What coins to buy in July 2022
Experienced investors always say: buy on the fall, sell on the rise. Despite the fall that began back in the spring and the departure of some institutions from cryptocurrency assets, the latter are still a great idea to transfer some of your savings into technology-based finance. Let’s consider which cryptocurrencies are good investments for the summer of 2022, and which coins are better to stay away from.
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Experienced investors always say: buy on the fall, sell on the rise. Despite the fall that began back in the spring and the departure of some institutions from cryptocurrency assets, the latter are still a great idea to transfer some of your savings into technology-based finance. Let’s consider which cryptocurrencies are good investments for the summer of 2022, and which coins are better to stay away from.
What happened to cryptocurrencies
If we go back to history, now the cryptocurrency market is almost exactly the same as in 2018. There is the same drawdown, investors also panic and get rid of assets in their portfolios. However, there is a slight difference – there are no longer so many stories from small buyers and novice miners, who on the euphoria of the rise not only invested all available funds in the industry, but also used borrowed funds, sometimes secured by real property. And when the first cryptozyme came, they lost almost everything.
As we’ve said more than once in our investment forecasts, the main reason for the cryptocurrency market fall in spring-summer 2022 can be considered geopolitical tensions and rising energy prices. All of this is pulling on inflation, which makes investors look for more reliable assets to invest in rather than risky decentralized finances.
Environmentalists also continue to put pressure on bitcoin. Even Elon Musk, who actively supports cryptocurrencies, called mining a “dirty” business, and called for a more active transition to renewable energy sources. However, the billionaire does not share optimism about the transition to the Proof-of-Stake algorithm, which, together with the opinion of the community, suggests that proof-of-work in the bitcoin network will remain the main way to achieve consensus.
What cryptocurrencies to buy in the summer of 2022
For long-term capital storage in July 2022, as before, we recommend buying only bitcoin. If earlier one could consider Ethereum as an alternative as well, today the second most capitalized cryptocurrency does not look so good. The main reason is possible transition to ETH 2.0 and Proof-of-Stake consensus algorithm in the near future. Here the market can follow any scenario. Some experts predict a rapid growth and a fourfold increase in price relative to bitcoin, while others see great risks in the transition and the refusal of a number of major projects from using this blockchain.
But the DeFi and GameFi sectors are definitely worth paying attention to. Here we can only talk about market development, most projects are just gaining popularity and can show significant growth even in a falling market.
So DeFi platforms of the second echelon have just huge potential. Many decentralized finance projects are looking for alternate, and sometimes main platforms to continue their activities. Thus, alternative blockchains, unlike Ethereum, also offer lower or sometimes no commissions, high scalability and transaction speed. As an example, consider the Huobi token, which is actively used by decentralized exchanges.
Among the blockchain game industry for investment in the summer of 2022, consider the SplinterLands project. The game is actively developing, constantly growing its player base. The in-game management token SPS also looks good, which although it has declined slightly more than the market, however, like the entire gaming sector due to the decline in hype around the industry, but still shows better dynamics compared to competitors.
Another token capable of showing great growth potential is Chainlink. The oracle network is the most popular among similar projects, and given the ever-increasing demand for the connection between onchain and offchain data, we can assume that the demand for tokens will only grow.
Conclusion
2022 could be a full repeat of the 2018 scenario, which was followed by two bad years for cryptocurrencies. If the goal of blockchain investing is to make quick profits, which was possible last spring, now it is worth switching to long-term strategies, which also have less risk. It is definitely not worth investing in hype assets that are subject to outside influence, such as DogeCoin, whose quotes were launched “to the moon” by just one post on Musk’s social network. In any case, the current decline could be a good starting point for buying cryptocurrencies in 2022.
