10 Cryptocurrencies Redditors are Buying for 2022 and Beyond
In this article, we discuss the 10 cryptocurrencies Redditors are buying for 2022 and beyond. If you want to skip our detailed analysis of these currencies, go directly to the 5 Cryptocurrencies Redditors are Buying for 2022 and Beyond.
The crypto industry had an eventful 2021, topping $3 trillion in market capitalization for a brief period and witnessing the adoption of Bitcoin as legal tender in El Salvador, marking a key milestone in the mainstreaming of blockchain technology. The year also saw the rise of “meme coins” and calls for tighter regulations on the crypto industry. The two most powerful economies in the world dealt with the industry in contrasting styles. China effectively banned the use of crypto in late summer while US officials categorically dismissed pleas to follow suit.
Looking ahead into 2022, it is likely that regulatory scrutiny on the crypto world will increase this year. The passage of the Biden Infrastructure Plan includes provisions related to taxing crypto transactions, effectively increasing IRS authority on the matter. In October last year, the first crypto ETF began trading as well. In 2022, more could follow suit, increasing investor exposure to the new technology. Hedge funds have been slowly increasing their crypto exposure as well to keep with the times.
Even though direct investments in crypto are likely to increase in 2022, investors who are still skeptical of blockchain can invest in conventional businesses with exposure to crypto to ride the fintech wave. Some of the top stocks to consider in this regard include NVIDIA Corporation (NASDAQ:NVDA), Mastercard Incorporated (NYSE:MA), and Alphabet Inc. (NASDAQ:GOOG), among others discussed in detail below.
Our Methodology
These were picked from a careful assessment of comments published on different Reddit forums over the past twenty-four hours. The details of each cryptocurrency are mentioned alongside a discussion around top companies working in the sector to provide readers with some context for their investment decisions.
The hedge fund sentiment around each stock was calculated using the data of 867 hedge funds tracked by Insider Monkey.
High Risk, High Reward Cryptocurrencies to Buy According to Reddit
10. Helium
Helium is a cryptocurrency that is used to power a network of internet-enabled devices that act as hotspots for a decentralized wireless infrastructure. Helium is earned when hotspots provide wireless coverage and transfer data over the network. The Helium network is different from other blockchain-based wireless solutions since it uses a proof-of-coverage consensus to validate hotspots. The Helium currency stands to benefit from the shift towards the third generation of internet services dubbed Web 3.0 with an emphasis on decentralization.
The wider acceptance of currencies like Helium has been made possible by companies like Visa Inc. (NYSE:V), a payments firm headquartered in California. Visa Inc. (NYSE:V) recently launched a cryptocurrency advisory service for clients and merchant accounts.
Crypto initiatives from firms like Visa Inc. (NYSE:V) are important because they increase public confidence in the new technology. Even hedge funds have been bullish on Visa Inc. (NYSE:V) as the payments firm mainstreams blockchain. At the end of the third quarter of 2021, 143 hedge funds in the database of Insider Monkey held stakes worth $26 billion in Visa Inc. (NYSE:V).
Just like NVIDIA Corporation (NASDAQ:NVDA), Mastercard Incorporated (NYSE:MA), and Alphabet Inc. (NASDAQ:GOOG), Visa Inc. (NYSE:V) is one of the stocks on the radar of institutional investors.
In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Visa Inc. (NYSE:V) was one of them. Here is what the fund said:
“To make room for these new names with more attractive outlooks related to the reopening, we sold out of companies where the thesis is not playing out at the pace we expected including Visa.”
9. Flux
Flux is a cryptocurrency that is useful for those who want to operate in a decentralized world. The Flux network makes this possible by offering support for applications and projects, such as cloud infrastructure, on a decentralized operating system that can be used to build a new version of the internet. The Flux network provides Blockchain-as-a-Service solutions as well, comparable to the Software-as-a-Service solutions. Redditors have been buying the Flux coin and betting that decentralized applications will revolutionize the internet in the coming years.
Jack Dorsey, the chief of Square, Inc. (NYSE:SQ), a digital payments firm, has backed coins like Flux to succeed and embodies the Redditor spirit towards blockchain. Square, Inc. (NYSE:SQ) has been one of the largest cheerleaders of the new technology. Even though Square, Inc. (NYSE:SQ) stock has been volatile over the past few months due to aggressive bets on crypto, hedge funds still seem largely positive on the overall financial health of the firm.
In its Q1 2021 investor letter, RiverPark Funds, an asset management firm, highlighted a few stocks and Square, Inc. (NYSE:SQ) was one of them. Here is what the fund said:
“We established a position in leading Financial Technology provider Square during the quarter. Through one integrated system, SQ is a hybrid of two businesses: its Seller Business (charging small and medium-sized businesses about 3% for transaction payment processing, plus other services such as instant funds access, and software for everything from customer engagement to payroll), and its Cash App (originally for person-to-person cash transfers and now a growing digital financial services provider for consumers).
The combined business has grown gross profit at a 37% CAGR over the past five years to $2.7 billion (due to pass through costs, gross profit is more reflective of top-line growth) and we believe that the company has an enormous long-term runway, as it has less than a 2% share of a more than $160 billion market. It is our view that the company’s Cash App (which has grown
from nothing in 2015 to $1.2 billion gross profit last year) has a particularly large opportunity with its powerful ecosystem of digital financial services including digital wallets, direct deposits, stock trading, bitcoin trading, and business and tax services, which are all relatively new. The vast majority of Cash App’s more than 36 million users are younger and, importantly, are willing to replace their bank and other financial services accounts with the app.
We estimate that the company can grow its gross profit more than 30% and EBITDA more than 50% annually for the foreseeable future, and while most of the company’s current profit is from its Seller Business, we believe most of Square’s future value will be from its Cash App business.”
8. Filecoin
Filecoin is the cryptocurrency used by the Filecoin network, a cooperative digital storage and data retrieval method. The network offers users the ability to store many forms of data, including audio, video, images, and text. In the long-term, the network aims to store sensitive information, like ownership and financial records, as well. Redditors have been backing the coin to succeed as an alternative to centralized cloud storage. One of the most innovative storage solutions offered by the network includes the ability to let users rent unused hard drive space.
Companies like PayPal Holdings, Inc. (NASDAQ:PYPL), a California-based financial technology platform, have slowly integrated crypto like Filecoin onto the digital payments ecosystem. Hedge funds are one of the biggest backers of PayPal Holdings, Inc. (NASDAQ:PYPL), an indirect indication of the future power of crypto. At the end of September, 123 hedge funds in the database of Insider Monkey were long PayPal Holdings, Inc. (NASDAQ:PYPL) with stakes worth $12.8 billion.
In its Q4 2020 investor…
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