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3 Cryptos to Buy at Multi-Year Lows

This year hasn’t been the party that 2021 was for the economy, and the crypto market has been particularly terrible. While many investors sought out cryptos to buy to maximize investment gains last year, most investors in 2022 appear to have switched their focus to finding defensive places to hide.

That makes sense. Interest rates are on the rise as inflation continues to surge. Geopolitical conflicts abound. And regulatory issues from various jurisdictions around the world have become unfavorable for most cryptos. That’s not saying anything about the high-profile collapses of the likes of FTXVoyagerCelsius, and others in this space.

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

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Right now, the most prudent move for investors seeking exposure to this higher-risk class of assets may be to focus on large-cap tokens. Here are three such cryptocurrencies I think fit most investors’ long-term growth mandates.

BTC-USD

Bitcoin

$16,815

ETH-USD

Ethereum

$1,230

AVAX-USD

Avalanche

$13.20

Bitcoin (BTC-USD)

man in glasses holding a coin that has the Bitcoin (BTC-USD) logo
man in glasses holding a coin that has the Bitcoin (BTC-USD) logo

Source: Shutterstock

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

Bitcoin is the top cryptocurrency, with a current market value of around $325 billion. Bitcoin remains the top dog of the crypto asset class, and around 13 years after its launch, it has still managed to hold the #1 rank among the thousands of cryptocurrencies available today.

One peculiar trend Bitcoin has shown recently is its lack of volatility. This is one very odd trait, considering the previous volatility of this digital currency. Even if it crossed the $20,000 level the previous month, Bitcoin’s daily price action has shown swings that are much smaller than usual.

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

As far as digital currencies with staying power are concerned, Bitcoin remains my top pick. Often viewed as “digital gold” to many in the long-term buy-and-hold group of crypto investors, Bitcoin’s historical performance suggests that this token will make it through whatever environment we may be headed into.

Ethereum (ETH-USD)

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

Source: shutterstock.com/BT Side

The world’s second-largest cryptocurrency by market capitalization, Ethereum (ETH-USD) is another mega-cap token most investors look to for safety.

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

The primary reason for investors to hold Ethereum is this network’s importance to the world of decentralized finance (DeFi). Nearly any project that “does something” in the world of crypto is tied to Ethereum. Sure, there are alternatives out there. But as far as safety and security at scale are concerned, Ethereum remains the top dog.

Using smart contracts, a whole world of utility-generating projects has come about. This is all thanks to Ethereum’s developer team, led by founder Vitalek Buterin. Thus, the network’s recent Merge upgrade, which shifted the entire network to proof-of-stake, has been a big deal. With more upgrades, including the so-called Shanghai upgrade, set for 2023, there’s plenty to be excited about for this massive ecosystem.

Avalanche (AVAX-USD)

CBDC crypto: a person touching the center of a virtual monitor displaying several currency symbols linking to a central bank
CBDC crypto: a person touching the center of a virtual monitor displaying several currency symbols linking to a central bank

Source: Dilok Klaisataporn / Shutterstock

A token that’s fallen out of the top-10 list by market cap, Avalanche (AVAX-USD), is on this list of top cryptos to buy for a reason.

Avalanche is relatively new to the crypto mega-cap family, and its rapidly growing market size has made it worth including in this list. In addition, Avalanche’s layer one blockchain provides some unique properties which enhances its base protocol and makes its network more scalable than its peers.

Indeed, Avalanche is one of the oft-mentioned Ethereum alternatives out there that’s been making waves over the past two years. This network’s three independent blockchains authenticate transactions autonomously. Thus, Avalanche has the propensity to process more transactions in a more efficient and less-costly manner. For those who use Ethereum and are used to the gas fees on this network, that’s a big deal.

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

Thus, as far as valuation is concerned, Avalanche is trading near its lows, despite two years of growth in its network. For those seeking high-upside picks in this space, Avalanche has to be a top pick right now.

On the date of publication, Chris MacDonald has a position in Ethereum. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love for investing 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 investing perspective.

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