Stay ahead of a potential recession by investing in these top recession-proof cryptos.
Volatility continues to plague economic markets worldwide, despite intense government intervention. More than a decade ago, on 15th September 2008, the collapse of the American investment bank, Lehman Brothers, triggered a financial crisis, and the global recession followed.
Although the economy looks quite different today compared to ten years ago, it is no doubt that we are facing the threat of a potential recession soon. Financial history is destined to repeat itself, and markets are ripe for a major correction about once every ten years. That said, it is unlikely for the recession to be a disaster as big and experienced investors know how to deal with it.
So what are some of the top cryptocurrencies that could survive a global economic turndown or a market-wide crash? Based on various factors like network fundamentals and price history, here are the top 3 recession-proof cryptocurrencies.
Cardano is quickly making a name for itself in the competitive world of cryptocurrency due to its unique process and technology. It is the first peer-reviewed blockchain to appear on the cryptocurrency scene. Before rolling out its protocols, the nonprofit responsible for Cardano assembled a team of scientists and other academics from various esteemed universities to review them extensively.
A feature that makes Cardano one of the top recession-proof cryptos is its proof-of-stake technology, called Ouroboros. This algorithm grants miners more mining power according to the amount of coin they own. Created as a less risky alternative to the energy-exhausting proof-of-work algorithm, POS is the original consensus algorithm for blockchain technology.
As a third-generation cryptocurrency, Cardano also aims to improve upon the mounting issues associated with the first-generation Bitcoin and the second-generation Ethereum, POW being one among many. As a result of its speed and rapid technological advancements, Cardano will soon process up to a million transactions per second. Hence Cardano is not only considered one of the most technologically advanced assets but one of the top recession-proof cryptocurrencies.
ADA has a lot working in its favour, and its price is responding. Many people who intimately understand the world of digital coins and tokens see ADA as the future of crypto and expect it to eventually rival and ultimately replace larger cryptos such as Ethereum and Bitcoin.
Cardano is where cryptocurrencies are headed, not where they have been. The fact that ADA is more energy-efficient and superior when facilitating DeFi transactions and smart contracts make it one of the more useful digital tokens and an attractive option for investors who want exposure to cryptocurrencies that would survive a potential market crash.
Fantom is one of the fastest and cheapest blockchains to use, and adoption has exploded since 2021, especially in the decentralized finance (DeFi) industry. Fantom is a highly scalable, DAG-based smart contract platform for decentralized applications (dApps). The project aims to solve the scalability issues of existing public distributed ledger technologies. The cryptocurrency for the Fantom network is FTM.
According to Fantom's whitepaper, they use DAG (Directed Acyclic Graph) technology due to the slow transaction times of typical blockchains like Bitcoin and Ethereum. This recession-proof crypto has positioned itself as a faster and cheaper alternative to Bitcoin (for money transfers) and Ethereum (for development platforms), thus raising its value.
Fantom is an easy-to-use, pleasant, fast-growing/fast-moving Layer-1 blockchain that aims to improve performance and transactions with the native token FTM. Fantom has so far been able to cut transaction time to under two seconds. The Fantom system has governance rules which determine how the networks function. No leader is directing the show, although a technical board makes proposals, either ongoing or emergency.
The Fantom system uses what is known as “on-chain governance.” Those who hold FTM have a stake in the system. They can also propose rule changes and cast votes according to how many coins they hold.
In the Web 3.0 environment, FTM has created a winning crypto-business model by combining a safe system with decentralization and increasing scalability. This has made Fantom a definite recession-proof crypto to buy in 2022.
The popular cryptocurrency derivatives exchange FTX has had an outstanding few months in 2021. FTT, the utility token on the FTX cryptocurrency exchange, can be used to reduce trading fees on the exchange or serve as collateral against futures positions. It can also be staked to earn interest and get the chance to win NFTs.
FTX offers crypto derivatives trading, including futures and options. Instead of more traditional margin trading, which traders can use to multiply their gains or losses, the exchange uses leveraged tokens. These let customers take a leveraged position without dealing with the complexities of full margin trading.
FTX set out to solve a number of problems faced by other derivatives exchanges, such as tedious trading processes, poor liquidity, and so-called "clawbacks." Clawbacks are when money is taken from various investors to cover another person's bankruptcy.
The FTT token has been designed with a mechanism that aims to improve the utility of the FTX exchange. What this means is that through using the token, users can earn free rebates, get discounts on their trading fees, and are able to stake FTT tokens to receive high referral bonuses. Furthermore, they can vote in the community governance procedure.
FTT has even burned a portion of the supply, through the FTT coin burn, from the fee collected by the exchange as a means of decreasing the inflation of the FTT token supply, which contributes to a healthy value of the coin making it one of the top recession-proof cryptocurrencies.