- While the pain in the cryptocurrency sector is tough to swallow, a bear market would allow time to strategize on bargain cryptos to buy.
- Filecoin (FIL-USD): Featuring a decentralized cloud-based storage network, Filecoin is a prime example of the practical benefits of decentralization.
- Zcash (ZEC-USD): Focused on fast, convenient and anonymous transactions, Zcash is an intriguing project that could easily rise up the ranks.
- Monero (XMR-USD): The bad boy among bargain cryptos to buy, Monero might attract interest due to a rough tax season for 2021.
- Stellar (XLM-USD): One of the cryptos with a strong cult following, it could be one of the top bargain cryptos to buy after a sector crash.
- Chainlink (LINK-USD): A pioneer in the integration of off-chain data in smart contracts, Chainlink could be incredibly enticing during a crypto winter.
- Polkadot (DOT-USD): As one of the next-gen disruptive blockchain projects, Polkadot compels as a potential candidate for bargain cryptos to buy.
- Decentraland (MANA-USD): With the possibility that Decentraland could fall into “penny stock” territory, MANA could be a great gamble on trader sentiment.
With the gut-wrenching volatility in the cryptocurrency sector, the smart approach in the near term is to pivot toward cash — an action that I took per my recent disclosure. But that doesn’t necessarily mean that you should ignore digital assets forever since speculating during bear markets may sometimes yield lifechanging profitability. For bold contrarians, the coming downturn may bring about many bargain cryptos to buy.
To be clear, I’m not putting a timeline on when the virtual currency sector may crash. But in my opinion, the selloff has more pain on delivery. One of the biggest reasons for this negative outlook is the manner in which many young retail investors trade. Per The Guardian, novice investors have taken all-or-nothing bets on speculative fare, meaning that they lack liquidity to fully take advantage of bargain cryptos to buy.
Not to be a downer, but the roughly two years of speculation have left many folks burned by the recent market fallout, whether in virtual currencies or equities. Sadly, evidence indicates that depression may be on the rise, worryingly including ideations of self-harm. That tells you this downturn is different, meaning that you must be patient with these bargain cryptos to buy.
Here are my top seven bargain cryptos to buy after the crash:
Cryptos to Buy: Filecoin (FIL-USD)
If I had to choose among bargain cryptos to buy in the coming crypto winter, I’d probably focus heavily on the majors like Bitcoin (BTC-USD) and Ethereum (ETH-USD). Having satisfied my acquisitiveness, I would then consider altcoins with strong fundamental value or significant utility. In my view, Filecoin (FIL-USD) is one of the most compelling ideas in the virtual currency space, making its present discount alluring.
While you can knock yourself out exploring its minutiae, Filecoin is essentially an open-source cloud-storage network. For those seeking data storage solutions, your options are presently limited to big technology firms like Alphabet (NASDAQ:GOOG,NASDAQ:GOOGL) or Amazon (NASDAQ:AMZN). With Filecoin, you have the option of uploading and securing your data on the blockchain, which facilitates both convenience and performance.
Better yet, Filecoin is an economic ecosystem. Those who have extra space to spare can contribute that to the network and receive compensation from other users who desire to purchase said space. It’s an intriguing, accessible and disruptive innovation, making Filecoin one of the bargain cryptos to buy.
Zcash (ZEC-USD)
Whenever the discussion of the blockchain comes up, those with a negative predisposition will often remark that the anonymity of the underlying innovation fosters all sorts of nefarious (as in criminal) activities. However, what gets misconstrued is that not all blockchain transactions are purely anonymous, which is where Zcash (ZEC-USD) comes into the picture.
As the Colonial Pipeline cyberattack incident and subsequent recovery of its Bitcoin ransom payment demonstrated, certain methodologies exist to overcome specific blockchain networks’ anonymous protocols. What Zcash brings to the table is to close loopholes, ensuring quick and truly private transactions.
What I like about ZEC-USD being one of the bargain cryptos to buy is that legitimate reasons for anonymous transactions exist that don’t involve illicit activities. Maybe you want to buy some legal botanical products without anyone being the wiser.
Anyways, the folks behind Zcash have implemented governance measures that make ZEC less appealing to criminals. For the dark side of the blockchain, we have the next name among bargain cryptos to buy.
Cryptos to Buy: Monero (XMR-USD)
Back in 2020, the International Revenue Service (IRS) announced a bounty of up to $625,000 for anyone who can break the privacy component of the Monero (XMR-USD) blockchain. To my knowledge, no one has been able to crack the code, meaning that federal and international regulatory agencies must be pulling their hair at the thought of so much taxable revenue slipping through their fingers.
What makes XMR one of the bargain cryptos to buy once the underlying market crashes is that the world wide web is a truly dark place. Peruse forums like 4chan, 8chan and other underbellies of the internet and you’ll quickly lose hope for humanity. At the same time, buying into Monero allows investors to profit from the depravity.
Now, the topic of profiteering off such darkness is an incredibly controversial and perhaps offensive topic. However, when you’re dealing with the blockchain, you’re dealing with decentralization, which also means decentralization of morals.
You can’t have the good without the bad here. If you’re the type that doesn’t like to be lectured, Monero may be one of the bargain cryptos to buy.
Stellar (XLM-USD)
Billed as an open network for storing and moving money, Stellar (XLM-USD) represents the core reason why the blockchain was presumably invented: to allow internet users to send digital units of wealth across borders without the interference of fiat-currency-based centralized authorities. In principle, networks like Stellar can possibly help foster social equity, a much-discussed concern in recent years.
As you know, wire transfers can be cumbersome, inconvenient and expensive. Under the Stellar blockchain, however, users can send digital funds to each other in lightning-quick fashion cheaply. Therefore, this decentralized network can help do away with the predatory nature of traditional fiat-based payment transfer solutions. This is particularly important for developing communities, which may be significantly dependent on microtransactions.
To be fair, Stellar is no longer unique in the digital asset space. However, the underlying XLM coin could still be a viable prospect among bargain cryptos to buy because of its strong cult following. Moving forward, it wouldn’t be surprising to see XLM dip below a penny a pop.
Cryptos to Buy: Chainlink (LINK-USD)
Before its meteoric runup, renowned investor and analyst Matt McCall put his weight into Chainlink (LINK-USD), one of the more intriguing digital assets. Rather than merely facilitate peer-to-peer transactions, the team behind Chainlink aimed to broaden utility for advanced blockchain functionalities, specifically the smart contract.
Because of the inherent nature of decentralization, it’s possible to have contracts between two parties without a human intermediary. Instead, the blockchain itself could hold the underlying negotiated assets in escrow. Since blockchain-based protocols are immutable, it can play the role of a perfect intermediary. But what do you do when the contract involves data or events that occur outside the blockchain?
Here, Chainlink comes to the rescue by integrating off-chain data with blockchain operability. By opening the door to the full range of available information, Chainlink makes the underlying blockchain technology exponentially more useful. Therefore, if we do have a severe downturn, LINK is a name to keep close to your chest.
Polkadot (DOT-USD)
Early on in the most recent rally in the virtual currency sector, heavy buzz surrounded Polkadot (DOT-USD), one of the next-generation blockchain networks. Dubbed an Ethereum killer, Polkadot aims to serve as the backbone of decentralized projects, much like Ethereum is doing right now. The difference is that Polkadot is (arguably) a better version of the ETH network.
Though Ethereum has brand cachet that will be extraordinarily difficult to usurp, not every developer is enthused about its dominance. As the virtual currency space expanded in scope and scale, Ethereum transaction fees (called gas) became incredibly onerous. Many ETH users simply had enough, migrating to other platforms. Polkadot provided a viable alternative and thus competition for Ethereum.
From a speculative point of view, DOT performed very well during the heady days of last year’s rally. In November 2021, it flew past the $50 level. Currently, it’s trading just below double-digit territory. However, moving forward, I anticipate that it could dip into the low-single digits.
Cryptos to Buy: Decentraland (MANA-USD)
For full disclosure, I acquired Decentraland (MANA-USD) a while ago under the somewhat mistaken assumption that it represented the tokenization of an online video game platform. Instead, MANA ties into the metaverse, or the next evolution of digital connectivity. Rather than merely sharing information, the metaverse allows us to integrate our personalities with the internet.
At least, that’s the broad-based view. Personally, I find the concept of the metaverse bizarre, redundant and dare I say pointless. Now, before you fire up an angry email to convince me otherwise, let me fully admit that I’m aware my opinion may be in the minority. Further, I’ve been wrong about certain investment ideas and I could be wrong again about MANA.
What I do know for certain is that Decentraland attracts a strong fanbase. Therefore, if you want to be part of a movement, you should consider MANA as one of the bargain cryptos to buy following the market crash.
On the date of publication, Josh Enomoto held a LONG position in BTC, ETH, XLM, LINK and MANA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.