3 Best Cryptocurrencies Under $5 to Buy & Invest In for 2022
Finding a good cryptocurrency to invest in can seem complicated at first. There’s over 4,000 different cryptocurrencies to choose from.
However, narrowing them down is actually easy, once you know what to look for.
There’s a few factors that investors should take into account when choosing a cryptocurrency to invest in:
- Token utility – What will the token be used for?
- Team – Who is behind the cryptocurrency, what’s their credentials?
- Aims and goals – What problem does the cryptocurrency solve?
In today’s post we’ll look at three different cryptocurrencies under $5 with great potential for investors.
We’ll look at what each cryptocurrency does, the team behind it and why each one is a good investment choice.
Cardano is a proof-of-stake blockchain platform founded by the co-creator of Ethereum, Charles Hoskinson.
Cardano shares some similarities with Ethereum, mainly the ability to deploy smart contracts and decentralized applications (dapps).
What sets Cardano apart is its emphasis on scalability and scientific peer reviews of it’s codebase.
This ties in with Cardano’s goal of becoming one of the most advanced and efficient blockchains.
Transactions on the Cardano blockchain will be settled using its native cryptocurrency ADA.
Quick Fact: Cardano’s cryptocurrency ADA is named after Ada Lovelace. Ada was a 19th-century mathematician who is also recognized as the world’s first computer programmer.
At the time of publishing the price of ADA is currently floating around $1.42
Problems Cardano will solve
One of the biggest problems faced in the blockchain space is the issue of scalability. Every transaction on a blockchain has a fee, and the busier the network, the higher fees you’ll have to pay.
Why do cryptocurrency transactions have fees?
Most blockchains are powered by Proof-of-Work (PoW) or Proof-of-Stake (PoS) algorithms.
These protocols enable miners (for PoW) or nodes (for PoS) to process each transaction and receive a transaction fee as a reward.
These algorithms are put in place to prevent fraudulent transactions on their respective networks.
Naturally, transactions with higher fees get a higher priority than transactions with lower fees.
The scalability problem
Blockchain networks like Bitcoin and Ethereum have a limited amount of data in each block.
Because of this, miners and validators are restricted on the number of transactions they can process in each block.
Based on data gathered by Bits On Block, with Bitcoin you currently get around 1,500-2,000 transactions in a block. On the Ethereum network you can get 70 transactions into a block.
When there is a large amount of users initiating transactions on a network, the demand for block space increases. This leads to more transactions waiting in a queue for confirmation.
When the demand gets too high, some blockchain networks can become congested, resulting in slower transactions and highly increased transaction fees.
Expensive transaction fees are simply a matter of supply and demand:
High demand for transactions + Low block space for transactions = Increased fees + slower transaction speed.
Cardano aims to solve the scalability problem using various different methods.
One way Cardano aims to solve the scalability issue is through the use of sidechains. Sidechains are separate blockchains designed for a specific purpose.
Running transactions on a sidechain reduces the number of transactions on the main blockchain. This prevents congestion, keeping transaction speed high and the fees low.
Cardano’s Ouroboros algorithm uses Proof-of-Stake to reduce energy costs and increase the speed of transaction processing.
Ouroboros works by randomly selecting a slot leader, based on the amount of ADA tokens they have staked. Larger stakes increases the chance of a leader being selected.
This is cheaper than Bitcoin’s Proof-of-Work algorithm which requires “miners” with physical devices to produce blocks. These miners have to race with each other to produce a block, which costs energy.
Ouroboros Hydra is the latest update to Cardano’s original Ouroboros algorithm. Hydra addresses three main scalability challenges:
- High transaction output
- Low latency
- Minimal storage per node
Hydra will solve scalability issues through multi-party state channels, which offer parallel transaction processing and instant transaction confirmation.
Hydra is designed to integrate with a stake pool model. Stake pools are nodes with a public address, where ADA holders can send their ADA tokens in order to delegate their stake.
Each pool can create a “Hydra’s head”, so adding more staking pools means more heads can be added.
Adding more heads will greatly increase the number of transactions Cardano can perform per second.
According to IOHK, early simulations show that each head can perform up to 1,000 TPS (transactions per second). With 1,000 heads, this could be as high as 1 million TPS.
This level of output is more scalable than the payment processor VISA, which reportedly handles 1,736 payment transactions per second, with the capability of handling up to 24,000 TPS.
Cardano current use cases
Use cases for Cardano include:
- Atala Prism – ID & Credentials solution built on Cardano for securing academic qualifications, financial onboarding and digital identities.
- Atala Scan – Anti-counterfeiting solution built on Cardano.
- Atala Trace – Supply chain tracking solution built on Cardano.
Why Cardano (ADA) is a good investment
Scalability is one the biggest problems facing popular blockchain networks.
If Cardano manages to solve this problem it will become the blockchain of choice for both corporate use cases (defi, NFT’s, DEX’s, smart contracts etc.) and regular transactions.
Also, like Ethereum, Cardano’s blockchain will support smart contracts and dapps.
When you combine these features with faster transactions and cheaper fees, Cardano will be a more attractive option for Ethereum’s current use case’s.
Cardano could even compete with Ethereum 2.0 once it’s fully released.
How and where to buy Cardano (ADA)
If you like, you can download the official Cardano Daedalus wallet and send your ADA coins there after purchasing from one of the exchanges above.
Bitpanda Ecosystem Token (BEST) is the native cryptocurrency of the Bitpanda investment platform, Bitpanda Pro and the entire Bitpanda ecosystem.
Bitpanda is a digital assets platform based in Vienna, Austria. The platform enables anybody in Europe to buy and trade cryptocurrencies.
Bitpanda also lets users buy stocks and precious metals such as gold and silver.
At the time of publishing the price of BEST is currently floating around $2.34.
Why Bitpanda Ecosystem Token (BEST) is a good investment
BEST functions as an exchange coin, offering many benefits to it’s holders, and currently Bitpanda is the only platform where you can buy the token.
BEST is similar to Binance Coin (BNB) in this respect, since both are exchange coins which offer discounts, access to investment launchpads and more.
Benefits of holding BEST include:
- Access to BitPanda’s upcoming Launchpad
- Access to BitPandas’s future products
- Discounts for verified users paying their Bitpanda fees with BEST within the Bitpanda ecosystem
Exchange coins are also great investments since they are already backed by a working product, a feature that many popular cryptocurrencies can’t boast.
Bitpanda Ecosystem Token is backed by Bitpanda, a crypto exchange valued at $1.2 Billion, making it Austria’s first “unicorn” startup.
Quick Fact: “Unicorns” are startup companies that are valued at over $1 Billion dollars. Unicorn companies include SpaceX by Elon Musk, AirBnb, Telegram and Stripe.
Below we’ll look at the reasons why BEST is a great investment.
When you hold BEST in your Bitpanda wallet, your BEST holdings increase over time. You just need to do at least one trade a month and claim your rewards every month.
You will receive free BEST tokens just for keeping them on BitPanda. Depending on your BEST VIP Level and trading volume, you can earn up to 12% per year.
BEST VIP Levels
Bitpanda Ecosystem Token comes with 3 different “VIP” levels which each level giving the holder greater benefits.
- Access to BEST VIP Votes – Vote on company decisions. (BEST VIP Level 1)
- 20% lower deposit fees for credit cards (BEST VIP Level 2-3)
- 25% less deposit fees for SOFORT (BEST VIP Level 2-3)
BEST VIP Levels:
- BEST VIP Level 1 – Hold a minimum of 5,000 BEST in your wallet.
- BEST VIP Level 2 – Hold a minimum of 50,000 BEST in your wallet.
- BEST VIP Level 3 – Hold a minimum of 500,000 BEST in your wallet.
Whilst these numbers look large to us now, the price of BEST was €0.10 / £0.08 / $0.12 when it was launched.
Regular token burns to reduce supply and increase value
Part of the BEST spent on trading fees on Bitpanda is burned every 3 months until 50% of the total BEST supply is destroyed.
This means that the supply of BEST is constantly decreasing. Binance Coin (BNB) follows a similar token burn model, which has helped the coin to reach a value of over $645.
Trading discounts and lower deposit fees
Everyone who uses BEST to pay trading fees on Bitpanda and trading fees on Bitpanda Pro gets a discount of 20%.
If you hold at least 50,000 BEST (VIP Level 2), you also get 20% lower deposit fees when depositing via SOFORT or credit/debit cards on Bitpanda.
BEST VIP Votes
When you hold at least 5,000 BEST (VIP level 1) in your Bitpanda wallet, you get access to exclusive BEST VIP votes.
This allows you to have a say in decisions made within the Bitpanda platform.
These decisions include voting on which cryptocurrencies, stocks or digital assets are added to Bitpanda.
Access to the Bitpanda Launchpad
Bitpanda are planning on releasing a launchpad where users can take part in Initial Exchange Offerings (IEO’s) via the Bitpanda platform.
This will give BEST holders access to unique investment opportunities. You will be able to invest in projects including new cryptocurrencies, blockchain platforms, real estate, Defi platforms, NFT platforms etc.
Working product: Bitpanda is a popular and fast growing platform
Bitpanda has positioned itself as one of Europe’s biggest cryptocurrency exchanges and the company itself is a tech unicorn.
Bitpanda Ecosystem Token (BEST) has the opportunity to experience growth similar to Binances BNB coin.
BEST is just over 2 years old and it has already rewarded early investors with over 20x returns.
This cryptocurrency is still new and I believe this is only the beginning.
How and where to buy BitPanda Ecosystem Token (BEST)
You can buy Bitpanda Ecosystem Token (BEST) directly from its home, BitPanda.
This exchange is currently only available to users anywhere in Europe and parts of the Middle East (United Arab Emirates).
Bitpanda has a built-in wallet where you can hold your BEST tokens.
You’ll also receive free BEST tokens every month if you make at least one trade and claim your monthly BEST rewards.
At the time of publishing the price of PAN currently sits at around $0.30 per coin.
Pantos (PAN) is a cross-blockchain cryptocurrency. PAN is being developed by Bitpanda, in close collaboration with TU Wien/Vienna University of Technology.
Pantos aims to be the first multi-blockchain cryptocurrency system. This will enable cross-blockchain transfers of all digital assets.
For example, you’ll be able to transfer the PAN cryptocurrency from the Ethereum blockchain to the Waves or Komodo blockchains.
To enable this, PAN will use Token Atomic Swap Technology (TAST). This is a smart contract technology that enables cross-blockchain asset transfers in the form of PAN.
This will position PAN as the world’s first multi-blockchain cryptocurrency, with almost instant swaps between supported blockchains.
Pantos (PAN) currently supports the following blockchains:
Why Pantos (PAN) is a good investment
Pantos isn’t just another cryptocurrency, it’s a scientific research project that aims to solve one of the biggest barriers in the crypto space: Interoperability and communication between blockchains.
If successful, Pantos will allow the exchange of value and information across different blockchain networks.
This is an issue that has not yet been tackled by any other cryptocurrency in the same capacity.
PAN is also being developed with researchers from prestigious institutions which include:
- TU Wien (Vienna University of Technology)
- Research Institute for Future Cryptoeconomics (RIAT)
- Austrian Academy of Sciences
Pantos is backed by scientific research and an emerging technology (TAST) with PAN at the forefront of its implementation.
In regards to Pantos being a scientific research project, you can see similarities between PAN and how Cardano is building it’s blockchain and cryptocurrency.
Pantos (PAN) is still in the early stages
Early investors in PAN have already seen a 30x return if they held their coins until now.
Despite these gains, PAN is still a low cap gem with a market cap of only $8.4 million. This leaves a lot of room for more growth.
I believe that with what Pantos is trying to achieve, a $100 million market cap in the long term is very possible if they succeed.
PAN is still new on the scene, not even a year old. It’s still early for this cryptocurrency and only one exchange (Bitpanda) provides the most convenient access to this coin.
When you look at the goals Pantos aims to accomplish, plus the researchers and partners they’re working with, it’s clear to see that PAN has a lot of potential.
How and where to buy Pantos (PAN)
You can buy Pantos (PAN) directly from its home, BitPanda.
This exchange is currently only available to users anywhere in Europe and parts of the Middle East (United Arab Emirates).
You can keep your PAN tokens on Bitpanda’s built-in wallet.
Each of these cryptocurrencies have ambitious plans and each one is backed by a solid team.
Below is where you can find and invest into each one:
- Cardano (ADA) can be bought directly with cash from CEX or Bitpanda.
- Bitpanda Ecosystem Token (BEST) & Pantos (PAN) can be bought directly with cash from BitPanda if you live anywhere in Europe and parts of the Middle East (United Arab Emirates).
What do you think about the cryptocurrencies mentioned today? If you have any opinions or any questions, let us know in the comment section.
Finally don’t forget to subscribe to the HomeGrown Income newsletter for more investment guides, tutorials and business tips sent straight to your inbox.