Altcoins refer to cryptocurrencies other than Bitcoin. As such, of the 18,000+ altcoins listed on CoinMarketCap – you’ve got plenty of options when it comes to choosing suitable digital assets for your portfolio.

In this guide, we discuss the 10 best altcoins to buy in 2022 – all of which offer an attractive upside potential.

Best Altcoins to Buy in 2022

Below you will find a list of the 10 best altcoins to buy in 2022.

  1. Lucky Block – Overall Best Altcoin to Buy in 2022
  2. DeFi Coin – Native Token of Exciting New DeFi Swap DEX
  3. My Freedom CoinFirst DeFi Software Truly Owned by its Users
  4. The Sandbox -Top Altcoin to Invest in the Metaverse
  5. Yearn.finance – Great Altcoin to Invest in Decentralized Financial Services
  6. Cosmos – Interoperability Serves a Real Purpose in the Blockchain Space
  7. Uniswap – Leading DEX With a Popular Altcoin Backing its Ecosystem
  8. Decentraland – Top-Performing Altcoin Backing a Real Estate Metaverse
  9. Solana – One of the Best Altcoins to Challenge Ethereum’s Dominance
  10. Shiba Inu – Cheap Altcoin To Buy for Before the Next Bull Run Begins

Cryptoassets are a highly volatile unregulated investment product.

While they didn’t quite make the list, several altcoins worth considering are Litecoin, ICP crypto and Pi coin. You can find out more about these digital assets via our how to buy Litecoin guide, is ICP crypto a good investment, and our Pi coin price prediction analysis. Not all of the altcoins listed above will be suitable for your financial goals and risk tolerance – so scroll down to read our full analysis of each token.

A Closer Look at the Best Altcoins to Invest in

Considering just how many digital currencies are now in circulation – choosing the best altcoins for your portfolio is no easy feat. You’ll also need to choose the best altcoin exchange with the lowest fees.

You’ll need to research key metrics surrounding the goals of the project, its historical price action, current market capitalization, and more.

Consequently, a good example of the right type of research you should do can be found in our ApeCoin price prediction.

With this in mind, the sections below offer a full analysis of the overall best altcoins to invest in 2022.

1: Lucky Block – Overall Best Altcoin to Buy in 2022

lucky-block-logoDid you know that Lucky Block is one of the most undervalued cryptos and best utility tokens in 2022?

After spending countless hours researching the Lucky Block project – we found that this digital currency is the overall best altcoin to buy in 2022. In a nutshell, Lucky Block is creating an ecosystem that focuses on fair and transparent lottery games.

Through a mobile app and desktop software – the Lucky Block lottery system is being built on top of the blockchain protocol. And as such, this means that the lottery number-drawing process is guaranteed for its fairness and randomness – not least being gaming outcomes are generated via smart contracts.

What this also means is that players can be 100% sure that lottery games cannot be predefined or manipulated – internally or externally. Another core reason why we think that Lucky Block is the overall best altcoin to buy for 2022 is that its lottery games will be globalized – meaning that players are not restricted based on where they live.

lucky price token

This is in stark contrast to how traditional lottery games are run – which are usually offered nationally. If like us, you think that the Lucky Block concept has a bright future ahead of it – you can purchase this altcoin while the project is still young. After all, Lucky Block was only founded in late 2021 and its native token was launched in January 2022.

In terms of price action, Lucky Block was initially available to buy via its presale launch at just $0.00015 per token. Those investing in the Lucky Block presale are now looking at huge returns. For instance, as of writing, Lucky Block is trading at over $0.005 per token. As such, many crypto enthusiasts have dubbed LBLOCK as one of the best long term crypto investments in 2022.

When compared to its presale price of $0.00015, this means that Lucky Block has grown by over 3,200%. The token has, however, previously hit highs of $0.009. And as such, you have the opportunity to buy Lucky Block tokens at a major discount – not least because the broader cryptocurrency market is currently going through a correction. Moreover, at such as cheap price, LBLOCK is one of the best cryptos to buy under $1.

Interested in buying Lucky Block right now? Read our comprehensive guide on how to buy Lucky Block right now.

If you need more convincing, why not take a look at our Lucky Block price prediction article?

Cryptoassets are a highly volatile unregulated investment product.

2: DeFi Coin – Native Token of Exciting New DeFi Swap DEX

DEFC logoAnother one of the best new crypto coins to consider adding to your portfolio is DeFi Coin. DeFi Coin is the native token of DeFi Swap – an exciting new decentralized exchange which offers swapping, staking, and yield farming services. Although DEFC has been around since May 2021, the token has begun picking up steam in conjunction with the DeFi Swap exchange’s launch.

Once DeFi Swap went live, the price of DeFi Coin surged by 300% on an intraday basis. The token’s fortunes are naturally tied to the popularity of DeFi Swap, as investors can use the token to swap into other coins in a completely decentralized manner.

DeFi Coin price chart

Not only that, but DeFi Coin also has a built-in static rewards system which provides a regular income stream to DEFC holders. Whenever someone buys or sells DEFC, a 10% tax is levied on the position. Half of the collected amount is given back to DEFC holders as a reward, whilst the other half is placed into DeFi Swap’s liquidity pools.

Given that the DeFi sector had a total value locked (TVL) of around $200 billion during Q1 2022, there’s undoubtedly exceptional potential for DEFC and DeFi Swap. The coin has already started to pick up momentum on social media and has seen over 6,000 members join the official Telegram group – hinting at the project’s solid community backing.

Cryptoassets are a highly volatile unregulated investment product. 

3: My Freedom Coin – First DeFi Software Truly Owned by its Users

My Freedom CoinIf you’re looking to invest in a novel altcoin that helps minimize the potential for negative volatility, then My Freedom Coin is certainly one of your best options in 2022.

My Freedom Coin (MFC) is a DeFi project with its own totally unique economic system behind it. MFC describes itself as the revolution of finance as it has mechanisms in play that make the cryptocurrency “crashproof”. In a first of its kind, the entire ecosystem behind the project is designed to maintain and continuously help raise the ‘price floor’ for the coin.

Built on the Binance Smart Chain (BEP-20), My Freedom Coin is a wallet, exchange platform, and bank. The project allows users to buy and store MFC in their wallets and use MFC as collateral to take out loans from the treasury.

The token itself has a fixed supply of 7 billion tokens that are only released through a series of offerings. All funds raised through the offering are stored in a smart contract for the BUSD Treasury. As the funds are held in a smart contract, all the transactions in the treasury are totally transparent for everybody to see on the blockchain.

The funds inside the treasury are what give MFC a price floor and make it crashproof. The Floor price is calculated through the following formula: Floor Price = BUSD in BUSD Treasury / MFC Circulating supply.

My Freedom Coin Crash Proof

Your investment becomes fully risk-free once the Floor Price reaches the price you paid for the coin.

The Floor Price is the absolute lowest price that the coin will trade and can ONLY increase over time. This is because MFC will continue to be released through a series of consecutive higher offerings until all 7 billion tokens are in circulation.

In addition to this, the use of the ecosystem will help to increase the floor price. Transactions on the platform add to the value of the coin. For example, every MFC transaction on the My Freedom Exchange incurs a 2% transaction fee, charged to both buyers and sellers. The fee contributes to the maintenance of the system, and anything remaining is added to the BUSD Treasury.

MFC Homepage

Furthermore, the platform allows users to collateralize their MFC and take a loan from BUSD Treasury. Users are first charged a one-time 0.5% Loan Processing Fee and then are charged interest at 0.98% per month for the loan duration. The interest generated from the loan will go to a buyback & burn for MFC, removing the coins from circulation and helping to increase the price Floor further.

Lastly, it is important to point out that MFC is currently an invite-only community. To gain access, you will need an existing member to send you over an invitation. You will also have to pay the $50 Trading License fee to access the MFC Exchange. The funds generated from the license fees are used in the Community Program for referral bonuses and to create a monthly demand for MFC.

QR Code MFC

Alternatively, you can just copy/paste the code: ABXNMMXPHN

There is a $50 Exchange License fee, which you can choose to activate on the months you wish to use the MFC Exchange. $45 from the license fees is used in the Community Program for referral bonuses, and the $5 remaining is used to create a monthly demand for MFC through Buyback. The MFC purchased through the Buyback will be taken out of circulation, increasing the floor price.

MFC can be sent Peer-to-Peer, which has a 0.5% fee that is taken out of circulation, contributing further to the Floor Price increase. 

MFC is the only Cryptocurrency with a Floor Price, and proceeds from the DeFi Software constantly contribute to the evaluation of the Coin. 

You can currently access the My Freedom Coin project through an app, on both Android and iOS.

Cryptoassets are a highly volatile unregulated investment product. 

4: The Sandbox – Top Altcoin to Invest in the Metaverse  

The next digital currency to consider from our list of the best altcoins to buy in 2022 is the Sandbox. In a nutshell, this project specializes in the Metaverse, whereby players from all over the world can explore the Sandbox ecosystem while communicating and networking.

Within the Sandbox Metaverse, users can create and personalize their own character, which can then be used to compete in play to earn games. This means that when certain tasks are accomplished, users can earn the platform’s in-game currency – SAND. What we also like about the Sandbox is that it is home to an abundance of NFTs.

sandbox price prediction

For instance, the Sandbox allows you to use your SAND tokens to buy plots of land. You can then build property on this land and attempt to sell the respective NFT on the open marketplace. As a prime example of how lucrative this can be, a Sandbox user recently sold 100 virtual islands for the crypto-equivalent of $4.2 million.

In terms of how SAND has performed in the market itself, this altcoin has generated huge returns since it was launched. According to CoinMarketCap, the Sandbox was initially priced at $0.05 in mid-2020. This altcoin last peaked in November 2021, whereby a price of over $8.40 was breached.

And as such, this translates into gains of over 16,000%. Not bad for just over one year of trading. With that being said, and like most altcoins in this industry, SAND has since retreated in value. As of writing in early 2022, you can buy this top-rated altcoin at a heavily discounted price of under $3 per token.

Cryptoassets are a highly volatile unregulated investment product. 

5: Yearn.finance – Great Altcoin to Invest in Decentralized Financial Services   

We are huge proponents of the business model employed by Yearn.finance – which specializes in decentralized financial services. Put simply, the platform connects borrowers and investors – meaning that there is no longer a requirement for a third-party intermediary. Instead, crypto loans at Yearn.finance are facilitated loans via automated smart contracts.

In its basic form, borrowers are required to put up a certain amount of collateral in the form of digital tokens. In return, the smart contract will then allow the user to borrow an amount of capital against the said collateral. And, in addition to returning the funds back within an agreed timeframe, the borrower will also be required to pay interest.

yearn.finance token price

At the other end of the transaction, you have investors. Said investors will deposit funds into the Yearn.finance ecosystem, which is then used to facilitate loans. In turn, investors will be paid a yield on their capital outlay – with the specific APY design on a variety of factors – such as the respective token and lending terms.

If you like the sound of this top-rated DeFi coin project, you can easily buy Yearn.finance from the comfort of your home. This is the case even though Yearn.finance is one of the most expensive altcoins in the market. For instance, the digital currency hit highs of over $90,000 in 2021 – making it even more valuable than Bitcoin in token terms.

With that said, you can invest from just $10 into Yearn.finance when using eToro. Nevertheless, in terms of its performance, Yearn.finance and its YTI token were initially priced at just under $1,000 in 2020 – as per CoinMarketCap. Moving into 2022, the same altcoin is trading at less than $19,000. This means that since it was launched, this altcoin has grown by over 1,800%.

Cryptoassets are a highly volatile unregulated investment product. 

6: Cosmos – Interoperability Serves a Real Purpose in the Blockchain Space   

If you haven’t previously come across the term interoperability, in the traditional computing industry this refers to two or more systems having the capacity to communicate with one another. In the cryptocurrency arena, interoperability, therefore, refers to the challenges faced by different blockchain networks that may have the need to share data.

These challenges have, however, since been allocated with the growth of Cosmos and its ATOM token. In a nutshell, Cosmos provides the required technology for the likes of Bitcoin and Cardano or EOS and Ripple to collects and share data. This means that in theory, Ethereum smart contracts can make decisions based on specific Bitcoin transactions.

Cosmos to USD Chart

And, in order for competing blockchains to use this innovative technology, the ATOM token is required. And as such, this is why ATOM is one of the best-performing altcoins of recent years. As per CoinMarketCap, ATOM was priced at just $7.50 back in early 2019. As of early 2022, ATOM breached a price of $43 per token.

And as such, this represents very healthy gains of over 480% in just under three years of trading activity. With that being said, Cosmos and its native ATOM token have since dropped in value in line with the wider altcoin marketplace. As such, you can now get your hands on this altcoin at a bargain price of under $30 per token.

Cryptoassets are a highly volatile unregulated investment product.

7: Uniswap – Leading DEX With a Popular Altcoin Backing its Ecosystem  

Another top-rated project that makes our list of the best altcoins to buy in 2022 is Uniswap. Founded in 2018, Uniswap was one of the first exchanges to introduce the concept of decentralized trading. In a nutshell, this means that people can now buy and sell altcoins without needing to go through a centralized exchange.

If you’re wondering how this is possible, there are certain innovative factors at play. First and foremost, Uniswap does not rely on traditional bid/ask order books to create a safe and fair trading space for the generation of sufficient levels of liquidity. On the contrary, Uniswap uses an AMM – or automated market maker model.

uniswap price prediction

Put simply, the AMM model determines altcoin prices based on a variety of factors – such as demand, volume, and market capitalization. In addition to decentralized trading services, Uniswap also gives you the opportunity to earn a yield on your idle altcoins.

This is because you can provide the Uniswap AMM with liquidity, which in turn, will generate interest in your deposit. Moreover, you can invest in the broader Uniswap ecosystem by purchasing its UNI token – which is one of the most popular altcoins to buy right now.

According to CoinMarketCap, the UNI token was trading at just under $7 in late 2020. After going through a somewhat rocky ride in the following few months, Uniswap then went on a rapid upside trend. In fact, the UNI token hit highs of just over $44 in mid-2021 – which translates into gains of more than 500%.

Cryptoassets are a highly volatile unregulated investment product. 

8: Decentraland – Top-Performing Altcoin Backing a Real Estate Metaverse  

If you have an interest in the future of Metaverse coins, then you might have liked the sound of the Sandbox – which we analyzed above. With that said, Decentraland is also one of the best altcoins to buy in 2022 if this niche marketplace is something you wish to gain exposure to.

This super-popular project – which was founded in 2017, is now used by thousands of people each and every day. These numbers continue to grow and perhaps, most importantly, so does the number of transactions being conducted in the Decentraland ecosystem. More specifically, Decentraland has facilitated some huge digital real estate trades in recent months.

decentraland price prediction

For example, in late 2021, an area within the Decentraland Metaverse known as Fashion Street Estate, sold for a reported $2.4 million. Crucially, Decentraland allows users of all budgets to buy plots of land, which then be used to build real estate projects. And in turn, each project can then be sold on the Decentraland NFT marketplace.

Each and every transaction executed within the Decentraland ecosystem is conducted in the platform’s native altcoin – MANA. And with this in mind, it goes without saying that MANA has performed extremely well since it was launched in late 2017. As per stats extracted from CoinMarketCap, you would have originally paid just $0.025 per MANA token.

When the project last peaked in late 2021 with the wider Metaverse scene, MANA was trading at over $5.90. This means that those buying into this project in late 2017 would have been looking at end-to-end profits in excess of 23,000%. As such, a mere investment of just $500 would have translated into a portfolio worth over $115,000.

Cryptoassets are a highly volatile unregulated investment product. 

9: Solana – One of the Best Altcoins to Challenge Ethereum’s Dominance 

Solana, alongside a number of other altcoins, is often referred to as an Ethereum Killer. This means that many market commentators believe that Solana could one day overtake Ethereum as the leading smart contract platform. But is Ethereum a good investment? The main reason for this is that the Solana blockchain is significantly more efficient in terms of speed, scalability, and fees.

For example, in its current form, Ethereum is only able to facilitate an average of 16 transactions per second. In comparison, the Solana blockchain can reportedly handle over 65,000 transactions per second. Moreover, you might be aware of the ongoing issues that Ethereum has with respect to high fees.

solana price prediction 2022

In a nutshell, transactions taking place on the Ethereum blockchain – no matter how small, average $4 as of writing. This means that Ethereum is not suitable for processing micro-transactions – which is crucial in the smart contract scene. In comparison, Solana is able to process transactions at less than 1/1000th of a cent.

The aforementioned capabilities of the Solana blockchain has resulted in its native altcoin – SOL, becoming a top-10 cryptocurrency project in terms of market capitalization. Looking at the price performance of SOL, CoinMarketCap notes that it was priced at just $0.78 in early 2020.

Since then, Solana has breached highs of over $260. To put this rapid growth into perspective, this represents gains of over 33,000% in just under two years of trading. Moving into 2022, however, Solana has since hit lows of $80-ish, which means that now could be a great time to enter the market.

Cryptoassets are a highly volatile unregulated investment product. 

10: Shiba Inu – Cheap Altcoin To Buy for Before the Next Bull Run Begins  

In a similar nature to Dogecoin, Shiba Inu was created as a joke cryptocurrency – with the project also linked to the dog breed of the same name. With that said, the price performance of this top meme coin is anything but a joke when you consider just how quickly this altcoin has grown since launching in mid-2020. But as with most meme coins, many traders are asking if Dogecoin is a good investment in terms of the long run.

As per data extracted from CoinMarketCap, Shiba Inu was trading at just $0.0000000005 when it first hit centralized exchanges. In 2021, Shiba Inu hit highs of $0.00008. That’s a reduction of five zeros – or growth of nearly 16 million percent. And as such, had you invested just $100 into Shiba Inu back in mid-2020, you would now be a multi-millionaire. For a more detailed look at the SHIB price, you can read our Shiba Inu Price Prediction article right now.

Shiba Inu

Moving through 2022, there are two reasons why this best shitcoin could be one of the best altcoins to buy in 2022. First, the value of Shiba Inu has since been corrected by over 80% – meaning that if you enter the market today, you’ll get yourself a massive discount. Second, Shiba Inu is also one of the cheapest altcoins to buy.

For instance, as of writing, you will pay just $0.00002 for one Shiba Inu token. In other words, if you were to invest just $100, you would get in the region of 5 million SHIB. And, should you decide to complete your investment at eToro, not only is the minimum trade size just $10, but you only need to pay the spread.

Cryptoassets are a highly volatile unregulated investment product. 

What are Altcoins?

The term altcoin is an abbreviated way of discussing alternative coins to Bitcoin. This means that of the 18,000+ digital tokens listed on CoinMarketCap, each and every project can be classified as an altcoin – apart from BTC.

And as such, this means that you have a significant number of altcoins to consider for your cryptocurrency portfolio. It is important to note that altcoins will vary considerably in terms of the project and roadmap targets, market capitalization, historical performance, and legitimacy.

As a result, knowing which altcoins to buy can be challenging. For instance, while the likes of Shiba Inu and BNB have generated life-changing returns since being launched, many altcoins have since lost over 95% in value. Therefore, when deciding on which altcoins to buy for 2022, you will need to do lots of homework.

For a full guide on how to buy Ethereum Classic and other popular altcoins read our helpful guides.

Are Altcoins a Good Investment?

If you’re wondering whether you should buy altcoins or just stick with Bitcoin, this section is for you. Within it, we discuss some of the main reasons why you might consider investing in a selection of top-rated altcoins today.

Another popular altcoin is ALGO which has many traders asking whether Algorand is a good investment or not.

Many Altcoins Have Generated Life-Changing Returns   

First and foremost, perhaps the main reason why you might consider buying a selection of altcoins today is that many projects have generated life-changing returns.

We gave some examples earlier in our analysis of the best altcoins for 2022, but allow us to elaborate further.

  • For example, we mentioned just a moment ago that when BNB was launched in late 2017, a single token was worth just $0.11.
  • And, as of writing, the project is carrying 52-week highs of $690.
  • This equates to end-to-end gains in excess of 690,000%. And as such, had you invested just $1,000, at its peak, your money would have been worth $6.9 million.
  • In another example, we also mentioned that Decentraland and its MANA token has since witnessed growth of 23,000%.
  • And therefore, a $1,000 investment into this altcoin would have been worth over $230,000.

With that said, and as we covered earlier, not all altcoins will perform as well as the like of BNB and Decentraland – so it’s important that you set yourself realistic expectations before you make a purchase.

Altcoins Outperform Bitcoin   

It is not only altcoins that have generated life-changing returns since launching. After all, it is important to remember that when Bitcoin was first launched in 2009, it was worth just a small fraction of $0.01 per token. And, when you consider that Bitcoin has since hit highs of over $68,000 – this represents end-to-end gains in the millions of percentage points.

However, Bitcoin has since become a multi-trillion dollar asset class, so it goes without saying that the upside potential will be limited from hereon. In fact, when you compare the performance of Bitcoin over the prior few years with that of top-rated altcoins, BTC isn’t as attractive as it once was.

bitcoin vs altcoins

For example, in the prior 12 months since writing this page, the price of Bitcoin has decreased by over 20%. In comparison, Ethereum has increased by nearly 50%. Over a 5-year period, Bitcoin has increased by 3,600%, while Ethereum has witnessed gains of more than 7,000%.

As such, if your main priority is to target high-performing crypto assets, then altcoins might be more suitable for your risk appetite when compared with Bitcoin.

Easy to Diversify    

Another major benefit of adding the best altcoins to your portfolio is that you can easily diversify to help mitigate the risk of loss. This is something that most traders and investors adhere to when learning how to trade cryptocurrency.

Sure, on the one hand, the cryptocurrencies market often moves in sync with one another, meaning that when Bitcoin does well, so do altcoins. However, it also goes without saying that some altcoins have performed considerably better than others.

And as such, you can give yourself the best chance possible of choosing the best-performing altcoins by adding a wide selection of tokens to your portfolio.

This can be achieved easily when you use an online broker that not only offers small minimum investment requirements, but also a large number of supported markets.

For instance, at the SEC-regulated broker eToro, you will have access to dozens of leading altcoins at a minimum trade value of just $10 per token.

Many Altcoins are Cheap   

Another reason why Bitcoin – or even Ethereum for that matter, is somewhat unattractive to value investors is that these tokens are now trading for a huge amount of money.

After all, Bitcoin and Ethereum have since breached highs of approximately $68,000 and $5,000 respectively. This means that by investing a modest amount of money, you will likely only be able to purchase a tiny fraction of one token.

However, when researching the best altcoins for 2022, we came across a number of notable projects that still carry a low entry price.

  • For example, we mentioned earlier that by investing just $100 into Shiba Inu, you can get yourself about 5 million tokens.
  • Similarly, if you were to invest $100 into Basic Attention Token, this would get you over 800 tokens as of writing.
  • In the case of Lucky Block, at current prices, a $100 investment would get you over 20,000 tokens

Crucially, although the price of an altcoin doesn’t dictate its total valuation alone, it can be a lot more attractive to invest in a cryptocurrency project that allows you to own a large number of tokens – as opposed to a small fraction.

Huge Upside Potential   

Many experienced investors will also seek out the best altcoins in the market because in many cases, the upside potential can be huge.

For example, once you skip through the first few hundred projects in terms of market capitalization, you will come across thousands of altcoins that carry a valuation of less than $10 million. And as such, this means that the upside potential on these altcoins is going to be much higher than those that already have a large-cap status.

For instance:

  • As of writing, BNB already has a market capitalization of over $60 billion.
  • And as such, for BNB to generate a further 1,000% from hereon, it would need to surpass a valuation of $600 billion.
  • Although arguably very possible, it remains to be seen how long it would take for BNB to reach a valuation of this magnitude.

At the other end of the scale, you have the likes of Lucky Block, which, as of writing, is carrying a market capitalization of just $192 million as per CoinMarketCap. This means that for the project to do 1,000% growth from here, it would only need a market capitalization of just under $2 billion.

Another thing to be aware of when buying low-cap altcoins is that those with a considerably small market valuation will be a lot more volatile. This is because of the fundamentals of market depth, which means that smaller-cap assets are easier to move in the market.

Innovation Outside of Financial  Payments    

We also like altcoins for the innovation that some projects have since introduced to the cryptocurrency sector. Sure, Bitcoin itself is revolutionary. But, the network is only able to facilitate global payments.

In the case of the best altcoins that we came across, some of the most notable projects offer the following:

  • Lucky Block is revolutionizing the global lottery sector by decentralizing gaming outcomes via smart contracts.
  • Decentraland and the Sandbox both offer virtual 3D worlds that allow users to buy plots of land and real estate, and then sell these in the open market via NFTs.
  • Cosmos is solving the issue of blockchain interoperability.
  • Solana is looking to challenge Ethereum’s dominance of smart contracts, with super-fast, scalable, and low-cost transactions.

The above examples are just a few of many. The key point is that by investing in an altcoin that offers something different from the status quo, there is every chance that the respective token will perform well.

Risks of Buying Altcoins?

Now that we have covered the benefits of buying altcoins for your portfolio, it is only right that you also consider the risks. Some of the best altcoins to buy right now include AAVE, BNB, and ETH.

You likely know that crypto assets are volatile anyway – but the risk of loss can be significantly higher in the case of altcoins – especially those with a small market capitalization.

Synchronization With Bitcoin     

We briefly mentioned earlier that the broader cryptocurrency markets often move in sync. And, at the forefront of this trend is Bitcoin – which dictates the performance of the wider altcoin scene.

For example, when many altcoins experienced represented gains in 2021, this was in conjunction with Bitcoin hitting new all-time highs. But, since Bitcoin has entered a bearish cycle, this has had a major impact on altcoins.

best altcoins vs bitcoin

As such, no matter how good the objectives and roadmap targets you believe your chosen project offers, the performance of altcoins is often hindered by the sentiment of Bitcoin.

Extreme Volatility     

As noted above, all digital currencies carry a high level of volatility – especially when compared to the traditional stock markets.

However, if you invest in altcoins with a small or medium market capitalization, the volatility that you experience can be extremely wild.

For instance, some of the altcoins that we came across initially experienced a rapid upward swing, before crashing back down to a price below the project’s launch valuation.

In fact, many altcoins are now worth over 95% less than when compared to their prior all-time high. Ultimately, if you buy altcoins that experience similar depreciation levels, this can wipe out the vast bulk of your investment.

Scams and Rugpulls    

Another huge risk to consider before you buy altcoins for your portfolio is that of scams and rugpulls. The latter term refers to projects that are created with one sole intention – to scam early investors.

What often happens with rugpulls is that the project will collect funds during a presale launch, before pumping the respective altcoin artificially. In turn, this results in new investors jumping on board which further pumps the price northwards.

Eventually, altcoins that are looking to rugpull a project will dump their entire token allocation, which results in the value of the crypto asset dropping to near-zero levels.

This is becoming more and more popular in the altcoin space – so it is absolutely crucial that you do your research before proceeding.

This is one of the reasons why we think that Lucky Block is one of the best altcoins to watch in 2022, not least because the project is backed by a transparent and experienced team.

Where to Buy Altcoins

When deciding on where to buy altcoins for your portfolio, we would suggest exploring the following metrics before you open an account with your chosen exchange or broker:

  • Is the platform regulated by a reputable licensing body such as the SEC?
  • What altcoins does the platform give you access to?
  • What fees and commissions will you need to pay to buy your chosen altcoins?
  • Where does the platform stand in terms of customer service and supported payment methods?
  • What is the minimum amount of money you will need to risk to buy altcoins at the platform?

Taking the above metrics into account, we found that eToro is the overall best place to buy altcoins in 2022. We explain why in the section below.

eToro – Best Place to Buy Altcoins in 2022

etoro review

eToro is a our pick for the best crypto exchange that is ideal for investors of all skill sets. Opening an account here takes minutes – and the KYC verification process can be completed instantly. We like the fact that eToro is regulated by multiple bodies – including the SEC, ASIC, FCA, and CySEC.

This means that you can buy altcoins without needing to worry about the safety of your funds – which can’t be said for many exchanges in this space. US clients can deposit funds in USD without paying any fees. Crucially, this is the case not only with ACH and domestic bank wires but e-wallets like Paypal and even debit/credit cards.

And, if you’re a new customer from the US, you only need to deposit $10 to get started. In terms of supported altcoins, eToro lists dozens of leading crypto assets. For example, you can buy Dogecoin on eToro with a fee of just 1% which is then added to the tight bid-ask spread. This includes everything from Yearn.finance, Uniswap, Tron, and the Sandbox to Decentraland, BNB, and Compound coin. When you buy altcoins at this brokerage, the minimum stake is a mere $10.

etoro review

You will also save on traditional trading commissions when you buy altcoins via the eToro website, as you only need to cover the spread. This starts at 0.75% on Bitcoin but will be ever-so-slightly higher when trading altcoins. We also like eToro for its diversification tools, which include professionally-managed portfolios that contain a wide range of altcoins. For example, you could invest in Ripple with competitive fees. For more details you might want to read our XRP price prediction to see how this exciting cryptocurrency could perform over the next few years.

This particular investment product will suit time-starved investors or those with little to no experience in performing technical analysis. eToro is also home to copy trading tools, so again, this will appeal to those seeking a passive investment experience. When it comes to customer service, eToro offers a live chat facility – so there is no need to wait around for an email reply.

We also like eToro of the free virtual portfolios that it offers to both new and existing clients. This comes pre-loaded with $100,000, which you can then use to trade altcoins in a risk-free environment. Once you have registered an eToro account, you might also consider downloading the iOS/Android app.

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

How to Buy Altcoins

Looking to buy altcoins or the best crypto IDOs for the very first time? If so, you might need some guidance on how to complete your altcoin investment in a safe manner.

Read on for step-by-step instructions on how to buy your chosen altcoin today.

How to Buy Lucky Block

Lucky Block needs to be purchased via the Pancakeswap exchange, which is where many of the best newly-launched altcoins are traded.

  • Step 1: Get Trust Wallet: To buy Lucky Block right now, download Trust Wallet to your cell phone. This is a wallet backed by Binance that allows you to buy tokens listed on the Pancakewap exchange.
  • Step 2: Deposit BNB: Lucky Block is traded against BNB on Pancakeswap, not least because the altcoin operates on top of the Binance Smart Chain. As such, you will need to deposit some BNB tokens into your Trust Wallet account. If you don’t have any BNB tokens, you can buy some via the Trust Wallet app with your debit/credit card.
  • Step 3: Connect to Pancakeswap: If you have BNB in your Trust Wallet, you can now connect to Pancakeswap. You will find the exchange via the ‘DApps’ button.
  • Step 4: Paste Lucky Block Contract Address: Now that you are connected to Pancakeswap, paste in the Lucky Block contract address, which is unique to this altcoin. You can obtain this from the official Lucky Block website.
  • Step 5: Swap BNB for Lucky Block: Enter the amount of BNB tokens that you want to swap for Lucky Block. The respective number of Lucky Block tokens that you will receive will update based on the altcoin’s current market price. To confirm, click on ‘Swap’.

If you need a more detailed walkthrough of how to buy Lucky Block, you can find this on the project’s website.

Cryptoassets are a highly volatile unregulated investment product.

How to Buy Altcoins on eToro

The other altcoins that we discussed on this page can be purchased from eToro at just $10 per trade. The investment process at eToro takes less than five minutes from start to finish – here’s what you need to do.

  • Step 1: Register an eToro Account: Click on the ‘Join Now’ button and fill out the registration form that appears on your screen.
  • Step 2: Deposit Funds: Choose your preferred payment type from a debit/credit card, online banking, or a supported e-wallet. Enter the amount you wish to deposit, from $10.
  • Step 3: Search for Altcoin: Click on the ‘Discover’ button. Next, click on ‘Crypto’ and choose the altcoin you want to buy.
  • Step 4: Buy Altcoin: Click on the ‘Trade’ button next to your chosen altcoin and an order box will appear. Enter your total investment stake from $10 and click on ‘open Trade’ to confirm.

Here’s a more detailed guide on how to buy crypto at eToro.

Cryptoassets are a highly volatile unregulated investment product.

Conclusion

Altcoins offer the potential to make attractive returns on your cryptocurrency investments – especially when you consider that you’ve likely missed the boat on Bitcoin.

After all, Bitcoin has already surpassed a total market valuation of over $1 trillion, so returns will be somewhat limited when compared to smaller-cap altcoins.

To start building your portfolio today, we found that Lucky Block is one of the best altcoins to consider for 2022. Not only does Lucky Block offer a juicy entry price – but this lottery ecosystem innovator was launched as recently as January 2022.

As such, you can invest in this top-rated altcoin while the project is still young.

lucky-block-logo

Cryptoassets are a highly volatile unregulated investment product.

Frequently Asked Questions on Altcoins

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