Cryptocurrency is digital money not managed by a central system like a government. Instead, it is based on blockchain technology, with Bitcoin being the most popular one. As digital money continues to gain traction on Wall Street, more and more options become available. There are currently over 20,000 cryptocurrencies on the market.
While you can use cryptocurrency to make purchases, most people treat it as a long-term investment. However, volatility makes investing in cryptocurrency risky, as demonstrated by the recent freefall in the market. It is prudent to start with small-scale investments in low-cost cryptocurrencies that have great potential and will not run you dry in case of market turmoil. Therefore, we have put together a list of the top 5 low-cost cryptocurrencies with great potential in 2022. These affordable digital assets can help you make massive profits in the future.
Cardano is a research-based cryptocurrency built by engineers, mathematicians, and cryptography experts. It is open-sourced and decentralized, with consensus achieved using proof-of-stake. It can also facilitate peer-to-peer transactions with the ADA token. The network has a smaller footprint, appealing to investors for several reasons. It takes less energy to complete a transaction on Cardano than on a larger network like Bitcoin. This means transactions are faster and cheaper.
Last year, Cardano launched a “hard fork,” an upgrade that increased functionality — in this case, enabling smart contract deployment. The next upgrade, called the Vasil hard fork, will improve the blockchain’s scalability, per many reports.
Cardano recently launched a test version of a platform called AdaSwap, where developers can build decentralized finance apps. AdaSwap could elevate Cardano’s status as a Web3 network and drive up the price of its coin, making ADA one of the top 5 low-cost cryptocurrencies with great potential in 2022.
Polygon was designed for Ethereum scaling and infrastructure development, according to CoinMarketCap. As a “layer two” solution, it expands Ethereum into a multi-chain system, improving transaction and verification speed.
Polygon has backing from the Binance and Coinbase cryptocurrency exchanges. Its token, MATIC, is used for payment services, transaction fees, and as a settlement currency.
According to an official blog post, the network currently hosts 19,000 decentralized applications, including some from companies like Meta and Stripe — about a 600% increase since last October. In addition, Polygon fully supports the Tether stablecoin, which could contribute to the network’s future growth. Another plus is its investment in carbon neutrality, which recently has prompted price rallies. Given that MATIC is trading at $0.94, it is one of the top 5 low-cost cryptocurrencies with great potential in 2022.
Avalanche is a relatively new “layer one” blockchain — a blockchain that improves the base protocol to make the system more scalable, as Binance described it. It was founded as an Ethereum competitor by Ava Labs and computer scientists at Cornell University.
Whereas Ethereum’s nodes must all validate each transaction, Avalanche’s three individual blockchains can validate transactions independently. This makes it more scalable and able to handle large volumes of transactions — up to 6,500 per second. As a result, it’s increasingly popular among Ethereum projects.
AVAX began trading in 2020 in a 24-hour initial coin offering. Its price has fluctuated from a low of $9.34 to a high of $146.22 over the past year. At the time of writing, the coin trades for $29.74.
The Ripple blockchain, a payment protocol, has a native currency called XRP that many believe is a solid penny crypto investment. It lost more than 62% of its value in 2022 during a 'crypto winter.' But the low trading price makes this crypto more enticing since it has reached more than $3 in the past, and some experts say it could exceed $50 or even $75 per coin by the end of 2030. That makes XRP one of the top 5 low-cost cryptocurrencies with great potential in 2022.
Ripple XRP was designed to allow banks to quickly and easily transfer funds between various existing currencies. XRP has a big advantage over Bitcoin, as it can currently process over 1,000 transactions per second, whereas Bitcoin is limited to seven per second. Notably, regulators are pushing banks to use XRP in their transactions because of how quickly transactions can be completed, making a case for XRP.
Ripple has been embroiled in a lawsuit with the U.S. Securities and Exchange Commission, but as of July 2022, the payment platform seems poised for a win.
Dogecoin was one of the most popular cryptos to buy last year. After all, Elon Musk continually hyped it up on Twitter, which boosted its value significantly. For example, at the beginning of 2021, Dogecoin sold for just $0.002. Fast forward to May 2021 of the same year, and Dogecoin hit fresh highs with about $0.76 per coin. That earned gains of over 19,000% in a matter of five months. However, Dogecoin has since taken a marked downturn, with its cost striking 52-week lows of just $0.13.
Nevertheless, as a long-term asset, the Dogecoin fee prognoses count the meme currency to surpass $1 by the end of December 2022. So if you believe in this project, investing in Dogecoin now ($0.07) is a good idea as DOGE is one of the top 5 low-cost cryptocurrencies with great potential in 2022.
Some of the success stories in crypto investments lead to many newcomers dreaming of investing early in the next big thing. The coins we have listed show great potential in 2022 and are, at the same time, low-cost cryptocurrencies that will not burn a hole in your pocket.