Top Cryptocurrencies To Buy During Inflation

Last Updated November 9th 2022
15 Min Read

The cryptocurrency market is bouncing back after a disappointing start to 2022. As inflation continues to stifle opportunities in the legacy finance markets, many investors are now turning to digital currency for the chance of bigger returns. But which are the best cryptocurrencies to buy during inflation?

Investors have faced turbulent times recently, as the global economy continues to face uncertainty and make the markets difficult to navigate. The stock, bond, and property markets all seem to be in unchartered territory, making it difficult to plan investments effectively.

But as always when traditional investment options go into decline, the spotlight has turned back to cryptocurrency. Indeed, many investors have speculated that digital currency provides the best opportunity to beat rising inflation.

In the following article, we’ll be looking at how the cryptocurrency market compares to other assets during times of inflation and giving you our picks for the top cryptocurrencies to add to your portfolio.

 

Investing During High Inflation

High inflation poses challenges for investors, as it puts pressure on them to find bigger returns. Some may have capital tied up in long-term holdings, such as bonds, that may have seemed like a solid investment at the time but could see them technically losing money if inflation outstrips their returns.

For example, if a stock or fund offers an annual return of 5% but inflation hits 10%, then an investor is effectively losing 5% a year in terms of real value.

This leads many to branch out and seek out assets that can offer more substantial returns - and this is where the cryptocurrency market comes into its own. Cryptocurrencies have been known to offer triple and even quadruple-digit growth in the space of a few months. 

Of course, there is a certain degree of risk that investors must be willing to take on, but as the world’s major economies creak towards recession, cryptocurrency is being seen as a valid alternative and even a potential ‘safe haven’ for investor capital. 

 

Cryptocurrencies VS Traditional Assets

So how does cryptocurrency measure up against traditional investment options during times of inflation? 

Stocks

Let’s consider stocks first. Stocks are one of the most popular investment options out there and have historically offered good returns for those who can wait out economic uncertainty. However, whilst the world’s major stock markets have bounced back from even the most severe depressions, it can be decades before investors start to see worthwhile returns. Soaring inflation also tends to stifle market growth, so those expecting interim returns may be left wanting.

Cryptocurrencies have the potential to offer much higher returns in the short-to-mid term. Whilst they are a riskier investment, as crypto prices tend to drop more significantly than stock prices during a market downturn, ultimately digital currency has the potential to outstrip inflation for those prepared to take on said risk.

Property

Property is often seen as one of the safest investments and typically offers solid returns over time. The problem with investing in bricks and mortar is that there is a relatively high entry cost, which may not fit in with an investor’s overall strategy. Buying and selling property also takes time.

Meanwhile, cryptocurrency can be bought in denominations starting at less than $10 and buying and selling tokens can be done in seconds through platforms like eToro. This makes crypto an appealing option - particularly during economically uncertain times when investors need to change their strategies on the fly. 

Gold

Of course, the other popular place for investors to channel their funds in economically turbulent times is gold, which has traditionally been seen as a way of storing value. It is also fairly easy to trade gold without needing a bank vault to store it in! Historically, gold has tended to keep up with inflation, especially as investors start moving funds into commodities.

However, whilst gold is comparatively stable and does serve as a good option for storing value, its potential for growth is limited. This is where cryptocurrency has the advantage as, whilst prices tend to be far more volatile than gold, the major cryptocurrencies tend to bounce back strongly and offer significant returns for investors who time their entry to the market well. 

 

The Top Cryptocurrencies To Buy During Inflation - Quick Look

If you’re in a rush and want a few suggestions for the top cryptocurrencies to buy during inflation, then here’s a snapshot of our list:

  • Bitcoin
  • XRP
  • Ethereum
  • Binance
  • Cardano
  • Solana
  • Tether USDT
  • Tron
  • Polygon

We’ll now spend some time taking a closer look at each token, and why we think they have the potential to beat inflation. 

 

The Top Cryptocurrencies To Buy During Inflation - In Depth

Okay, so now we’ve given you a quick look at our list of the best cryptocurrency to buy during inflation, it’s time to take a closer look at each coin to find out exactly why it has made our list. 

1. Bitcoin

Bitcoin is the obvious choice here. It has been known as digital gold for several years now so the idea of investors using BTC as a safe haven is nothing new. Despite having launched way back in 2009, Bitcoin remains the benchmark against which all other cryptocurrencies are measured and it is the number one option for most institutional investors when expanding their portfolios to include digital currency. 

At the time of writing, Bitcoin was trading at $21,279, which is far below its all-time high of $69,044. We, therefore, know that BTC has plenty of room to grow. We also know that even during the significant downturn that hit the market at the beginning of 2022, the original cryptocurrency held out well above $19,000. 

Whilst recovery has been slow, many industry experts still expect Bitcoin to eventually hit $100k and some have suggested this could happen by the end of 2024. Which other asset is predicted to hit almost 360% growth in just two years? For this reason, Bitcoin is our first pick as a cryptocurrency to buy during inflation. 

buy bitcoin

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

2. Ethereum

Ethereum is often described as the silver to Bitcoin’s gold, but the reality is that Ether arguably has the brighter future of the two simply because the Ethereum network has much more capability than that of Bitcoin. In fact, many of the leading DeFi, metaverse and Web 3.0 projects are built on top of the Ethereum blockchain.

The fact that Ethereum supports such a diverse array of projects means that Ether is likely to remain in considerable demand for the foreseeable future. With the token currently trading at $1,608, most industry analysts agree that Ethereum is currently undervalued and given its record high of $4,878 back in November 2021, there’s every chance that Ethereum will continue to gain ground now the market appears to be bouncing back.

Of course, Ethereum's shift to proof-of-stake now means the network is also far more ecologically viable than it was when operating proof-of-work. Whilst Ethereum was never really in danger of being overtaken as the leading smart chain, its recent upgrades mean it is likely to be able to compete with even the newest and most advanced smart chains.

buy eth

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

3. XRP

Next up we have Ripple’s XRP. Launched back in 2012, XRP has been a long-term fixture in the top ten cryptocurrencies by market cap. Known as the bankers’ cryptocurrency, XRP provides a much faster and more cost-effective means for banks and financial institutions to settle cross-border payments than the existing standard, SWIFT. The advantages of such a system should be pretty obvious.

XRP saw a big drop in price when the market downturn hit in early 2022. At the time of writing, however, it has seen something of a turnaround and has gained value much faster than many other leading tokens. In fact, from a low of around $0.32 in September, XRP had reached $0.53 in October, before settling back to around $0.49 heading into November. 

XRP differs from many of the coins on this list in that it is owned and operated by Ripple Labs. Many would argue that this means the project is not truly decentralised but an equal number of people would counter that having a corporation to hold accountable for the project's operation makes XRP a more stable investment. As such, we think it’s a good cryptocurrency to buy during inflation. 

buy ripple

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

4. Binance

Binance is another fairly obvious choice, being the world’s largest cryptocurrency exchange. BNB entitles users buying and selling on Binance a reduction in fees, which in itself makes the token a pretty sought after commodity. But it is also the native token of the Binance Smart Chain, which is arguably the second biggest smart chain behind Ethereum.

BNB is another top token that is currently trading at less than half of its recorded high - with the current price listed as $335.38. Of course, this doesn’t necessarily mean that BNB will be due a price surge or that it will be beating its ATH anytime soon, but most industry commentators would agree that the token is currently undervalued.

As with Ethereum and Cardano, BNB has a great deal of utility and is used on numerous projects that leverage the Binance Smart Chain. There’s a reason it has held its position in the top five cryptocurrencies by market cap and we think its a solid option for investing during inflation. 

buy binance coin

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

5. Cardano

A leading smart chain, Cardano is known for its high speeds and scalability. The world’s first peer-reviewed blockchain, Cardano’s infrastructure was scrutinised by leading academics to help developers mold it into one of the most advanced networks on the market. Dubbed an Ethereum Killer, Cardano has quickly established itself as a solid alternative for DeFi projects looking to avoid Ethereum’s high GAS fees and network congestion. 

Another mainstay in the top ten cryptocurrencies by market capitalisation, Cardano’s ADA token is always in high demand and sees significant trading volumes on a daily basis. It is currently trading at $0.40, which is well below its ATH of $3.09. As such, it’s fair to say that ADA is one of the most undervalued coins on our list.

One of the reasons that Cardano is a good option for investors looking to use cryptocurrency to hedge against inflation is that it often diverges from the market in terms of price movement. This makes ADA a fantastic addition for those looking for diversity within the crypto market. 

buy cardano

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

6. Solana

Solana is another highly advanced blockchain that leverages a proprietary consensus mechanism to offer super fast transactions at a comparatively low cost. Launched in 2020, it is one of the newest platforms on this list and has already established itself as a leading option for web 3.0 crypto projects. 

Its price data tells a similar story to the other tokens on this list. Following the market downturn in H1 of 2022, SOL remains subdued at just $32.32 - down from the all-time high of $259.96 it reached in November 2021. Once again, this is a coin that is definitely undervalued and many analysts have pegged it for a sustained period of growth in the near future. 

The market for smart networks is somewhat difficult to predict now that Etheruem has shifted to POS. However, even with the Ethereum upgrades, Solana remains amongst the fastest blockchains on the planet and it is hard to see how any other projects will knock it out of the top ten in the foreseeable future. 

buy solana

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

7. Tether USDT

Our list of the top cryptocurrencies to buy during inflation had to include at least one stablecoin. Probably another obvious choice, stablecoins are already a go-to option for cryptocurrency investors looking to store value without moving their funds out of the market. Tokens like Tether make trading digital currency much more cost-effective and potentially reduce the number of exchanges - and therefore trading costs - an investor needs to make. 

Of course, the point of stablecoins is to maintain a price based on an underlying fiat currency. Tether USD is pegged to the US dollar, which means that investors are not likely to see huge returns that other coins may be capable of yielding. However, the US dollar is the world’s most powerful fiat currency so investing in an asset that tracks its value is worth considering for those simply looking to store value.

We’ve spoken a lot about diversification and Tether is another good option for investors looking to balance risk. It is arguably the ‘safest’ option on this list and presents a way for investors to hold digital currency without being exposed to such volatility as many of the tokens on this list will go through. 

buy tether

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

8. Tron

Tron might seem a surprising inclusion for this list, but we think this project has a huge amount of potential and offers an excellent opportunity for cryptocurrency investors to diversify their portfolios. Demand for digital entertainment services has never been higher and the fact that Tron offers to connect artists and content creators directly with their audiences will certainly have widespread appeal - especially if Tron manages to capture a mainstream user base.

Tron’s TRX token is a low-cost option, currently trading at just $0.061 and with an all-time high of only $0.231. Of course, investor returns are all about percentages, but many find a low-cost asset preferable as it allows them to gain some exposure with minimal outlay. Tron has plenty of room to grow, however, and it’s currently underpriced - which makes it a solid option for investment in itself.

Digital entertainment is dominated by major corporations that have received a fair amount of negative press in recent years. Tron looks to disrupt the market by decentralising an entire industry. The company is nothing if not innovative and the fact that it also owns Bittorrent - the world’s largest content-sharing platform - certainly bodes well for its future.

buy tron

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

How To Buy Cryptocurrency 

Anyone looking to buy cryptocurrency will need two things - a broker or exchange that can give them access to the market and a wallet in which to store their tokens. When it comes to the latter, there are quite a few options and you’ll need to do a little research to decide on the best one for you. For more information, you may wish to check out our guide to choosing a crypto wallet.

When it comes to choosing an exchange, we advise finding a provider that has an established reputation. There are plenty of platforms to choose from, but we recommend eToro for most users, as it has a very competitive fee structure along with an award-winning trading platform.

Once you’re up and running with a trading account, then you’ll be able to start buying and selling cryptocurrency according to your trading strategy. 

 

Is Cryptocurrency A ‘Safe Haven’ Asset?

The terms ‘safe haven’ and ‘store of value’ need to be approached with caution - especially when we’re talking about cryptocurrency. The reality is that no investment is completely safe - not even gold. But cryptocurrency is a notoriously high-risk investment option and investors should see it as such. What cryptocurrency does do is offer a market for investment that traditionally moves incongruously with the legacy finance markets.

Having this option is a big deal as investors who become adept at playing the markets against each other will have found a way to beat inflation and go some way to protecting themselves against an economic downturn in either market.  

As always, investors should look for security in diversity. A well-diversified portfolio that is spread across cryptocurrency, equities, and commodities will likely show a high degree of robustness. 

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

Conclusion

There’s no doubt about it, a cryptocurrency is a solid option when it comes to finding alternative investments. It would be irresponsible to describe it as a safe haven, simply because the market is so volatile and the blockchain landscape changes dramatically from one year to the next. However, investors looking to hedge their bets, so to speak, will find that cryptocurrency certainly ticks a lot of boxes when it comes to potential for returns - even during times of high inflation.

If you’re looking for cryptocurrencies to buy during inflation, then the list we’ve outlined above will give you plenty of options. Of course, most of these tokens are simply good options for any cryptocurrency portfolio, regardless of the global economy. Each one has its strengths and weaknesses but all have built a certain amount of momentum within the market.

The only thing investors need to bear in mind is just how quickly the cryptocurrency market can change. It’s important that you monitor the industry closely and be ready to adjust your strategy if there are developments that are likely to affect the tokens you have invested in.

eToro – Best Platform To Buy Cryptocurrencies

Open an account with eToro, deposit some funds with USD, and finally – buy cryptocurrencies for just $10.

etoro cryptocurrency trading

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

Top Cryptocurrencies To Buy During Inflation FAQ

Can cryptocurrency hedge against inflation?

Many investors have been turning to cryptocurrency as a way of mitigating soaring inflation in the legacy finance markets. Many coins have a reputation for significant bull markets that often appear without warning and yield triple, even quadruple-digit growth. Of course, such volatility comes with a high degree of risk, but crypto certainly has been known to offer returns that outstrip inflation many times over. 

Is cryptocurrency affected by inflation?

All financial markets are affected by each other. Whilst cryptocurrency does not necessarily move in conjunction with the US dollar, Japanese Yen, or Euro, a surge in demand for digital currency during times of inflation can drive up prices. 

What are the best cryptocurrencies to buy during inflation?

Investors looking to buy cryptocurrency to hedge against inflation have quite a few options. Of course, the big names like Bitcoin and Ethereum should always be considered - especially for new crypto investment portfolios - but there are also plenty of other options and it's possible to build a fairly diverse portfolio by carefully selecting a handful of promising blockchain projects. 

Where can I buy cryptocurrency?

If you’re looking to buy cryptocurrency during inflation then the process is the same at any other time. You need to find yourself a reputable broker or exchange that lists the tokens you wish to buy. We recommend eToro for most users, as it's one of the leading names in the space and is known for its competitive fees and intuitive trading platform. 

Are stablecoins a good investment?

Stablecoins are a special type of cryptocurrency that are pegged to fiat currency, either through the organisation having a stockpile of said currency or via advanced algorithms that track the price of the underlying currency. As the name suggests, the price of these tokens tends to be much more stable than those of other cryptos. Many investors choose to buy stablecoins as a means of storing value, especially between other cryptocurrency investments, as it saves them the need to constantly switch between fiat and digital currency transactions. Of course, stablecoins are also a solid option for hedging against inflation. 

Read More:

12 Best Cryptocurrency To Buy Right Now

Top 10 Most Promising Cryptocurrencies

Best Utility Tokens To Buy

10 Best Crypto Apps

Best Altcoins To Buy

Best Beginner Crypto To Invest In

Top Cryptocurrencies To Invest In

10 Most Volatile Cryptos To Buy

Top 10 Most Searched Cryptocurrencies

Top 10 Cryptos With The Most Upside Potential