Safe haven assets are financial products that work as a valuable medium of exchange during economic instability. If your country’s economy is destroyed, you cannot use the country’s fiat currency to buy or sell anything. Therefore, it makes sense to find some stable assets that are valuable even if the economy of a country is down.
In the following section, we will see the safe haven crypto assets that are wise to hold to overcome the disastrous situation like war, pandemics, etc.
Top 5 safe haven crypto to invest in 2022
When we talk about these assets, the first name that comes to our mind is Bitcoin. This crypto is known as a digital version of traditional gold with a safe haven nature. However, BTC is not the only crypto that has such characteristics. Before proceeding further, let’s see the list of cryptocurrencies with a safe haven nature:
- Bitcoin (BTC)
- Litecoin (LTC)
- Ethereum (ETH)
- Cardano (ADA)
- Tether (USDT)
Bitcoin (BTC)
What is Bitcoin?
It is the first cryptocurrency that came with the blessing of blockchain technology. The safe-haven nature of this crypto comes from its limited supply. The max supply of Bitcoin is 21 million, which means miners will not be able to earn further Bitcoin after that. In that case, the scarcity of the supply is the main reason for considering it as a safe haven asset, just like gold.
On the other hand, Bitcoin holds the maximum market cap of the entire crypto market, where the most recent market cap to BTC ratio is 0.41. Overall, the higher market cap and the limited supply is the main reason to consider it as a safe haven asset.
How much could you earn for 1 year?
Bitcoin showed a fantastic movement in recent years, but after the Covid-19 pandemic, the price consolidated, opening the opportunity for short-term traders and investors. However, based on the last 1-year price chart, you would get a 137% gain from its swing low 29284 to swing high 68000 level.
Litecoin (LTC)
What is Litecoin?
It is crypto, created from the Bitcoin protocol, but its main aim is to provide a fast and low-cost payment through its unique blockchain network. As it came from Bitcoin’s fork, the correlation between BTC and LTC is nearly 90%. Moreover, Litecoin also has a limited supply of 84 million of the 84% coins in circulation. LTC’s value will be stable like BTC’s when the maximum supply level is achieved.
How much could you earn for 1 year?
The last 1 year was not positive for Litecoin as it traded between the range of 90.18 low to 296.5 level. Although the current price is below the last one yea’s opening price, the upside pressure from swing low to swing high opened an opportunity to grab the 226% gain.
Ethereum (ETH)
What is Ethereum (ETH)?
It is the second-largest cryptocurrency in the world in terms of market cap. The unique feature of this network is that it supports API with smart contract features that allow the creation of many DeFi projects to run under this. As thousands of decentralized finance protocols run through the system, the native token of this network acquired the status of safe-haven nature from its demand.
How much could you earn for 1 year?
ETH’s price is trading 15% above the last year’s price on the same date, but within the year, the price tested the 1700.00 swing low multiple times before making an all-time high of 4865.00 level with a 185% price surge.
Cardano (ADA)
What is Cardano (ADA)?
It is a blockchain network that runs under the proof-of-stake protocol, where the main aim of the project is to provide a positive change in the world. It also aims to redistribute the power from the margins to individuals that will help society by having a secure and transparent environment. As its main aim is connected with a positive global change, we can aim this project as a safe haven asset.
How much could you earn for 1 year?
Although the project of this network is positive with a huge potentiality, it failed to show any significant price change in the last one year. Currently, the price is trading near the yearly low, but investors could gain 190% profit during the movement from the yearly swing low to the high.
Tether (USDT)
What is Tether (USDT)?
If you are looking to make money from the price surge of a crypto token, USDT would not be a good option. However, USDT is a stable coin where a similar amount of US Dollar is kept against its issuance. Therefore, if you are not sure about the future of your country’s native currency, you can buy stablecoin and hold it to maintain the stable price.
How much could you earn for 1 year?
USDT is a stablecoin that mirrors the US Dollar. Therefore, this coin’s value is connected with the USD value. Although the Fed left the interest rate unchanged in the last few years, the recent change in decision and interest rate hike after the pandemic would influence investors to gain from this token.
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Final thoughts
In the above section, we have seen the list of safe haven crypto with an explanation of their price structure and future potentiality. In conclusion, we can say that investing in the crypto market needs additional attention to risk management. Besides, traders can use technical and fundamental analysis to find the best price for buying a crypto asset.