The cryptocurrency markets are now in a bear market. There’s no sugarcoating the truth that the crypto markets have had a rough year. However, there is a silver lining in crypto that tax-savvy investors may take advantage of.
A “bear market” has lost more than 20% of its value in a year. Ethereum is down -43.3 percent in 2022; bitcoin is down -35% in 2022, and many other coins are down even more.
For those who have lost money in a crypto position, there is an opportunity to make money by investing in altcoins. Listed below are a few altcoins that are making money, and you can invest in them.
Shiba Inu (SHIB-USD)
Shiba Inu continues to inspire many investors while also enraging others. Despite your feelings about this coin, it’s apparent that developers have been hard at work expanding the SHIB ecosystem with significant new features. SHIB is one of the finest cryptos to buy in the bear market because of these scheduled rollouts.
On sentiment alone, SHIB has been doing fine over the past year. Almost everyone who has heard of Shiba Inu has done so through a Shiba Inu bull on Twitter who pumps the token. Because of this, sentiment has grown into one of the world’s most popular pupcoins, briefly taking over Dogecoin in the market cap.
Among the numerous new features being rolled out is Shibarium, a layer-2 network. With Shibarium, SHIB will be migrated to its dedicated blockchain network, dramatically expanding its capabilities.
As part of the Shibarium launch, the project is launching an indigenous stablecoin to complement its existing decentralized exchange, ShibaSwap. SHIB’s plans for 2022 could be a huge success if the rollout goes smoothly.
Polygon (MATIC-USD)
Scalability issues aren’t going away anytime soon. Investors should remember that because crypto prices are down, blockchain users are still using the networks. Transactions must be completed, cryptos must be mined, DApps must be created, and wallets must be used.
As a result, there is always a need to improve efficiency. A top player for this need is still Polygon, making MATIC the best crypto to buy during this corrective phase.
Polygon is the crème of the crop when it comes to layer-2 scaling networks. It has a track record of consistently improving its product offerings, giving consumers not just speedier transactions but also a variety of scalability options.
Right now, Polygon offers six scaling solutions based on the Ethereum network. However, Polygon will continue to add new technologies in the future. Any crypto stocks trading online would agree that investing in Polygon makes intuitive sense in light of the likely need for scaling in the upcoming years.
XRP (XRP-USD)
Ripple’s problems have been going on for a long time. The corporation is still embroiled in a bitter legal battle with the Securities and Exchange Commission of the United States (SEC). However, these legal issues appear to be nothing more than a speed bump for XRP values.
Throughout the last 14 months, the coin has demonstrated its ability to stay afloat. It may now be ready for a boom as it focuses its efforts on finalizing the litigation.
International wire transfers won’t go away any time soon. Thousands of people send money internationally every day. This is how Ripple was able to grow so big. Ripple and XRP allow users to circumvent the enormous fees associated with sending money overseas.
Ripple’s services exploded in popularity in early 2018, pushing XRP values to new highs north of $3. However, the success of the project has enraged the US administration. The SEC’s 2020 lawsuit against Ripple has sent these prices crashing, but XRP is far from dead.
Though the XRP coin gained through 2021, one cannot help but wonder how much more it would have gained if not for the legal battle. However, because Ripple appears to be forcing the SEC into a corner, the lawsuit might be settled in 2022, giving XRP additional space to expand.
Cardano (ADA)
Cardano’s ADA has lost a lot of value in the previous three months, just like practically all other cryptocurrencies. Cardano had a strong run in late summer 2021, bringing it to third position in market value. The ADA course, on the other hand, is now only $0.79.
Cardano is the most technically advanced blockchain on the cryptocurrency market. It combines technological prowess with lightning-fast transaction speeds and smart contract capabilities. This implies that the Cardano blockchain may be used to create non-fungible tokens and decentralized financial instruments (DeFi) (NFTs).
Polkadot (DOT)
Due to the sharp rises in cryptocurrencies like Solana and Terra and the quick corrections, Polkadot has been low for the past few months. By market capitalization, the DOT token is the 11th most valuable cryptocurrency. Polkadot as a network has a lot of promise.
Polkadot intends to establish itself as the “Internet of Blockchains.” The so-called “parachains,” which may connect separate blockchain networks, are one of the blockchain’s unique features.
Consequently, Polkadot stands for compatibility across the most prominent blockchains, which might lead to a future transformation in the crypto market and the Web 3.0 project.
Conclusion
Investing gurus to mitigate losses during this bear market recommends any of the abovementioned cryptocurrencies. However, none of them will give you overnight success. If you properly plan your reaction to dropping prices and commit to a long-term strategy, you may survive and even profit during a bear market.
