The average cryptocurrency investor focuses on popular coins. The more experienced investors are attracted to coins with the potential to yield more profits.
Some of the most popular coins on the market today are coins that have been around for a while. They are coins that have grown so much in terms of key metrics, including market capitalization.
Regardless of what some so-called experts will want you to believe, small-cap cryptocurrencies can be as good as their big-cap counterparts. In fact, you may stand to gain more by investing in small-cap cryptocurrencies than the popular coins everyone is chasing.
Are you interested in buying small-cap cryptocurrencies in 2022? You have to go for the best ones to improve your chances of cashing out big. Here, we will help you get the best coins and start your investing on a positive note.
First Things First – What Are Small-Cap Cryptocurrencies?
Before we start discussing the right small-cap cryptocurrencies you can buy, it is important to consider what small-cap cryptocurrencies are.
In layman’s terms, small-cap cryptocurrencies are cryptocurrencies with relatively small market capitalization. According to Coinbase, small-cap cryptocurrencies have a market cap of less than $1 billion.
What is market cap and why does it matter? Well, market cap (short for market capitalization) is the total dollar value of the shares of a company’s stock. In the case of cryptocurrencies, market cap is the total dollar value of all the coin that has been mined or released. It is an indication of the value of the coin on the market. It is determined by multiplying the coin’s current price by the total number in circulation.
Market capitalization is used to rank cryptocurrencies and some other financial vehicles. While it is a key indicator of the value of a coin, it does not show how well the coin can perform in the future.
For crypto investors willing to stomach the volatility and rish of small-cap crypto investing, here are nine of the best small-cap cryptos to buy in 2022.
1inch Network (1INCH)
1inch is an Ethereum-based cryptocurrency that powers the 1inch network, which is fast becoming one of the most important DeFi players. The network serves as a base to a number of decentralized protocols that work together to enable the fastest, most lucrative, and protected operations in decentralized finance.
The primary protocol in the 1inch network is a decentralized exchange (DEX) aggregator that offers the most liquidity and the best rates on Ethereum, Binance Smart Chain, Avalanche, Optimistic Ethereum, Arbitrum and Gnosis Chain. Its pathfinder algorithm can find the best paths across 200+ liquidity sources on the aforementioned chains. 1inch also has a liquidity protocol that is more of a next-generation automated market maker. It also has an order protocol and a multichain digital wallet.
1inch is a relatively new project. It was founded in 2019 but the token was only launched in late December 2020. At the moment, 1INCH trades for $1.81 per token, and the market capitalization is $845,242,906. The native currency is a governance token that grant holders voting power under its decentralized autonomous organization.
Read Also: 1inch Price Predictions
Another exciting name in the DeFi space is SushiSwap, an exceptional automated market maker. SushiSwap is fast becoming a popular tool among experienced cryptocurrency users. As an excellent decentralized exchange, it is capable of creating markets for any pair of tokens, using smart contracts. It is a fork of Uniswap but adds a number of new helping features to boost DeFi trading.
There are several exciting things about SushiSwap, especially for DeFi users. For instance, it tackles the traditional risks of depositing money in smart contracts by offering token holders and users ultimate governance power. The token can be paired against a wide range of assets, including other cryptocurrencies, stablecoins, and fiat currencies.
SushiSwap was founded by an anonymous person (Chef Nomi) and was launched in 2020. A relatively new project, SushiSwap has grown so much in terms of popularity and market penetration. The token, SUSHI is currently trading for $4.47 per token, and its market capitalization is $569,381,876. Though there has been some sort of controversy regarding the anonymous founder(s) of Sushi and an attempt by Chef Nomi to withdraw 38,000 in ETH from the network, it is considered safe by many.
Check Out: SushiSwap Price Predictions
Ravencoin is a peer-to-peer cryptocurrency network founded by the trio of Bruce Fenton, Tron Black, and Joel Weight. It was built on a fork of the Bitcoin code but tackles unique problems in the cryptocurrency universe – assets transfer and trading over blockchains. It supports a wide range of assets in its network, including cryptocurrencies, virtual goods, stocks and securities, gold, and many more.
There are several attractive things about Ravencoin, including the sincerity of the team behind the network. The founders opted for no pre-mine, no ICO, and the developers and founders didn’t dedicate any coin as rewards. When the Ravencoin blockchain was hacked in June 2020, the public was informed. Approximately $5.7 million was stolen, but no current coin holder suffered a loss.
At the time of writing this piece, Ravencoin was trading for $0.07326 per token and its market capitalization was $767,734,091. It is obviously a cheap cryptocurrency, but there is a good chance that the price will go up with time. Already, it has generated 179.92% ROI for investors and is poised to deliver more.
IoTeX is one of the most ambitious projects in cryptocurrency, and it is a little surprising that its native currency still has low market capitalization. The project was launched in 2017 with the goal of supporting an open system where people and machines can interact genuinely with guaranteed trust, free will, and well-designed economic incentives.
Behind IoTeX is a global team of more than 40 research scientists and engineers from reputable institutions. Over the years, the team has developed the network considerably. At the moment, it has an EMV-compatible blockchain built from the scratch. It also has the right infrastructure to connect with Ethereum, Binance Smart Chain, and Heco blockchains.
At the time of writing this piece, the native token of IoTeX, IOTX was trading for $0.1168 per token, which was an impressive 9.58% jump in a 24-hour period. Its market capitalization was a little over $1 billion. Already, 95% of the maximum supply of IOTX is in circulation. It has generated 269.87% ROI for early investors.
Don't Miss: IoTeX Price Predictions
COMP is the native currency of Compound, a DeFi lending protocol. As an innovative platform, Compound generate interest for users by depositing their funds into different supported pools, from where borrowers can obtain cryptocurrency loans.
Compound allows users to deposit any asset of their choice in its supported pools. In return for their deposits, users get cTokens (i.e. a deposit of ETH generates cETH). The cTokens represents an individual's stake in the pool and a source of interest. Liquidity providers can redeem their stake and accompanying interest at any time. Borrowers can only access loans by depositing collateral.
Compound is one of the pricey cryptocurrencies on this list. At the time of writing this piece, it was trading for $135.35. In spite of that, the market capitalization is $887,742,384. Buying COMP also gives you governance and voting rights in the network. Holders can propose changes to the network, debate on them, and vote to either implement or jettison the proposed changes without interference from the team.
Read Also: Compound Price Predictions
Nord Finance (NORD)
Nord Finance is one of the projects that are trying to simplify decentralized finance and make it easier for most people to start benefiting from the cryptocurrency market. It is an advanced DeFi ecosystem that brings many of the key features of traditional finance to the decentralized finance scene. It truly simplifies investing for beginners and experienced cryptocurrency users.
Like many of the projects here, Nord Finance is a relatively new cryptocurrency network. It is a unique DeFi platform with several perks for users. It is built to serve as a blockchain-agnostic protocol, offering multi-chain interoperability. In addition to yield farming and staking, it supports fund management, aggregation, robo-advisory and loans against assets.
The native currency of Nord Finance (NORD) was trading for $1.95 per token at the time of writing this piece. Its market capitalization was a paltry $7,678,436. The token has been described as a hidden gem by a few experienced cryptocurrency investors.
POLY is the native currency of Polymath, a unique cryptocurrency blockchain that provides the appropriate technology for users to create, issue, and manage security tokens on its blockchain. It is responsible for the creation of a unified standard for security tokens on Ethereum, ERC 1400. Already, more than 200 tokens have been deployed, thanks to its Ethereum-based solution.
Polymath has built the first blockchain that is dedicated to regulated assets. This institutional-grade blockchain was developed after the team noticed that existing blockchains didn’t have what it will take to serve capital markets. The network is bridging the gap between the securities market and the cryptocurrency world. It is considered by some as a work in progress.
Though Polymath has achieved a lot in terms of infrastructure, its native token is still somewhat undervalued. POLY is currently selling for $0.4593 per token. Its market capitalization stands at $412,818,352 at the time of writing this piece. It may not be the most profitable coin to buy now, but it has the potential to become mainstream and fetch reasonable returns.
ANT is the native currency of Aragon, a decentralized platform built on the Ethereum network. Aragon is a unique project that offers modularized ways to build and manage decentralized apps, cryptocurrency protocols, as well as decentralized autonomous organizations (DAO).
As a platform, Aragon is one of the projects that are advancing the case for true decentralization in blockchain technology. In addition to making it easy for users to create and manage DAOs, Aragon offers a court where disputes that cannot be solved by smart contracts can be resolved. ANT holders can use their tokens to buy ANT, which is required for participation in the Aragon Court. Participants (jurors) earn ANT coins after court resolutions.
ANT was trading for $6.71 at the time of writing this piece. Its market capitalization was $265,730,315. It has a circulatory supply of 39,609,523 ANT, and the maximum supply is currently unknown. Already, ANT has generated 349.17% ROI for early investors. It is not late to buy and profit from this low-cap coin.
TRIBE is the native currency and governance token for the FEI algorithmic stablecoin. It is more of a governance token to the decentralized autonomous organization that controls the governance of FEI. In addition to being used for governance proposals and voting in the DAO, Tribe can be swapped for FEI in a UniswapV2 liquidity pool.
Tribe brings something new to the stablecoin niche. It is neither fiat-collateralized nor crypto-collateralized. Instead, it employs a model that is similar to fractional reserve central banking. It issues FEI at a subsidized rate against Ether, and the incurred ETH is then used as the peg to keep the coin stable. It is relatively more capital-efficient than conventional stablecoins.
TRIBE was trading for $0.7173 at the time of writing this piece. The market capitalization was $325,229,499. It is a new project and there is no data on its return to investment (ROI). Since Tribe brings something new to the cryptocurrency market in general and stablecoins in particular, we believe it has potential for growth.
Why Should You Buy Low-Cap Cryptocurrencies?
As you can tell from what we have covered, many of the cryptocurrencies here are not well-known. Why then should you gamble with them?
Here are some of the major reasons to trust your instinct and invest in low-cap cryptocurrencies:
1. Potentials for Growth
Most of the low-cap cryptocurrencies out there are bound to grow bigger with time. Some are relatively new to the market. Even some of the older ones may still be finding their feet, and once they pick up, the story will start getting sweeter for investors who trusted them earlier.
2. They Are Mostly Affordable
In the introductory part, we mentioned that market capitalization is derived by multiplying the current price of a coin with the total number of coins in circulation. A cheap coin may remain in the low-cap region, even when its network is performing well. Since these coins are mostly affordable, you can start investing with little capital as you grow your cryptocurrency portfolio.
3. They Help Diversify Your Portfolio
Diversifying your cryptocurrency portfolio is one of the best ways to protect yourself from the uncertainties that rock the market. It is possible for several high-ranking cryptocurrencies to enter a bearish trend at the same time. It is also possible that small-cap coins can pick up when the big coins are struggling. Diversification brings some level of security every experienced investor should aim for.
4. Some Are New With Exciting Future
Some small-cap cryptocurrencies are in that region because they are relatively new and unknown. Some of them are native currencies of highly promising blockchains and protocols that can disrupt the market in the future. When they eventually gain popularity and adoption, their prices will most likely shoot up. At that point, early investors will have more reasons to smile.
5. Some Can Be Super-Useful
The market capitalization of a cryptocurrency is not often a measure of its usefulness. There are small-cap cryptocurrencies that serve as native/governance tokens to very useful networks. SushiSwap, for instance, is a very helpful tool in DeFi. It is an automated market maker that offers network participants increased rewards.
9 best small-cap cryptos to buy in 2022:
- 1inch Network (1INCH)
- SushiSwap (SUSHI)
- Ravencoin (RVN)
- IoTeX (IOTX)
- Compound (COMP)
- Nord Finance (NORD)
- Polymath (POLY)
- Aragon (ANT)
- Tribe (TRIBE)
Small-cap cryptocurrencies can be as useful as their big-cap counterparts. Buying some of them can be a good way to diversify your crypto portfolio. Even if you are new to cryptocurrency investing, buying small-cap digital coins is also available. They are mostly affordable, meaning you can start buying with small capital.
Remember, investing in cryptocurrencies is risky. Small-cap coins are even considered riskier. However, we have discussed some of the best and safest ones to buy. Don’t forget to trade cautiously and invest only what you lose.
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