Last updated on January 12th, 2023 at 09:56 am
Introduction
Cryptocurrencies are still a young asset class. In 1983, American cryptographer David Chaum conceived the idea of ​​a digital currency for the world. But there was no progress in the domain for long.
The rapid rise of cryptocurrencies began with the establishment of Bitcoin in 2009. With the rise of the global financial crisis, people need to rely on alternative assets and financial concepts. Since then, the Bitcoin price has exploded. New cryptocurrencies are being introduced and there are now around 20,000 cryptocurrencies. And the choice of the best cryptocurrencies to invest in has become difficult.
Cryptocurrencies rely on disruptive blockchain technology. Which enables transparent, secure, and authentic storage of transaction data. There is no administration of central instances, thus cryptocurrency holders are financial players.
Why should you invest in cryptocurrencies?
1. Cryptocurrencies have more real-world uses than ever before
In the past, cryptocurrency prices were truly speculative. Earlier, Cryptocurrencies had no real use. The investors only bought them because they believed in their potential.
Today, major cryptocurrencies like Bitcoin and Ethereum (NASDAQ: BITC) have developed real utility. Bitcoin, for example, is a valid form of payment. It recently made headlines when it became legal tender in El Salvador.
There is a rise in Ethereum transactions. Especially in the decentralized finance (DeFi) and non-fungible tokens (NFTs) space. NFTs were the biggest buzzwords of 2021. As most of the NFTs hosting is on the Ethereum blockchain, Ethereum could enjoy the current NFT craze.
DeFi has also exploded in the past year. Almost $94 billion has been tied up in DeFi projects, up from around $31 billion a year ago. Ethereum hosts the majority of DeFi projects. The more this sector expands, the more Ethereum could grow as well.
2. The major cryptocurrencies are getting stronger
We can see new cryptocurrencies every day. Today the larger players in the industry have become stronger than ever. They have started solving their barriers too.
Many cryptocurrencies like Bitcoin depend upon the Proof of Work consensus mechanism and are highly energy-intensive. This has led to Global concerns over them polluting the planet. Moreover, there are concerns over their transaction speed and scalability as well.
However, some cryptocurrencies are working on updates to address these issues. Ethereum, for example, has transitioned to Ethereum 2.0. This not only makes it faster and more affordable but also uses around 99.95% less energy. Cardano (CRYPTO: ADA) expected to have the Hydra update either later this year or in early 2023, which will increase transaction speeds.
3. There are clearer leaders in the crypto
Choosing the right investment is the most difficult aspect of investing in cryptocurrencies. Since there are thousands of different cryptocurrencies, deciding the best is difficult.
However, heading into 2022, there are some clear leaders in the cryptocurrency space, including Bitcoin, Ethereum, Cardano, and Solana (CRYPTO: SOL). While these cryptocurrencies have no guarantee of success (nor are they the right investment for everyone), each of them has unique strengths that make them stronger than many other cryptocurrencies out there.
Best cryptocurrencies to invest in 2022
Cryptocurrencies have established themselves as a new asset class. More and more investors are investing in digital coins. Because these can offer the chance of an above-average return and increase diversification.
But with around 20,000 cryptocurrencies and tokens, the choice is often difficult. Therefore, in the following article, we want to take a closer look at the best cryptocurrencies you should invest in 2022 for the long term. Which cryptocurrency will explode?
Although many digital currencies were weaker in the summer after the rally at the beginning of the year, some cryptocurrencies have recently been able to rise again. The performance over the year is satisfactory. Now it’s time to take a look at new cryptocurrencies with potential for 2022.
In the following article, we had shortlisted five cryptocurrencies that you can invest in 2022. Some investments also harbor risks that are inherent in the crypto market. Nonetheless, long-term investors should not neglect the potential of digital currencies. Because both private and institutional investors are relying on cryptos in order to diversify their asset allocation even more and to keep the chance of an above-average return.
1. Bitcoin: Acceptance for the world’s most valuable cryptocurrency is increasing
In 2021, the world’s most valuable cryptocurrency, Bitcoin, once again hit a new all-time high. But in recent months, the development for BTC holders has been unsatisfactory.
The BTC rate is currently over 15% lower than a month ago. In the past few days since Christmas alone, Bitcoin has corrected by around 5%. Nevertheless, 2022 should again be a success for Bitcoin if sentiment for the crypto market remains positive.
At the same time, the acceptance of cryptocurrencies could continue to increase. This should primarily benefit Bitcoin. In 2022, more and more companies are adopting Bitcoin as a means of payment. El Salvador became the first country in the world to introduce Bitcoin as an official currency.
Despite significant risks, other countries could follow suit. If a stable currency and a comprehensive financial infrastructure are not available, Bitcoin as a state currency could make one’s own location more attractive, increase transparency in the state budget, ensure everyone’s access to finance and at the same time generate wealth. Bitcoin would soon be adopted as a legal tender in Paraguay, Panama, and Argentina.
Bitcoin can be bought at the following Exchanges:
Binance
Bybit
2. Solana Coin: Smart Contracts Blockchain will become serious competition for Ethereum
The establishment of the crypto market led to an ever-increasing acceptance of smart contracts and so-called decentralized apps (DApps). Most of which are currently still running on the Ethereum blockchain.
But the competition is growing, with the increasing use of DeFi applications. In the real economic context, other networks will continue to develop. The ETH 2.0 upgrade is pending at Ethereum. We doubt if the existing weakness, like- high fees and a low number of transactions per second, would still be a problem.
The Solana blockchain relies on a different concept – the proof of history. It means that 65,000 transactions are being processed per second, and around 500 applications are running in the Solana blockchain. Fees are also negligible at $0.0015 per transaction.
Most recently, the investment company Grayscale launched a Solana Trust in which institutional investors can invest. Nevertheless, there was a sharp correction at the end of the year. The price of the coin has collapsed recently to $36.
However, considering the technology that Solana Blockchain brings to the table, it is one of the most undervalued coins due to the collapse. This gives the investors an advantage to push money into Solana.
Solana can be bought at the following Exchanges:
3. Decentraland Coin: This new cryptocurrency benefits from the Metaverse trend
The Metaverse is currently omnipresent. It is true that it has been a few decades since the concept of the metaverse first appeared.
With the high-profile renaming from Facebook to Meta, however, more and more investors recognized the opportunities of digital transformation. Those who focus on promising projects early on could benefit if the Metaverse lives up to the developers’ demands. An establishment could cause a price rally in the so-called metaverse coins – one of the best-known crypto projects is Decentraland.
The blockchain game runs on the Ethereum blockchain. Here, users can create digital content in a virtual world, develop business models and monetize them. In 2021,
To fully understand the cryptocurrency you can visit our article on “All about Decentraland here”.
Decentraland’s native token MANA performed very well. In 365 days there was a return of around 4000%. With a market cap of around $4.5 billion, there is sustained upside potential. The prices for virtual land and real estate are rising. Today the decentral land is being priced at one million USD. In the medium term, increasing demand could be bullish for MANA.
MANA can be bought at the following Exchanges:
4. CRONOS (CRO): NFTs revolutionize the art and merchandising market!
More and more artists and celebrities are releasing NFTs. The market for non-fungible tokens is growing. NFTs would revolutionize the art and merchandising market in the future. More and more fans want to buy virtual items, and more and more companies are adapting NFTs.
Although NFTs are primarily for digital art lovers today, the mainstream doesn’t seem far off.
For example, the sporting goods manufacturer Nike already submitted the first patent application for NFTs in 2019. They have recently been further patent applications relating to virtual clothing. Most likely, Nike will release NFTs in the near future.
As NFTs become more popular, customers will need a broker to buy NFTs. In addition to cryptocurrencies, the popular online trading platform Crypto.com also offers NFTs. The intuitive trading platform enjoys great popularity. The aggressive marketing is global, so Crypto.com is growing. The native token CRO should therefore also benefit from an increased trading volume due to the establishment of NFTs.
You can buy CRO at the following Exchanges:
Bottom Line: Best cryptocurrencies to invest in 2022?
The year 2022 is difficult for the global financial markets, analysts, and pundits. They are forecasting further rising prices for both cryptocurrencies and the stock market. Due to the fixed interest rate hikes by the US Federal Reserve, the digital transformation is likely to progress.
It is difficult to predict precisely which cryptocurrency will explode. The above Bitcoin, Solana, Decentraland, CRO cryptocurrencies offer sustainable price potential from our point of view, although there are also risks. In addition, there are other coins that could outperform the overall market in the medium term in 2022.
