7 crypto to buy before the stock market crash

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7 crypto to buy before the stock market crash


The stock market is bracing for volatility in 2022. Why not cycle into cryptocurrency?


There are legitimate concerns about a stock market crash in the United States. Analysts on Wall Street and celebrities who trade stocks are getting increasingly pessimistic. Michael Burry, who forecast the 2008 stock market crash, is one of the many people raising concerns about speculation, inflation, and a slew of other possible crash symptoms. However, there is now a place of shelter for investors worried about a market downturn that did not exist earlier. Could cryptocurrencies serve as a safety net in the event of a market crash? Some people say yes. If you believe DeFi could be the cure for Wall Street's ills, you're undoubtedly looking for cryptos to invest in right now.


But, in this market, where should money be spent? Within crypto, there are numerous subcategories: layer-1 and layer-2 protocols, Web 3.0 players, pupcoins, and so on. The most important thing right now, particularly for risk-averse investors, is that a project has a solid base. You don't want to put your money into a token offering tenfold returns without a solid roadmap if you're hedging against stocks and anticipating a crash.


To put it another way, if you want to protect yourself against market volatility, stick to what you know. If you're predicting a market decline in 2022, here are several cryptos to consider:


  • TerraUSD (UST-USD)
  • Avalanche (AVAX-USD)
  • Chainlink (LINK-USD)


Cryptos to Buy: TerraUSD (UST-USD)


TerraUSD


Stablecoins are one of the finest strategies to protect against a crash. Why? They provide your money more options in ways that traditional currencies simply can't. And TerraUSD's UST is one of the best stablecoins.


UST is a valuable asset because, unlike other stablecoins, it does not rely on a fiat currency reserve to maintain price stability. Rather, through a fluid exchange with the Terra (LUNA-USD) currency, the value of UST is locked at $1 US dollar. Simple supply and demand economics are used by UST to maintain its $1 peg. The network connects the UST and LUNA supply chains. LUNA can be burned if the price of UST rises above $1.


While this alone allows investors to earn passive income with UST, the stablecoin also has the added benefit of serving as a critical DeFi tool.


Because decentralized exchanges (DEXs) do not allow fiat transactions, stablecoins are a must-have for any investor wishing to buy crypto on a DEX. Furthermore, the asset class is frequently utilized in DeFi applications. The Terra network features a variety of DeFi staking pools and lending applications that can be used to make money with UST. Anchor Protocol is one of the most prominent of these applications. Anchor, one of the most well-known staking apps, has gained a reputation for consistently providing an annual percentage yield (APY) of around 20% at any given moment.


Cryptos to Buy: Ethereum (ETH-USD)


Ethereum


For anyone interested in making large crypto returns, Ethereum has been a no-brainer investment. In terms of price or market capitalization, the ETH coin is the only cryptocurrency that even comes close to competing with Bitcoin. It's also one of the world's most extensively used layer-1 networks. While other layer-1s are catching up in terms of users, Ethereum has an advantage over them all because to the Ethereum Virtual Machine (EVM).


The Ethereum Virtual Machine is a software platform that is significantly more important to the cryptocurrency business than Ethereum skeptics want to admit. EVM is a runtime environment for smart contracts, which simply implies that it is the machine that executes smart contracts.


The Ethereum Virtual Machine is a software platform that is significantly more important to the cryptocurrency business than Ethereum skeptics want to admit. EVM is a runtime environment for smart contracts, which simply implies that it is the machine that executes smart contracts.


EVM can be used to develop DApps, execute ICOs, and mint non-fungible assets (NFTs). One of the major advantages of using EVM to construct blockchain products is that they are Ethereum compatible. EVM is one of the simplest ways to establish a project, which is why it is popular among both seasoned developers and beginner coders.


Importantly, EVM can also be used to construct a completely independent network. Many of the largest networks competing with Ethereum, such as Binance (BNB-USD) Smart Chain and Solana, are developed utilizing EVM. This illustrates the Ethereum network's long-term viability.


Ethereum's technology underpins most of the blockchain industry, and it is assuring its long-term viability by continuing to innovate.


Cryptos to Buy: Polygon (MATIC-USD)


Polygon


Polygon, like Ethereum, is a crypto that should be purchased under any conditions. The two networks run in tandem, with Polygon providing some of the Ethereum network's most critical scalability. As a result, MATIC is one of the finest cryptocurrencies to invest in ahead of a stock market crisis.


Every day, Ethereum processes a large number of transactions. The network saw an average of 1.25 million transactions every 24-hour period in the fourth quarter of 2021. However, with the network's maximum transaction rate of 15 transactions per second, that number is at its limit. This imposes constraints, especially when you consider that Ethereum has between 500,000 and 700,000 daily users, many of whom conduct numerous transactions every day.


Polygon is a solution to this dilemma, offering investors a quick and inexpensive option to transact on the Ethereum network. Users can send their Ethereum transactions to Polygon, a layer-2 network capable of 10,000 transactions per second.


MATIC is a fundamentally sound investment in blockchain's future. With Ethereum leading the way in terms of how people use the blockchain, it needs to be able to process far more transactions than it currently can. And, considering that blockchain is still in its early stages, and networks will see many times more users in a single day, Polygon is a much-needed service. Even as Ethereum prepares for its Merge upgrade, which will greatly raise the value of the currency,


Cryptos to Buy:  Avalanche (AVAX-USD)


Avalanche


Despite all of the hype around Ethereum and its massive user base, it's still possible that the network won't be the king of layer-1 protocols in a few years. There's always the possibility that another network will overtake Ethereum.


Avalanche appears to be an excellent contender for doing just that.


Avalanche is a relatively new network, having launched in September 2020. As a result, it is one of the newest layer-1 protocols. But don't misinterpret this as a sign of weakness. The network is easily one of the most rapidly developing, and it is one of the most serious threats to Ethereum's dominance. It only took a few months for the coin to rise over its $4 initial price. Then it took off in August 2021.


Avalanche is essentially strong because it swiftly accumulates and retains users, regardless of price blossoms. Avalanche's ability to execute up to 4,500 transactions per second plays a big role in this.


Users are taking notice of the Avalanche chain's scalability, and by 2022, they will have abandoned the Ethereum chain in favor of Avalanche. Every week, hundreds of millions of dollars' worth of assets migrate from Ethereum to Avalanche. The AVAX cryptocurrency has grown to become one of the most valuable in the world, with a market worth of $21 billion.


Don't expect it to let up on the gas pedal in 2022.


Cryptos to Buy: Solana (SOL-USD)


Solana


Avalanche isn't the only network threatening Ethereum's hegemony. Solana, almost simultaneously with Avalanche, is fast accumulating new users and capital. It makes a strong case for being one of the major layer-1 leaders in the foreseeable future.


For the crypto market as a whole, the fall of 2021 was a watershed point. However, while Avalanche has remained one of the fastest-growing networks since then, only Solana has been able to keep up with it. The coin became one of the top ten most valuable in the world. Solana outperformed Bitcoin and Ethereum by more than 40% in October when their prices rose. It has remained one of the most popular goods on the market since then.


Solana distinguishes itself from the other layer-1 initiatives currently dominating the market by offering unrivaled scalability. The network is capable of processing 65,000 transactions per second, outperforming even Avalanche.


Solana is a network that is benefiting from the NFT market, which shows no signs of slowing down. The network is quickly becoming the preferred option for NFT investors who are tired of Ethereum's high fees and delayed processing. Last year, Ethereum controlled over 90% of the NFT market, but Solana is snatching a lot of that market share. Ethereum's market share has dropped 15% since January, with a large portion of that going to Solana. So far, the network has produced around six million NFTs.


Cryptos to Buy: Bitcoin (BTC-USD)


Bitcoin


Of course, Bitcoin is one of the greatest cryptos to invest in if you want to protect yourself from a stock market meltdown. Although the king cryptocurrency may not always be the best currency for usefulness, it is undoubtedly the best store of value in the asset class.


Bitcoin isn't known as "digital gold" for nothing; it has earned a reputation as one of the best investments available. In November, ten Bitcoins would have cost about $700,000.


Despite recent losses, the currency continues to have widespread institutional support. Investment banks from all across the world are optimistic about the future of cryptocurrency, particularly Bitcoin. The market is "too enormous to ignore," according to Bank of America. The bank is bordered on one side by the likes of


Institutions are now suggesting that Bitcoin is one of the finest hedges against the upcoming volatility in 2022. Pantera Capital, a crypto venture capital firm, recently dubbed Bitcoin one of the greatest areas to avoid market impact from the Federal Reserve's scheduled interest rate hikes.


Cryptos to Buy: Chainlink (LINK-USD)


Chainlink


While the majority of the coins on this list are safer coins with large market caps and active user bases, Chainlink is on the list for a different reason. Sure, it's one of the top cryptos in terms of market capitalization, and it has a number of partners who use its services. But it's Chainlink's position in the future of Web 3.0 that makes it such a wonderful investment in 2022.


In recent months, Web 3.0 has become an inevitable catchphrase. In summary, end users would have complete control over their data, platform rules and updates, and even the servers that everything operates on in the next wave of the internet. Web 3.0, according to the bulls, will arrive considerably sooner than expected. In reality, the year 2022 is fast approaching.


Chainlink will play a significant role in this change. It's a decentralized oracle network that gives blockchain projects all around the world real-time data. It can retrieve price data for exchanges, underpin transactions, and even deliver real-time news to platforms. Best of all, it can do so smoothly from one chain to the next. As a result, it's a useful tool for Web 3.0 developers who want to decentralize the internet.

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