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

·4 min read
crypto blockchain
crypto blockchain

Written by Daniel Da Costa at The Motley Fool Canada

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.

The post Here’s Why This Might Be the Best Cryptocurrency to Buy in 2022 appeared first on The Motley Fool Canada.

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


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