India, which has the largest number of crypto holders in the world announced a crypto tax of 30%. This effectively legalizes crypto trading and investing in the country.
Recently, Joe Biden also signed an executive order on crypto, and it calls for responsible innovation. The United States is also looking at the digital version of the dollar. In another positive development, members of European Parliament also voted against the ban on Bitcoin (BTC-USD).
With time, it seems that countries are focused on regulating cryptocurrencies rather than an outright ban. This is positive news for crypto holders and as adoption increases, quality coins or tokens will trend higher.
In the near-term, Bitcoin has been struggling around $40,000. I believe that this is a good opportunity to consider exposure to some quality cryptocurrencies. Factors such as inflation and geo-political tensions are also likely to be positive for cryptocurrencies.
This column will talk about seven cryptos to buy with focus on quality projects that can be considered for the long-term. Here they are:
Bitcoin has struggled to cross $40,000 in the recent past. However, for investors bullish on cryptocurrencies, Bitcoin is a must-hold in the portfolio. If altcoins are like growth stocks, Bitcoin is a blue-chip stock.
If the regulatory headwinds wane, Bitcoin is likely to trend higher with multiple catalysts. First, cryptocurrencies are positioned for wider adoption. Bitcoin, with a limited supply of 21 million, will benefit as holders increase.
Furthermore, inflation is a concern globally. Hard assets with limited supply tend to perform well in times of inflation.
In the coming years, Bitcoin is likely to be among the top inflation hedges. It's also worth noting that data from Coinbase (NASDAQ:COIN) indicates that institutional adoption of Bitcoin has been accelerating. This is another positive catalyst for the cryptocurrency.
Overall, Bitcoin has been among the top performing asset classes in the last decade. With the cryptocurrency still in a price discovery stage, I would bet on healthy returns from the crypto in the coming years. Positive news on the regulatory front will support the next phase of the rally.
Dogecoin currently trades nearly 85% lower as compared to highs of nearly 74 cents in May 2021. That was a phase of euphoria and I don't expect the meme coin to be trading at those levels again.
However, there is no doubt that the coin is oversold. I would not be surprised if there is a 30% to 40% rally from current levels of 11.6 cents, especially if the overall sentiments for cryptocurrencies turns bullish.
Recently, Elon Musk reiterated that he continues to hold Dogecoin.
In January 2022, Musk had announced that the meme coin can be used to purchase selected Tesla merchandise. Last month, Musk also announced that the coin will be accepted at Tesla's (NASDAQ:TSLA) supercharging station. That's a source of support for the big meme coin community.
With a low transaction cost as compared to Bitcoin, more companies are likely to use Dogecoin as a payment method.
Among meme coins, I would prefer holding Dogecoin over Shiba Inu (SHIB-USD). The former has a bigger community support and is a pure digital currency.
Shiba Inu, on the other hand, has been trying to create a wider ecosystem with entry into decentralized exchange and NFTs. I don't see diversification helping in terms of wider adoption or upside for Shiba Inu. There are quality projects that are pure-play in decentralized exchange.
After making highs of nearly $691 in May 2021, BNB coin has witnessed a sharp correction that's in-sync with the broad markets. However, considering the business developments, I would not be surprised if BNB coin re-tests previous highs in 2022.
Binance needs no introduction, with the project being the top centralized exchange in the world. In the recent past, Binance has been in news with crypto license wins from Dubai and Bahrain.
The crypto license provides clarity from a regulatory perspective. Areije Al Shakar, vice president at Bahrain Development Bank, believes that cryptocurrency adoption is likely to accelerate in the Middle East in 2022. It's likely that Binance will continue to expand further in the region.
From the perspective of trading volumes, it's likely that Binance will continue to benefit with wider cryptocurrency adoption. India has the highest number of crypto holders in the world. Binance has presence in the country with stake in WazirX (WRX-USD).
In December 2021, Binance also acquired outstanding shares in Swipe. The latter is a “leading cryptocurrency Visa card issuing platform.” Clearly, Binance seems to be spreading its wings through acquisitions. Overall, BNB coin is among the top cryptos to buy and hold for the long-term.
Among the smaller projects, Bogged Finance looks attractive with significant project developments in the last few months. The BOG token is lower by 67% from all-time highs of $2.15. Altcoins have witnessed a sharp correction, and I believe that this is a good accumulation opportunity.
As an overview, Bogged Finance is a DEX aggregator that's already present across ten chains. Using Bogged Finance, investors can place limit and stop-loss orders on decentralized exchanges. The project is also providing cross-chain bridge between Binance Smart Chain, Avalanche (AVAX-USD) and Fantom (FTM-USD).
Besides the project features, another reason to like Bogged Finance is the token economics. There are currently 14 million BOG tokens in circulation. The limited supply and the token utility is likely to translate into a sharp upside when bullish sentiments are back for altcoins.
Revenue sharing is another interesting part of Bogged Finance. Currently, investors can stake BOG tokens and earn a share of the platform fee. The APR is relatively stable and is currently at 6.08%. However, if the use of the platform accelerates significantly, the APR can possibly increase. It makes more sense to stake in a project with a realistic APR than high APR with inflationary token economics.
Overall, at a current market capitalization of around $10 million, Bogged Finance looks like a small-cap gem. I would hold the token with an investment horizon of 12-24 months for potential multi-fold returns.
I have talked about Zigcoin in the past as an attractive project. Zigcoin is the native token of Zignaly, a social crypto investment platform. The platform allows investors to copy traders and pay a part of the profits as fee. The platform currently has 350,000 users and $120 million in assets under management.
The reason to talk about Zignaly again is the fact that the project recently secured $50 million in financing. According to Zignaly CEO Bartolome Bordallo, the funding will "propel significant new product development and global adoption of the Zignaly platform."
Besides being a social investing platform, Zignaly has also launched ZIGPad, which is a multi-chain launchpad. Users can participate in IDOs (initial DEX offerings) with ZIG coins. The launchpad is focused on filtering and bringing high quality projects to investors.
Additionally, ZIG staking vault can be used to stake ZIG coin and earn interest in the native as well as other coins/tokens. Clearly, Zignaly is expanding in terms of the services its offering to investors. With the recent financing, the project seems poised for accelerated expansion and product development.
Last year, ZIG surged to highs of 22 cents. The coin seems to have bottomed out at current levels of four cents. I would bet on ZIG for the coin doubling or tripling in the next 12-18 months.
PancakeSwap is a decentralized exchange that allows investors to trade tokens listed on the Binance Smart Chain. The platform has been used by millions of users, which has translated into tens of millions of trades.
As I write, CAKE token has been surging higher. The reason is that PancakeSwap will be the first DeFi project on Binance. The partnership will allow seamless use of PancakeSwap within the Binance application. In some ways, this creates a bridge between centralized and decentralized finance.
Besides the trading feature, PancakeSwap also offers pools where tokens can be staked to earn a high APR. As an example, CAKE token can be staked for a current APR of 48.97%. With the growth in NFTs, the platform also allows investors to buy and sell NFTs on the Binance Smart Chain.
Overall, PancakeSwap is already used by millions of investors. The partnership with Binance will accelerate the trading volumes on the platform. Even after the recent upside in CAKE token, I remain bullish from a long-term horizon.
XTM token has corrected sharply from all-time highs. At current levels of 13 cents, the token seems attractive for a reversal rally.
As an overview, Torum can be considered as the Twitter (NYSE:TWTR) of the cryptocurrency world. The social media platform allows users to post views and news about cryptocurrencies.
However, unlike Twitter, the project shares XTM token as rewards for various activities. These include posting content, liking content and logging into the platform on a daily basis. XTM rewards ensure that the platform engagement is robust. However, even without the rewards, the social media platform is interesting for cryptocurrency investors. Currently, the platform has a user base of 210,000 crypto users.
Torum has also been expanding on the scope of the project. As an example, Torum has a NFT marketplace and is also into decentralized finance. Another interesting upcoming feature of the project is Torumgram. This will allow users to connect Telegram to Torum.
Overall, XTM token looks oversold. I would not be surprised if the token doubles from current levels in the next six months.
On the date of publication, Faisal Humayun did not hold (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.
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