, this dividend superstar has more…

Read more »

tsx today
Stock Market

TSX Today: What to Watch for in Stocks on Wednesday, July 17

Trading just below the key psychological level of 23,000, the TSX Composite has been posting fresh record highs for four…

Read more »

A steel grain silo storage tank with solar panel in a yellow canola field in bloom in Alberta, Canada.
Dividend Stocks

Down by 26.77%: Now Might Be the Perfect Time to Buy Nutrien Stock

This TSX stock has seen share prices fall by over 26% from its 52-week highs, but it might be the…

Read more »

Woman has an idea
Dividend Stocks

2 No-Brainer Stocks to Buy Now With $7,000

Two relatively cheap cash cows are no-brainer buys for investors with $7,000 to invest.

Read more »

dividends grow over time
Dividend Stocks

Buy This High-Yield Dividend Stock in July 2024

Buy this high-yielding dividend stock to lock in inflated yield into your portfolio to generate solid passive income for years.

Read more »

Double exposure of a businessman and stairs - Business Success Concept
Dividend Stocks

Where Will Dollarama Stock Be in 3 Years?

Dollarama stock has done incredibly well during economic uncertainty, but what about when the markets recover in the next three…

Read more »

edit Woman calculating figures next to a laptop
Tech Stocks

How to Buy UiPath Stock in Canada

UiPath is a beaten-down AI stock that trades at a massive discount to its earnings growth. Is the tech stock…

Read more »

Piggy bank with word TFSA for tax-free savings accounts.
Dividend Stocks

TFSA – 2 Canadian Stocks to Buy and Hold for Tax-Free Gains

Canadian stocks like Brookfield Corp (TSX:BN) can make wise TFSA holdings.

Read more »