The global cryptocurrency market capitalization currently stands at $2.2 trillion. It is a huge industry that anyone looking for an investment opportunity cannot overlook. While Bitcoin, with its market capitalization of almost $900B and 40% market dominance, might look like the most likely option, its excessively high price might be discouraging to many.
The good news is that there are some low-priced cryptocurrencies worth adding to your investment portfolio. This article examines some of the best cheap cryptocurrency to invest in 2022 with potentially high ROI.
Cardano has had an astronomical increase in value over the past year, bouncing to an all-time high of $3.10 recorded on September 2, 2021. Recent advancements in the project’s development roadmap have also spiked its growth. This made it the fastest growing cryptocurrency with a market capitalization of over $40B.
You should invest in Cardano if you’re looking for:
- Faster transactions
Scalability has always been the biggest challenge with cryptocurrencies — Cardano was launched to eliminate this challenge. While crypto giants such as Bitcoin and Ethereum can only process 7 and 15 to 20 transactions, respectively, Cardano can handle up to 257 transactions.
Cardano uses the PoS protocol, which allows you to stake tokens for blockchain validation. Environmentally conscious investors will find this quite impressive due to the smaller amounts of computing power required.
- Low transaction fees
With less computing power required to validate blocks, Cardano fees are relatively low (0.16 ADA).
- Limited supply
Capping its ADA supply at 45 billion, Cardano has liquidity not enjoyed by other cryptocurrencies with an unlimited supply. As demand for this coin increases, its limited supply ensures that those holding Cardano can sell it at a higher price.
UNI is the token of the Uniswap decentralized exchange. It is ranked 19th on Coinmarketcap rankings.
Facilitating peer-to-peer transactions within the crypto space has earned UNI its impressive $10B market cap. Its value bounced from its all-time low of $0.419 in September 2020 by over 3,500% to its current price of $14.74 as of December 13, 2021.
Uniswap is an excellent choice for crypto enthusiasts looking to invest in cheap crypto that:
- Leverages the growing importance of DEXs
Owners of UNI can partake in the decision-making process of this unique crypto exchange since it is Uniswap’s governance token. They can also benefit from the rising value of these types of exchanges.
- Provides passive income with liquidity pools
Uniswap allows you to easily earn UNI tokens by contributing to the liquidity pools that support the Uniswap exchange. These liquidity pools thus provide a passive income for long-term buy and hold crypto investors in the same way as stock dividends.
Solana has been the standout crypto in 2021 and has appreciated over 12,000% over one year since 2020. It has a $50B market cap according to Coinmarketcap rankings. Its current price of $154 reflects an increase of more than 30,000% from its all-time low.
Solana is an option for investors who wish to buy a cryptocurrency with the following features:
- Unique blockchain consensus model
The proof-of-history is a unique consensus model compared to the popular proof-of-work or proof-of-stake used by many other digital currencies. That said, Solana uses the PoH model with the proof-of-stake protocol. The combination provides for fast transactions (close to 50,000 per second). It also guarantees low fees estimated at $0.00025 per transaction.
- Gateway into NFT market
Solana has been beaming with potential, especially for investors looking to get into the NFT craze. The Solonart is the NFT marketplace that facilitates buying and selling of NFTs using this cryptocurrency.
- Broad market acceptance
The acceptance of cryptocurrencies by the major players in the crypto world, such as popular exchanges and NFT marketplaces, arouses investor interest in the said currency. In the case of Solana, Coinbase Pro announced that it would add Solana to its list of cryptocurrencies.
Despite a market-wide selloff that saw the likes of Bitcoin and other big names in the crypto world shed billions of value, Terra LUNA skipped past Shibu Inu, Dogecoin, and Avalanche to the top 10 highest-ranking cryptos by market cap with the value of over $20B.
LUNA provides a lot of investment potential to crypto enthusiasts who may benefit from the following:
- The native token of Terra is LUNA. It is used to stabilize the value of all other stablecoins of the Terra protocol. As a holder of this token, you’ll enjoy greater returns as the demand for the Terra stablecoins go up.
- As a native token, LUNA gives its holders the ability to submit proposals and also vote on important decisions affecting the protocol as a governance token.
LUNA can be purchased on exchanges or converted into other tokens, for example, FTM, through reputable crypto converters such as Godex. Godex provides LUNA to FTM exchange at a fixed rate which protects you from crypto market volatility.
To Sum Up
The best-performing cryptos have always been seen as those with the highest prices — but not anymore. The year 2021 has experienced some of the most dramatic volatilities in the crypto world. Some big-name assets shed double figures in price value.
Fortunately, a few cheap options such as Cardano (ADA), Uniswap (UNIX), Solana (SOL), and Terra (LUNA) are performing well. These cheap options have leveraged their unique technologies to offer faster transactions, higher scalability, interoperability, newer market niches such as NFTs, and lower transaction costs. If you wish to diversify and grow your cryptocurrency portfolio in 2022, these are the best cheap cryptos to watch out for.