The 9 Best Cryptocurrencies To Buy On The Dip

Last Updated December 22nd 2024

9 Min Read

Cryptocurrencies are increasingly making their way into the portfolios of investors, both retail and institutional. Even big tech corporations like PayPal (PYPL), and Tesla (TSLA) are adding them to their portfolios.

This is understandable, considering how well cryptocurrencies have performed in the past. For instance, the total cryptocurrency market cap almost tripled in 2021.

While the fundamentals remain sound and are getting better, 2022 did not start well for cryptocurrencies. Bitcoin (BTC) crashed in January and pulled down the rest of the market with it.

Fears of a rates hike have bogged down the market and created uncertainty. However, as mentioned earlier, market fundamentals, especially adoption, are getting better. As such, this could be a good time to buy cryptocurrencies.

For those looking to buy cryptos on the dip, here are 9 top cryptocurrencies to consider right now:

Ethereum (ETH)
Cardano (ADA)
Terra (LUNA)
Avalanche (AVAX)
Solana (SOL)
Polygon (MATIC)
Sandbox (SAND)
Decentraland (MANA)

Best Cryptocurrencies To Buy: Ethereum (ETH)

Ethereum is the second-largest cryptocurrency by market capitalization and continues to be Bitcoin’s biggest rival in terms of adoption. Being one of the largest players in the platform blockchain space, Ethereum continues to record strong growth in its Dapps ecosystem. That’s despite its scalability issues and high gas fees.

As an investment, Ethereum has not disappointed investors. It started the past year trading at $775, and by November, it had made new highs of $4800.

However, like the rest of the market, 2022 up-to-date has not been one of the best for Ethereum. Year-to-date, Ethereum is down by 31%, and the bear is yet to loosen its grip.

Despite the bearish start to the year, a lot is going on that makes Ethereum one of the best cryptocurrencies to buy on the dip. The much-awaited move to Proof-of-Stake is set to be completed this year and will deal with the scaling and fees issues on Ethereum.

Long-term investors may like Ethereum on this dip. While the market is crazy volatile right now, Ethereum’s recent growth trajectory suggests there’s a lot to like about how this project functions, relative to its competitors.

Adoption is growing, too, especially in DeFi and NFTs, a factor likely to drive up ETH demand all through 2022.

Read Also: Ethereum Price Predictions

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Cardano (ADA)

It is one of the better-known platform blockchains that are angling to give Ethereum a run for its money. Among the many “Ethereum killers” in the market, Cardano is one of the most sophisticated.

Cardano’s biggest edge is its Proof-of-Stake algorithm that solves the three big problems of scalability, security, and decentralization. Besides its highly advanced PoS algorithm, Cardano is built-in milestones, and with each milestone, there has been a significant surge in the price.

For instance, in 2021, Cardano enabled smart contracts, a factor that saw it rally between September and October. The next phase coming up in 2022 entails network scaling and issues to do with governance. Once these are achieved, ADA price could rally.

With all that Cardano has achieved and is looking to achieve, ADA has been in the red for most of 2022. Year-to-date, Cardano is down by 23%.

This makes it highly undervalued and one of the leading cryptocurrencies to buy on the dip. It has what it takes to rocket, once bulls retake the market.

Check Out: Cardano Price Predictions

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Best Cryptocurrencies To Buy: Terra (LUNA)

Over the last couple of years, there has been an explosion in demand for stablecoins. This has a lot to do with the high volatility in the cryptocurrency market. One form of stable coin that has grown in popularity is the algorithmic stablecoin, which are stabilized algorithmically, and censorship-resistant.

Terra has emerged as one of the most adopted platform blockchains for issuing algorithmic stable coins. UST, one of the more famous Terra stablecoins is already one of the largest cryptocurrencies by market capitalization.

Many more algorithmic stablecoins are launching on Terra, a factor that has led to exponential growth in the value of LUNA. At the start of 2021, LUNA was trading at just $0.60 a token. Fast-forward to February 2022, and LUNA is trading at $47.52, after a dump of 44% year-to-date.

Despite the current market correction, Terra’s demand remains strong. Terra now has more than 2 million users and is now one of the largest DeFi platforms in the market. This growing demand makes LUNA one of the best cryptocurrencies to buy on the dip.

Don't Miss: Terra Price Predictions

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Avalanche (AVAX)

Avalanche is one of the many projects that have been dubbed as Ethereum Killers. Of all the projects that have come up capitalizing on Ethereum’s scaling issues, Avalanche is one of the most promising.

Avalanche has transaction speeds of up to 4500 TPS and is more stable than many other platforms that taunt transaction speeds as a key selling point. Due to its efficiency, Avalanche has grown in adoption over the past year.

The same has been reflected in its price action. In 2021, Avalanche closed the year higher by over 4000%. However, 2022 has not been one of the best for Avalanche investors. Year-to-date, Avalanche is down by 36%.

Despite this dip, Avalanche is one of the projects that analysts expect to perform well once bulls retake the market. Bullish sentiment around Avalanche stems from the numerous projects that are looking to build on its platform.

For instance, Avalanche now has a partnership with Deloitte to help in the efficient allocation of public funds where they are needed most.

Such developments could trigger exponential growth for AVAX, making it one of the best coins to buy on the dip.

Read More: Avalanche Price Predictions

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Best Cryptocurrencies To Buy: Solana (SOL)

Solana was one of the best performing cryptocurrencies in the past year. It started 2021 trading at a little over $1.40, and by November, was trading at record highs of $260.

However, Solana lost momentum after hitting $260, and things have not been rosy so far. Year-to-date, Solana is down by 43%.

Solana is one of the group of cryptocurrency projects that are dubbed as “Ethereum Killers” and its core metrics attest to its capabilities. Solana can hit up to 50k transactions per second at fees as low as $0.01. These metrics triggered an explosion of Dapps on the Solana blockchain.

Today, Solana has one of the largest ecosystems of DeFi and NFTs, and the number of Solana projects keeps growing. Its unique Proof-of-History algorithm, while it has its issues, has proven to be quite effective in keeping the Solana among the top, especially for developers looking to launch NFTs.

This means SOL price could rise exponentially once the cryptocurrency market turns bullish again.

Check Out: Solana Price Predictions

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Polygon (MATIC)

Polygon is one of the projects that have come up with the goal of solving Ethereum’s scalability issues.

The idea is that, rather than all transactions taking place on the Ethereum mainnet, some of them are completed on layer 2 solutions like Polygon. The result is less congestion on the mainnet and lower gas fees.

On Polygon, users can transact fast without having to deal with the high gas fees that are characteristic of Ethereum. This use case saw Polygon emerge as one of the performing cryptocurrencies of the past year, rallying by over 4500%.

However, Polygon has taken a huge hit due to the cryptocurrency bear market that started in November 2021. Year-to-date, Polygon is down by 39%, and there are no signs of bears letting up yet.

That said, there is a lot to look forward to for Polygon. In January, Polygon did an upgrade that introduced a coin burn feature. This means the more the network is used, the more the price could go up as MATIC tokens are burned.

Ethereum is now almost done with the shift to PoS, which means that demand for Polygon and other layer-2’s could soar. This makes Polygon a good buy on the dip. The potential upside is huge.

Read More: Polygon Price Predictions

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Best Cryptocurrencies To Buy: Sandbox (SAND)

Sandbox is one of the most popular Metaverse projects in the market today. Some of the most popular play-to-earn games are now available on the Sandbox Metaverse.

The growing popularity of Sandbox play-to-earn games had a huge impact on SAND price in the past year. SAND was one of the best performing major cryptocurrencies in the past year, closing the year with gains of over 3700%.

However, with the huge correction in the broader cryptocurrency market, Sandbox started 2022 in the red. Year-to-date, Sandbox is down by 35%, and the bears still have a huge grip on it.

That said, Sandbox has a lot going on that could see it rally at some point in 2022. For instance, it recently got into a partnership that could see some of the biggest names in music start holding virtual concerts on its Metaverse.

Sandbox has also set aside millions of dollars that could help expand its virtual world going into the future. All this, coupled with the growing excitement around the Metaverse, makes Sandbox one of the 9 best cryptocurrencies to buy this year.

Don't Miss: Sandbox Price Predictions

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Binance Coin (BNB)

Binance coin is undoubtedly one of the most successful cryptocurrencies ever created. When it started back in 2017, the Binance coin traded at $0.03. As of its May 2021 highs, the Binance coin was trading at $687. That’s a more than 10,000% increase in value.

However, since it touched its all-time highs of $687, Binance coin performance has been pretty sluggish. Like the rest of the market, Binance Coin started 2022 bearish, and year-to-date, it is down by 27%.

Despite the continued price correction, Binance continues to grow. Unlike when it first came to the scene, Binance is now the largest exchange by volume and also has a wide array of products that range from the Binance Smart Chain, a new crypto Launchpad, and multiple ways for users to earn a passive income.

Since BNB powers all this, it goes without saying that the underlying value of BNB is going up even though the price continues to slide lower. As such, there is a huge potential for BNB to rally at some point in 2022.

Read Also: Binance Coin Price Predictions

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Best Cryptocurrencies To Buy: Decentraland (MANA)

Lastly, of the best cryptocurrencies to buy on the dip is Decentraland. Decentraland has taken a hit since the beginning of the year, and year-to-date, is down by 18%. This is a slight dip though, considering that it rallied by over 1400% in the past year.

Decentraland’s success over the past year had a lot to do with the soaring demand for its virtual lands. Back in 2017, when Decentraland launched, its virtual lands were going for as low as $20. Today they are going for tens of thousands of dollars. Last year, one piece of Decentraland virtual land made history after selling for $2.4 million.

As demand for these lands grows, so will the value of MANA, which is the currency used in the Decentraland ecosystem. So far, demand looks promising, and recently Samsung, one global mega-corporation, launched a virtual store on Decentraland.

Such developments point to MANA being heavily undervalued at current prices.

Check Out: Decentraland Price Predictions