5 best new cryptocurrency to buy and invest in 2022
Many risks come from investing in the cryptocurrency market. The major one is volatility. The prices of cryptocurrencies can change regularly and without notice, leading to notable losses for an investor that is not well-prepared. However, volatility is not the only risk involved because there is also the fear of getting scammed.
The crypto space has grown significantly over the years, and while this is a good thing, it has also presented a set of challenges to investors that want to venture into the space. One of these challenges is a rise in scams, where some tokens lack any use cases and end up being scams.
As a new investor, you should diversify your portfolio with some of the new cryptocurrencies in the market. When choosing new cryptocurrencies to add to your portfolio, ensure that you evaluate various factors, such as the technological backing of each coin and the potential for future gains.
Below are the 5 best new cryptocurrency to buy and invest in 2022:
Lucky Block is a best new cryptocurrency to buy. The coin has a strong use case and an innovative technological backing. When deciding on the coins you want to buy, ensure that you look into whether the underlying technology can solve problems in the real world.
When Bitcoin was launched, the main intention was to solve costly and slow transactions in the traditional financial sector by eliminating the need for an intermediary. Other coins then came in to solve specific problems in the real world that Bitcoin failed to address.
Lucky Block steps in to solve issues in the online gambling space. Currently, the concept of online gambling is at its peak, given the many companies available in this space that offer online users the ability to access online wagers. While online gambling appears convenient at first glance, it presents many challenges, such as geographical and financial constraints.
This is now where Lucky Block steps in. The platform seeks to create a worldwide lottery program where users will enjoy the strong technological backing of blockchain technology. Lucky Block operates on Binance Smart Chain, and the focus of this project is to ensure fairness and transparency are introduced into the online gaming sector.
With Lucky Block, a player can enjoy making better win odds and generating income. Additionally, token holders also have a solid investment strategy by buying Lucky Block tokens. These tokens also give the holder a right to contribute to the growing Lucky Block community and be part of a fast-growing platform.
In the list of the best new cryptocurrency to invest in, the other token we have is Axie Infinity. The concept of blockchain gaming is currently at its peak, which has created the demand for tokens that operate in the sector.
Axie Infinity is one of the popular coins in the blockchain gaming sector. The project is built on the Ethereum blockchain, and following the rising demand for blockchain gaming, it has risen to become one of the most popular games.
One of the main reasons blockchain gaming is rising is that it allows players to generate passive income. As such, those looking for a way of earning from their hobby look into Axie Infinity. The earnings generated from this game has even led to some people playing it on a full-time basis.
Axie Infinity is a fighting game that allows players to breed and train their Axies to fight with each other. The game has around 3 million active users globally, with 40% of the players from the Philippines. The US ranks third in terms of the number of active players on the platform.
The Axie Infinity token, AXS, is the native token for this online game. Those who are not gamers can still invest in Axie Infinity by buying and holding the AXS tokens. According to market predictions, these tokens can rise in value because of the growing popularity of blockchain gaming and the strong position that AXS has secured in the space.
Besides, the AXS token gives the holders governance rights, allowing investors to be part of the growing community. Additionally, a user can stake AXS tokens to generate more rewards. Axie Infinity ranked as a best new cryptocurrency to invest in 2021, and these gains could go forward to 2022.
The other best new cryptocurrency to buy in 2022 is Cardano. Cardano is one of the top-ten ranking cryptocurrencies in the market in terms of market capitalization. The token recorded notable growth towards the end of last year due to the launch of smart contracts in the network. Smart contracts allow the network to support the development of decentralized finance (DeFi) protocols.
Cardano's full DeFi capabilities are yet to kick in, given that the feature is still new. However, the network is seeking to onboard DeFi protocols, and recently, it launched SundaeSwap on a testing basis.
Projects with smart contract capabilities are usually good for long-term investments because the growing use of the network could mean major gains for the underlying tokens. Cardano was a best new cryptocurrency 2021 after the Alonzo hard fork, which led to a rally in ADA tokens towards all-time highs.
The coin rallied at the time because of investors predicting gains in Cardano caused by increased developer activity on the network. Given that the DeFi capabilities of Cardano are still in the initial stages, the network could see a notable increase in adoption. Additionally, ADA tokens could also return major gains for token holders.
The other best new cryptocurrency to invest in 2022 is Compound. Compound is one of the most popular networks in the DeFi sector. The Compound protocol supports the lending and borrowing of digital assets, which has created a more convenient, accessible, and cheaper system than the traditional banking and financial sectors.
Compound has grown in value and adoption over the past few years. The token saw a major boom in 2021 due to growing interest in DeFi. Due to the unique offerings of the Compound protocol, it has attracted attention from both retail and institutional investors.
Compound has a strong technological backing. This makes it an ideal investment for both the long term and the short term. The crypto market came into play to solve the limitations of the traditional financial sector, and one of these limitations is in lending and borrowing.
Through Compound, players in the crypto space can borrow digital assets and repay them back later and at a given interest rate. The process of borrowing these assets is made possible without the need for an intermediary. The process of borrowing cash or assets in the real world can be hectic, and it is not accessible to all. However, with Compound, this process is open to everyone.
The Compound protocol also allows users to generate income from their investments. Besides borrowing, users can also lend money to other users on the protocol, and they receive interest in return. This creates a seamless system where both the lender and the borrower can interact without an intermediary, making the entire process accessible, cheaper and fast.
Therefore, the use cases derived from the Compound protocol presents a good investment opportunity. Furthermore, the token could also generate rewards for token holders because of the growing popularity of DeFi.
The other best new cryptocurrency to buy is Terra LUNA. Terra has been performing well since last year and is ranked as a best new cryptocurrency to invest in 2021. This network's adoption level has grown massively over the past year, and it now ranks as the second-largest network after Ethereum in terms of total value locked (TVL).
Terra is the ninth-largest cryptocurrency with a market capitalization of over $27 billion. Terra is an open-source network that supports algorithmic stablecoins pegged to the value of traditional fiat. The platform has been developed to enable users to trade Terra stablecoins easily and swiftly.
LUNA is the native token for the Terra blockchain. It makes for a good investment because of its versatile nature. The native cryptocurrency was created for the purposes of governance in that it allows users to vote on the changes made on the network. The governance rights given by this token give holders the right to be a part of the community.
The other purpose of the LUNA token is to support mining and the issuance of stablecoins on the network. This high use case for the LUNA token has given it an edge over most of the tokens in the market. The rising utility of the token has also given it value, which is good news for token holders.
The growing DeFi sector is also good news for LUNA. The size of the smart contract protocol could grow in the future, which could boost demand for the LUNA token. Additionally, the growing adoption of the smart contract protocol could mean that demand for LUNA will skyrocket, and record highs could be set again. This could contribute to notable gains for LUNA, and token holders could make major gains.