Should You Invest in Crypto During a Recession? 10 Potential Recession-Proof Coins Investors are Backing

With concerns of a potential recession looming, investors are looking for assets that can help them hedge their financial portfolios.

For many investors, cryptocurrencies might seem like an attractive asset class – not least because they are decentralized and not tied to the performance of any single sector. However, not every cryptocurrency is equipped to be recession-proof.

This guide discusses how cryptocurrency as an asset class might perform during a potential recession. We have also discussed a selection of potentially recession-proof crypto coins that investors might consider buying right now.

Before making an investment, be sure to read our analysis of why we think these cryptocurrencies could be recession-proof.

However, some might feel more comfortable investing in equities. If so, refer to our complete guide on the best potentially recession-proof stocks to watch in 2024.

Reviewing The Best Recession-Proof Cryptocurrencies

When searching for a potentially recession-proof cryptocurrency, we paid attention to various factors such as historical price performance and use cases, as well as the rate of adoption.

After all, cryptocurrencies are inherently volatile – and for digital coins to survive a global economic turndown, they should have strong fundamentals.

Based on our market research, we found the following to be the top cryptocurrencies that could be recession-proof this year.

1. Dash 2 Trade – Best Recession Proof Crypto Presale to Buy in 2024

One of the potentially best recession proof cryptocurrencies to invest in 2024 is D2T – the native cryptocurrency of the Dash 2 Trade all-in-one intelligence platform.

With a total supply of 1 billion tokens, D2T is one of the best deflationary cryptocurrency assets that can offer long-term growth due to its low supply tokenomics. Offering 700 million tokens through an ongoing 9-stage presale round, D2T has already raised more than $2.1 million in under 1 week.

Once the presale is over, D2T can be used to buy three subscription levels for accessing different trading signals and features on the Dash 2 Trade dashboard. These levels are a free tier, a starter tier, and a premium tier. The starter and premium tiers can only be bought with D2T, costing 400 and 1,000 D2T tokens per month, respectively.

Beneficial for advanced and beginner traders, users can access exclusive trading features and tools such as live crypto listing alerts, backtesting platforms, auto trading features and technical & social indicators.

Notably, D2T token holders can participate in weekly trading competitions, offering free D2T token rewards to the best performers.

The Dash 2 Trade whitepaper also states that D2T will charge 0% tax forever, making it a cost-effective cryptocurrency to trade. While most of the top crypto assets and global financial instruments are struggling with the impending economic crisis, crypto presales provide a great diversification opportunity.

Dash 2 Trade’s token combines favourable tokenomics with multiple use cases, which has led to the successful start of the presale campaign. Currently, investors can purchase D2T for $0.05 per token – with a minimum investment requirement of 1,000 tokens. However, the token price will jump to $0.0662 by the last presale round – equating to a 32% increase.

Interested readers can also join the presale to stand a chance to compete and win the $150K D2T giveaway that the platform is hosting.

New token presales often perform well regardless of macroeconomic conditions, as investor interest is so high during the earliest stages of a project. For that reason, it could be argued that they are the best picks for recession-proof investments.

Follow the Dash 2 Trade Telegram Channel to keep yourself updated with the latest news and developments surrounding this exciting project.

2. IMPT – Crypto Platform Supporting Environmentally Sustainable Practices

Regardless of the concerns of a potential recession, many individuals are turning towards ethical investing, ensuring that their portfolios are sustainable and eco-friendly. In this regard, the IMPT presale could be another of the best crypto projects to watch right now.

Built on the Ethereum network, IMPT facilitates the trading and burning of carbon credits. To elaborate – carbon credits are permits that allow individuals and companies to reduce their greenhouse gas emissions. Countries across the world offer a certain number of carbon credits to companies every year.

In case they exhaust their allowance, companies will have to either bring down their emissions or purchase extra carbon credits. This is where IMPT comes in.

Wondering how to buy carbon credits? With IMPT, companies and individuals need not go through strict regulatory processes implemented by governments. Instead, they can head over to IMPT’s marketplace and choose to invest in one of the projects that have carbon offset programs.

The only prerequisite is that users should have IMPT tokens to purchase carbon credits. These IMPT tokens are now available via a presale launch at just $0.018 per coin. The presale is turning out to be super-popular, despite the concerns of a recession – and IMPT has already managed to raise over $6 million in a matter of just 15 days.

Carbon credits sold on IMPT are represented as NFTs. Investors can choose to burn them to offset their footprint or hold on to them, waiting for their value to increase. Given the demand for carbon credits, there is a chance that the value of these carbon credits NFTs could go up in the future.

Moreover, IMPT is one of the few crypto projects of its kind – which offers it a distinct advantage. As more and more people are considering sustainable investing practices, IMPT, with its unique value propositions, certainly positions itself as a potentially recession-proof cryptocurrency.

3. Tamadoge – New Metaverse Platform Featuring Play to Earn Games

Tamadoge is arguably one of the best-emerging cryptocurrencies to buy in 2024. Despite launching in a bear market, the Tamadoge presale was a massive hit. Investors were lining up to buy Tamadoge tokens – which helped the platform raise over $19 million.

The TAMA coin went on to increase its price from $0.02 to $0.20 after the presale, which far outperforms the broader market. This project is looking to build a metaverse ecosystem called the ‘Tamaverse’, complete with pet NFTs. Players can buy, breed, and battle their Tamadoge NFTs and earn points in return.

Those who hold rare Tamadoge NFTs have better chances of winning battles within the game. At the end of every month, Tamadoge will reward the top players with additional rewards. The platform also plans to add exciting features to its games, such as augmented reality, which will make the players’ experience more immersive.

All in all, Tamadoge has the characteristics of a game that has huge potential to grow. Moreover, Tamadoge might also be attractive to investors because of its deflationary setup. This token has a limited supply of 2 billion coins. And as per the development team, this limited supply can help boost the demand in the long term.

Moreover, to drive up scarcity, Tamadoge also burns 5% of all the transactions automatically. This will steadily bring down the total number of Tamadoge tokens in circulation. If Tamadoge sounds like a recession-proof cryptocurrency, investors can now buy this token via popular exchanges – such as OKX, MEXC, and LBANK.

The platform has also started rolling out its Tamadoge NFT collections – so keep an eye out via the project’s Telegram channel to receive updates.

4. Battle Infinity – Fantasy Sports Earning Games and Crypto Staking Tools

Another crypto project that has caught our attention is Battle Infinity. This platform comes with a long lineup of features that include P2E gaming, fantasy sports, a decentralized exchange, and an NFT marketplace. Battle Infinity has also designed its own metaverse so that its players can interact with each other in virtual worlds.

All these features make Battle Infinity one of the best future cryptocurrencies for long-term investment. Battle Infinity is still in the process of developing its games – meaning, those who invest in the project early might be able to generate attractive gains as the platform grows. To get started, investors can buy Battle Infinity’s native digital token, IBAT.

At the time of its launch, IBAT had a massively successful presale and was deemed one of the best crypto IDOs to take place in 2022. The token was first listed on PancakeSwap and soon saw its price go up by over 300% – from its presale valuation.

The price of the IBAT token has since gone down – nevertheless; the platform has managed to maintain interest from investors by adding more features to the platform. For instance, IBAT owners can now stake their tokens in order to earn an APY of up to 12%. The platform supports both flexible and locked staking.

This means that investors do not need to tie up their assets and can withdraw them to cash out at any moment. Nevertheless, staking provides investors with a passive income, which can turn out to be lucrative if the value of IBAT tokens goes up.

5. Lucky Block – NFT Competition Platform Offering Huge Prizes

Lucky Block launched in early 2022 and attracted investors with a unique proposition. This project conducts blockchain-based competitions, offering huge prizes such as houses, vacations, and even luxury cars. To participate, investors will need to get their hands on Lucky Block NFTs.

Moreover, investors will receive rewards as long as they hold Lucky Block NFTs in their digital wallets. When announcing a new competition, Lucky Block also releases a fresh NFT collection. However, investors will first need to get their hands on LBLOCK V1 tokens in order to purchase Lucky Block NFTs.

Lucky Block has also released a secondary token known as the LBLOCK V2. This token has no transaction fees whatsoever, which makes it an ideal choice for traders. Both the LBLOCK V2 and V2 tokens are available to purchase via popular crypto exchanges.

It is clear why Lucky block can be considered a recession-proof cryptocurrency. Investors who buy Lucky Block tokens and NFTs stand a chance to win attractive prizes – regardless of how the economy performs. Moreover, they can also trade LBLOCK V2 tokens – with the view of speculating on short-term price movements that are bound to happen in both bullish and bearish markets.

7. Ethereum – Cryptocurrency With Tremendous Growth Potential

Ethereum is another popular cryptocurrency that has a solid reputation in this space. As of September 2022, Ethereum completed its merge – moving from a PoW to a PoS mechanism. This allows the Ethereum network to use less processing power while facilitating secure and scalable transactions.

Even before the shift to a PoS system, Ethereum was used widely across the crypto industry – thanks to its smart contract functionality. Ethereum hosts thousands of dApps and NFTs on its network, and with the merge, the number of apps built on this blockchain is expected to grow significantly.

Moreover, like Bitcoin, Ethereum is also accepted as a payment option across numerous websites and online service providers. In fact, it is even possible to find several Ethereum casinos that permit players to make bets using ETH tokens. All things considered, Ethereum can easily be categorized as one of the top potentially recession-proof crypto coins available today.

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

8. Cardano – Ethereum-Alternative With Smart Contract Functionality

Although Ethereum dominates the smart contract market, there are several players in the space that offer more or less the same functionalities. At the top of this list is Cardano – another prominent cryptocurrency that runs a proof-of-stake system. Cardano’s Ouroboros technology grants miners with power in proportion to the amount of ADA tokens they own.

As a result, the blockchain is able to function with high speed, facilitating hundreds of thousands of transactions per second. Cardano is not only one of the most technologically advanced cryptocurrencies available today, but it is also a top performer in the crypto market. After launching at a price of around $0.025, the coin went on to reach an all-time high of about $2.90 in 2021.

However, since the beginning of 2022, Cardano has also suffered from the broader bearish market – as with the rest of the crypto space. Nevertheless, this token presents a great way to speculate on the crypto rebound, primarily due to its technical advantages and rapid pace of development.

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

9. Binance Coin – Utility Token of Popular Cryptocurrency Exchange

BNB is the native digital token of the popular cryptocurrency exchange, Binance. The platform also has its own blockchain network, which is home to a sizable number of crypto projects. The Binance Coin is used to pay transaction fees on the Binance Smart Chain – and as such, is indeed used widely.

Binance Coin was launched in 2017, and by 2021, the digital token had grown tremendously, becoming the third largest in terms of market capitalization. Given that the number of crypto projects built on the Binance network is growing per day, this digital coin is showing no signs of slowing down.

Furthermore, the Binance exchange has also established itself as one of the leading providers of crypto on a global level. Considering these aspects, it wouldn’t be far-fetched to say that Binance Coin could be a potentially recession-proof cryptocurrency to buy right now.

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

10. Tether – High-Risk Cryptocurrency With Low Volatility

If the risk of volatility is a concern, some investors might be leaning towards a stablecoin – such as Tether. This cryptocurrency has its value pegged to the US dollar, and as per its performance history, the coin has managed to stay relatively stable. In fact, Tether has not dropped its value by more than 1% since its inception.

However, that being said, it is also highly risky for the very same reasons. After all, the value of Tether will always be tied to that of US dollars, which won’t do much good to investors during a recession. Furthermore, and perhaps more importantly, there is no guarantee that Tether will retain its peg to the dollar.

How Will Crypto Perform During a Recession?

Since the inception of cryptocurrencies, there has been an ongoing debate over whether digital tokens are recession-proof or not. Although the crypto market has flourished over the years, this sector has still not gone through any prolonged periods of economic crisis. As such, it is not possible to know with any certainty where the crypto market is headed if a recession is to happen.

Of course, there were a few exceptions – when the economy appeared to be in a short-term crisis. During these times, particularly in 2015 and 2018, the crypto sector has largely reflected the wider market sentiment. That is, the collective market cap of cryptocurrencies also went down – as with other sectors.

The most notable crisis came in 2020 – when the global economy was hit by the COVID-19 pandemic. In 2020 and 2021, the crypto sector managed to outperform other financial sectors. The main reasons behind this were the growing adoption as well as technological advancement in the crypto sector.

In addition to this, many major institutional investors and notable financial companies also invested in cryptocurrencies in 2021, which boosted the popularity of the space. However, since then, the crypto market has plummeted.

It must be noted that even though we have data on the performance of cryptocurrencies during the 2020 global recession, this alone can’t be used to make conclusions about the future direction of the asset class. Rather, this can only be viewed as an isolated example that cannot predict future patterns.

Therefore, those considering investing in cryptocurrency during a recession need to proceed with utmost caution.

What Makes Cryptocurrencies Potentially Recession-proof?

Is the crypto market the best sector to invest in right now? As we have established, there is very little data regarding how a cryptocurrency might perform during a recession. However, that doesn’t mean that we can’t make informed predictions based on the inherent nature of cryptocurrencies.

Below, we take a look at the few characteristics of cryptocurrencies that could help protect the sector against a potential economic crisis.

Cryptocurrencies are Decentralized

This is also one of the major reasons why investors are attracted to cryptocurrencies. To explain – being decentralized means that no regulatory body can interfere with cryptocurrencies by introducing policies.

This attribute is the key difference between cryptocurrencies and fiat money. Unlike fiat currencies, cryptocurrencies cannot be controlled by the government or any central authority.

As such, there is very less chance that cryptocurrencies will become devalued due to interference by a regulatory government body. In other words, this feature could protect cryptocurrencies against inflation, devaluation, or a full-on economic crisis.

Cryptocurrencies are Global

Another reason why cryptocurrencies could be hedge-proof is that they aren’t linked to any individual country’s economy. This means that the downturn of a single economy isn’t enough to bring down the value of digital tokens.

The same advantage isn’t present with traditional fiat currencies, though. In this regard, a fiat currency can quickly lose its value if its respective economy performs poorly.

Based on these aspects, it could be argued that cryptocurrencies might not be significantly impacted by wider economic constraints.

However, it should be noted that during a recession, the priorities of investors could change – and as such, the money that flows into the crypto market might reduce. This can, in turn, drive up the risks of investing in this sector.

What are the Risks of Investing During a Recession?

Beyond understanding the characteristics of cryptocurrencies, investors should also pay attention to the myriad of risks associated with digital assets.

After all, there are tons of crypto projects that turn out to be rug pulls, and consumer protections are virtually nonexistent in this market.

Below, we discuss a selection of reasons why investors should be careful when buying crypto during a recession.

Cryptocurrencies are Volatile

It is no secret that cryptocurrencies are highly volatile in nature. In other words, the value of cryptocurrencies can change dramatically in a matter of seconds.

Even the slightest risk of losses can force investors to pull out their investment – which can send crypto assets to plunge in value.

During times of a recession, this volatility only worsens, making cryptocurrencies a highly risky investment.

Some Cryptocurrencies Have No Inherent Value

It is important to note that some cryptocurrencies have no inherent value.

That is, they don’t produce any tangible benefits for their owners. This means that the only way to generate value is by reselling the crypto asset.

• This is why it is best to choose cryptocurrencies that have real-world applications. For instance, Bitcoin and Ethereum have already established their presence in the crypto market.
• Several other crypto networks, such as Cardano and Cosmos, also facilitate technological development via blockchain interoperability and smart contract functionality.
• In addition to this, there are also projects such as IMPT that offer real-world use cases through a carbon credit trading ecosystem. Choosing such cryptocurrencies can help investors mitigate the risk to a certain level.

High-interest Rates Might Diminish the Appeal of Crypto Investments

When interest rates are high, the appeal to invest falls. This is especially the case for investors who take out loans to buy assets for the long term.

On the other hand, investors who rely on personal capital might prefer to stay away from cryptocurrencies due to their volatility. This could lead to cryptocurrencies losing more value during a recession.

All that being said, it should be noted that the above-mentioned points are speculative – because we haven’t really seen how cryptocurrencies act against prolonged global recessions yet.

Nevertheless, it is best to proceed with caution when risking money on volatile assets such as cryptocurrencies.

How to Choose the Best Recession-Proof Cryptocurrencies?

There is no surefire way to know with any certainty which cryptocurrencies are recession-proof.

However, as we noted above, there are a select number of cryptocurrencies that have strong fundamentals and applications, which might help them to fair well during a distressed economy.

Below, we discuss some of the most important factors that we took into account when choosing potentially recession-proof cryptocurrencies for this guide.

Our readers can also use the same metrics to find cryptos for their own portfolio.

Growth Potential

Regardless of the concerns of an upcoming recession, investors should always think about the long-term potential of a cryptocurrency before risking money. After all, if a crypto project has no room for growth, it is less likely to survive a declining economy.

This is why it is crucial to find projects that offer real-life use cases.

For instance, IMPT, a new crypto project, allows investors to purchase and burn carbon credits. In doing so, IMPT has demonstrated that blockchain technology can have an impact in the real world and can even help to address problems such as climate change.

This makes IMPT one of the best recession-proof crypto coins to consider right now. Similarly, digital coins such as Ethereum, Binance Coin, and Cardano – all have their own use cases, which facilitate technological advancements and the adoption of blockchain technology.

Total Supply

Apart from Ethereum and Tether, all of the coins we listed above have a limited supply. As per the basic rules of economics – a limited supply can increase the demand, given that these cryptocurrencies are able to sustain interest from investors.

From what we discussed, notable crypto projects have all the necessary elements to attract investors in the future. Moreover, to speed up the scarcity, some crypto projects regularly burn their tokens.

A deflationary system can also help boost the price of the respective cryptocurrency. For this reason, investors should take into account the total supply of a cryptocurrency prior to buying.

Be Sure to Diversify

As with any form of investment, relying on individual cryptocurrencies can be highly risky. After all, there are too many variables that can derail the future of a single digital token.

• This is why it is essential to diversify – especially during an economic downturn.
• Nevertheless, investors need to be extremely careful when risking money on potentially recession-proof crypto coins.
• If the prospect of picking individual digital coins is too daunting, it is also possible to diversify easily via managed portfolios provided by online brokerage platforms.

For instance, eToro offers a wide selection of crypto Smart Portfolios – which are essentially baskets of digital tokens at different weights. These portfolios are also managed and rebalanced regularly by the eToro team based on market conditions. It is worth noting that now, in the US, eToro customers can trade only Bitcoin, Bitcoin cash, and Ethereum on the platform.

Therefore, investors do not have to be experts in order to adjust their portfolios as per the wider market sentiment.

Conclusion

In a nutshell, there is no way to predict accurately what will happen to cryptocurrency in a recession.

However, based on the past performance history of the broader crypto market, we can assume that only digital tokens with strong fundamentals will be able to weather the storm. We recommend Dash 2 Trade’s D2T token as one of the best recession proof crypto assets to invest in 2024. Trading on presale at just $0.05 per token, D2T has a low supply of 1 billion tokens and has already raised $2 million in the past week, despite the ongoing economic uncertainty that has affected the global crypto markets.

Dash 2 Trade - New Gate.io Listing

Our Rating

• Also Listed on Bitmart, Changelly, LBank, Uniswap
• Collaborative Trading Platform Token
• Featured in Bitcoinist, Cointelegraph
• Solid Proof Audited, CoinSniper KYC Verified
• Trading Community of 70,000+ Members

Buy D2T

FAQs