With the revelation of discouraging economic news, now is admittedly not the most intuitive time to consider cryptos to buy but here’s the thing: the rapid development of decentralized ecosystems suggests that it’s possible for alternative cryptos or altcoins to move irrespective of underlying fundamental dynamics. Therefore, this list will focus on purely market-driven forces rather than speculation on project worthiness and potential integration.
To accomplish this task, I’m going to rely heavily on Coinpaprika.com, particularly its liquidity information on potential cryptos to buy. Per the website’s management team, liquidity is the total cumulative value of orders within 10% of a given asset’s midpoint price. In short, this reading provides the potential magnitude of upside (or downside) movements. For instance, a higher portion of buy orders (bids) instead of sell orders (asks) indicates higher upside potential.
Of course, every time a discussion of cryptos to buy comes up, you should realize well ahead of time that this sector is volatile. In addition, even with all analytics tools available, no guarantees exist that they can predict a certain outcome.
Still, if you’re ready to try your hand at data-driven cryptos to buy, here are seven to put on your radar.
Cryptos to Buy: Polkadot (DOT-USD)
Billed as an open-source sharded multichain protocol, Polkadot (DOT-USD) helps bridge together a network of specialized blockchains, enabling unprecedented connectivity in the decentralized ecosystem. For that reason, many advocates of cryptos to buy see Polkadot eventually becoming the backbone of blockchain-based architectures.
To be fair, the latest fallout in the virtual currency space has been unkind to Polkadot. At its peak in early November 2021, DOT was trading hands above $50. Now DOT is priced below $8. Still, help could be on the way.
According to the liquidity metric, Polkadot features $84 million of buy orders compared to just under $47 million in sell orders. As I write this, DOT features one of the most decisively bullish profiles compared to cryptos ranked in the Top 20 by market capitalization. Therefore, speculators should keep close tabs on this coin.
In my opinion, Filecoin (FIL-USD) is fundamentally one of the most attractive blockchain projects. Providing a decentralized cloud-storage ecosystem, Filecoin users can contribute to the network on both sides of the aisle, either as a service patron or as a provider of storage. At scale, FIL might threaten centralized cloud-solutions companies.
However, like other cryptos to buy, the last several months have been problematic for Filecoin. After hitting a multi-month high in September 2021, FIL has steadily eroded in market value. The issue is that throughout this downward journey, the number of asks consistently exceeded bids, pressuring its price tag.
Nevertheless, what has optimists eyeballing Filecoin again is that this narrative may be changing. Although the bulls and bears are locked in a tight negotiation, bids have aggressively started to outpace asks. Again, while it’s no guarantee that FIL will swing higher, it’s clear that supporters are trying to punch a hole against bearish resistance.
Shiba Inu (SHIB-USD)
Perhaps the most maligned name among speculative cryptos to buy, Shiba Inu (SHIB-USD) from the get-go appeared like a parody. For some, a reading of its whitepaper was akin to a journey in clinical psychosis. However, the one factor that has consistently buoyed SHIB is its underlying community. When the SHIB army gets going, you don’t want to jump in front of this train.
On a somewhat earlier timeline than other cryptos to buy, Shiba Inu peaked in late October of last year. Since then, SHIB has courted trouble, plummeting to low after low. Interestingly, throughout this negative trek, bids have on several sessions exceeded asks. This is just a reminder that you can’t always depend on the combined order book to navigate perfectly accurate trades.
However, the bulls are eager to jump onboard the SHIB train once again, as evidenced by stronger ratios of buy orders against sell orders. For instance, at time of writing, SHIB’s bids are valued at $58 million over $26.2 million in asks.
Cryptos to Buy: Compound (COMP1-USD)
Part of the rising movement for decentralized finance (DeFi) applications, Compound (COMP1-USD) is an intriguing concept. Essentially, it’s a lending protocol that allows users to earn interest on their virtual currencies through pool deposits supported within the underlying platform. It sounds crazy but as someone who earns coins and tokens through similar platforms, the process works – at least so far.
One of the choppier cryptos to buy, Compound was working against the upside resistance line of $500 throughout the summer of 2021. But by September, the volume of asks began overwhelming the bids, eventually luring the price of COMP down. Unfortunately for the bulls, the token has kept decelerating, though the rate has noticeably diminished in recent trades.
And that might be because the bulls are finally starting to wake up. Though the order book is quite volatile, we’re seeing some big ratios to the upside coming in. It’s always a risk but COMP could be one of the cryptos to buy for gamblers.
Not the most well-known among cryptos to buy, Symbol (XYM-USD) is one of the “penny stocks” of the virtual currency sector, presented priced under 6 cents. Featuring a protocol called proof of stake plus (PoS+), Symbol specializes in secure, rapid-fire peer-to-peer transactions. Apparently, XYM also has a cult following in Japan and Korea.
Following a similar story to many other popular cryptos to buy, Symbol reached a peak valuation in November last year. Of course, that was when the sector started collapsing, taking down virtually everything with it. Though XYM bulls put up a valiant fight – its order books show a see-sawing effect in the liquidity metric – the coin eventually succumbed.
Undeterred, the bulls evidently since a comeback. As I write this, there are $279,400 in bids against $73,000 in asks, for a nearly 4x difference favoring the optimists. For speculators, that might be a ratio that’s too difficult to ignore.
Another one of the sub-dollar cryptos to buy, SwissBorg (CHSB-USD) aims to democratize wealth management through its virtual currency exchange and international wallet service. The project is headquartered in Lausanne, Switzerland and features a global team of over 180 people. As well, SwissBorg has developed a thriving ecosystem and community, offering an alternative to the top dogs of crypto.
Still, these attributes alone have not exempted CHSB from volatility. Indeed, downside came earlier for SwissBorg compared to mainstream cryptos to buy, with prices hitting their zenith in the spring of last year. Throughout its corrective phase, bearish orders steadily overwhelmed bullish orders, eventually driving down SwissBorg’s market value.
Still, there might be a comeback in the wings. At time of writing, the bids in the order book numbers nearly $258,000, translating to a ratio of 2.4x in the bulls’ favor. You should only take a shot with money you can afford to lose but this could be an early sign of a recovery.
Cryptos to Buy: Terra Classic (LUNC-USD)
With Terra Classic (LUNC-USD), your eyes are not fooling you: it’s exactly the Terra you’re thinking of, the blockchain protocol that uses fiat-pegged stablecoins to supposedly power price-stable global payments systems. Long story short, someone was able to exploit vulnerabilities in the algorithm, causing the original Terra coin to plummet. Now, it’s been rebranded Terra Classic.
Ordinarily, I wouldn’t even mention something like LUNC because of its fundamental vulnerabilities. Honestly, you really shouldn’t think about unless you’re absolutely prepared to lose whatever you put in here. That said, contrarian speculators are really pushing into Terra Classic, believing it could at least pop higher in the short term.
Just look at its order book: as I stand here right now, the volume of bids to asks is $47,600 to $2,300. That’s just plain ridiculous from a ratio perspective. Still, this could be a bull trap so please, approach with extreme caution (if at all).
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.