Looking for cryptocurrencies to buy during inflation? Here are the best recession-proof cryptocurrencies
The crypto market has been experiencing significant declines in the past few months. The months of May and June were particularly challenging for the investment community. The market capitalization of some major cryptocurrencies has plunged and the digital asset market continues to lose more value as it continues to track the stock market. Experts believe that the fear and panic of the coming recession and the sharp headwinds caused by inflation are some of the primary triggers that cause even the best cryptocurrencies in the market to fall. But as history dictates, investors keep coming back to cryptocurrencies for a safe hedge against investments. Currently, many investors are looking for top recession-proof cryptocurrencies to buy and ride through this inflationary period as safely as possible. Here we have listed some of the top 10 recession proof cryptocurrencies to buy and hold in 2023.
bitcoin
Bitcoin is one of the most popular and volatile cryptocurrencies on the market. But it serves as a good hedge against inflation. Several experts believe that Bitcoin is both deflationary and inflationary. However, the total cryptocurrency supply is limited to 21 million coins. So when the final number of coins is reached, it doesn't matter what tokens are minted. This suggests that eventually the value of the token will naturally arise in the future, making it a valuable hedge against inflation.
Ethereum
Although Ethereum prices are currently suffering due to various macroeconomic reasons, experts believe that the crypto could soon be on the road to recovery as the market is quite excited about the launch of the ETH 2.0 upgrade. Unlike other cryptocurrencies, Ether has a fixed supply limit. However, it has an inflation cap of 18 million new coins per year and a fixed inflation rate that issues 5 new coins for every block mined.
XRP
XRP is a good investment during inflation because when mining the token, investors have to pay fees for each transaction. These fees are not sent to any central authority or as a reward to validators. Instead, developers will burn them and make them a deflationary coin.
Crypto.com
CRO is a native token of the crypto.com platform. Before the launch of this platform, developers burned nearly 70 billion CRO, estimated at around $10 billion. This integrating burning protocol makes it an effective deflation token and a convenient cryptocurrency to buy during inflation.
Polygon
Polygon introduced its version of the Ethereum Hardfork, making its price more predictable, which eventually deflated MATIC by burning coins. Its purpose is to avoid oversaturating the market with token circulation and possibly improve the overall value of the token.
Litecoin
Litecoin is very similar to Bitcoin and thus would prove to be a good investment during inflation. Its supply is designed to decrease in the coming years, leading to an increase in the value of its existing coins.
Binance Coin
Binance is the world's largest cryptocurrency exchange that hosts various trading functions. The firm will burn its native BNB token every quarter through buybacks using its operating profits and BNB reserves. As this burning continues, the value of its tokens is expected to increase significantly in the coming years. This makes it the perfect hedge against inflation.
Avalanche
Avalanche is a blockchain platform designed to support decentralized applications that use self-service smart contracts to offer services on the network. However, it differs from other cryptos due to its lightning fast transaction speed and distinctive burning protocol. The platform is built to maximize investment through its burning protocol, which aims to increase the price of its native token and help its value in the long run.
EOS
EOS aims to make blockchain operations more efficient and easier to manage. Its network uses a delegated proof-of-stake consensus mechanism that deploys delegates for its governing protocol. EOS may also burn its tokens, as its community suggests, to curb inflation.
Bitcoin Cash
Bitcoin Cash supply is limited to 21 million coins. Crypto is also reducing its mining rate by almost 50% every four years, which suggests that their circulating supply is also constantly decreasing. Due to the burning of the coins, its market value saw an increase in price.
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