7 Safe Cryptocurrencies To Buy With High-Quality Ratings

Here Are Seven Safe Cryptocurrencies To Buy In A Volatile Market

Last Updated November 1st 2021
14 Min Read

Analysts recommend these high-quality cryptocurrencies.

The year 2021 has been a good one for cryptocurrencies. Despite the dip that hit the market between May and August, most cryptos are much higher than their pre-2020 prices. The market is gaining momentum again too, and some cryptocurrencies are already making new highs.

However, even as optimism rises, many factors could affect the market in the foreseeable future. Cryptocurrencies are now a mainstream investment, and any adverse moves in the broader financial markets could also affect crypto.

For context, since 2020, cryptocurrencies have been moving in the overall direction of the equity markets. It is during the stock market rally of 2020 that Bitcoin, and the broader crypto market, picked momentum.

This correlation means that any risks to the stock markets could hit crypto as well. In the near term, there are two risks that cryptocurrencies face.

The first one is that of higher interest rates. In most developed countries, the risk of inflation post-COVID-19 is forcing central banks to consider raising interest rates. If this happens, it could slow down momentum in the financial markets, including crypto.

The second issue is unfavourable taxation in the US. The US is considering taxation that targets unrealized gains. While it is ideally targeted at billionaires, there is no telling how much reach it could have on the broader economy.  For instance, if it passes and people are forced to liquidate assets to pay taxes, the impact on the markets could be huge.

With such risks, it is understandable if investors would want to pivot into safer cryptocurrencies going into 2022 and beyond.

Here are seven safe cryptocurrencies analysts are bullish about that also have strong long-term fundamentals.

 

1. Bitcoin (BTC)

Bitcoin is a peer-to-peer cryptocurrency that runs on blockchain technology. Before Bitcoin, there were many other attempts at coming up with cryptographic virtual currencies. None of them gained any traction until Bitcoin came along.

Bitcoin transactions are cryptographically stored on the blockchain, and miners validate transactions to ensure they are correct. They also solve complex mathematical problems in order to come up with new blocks. The reward for their work is in new Bitcoins.

The Bitcoin protocol is set up so that the rewards that miners receive per every block generated (mined) are cut in half every 4.5 years. This has been instrumental in creating a supply shock on Bitcoin as the demand goes up. It has been the primary reason why Bitcoin has consistently gone up in price since it was launched.

That’s because, as demand for Bitcoin grows, it keeps chasing an ever-shrinking number of coins. This, coupled with the fact that many people have lost the cryptographic keys to their Bitcoins, has only propelled the price.

Bitcoin’s success has led to exciting projections by analysts and other financial industry heavyweights. One of the more vocal ones is Cathy Wood of Ark Invest. Cathy believes that in the next 5-years, Bitcoin could hit a valuation of $500k per coin.

While such a price may seem far-fetched, Cathy has made similar outrageous projections in the past, and they came true. For instance, back in 2018, she projected that within 5-years, Tesla would rise from $300 a share to $4000. This has been achieved when considering Tesla’s price on a stock-split basis.

In essence, there is some credibility to her projections for Bitcoin over the next 5-years. Cathy bases her predictions on major organizations allocating just a tiny portion of their assets into Bitcoin. Specifically, she believes that if S&P 500 companies allocate just 5% of their balance sheets into Bitcoin, $500k per coin is easily attainable.

This projection is within reach, considering that institutional interest in Bitcoin is on the rise. Companies like Tesla and Microstrategy already have Bitcoin in their balance sheets. As inflation fears rise post-pandemic, the need to diversify into deflationary assets like Bitcoin will only get stronger.

Bitcoin’s deflationary nature, coupled with optimistic voices from institutional players like Cathy, makes it a strong buy. Besides, it’s the number one crypto, so it is easily the safest buy as far as crypto goes.

2. Ethereum (ETH)

Like Bitcoin, Ethereum is a decentralized peer-to-peer network, and miners handle complex computations to come up with new blocks. There is no central authority on Ethereum, and pretty much anyone can build, transact on Ethereum, or even mine it.

The main difference between Ethereum and Bitcoin is that it is designed to have many more functionalities than Bitcoin. While Bitcoin is primarily a peer-to-peer currency, Ethereum does that and a lot more.

One can digitally represent pretty much any asset and trade it as a token on Ethereum. This is quite a powerful aspect of Ethereum and has made this blockchain the backbone of everything from DeFi to NFTs. 

Ethereum also happens to be quite a progressive chain. With Proof-of-Work becoming unsustainable both in terms of energy usage and scalability, Ethereum is in the process of shifting to Proof-of-Stake.

Ethereum staking already started in December 2020, and most of the transition process is expected to be completed by 2022. These upgrades have made Ethereum deflationary. That’s a key reason why analysts give this cryptocurrency highly positive projections.

For instance, a panel of experts questioned by Finder, a crypto comparison website, believe that Ethereum could trade at $15,364 by 2025 and $50,788 by 2030. The projections are founded on the shift that Ethereum is making to Ethereum 2.0.

The analysts believe that once the transition is complete, Ethereum will be in a position to scale better. This, in turn, means it will handle more applications efficiently, making it the backbone for Web 3.0.

According to Joshua Fraser, one of the panelists interviewed, Ethereum is already the anchor to the fast-growing DeFi ecosystem. He believes that it will become the core settlement layer for all financial transactions globally in the long run.

This will have the impact of pushing up the price to $50k, or even more, by the end of the decade. These projections are quite in line with Ethereum’s price action in recent times. Since the shift to Eth2.0 started in Dec 2020, Ethereum has been on a consistent uptrend.

It has gained the most momentum since August when the London upgrade made it deflationary. From lows of $1700 back in July, Ethereum recently hit a high of $4400. With the fundamentals in its favour, Ethereum is without a doubt a strong buy going into the future. 

3. Chainlink (LINK)

Like Bitcoin and Ethereum, Chainlink fundamentals make it one of the most fundamentally strong cryptocurrencies out there.

Chainlink is a decentralized oracle platform that guarantees tamperproof inputs and outputs for smart contracts.

The way it works is simple. Chainlink uses trusted nodes and top-quality data to ensure that smart contracts can work with the most reliable data possible.

Chainlink is also designed in such a way that it can integrate easily with any smart contract. This has seen it become the dominant force in the oracle markets, with over 65% of this market.

Chainlink is also continually improving to serve the market better. One of its biggest innovations is the introduction of hybrid smart contracts. Hybrid smart contracts combine on-chain data with outside data.

This allows Chainlink to scale better, a factor that has helped it draw the interest of even more projects over time. Top-tier projects like Solana have now integrated Chainlink for smart contracts data.

Chainlink’s strong fundamentals have seen it draw some interesting analyst projections in recent times. For instance, there are projections that Chainlink could trade at $1000 per token in the future. Such projections are premised on the idea that Chainlink is the dominant player in the decentralized oracle market.

With its massive use case, Chainlink’s capped supply of just 1 billion tokens means that the demand for its tokens will only go up over time. That’s why such a valuation at some point in the future is possible.

In the short term, most analyst projections place Chainlink at anywhere between $102.33 and $112.56 by 2025. That would be an increase of 284% in less than 5-years.

While there are cryptos that have far higher projections, none of them can match Chainlink. For instance, some meme coins at the moment have a lot higher projections than Chainlink. 

However, when considering investment safety, Chainlink has no equal outside of Bitcoin and Ethereum. That’s because, like these two, it is dominant in its core market. This means it has what it takes to keep growing faster than any other oracle blockchain out there.

In essence, this crypto’s strong buy ratings amongst analysts and prediction websites are pretty justified.

4. Binance coin (BNB)

In a list of the safest cryptos to invest in going into 2022, Binance Coin cannot miss out for obvious reasons. Its use cases and token dynamics guarantee its strength in the market.

Binance coin is the native cryptocurrency of the Binance exchange. It is used for paying fees on this exchange and powers all transactions on the Binance Smart Chain.

Just like one needs Ether to build smart contracts on the Ethereum blockchain, you need Binance coin to build smart contracts on the Binance Smart Chain. With the number of BSC smart contracts on an exponential growth trajectory, Binance Coin demand has shot up significantly over the last couple of years.

Binance coin is also known to be one of the most deflationary cryptocurrencies in the market. Since it launched, it has consistently done quarterly coin burns. This has been one of the key value drivers for this crypto, from trading at pennies at launch, to hitting highs close to $700 at its peak.

Based on BNB’s strong fundamentals, analysts are optimistic about the prospects of this crypto going into the future. According to analysts at Coin Price Forecast, Binance Coin could trade at $2500 by 2025, and a maximum of $2800 by the end of the decade.

Similarly, bullish projections have been given by Wallet Investor. This crypto prediction website believes that Binance coin has a good chance of hitting $2500 in the next 5-years.

Even in the short term, analysts have pretty strong projections for Binance Coin. For instance, analysts at CryptoNewz believe that Binance Coin could break through the $1000 mark at some point in 2022.

Binance Coin’s potential success as per analysts’ predictions is premised mostly on its coin burn feature. Binance Coin has always rallied with every coin burn, and the trend is unlikely to stop going forward.  That’s because the exchange is looking to accelerate the coin burn.

Originally, the coin burn was supposed to go on for about 27 years. However, the exchange recently announced that they would fast-track it within the next 5 to 8 years.  This is a guarantee that this exchange will experience a supply shock that could trigger a price rally in the very short term.

The team behind Binance coin is also quite innovative. Thanks to their innovativeness, the use-value of the Binance coin will only go up.

It is not surprising that analysts are giving it a strong buy rating, both in the short term and long run.

5. Solana (SOL)

Solana is a relatively new entrant in the crypto market, but it is already causing ripple. That’s because it is revolutionizing how people understand and interact with platform blockchains.

Solana is a platform blockchain, just like Ethereum, used by developers looking to build smart contracts for finance and other use cases.

One of Solana’s core strengths that make it stand out is its scalability.  Solana is so scalable that it can handle upwards of 50k transactions per second. This level of scalability makes it much better than some of the most efficient centralized systems in the market today.

Solana can scale so efficiently because it is built a little differently from most blockchains. While most platform blockchains have a fragmented system, Solana operates in a single global state, even as it gets bigger. This guarantees composability between projects.

Solana is also known for its low costs for those who want to build on it. Due to its ability to scale with ease, the project can keep transaction costs extremely low easily. This has made it very attractive to traders and developers looking to build on top of it.  At the moment, more than 400 projects are building on the Solana blockchain, and the numbers are growing.

On top of that, Solana is getting more decentralized over time. When it first launched, Solana faced a lot of criticism for being centralized. However, this is quite normal for all new projects. Over time, the level of decentralization has been getting better. That’s because it is straightforward for anyone to become a validator. The number of Solana validators now stands at 1,137, and that number is growing.

Solana’s strong and fast-growing fundamentals have not escaped analysts. Most analysts expect Solana to give a more than above-average ROI in the future. For instance, according to analysts from Wallet Investor, Solana has the potential to hit $1578.140 in the next 5-years.

Analysts at Coin Price Forecast have even bigger projections. According to this crypto price analysis site, Solana could trade at $11,535 by 2025.

Such strong projections all point to Solana being a strong buy both in the short term and in the long run.

6. Cardano (ADA)

For investors looking for a mix of safety and growth, Cardano easily stands out among the best. Cardano is one of the top platform blockchain platforms in the market today that has come out as a strong competitor to Ethereum.

While it has been a work-in-progress over the last couple of years, Cardano has made tremendous progress and looks set to change the industry.

One of Cardano’s strong points is the fact that it has solved blockchains’ three biggest problems. These are scalability, security, and decentralization. Cardano has achieved this through its Ouroboros Proof-of-Stake algorithm.

Ouroboros is the first peer-reviewed and verified proof-of-stake algorithm that can scale, is secure and keeps the network decentralized. By solving this blockchain trilemma, Cardano has elevated its status and is poised for massive adoption going into the future.

Cardano’s growth also has to do with the methodology it takes in development. Everything in Cardano is evidence-based. This is then combined with the use of programming languages that allow for the formal verification of code. The result is that Cardano has become very attractive to developers looking to build applications for highly sensitive industries.

While it has taken years for Cardano to become what it is today, it is now firmly on the big stage, thanks to the recent integration of smart contracts. This caused a lot of excitement that saw Cardano rally a while back and test highs of $3.

The excitement had a strong basis to it and could also be a huge factor in Cardano’s value appreciation going into the future. That’s because due to its technical capabilities of scalability, security, and decentralization, it is the perfect platform for DeFi and other applications.

As it gains traction on this front, ADA’s price could also rise significantly. That’s because it is the fuel that drives this blockchain.

The optimism around Cardano is also evident in the analyst projections for it. According to analysts at Coin Price Forecast, Cardano could trade at $7.96 by the end of 2025. By 2030, they expect Cardano to hit $10.80, an increase of 457% from its current price. 

Analysts at Wallet Investor have even more ambitious projections for Cardano. They are of the view that in the next 5-years, Cardano could trade at $14.032.

Essentially, there is consensus across multiple platforms that Cardano is a strong buy going forward.

7. Axie Infinity (AXS)

Axie Infinity closes the list of safe cryptocurrencies to buy and hold going into 2022. Like Bitcoin and the other top cryptos in this list, Axie has strengths that most competitors can’t match.

Axie is a gaming platform that allows online gamers to develop characters and monetize them. It tapped into this market early and has developed a level of market dominance that none of its competitors have matched so far.

Axie’s strengths are evident in the fast growth of gaming NFTs in its marketplace. Today, the project has one of the most expensive collections of NFTs in the market.

Gaming in itself is big business, and now that Axie Infinity has found a way to help gamers profit from it in a decentralized environment, the potential for growth going into the future is huge.

Axie Infinity’s potential is evident in the fact that reputable institutions have committed millions of dollars to this project. Recently, the project raised $152 million in a Series B funding round that pushed its valuation to $3 billion.

Retail investments in the project have been going up, too, mainly in the chase for AXS staking rewards. The amount of staked AXS has been going up over time and is likely to play into this token’s price action going into the future.

Analysts are pretty bullish on this cryptocurrency too. According to analysts at Wallet Investor, Axie Infinity has the potential to hit $1604.56 in the next 5-years. Similar bullish projections are given by analysts at Coin Price Forecast. As per this analysis site, Axie Infinity could trade at $2451 by 2030.

Ideally, this means it has the potential to give an ROI of 1687% in the next 10-years. It makes it one of the safest and high potential cryptocurrencies to keep an eye on going into 2022.

Top Safe Cryptocurrencies To Buy Now:

  1.   Bitcoin (BTC)
  2.   Ethereum (ETH)
  3.   Chainlink (LINK)
  4.   Binance Coin (BNB)
  5.   Solana (SOL)
  6.   Cardano (ADA)
  7.   Axie Infinity (AXS) 

eToro – The Best Platform to Buy Crypto Assets 

eToro have proven themselves trustworthy within the Crypto industry over many years – we recommend you try them out.

Virtual currencies are highly volatile. Your capital is at risk.

Read More:

9 Cryptocurrencies To Buy As Inflation Protection

3 No-Brainer Cryptocurrencies To Invest $1,000 In Right Now

Top 10 Best Cryptocurrencies To Invest In For High Returns

3 Unstoppable Cryptocurrencies That Could Turn $200,000 Into $1 Million By 2030