the staking it constitutes in keeping cryptocurrencies in the wallet in order to receive rewards for validating operations.
Best Cryptocurrencies to Invest in 2022
- 1 Why should you consider cryptocurrencies to invest in 2022?
- 2 Best cryptocurrencies to invest in 2022
- 3 Our Methodology
- 4 What makes a cryptocurrency better?
- 5 Top cryptocurrency strategies
- 6 4 Tips for Cryptocurrency Investors in 2022
- 7 Best cryptocurrency exchanges in 2022
- 8 How to buy cryptocurrency: 3-step algorithm
- 9 Should I buy cryptocurrencies in 2022?
- 10 Summarizing best cryptocurrency to invest in 2022
- 11 Frequently asked questions about best cryptocurrencies
In this article, we have separated the best cryptocurrencies to invest in 2022. Whether you have looked at investment opportunities before, or are completely new to these markets, everyone has heard about cryptocurrencies. Bitcoin is by far the top cryptocurrency out there, but you may have also heard about Ethereum, Litecoin, and others.
Bitcoin has piqued the interest of millions of people over the past decade. Due to the wide popularity and rising interest, cryptocurrency has become a solution for international transactions and an investment opportunity.
Many people are shifting their investments to digital currencies in hopes of profiting in the process. While there are risks involved, a well-crafted plan can help you increase your investments.
Why should you consider cryptocurrencies to invest in 2022?
The cryptocurrency industry is one of the fastest growing markets in the world. At the same time, many promising altcoins grew even faster than Bitcoin in 2021.
The global blockchain technology market is estimated to reach a value of $23,3 billion by the year 2023.
These numbers provide evidence that cryptocurrencies are booming. These digital currencies not only provide an excellent investment opportunity, but can also be used for online transactions, sending money and eliminating the need for a central authority in financial systems.
While Bitcoin is still the main player in the cryptocurrency world, there are other digital currencies that are growing rapidly.
By looking at the market capitalization and dominance of cryptocurrencies, we can clearly see that altcoins are rapidly increasing. At the same time, Bitcoin is starting to lose its position as the dominant cryptocurrency in the market.
Best cryptocurrencies to invest in 2022
If you're struggling to find the right cryptocurrency for your investment, you're not alone.
Many people who are interested in the cryptocurrency market do not know where to invest their money. After we have done a significant amount of research, we present an overview of 10 cryptocurrencies that are definitely worth investing in in 2022.
- Binance Currency (BNB)
- Cardano (ADA)
- Ripple (XRP)
- Dogecoin (Doge)
- Polka dots (DOT)
- Litecoin (LTC)
- Stellar (XLM)
- Uni swap (UNI)
- Tron (TRX)
- IOTA (MIOTA)
To provide an accurate overview of which cryptocurrencies have the best potential as an investment opportunity, we use specific criteria:
- We start with a thorough assessment of the technology and development behind each altcoin. This allowed us to get an idea of where technology is heading in the future.
- We considered what practical uses cryptocurrency would have in the real world and how it fits into the global economy.
- We conduct a fundamental analysis of each altcoin, with a focus on demand and supply.
- We consider how decentralized cryptocurrency is, as well as how transparent the design is — cryptocurrencies are made to reduce the inclusion of central authorities.
- Price performance over the last year, as well as since the launch of each coin, was also taken into account.
- Lastly, we consider how each altcoin has influenced the world so far. Our goal was to focus on cryptocurrencies that have been recognized by large corporations or financial industry experts.
What makes a cryptocurrency better?
While there are many cryptocurrencies on the market today, many of them do not provide the potential you need when using these digital assets as an investment.
We have taken our methodology factors into account and narrowed the list down to only the best cryptocurrencies that are suitable for investment and trading purposes.
BNB is the official cryptocurrency of the Binance network. The coin is currently valued at just over $500. The value of BNB has increased significantly — in 2018 the value was from under $20 to over $500 today. The coin is also backed by one of the biggest exchanges that focus on altcoins.
Cardano is a cryptocurrency that represents a platform for blockchain. The development of the platform started in 2015, but the token was only officially launched in the year 2017.
Charles Hoskinson is behind the development of Cardano, who is also a co-founder of the Ethereum project.
Interest in Cardano only started to increase significantly in early 2021. As of January 4, 2021, the coin was still valued at just $0,29. Currently, the coin has surpassed the value of $1 per token and continues to rise.
Ripple is a digital technology that was created to help streamline online payment solutions.
The system was developed and launched in the year 2012. Jed McCaleb and Chris Larsen are the minds behind the coin.
The open source distributed protocol used in the Ripple blockchain provides instant payment processing, along with advanced security features. In 2020, the coin price ranged between $0,17 and $1,96.
Dogecoin underwent a recent valuation — and was valued at $10 billion. The coin is based on an internet meme and has attracted the interest of individuals and corporations.
Suchlist, Strange Donuts, Dallas Mavericks, airBaltic and several other companies already use Dogecoin as an internal payment option for customers. Year-to-date 2021, the value of Dogecoin has increased by more than 7000%.
Polkadot is a very new addition to the blockchain and cryptocurrency world, but it has already been said to outperform Bitcoin in some areas.
Major institutes noticed Polkadots, and the coin was even called the Ethereum Killer. Although the coin's value has declined in recent months, experts believe it will make a comeback in the near future.
Litecoin is very similar to Bitcoin in terms of popularity. When people talk about altcoins, Litecoin is often one of the first thoughts that cross their minds.
This particular coin is ranked sixth in the list of the biggest cryptocurrencies. The coin was launched in October 2011, shortly after Bitcoin began to fluctuate.
An encryption algorithm is used by the Litecoin blockchain, which provides advanced security for digital assets and transactions initiated on the network.
Stellar is another blockchain system that focuses on developing a next generation payment system.
The currency has a circulating supply of 23 billion, with a supply cap of 50 billion. Stellar is the term used to refer to the network, while the tokens are called Lumens. There are several companies that already use Stellar. Vumi is just one example.
Uniswap was developed to help people escape centralized financial systems.
The main purpose of Uniswap is to streamline the process of exchanging cryptocurrencies. A decentralized protocol is used on the network. The coin is currently valued at just over $17 and given the trend, the value will likely continue to grow.
Tron is a cryptocurrency written in Java. The system is fully decentralized. The network was developed by the Tron Foundation, a non-profit organization based in Singapore.
Samsung has already adopted Tron as blockchain was added to the official Samsung Keystore in early 2020.
IOTA was first started in 2016. The entire blockchain is based on open source code.
The idea behind this coin is to represent the Internet of Things, also known as IoT. There are three main goals — protecting transmitted data, enabling faster financial exchanges, and providing people with zero-fee transaction access.
Top cryptocurrency strategies
While some people turn to cryptocurrencies as a payment method, others want to take advantage of these digital currencies as a way to profit from trading activities.
Although cryptocurrency trading has become popular, many people still feel lost.
A thorough understanding of the fundamentals, however, can be helpful. There are two main strategies that provide traders with the biggest benefits when it comes to the cryptocurrency market. We review these two strategies below.
Purchase and retention strategy
The buy and hold (hodl) strategy is not only popular among people interested in cryptocurrencies, but also for those who want to invest in other assets — whether they are digital or physical.
This has been a popular strategy among those who have invested in assets like gold. You would buy the asset at a point when the value is low and then sell it at a time when the value is up. With cryptocurrency, the same strategy can become profitable.
The first step in this process is to identify the cryptocurrencies that are increasing in value.
You need to ensure that the instruction to buy the cryptocurrency is implemented during a period when the digital currency has a low value in a certain period.
Once purchased, you would keep your digital assets and wait for the cryptocurrency to increase in value. As soon as the cryptocurrency reaches a maximum value, you will sell it — making a profit.
Trading is another profitable option. With cryptocurrency trading, you would choose a specific pair such as BNB/ETH. You can then open a buy or sell position and close the trade at the appropriate time.
4 Tips for Cryptocurrency Investors in 2022
Investing in cryptocurrency can be an excellent option to earn profits and expand your income. However, there are a few things you should keep in mind.
We share four important tips you should consider. These tips help you minimize the risks you take and make more successful (and informed) decisions when investing in cryptocurrencies.
1. Understand what you can afford
Before you start depositing money to your preferred exchange, first take a look at your budget and finances.
You must have a clear understanding of what you can afford — or more specifically, how much you can afford to lose. Any type of investment carries risks.
There are also many people who have lost all their investment in the past. If this happens, it should not harm you or interfere with your ability to meet your monthly obligations.
So only set aside an amount that you know you won't be dependent on in the coming days or weeks. This strategy also helps to limit your losses.
2. Avoid investing borrowed money
It is well known that the cryptocurrency industry is volatile. That means you could end up losing an investment.
For this reason, never use borrowed funds to invest in cryptocurrencies. In the event of a loss, you would still be left with the debt that was made to get an initial investment for your portfolio.
Many banks or lenders will also add interest to borrowed funds, which would lead to a more significant loss.
3. Choose the right cryptocurrencies
At the end of May 2021, it was reported that a further 10.115 cryptocurrencies were listed in total. That number keeps growing.
Some of the cryptocurrencies have made waves, but this is not something we can report on for every single one of them. In fact, there are cryptocurrencies that have never made waves or even increased.
Investing in them would result in a loss or could put your investment at risk.
Therefore, research and a thorough inspection of a cryptocurrency are crucial factors before making this investment.
Check all the most important factors — the company behind the cryptocurrency, the blockchain technology used to power the cryptocurrency, market capitalization, current value, and past trends.
4. Focus on portfolio diversity
One of the biggest mistakes people often make when investing in cryptocurrency or any other type of asset is to focus only on a single currency.
Of course, if the currency goes up a lot, you can profit significantly — but things can also go the other way.
When investing in cryptocurrency, look for diversity in the portfolio you develop. This means investing in different cryptocurrencies to limit the losses you may incur in the process.
Best cryptocurrency exchanges in 2022
How to buy cryptocurrency: 3-step algorithm
Due to the rise in popularity related to cryptocurrencies, the process of purchasing and owning these digital assets has also been significantly simplified.
However, it is still important that you understand how the procedure works and make sure you buy the right cryptocurrency at the appropriate times.
In this section, we share a simple three-step process to help you buy your first coins and gain your share of this burgeoning market.
1. Market Analysis
Whether you have a small investment to make or plan to put a larger amount into your cryptocurrency portfolio — a thorough analysis of the current market should be your priority.
As there are different cryptocurrencies to choose from when setting up an investment, it is important to choose the right one.
Consider looking at charts and statistics on specific cryptocurrencies you might be interested in.
This will give you the opportunity to get a feel for how the specific currency is doing over the past few months — and allow you to identify opportunities in the market.
It's a good idea to take a look at the stats for different currencies at this point. This gives an idea of the performance related to various cryptocurrencies — and also helps to identify those that seem to have the most potential.
2. Financing account
Once you've identified the appropriate cryptocurrency to invest in, it's time to open an account and make your first deposit.
Similar to how research was conducted to determine the appropriate cryptocurrency to invest in, make sure you understand the terms, features, and capabilities of the various exchanges available.
Due to the popularity and security offered by Binance, we will use this exchange in the instructions.
You can choose to set up an account on the web platform or by downloading the mobile app.
Once logged in, you can set up an account by following a few simple steps.
There is a basic verification process to complete. While most accounts can make a deposit without these steps, completing verification during the initial process will make your experience on the platform more convenient in the long run.
Once the registration process is complete, be sure to visit your account page and click on the deposit button.
Choose the amount you want to deposit, as well as your preferred payment method. You will need to complete the payment before the money is deposited into your account.
3. Buy BNB
Depending on the payment method you use, your account will be credited instantly or after a few hours.
If you don't see the funds reflected in your account right away, please check again in a few minutes. You can also contact support at Binance if you have any difficulties.
Once your deposit reflects on your account balance, it's time to move on. The Binance platform has an integrated cryptocurrency called BNB or Binance Coin.
It is always a good idea to start the process by exchanging your fiat currency for BNB. The main reason for this is the fact that you can get significant discounts on transaction fees and other activities performed on the platform when you have a positive BNB balance in your account.
The BNB token has also gained a lot of interest recently. In just over 1 year, the value of a BNB has increased from under $20 to over $500.
You can choose to keep your currency converted as BNB and even stake in other currencies or convert these tokens into a different cryptocurrency.
Please note that BNB tokens can also be used for the purpose of staking. There are other coins on Binance that offer the same benefits. By staking coins, you gain the opportunity to profit without risking the investment you have made.
Should I buy cryptocurrencies in 2022?
It is true that investments in cryptocurrency can bring losses, but there are still a large number of opportunities.
From the information we've provided, it's clear that investing in crypto is something to consider in 2022. If you're afraid of big losses, limit your investments first.
You can also choose to diversify your portfolio. That way, losses can be reduced through the gains you make across the entire portfolio.
Main risks of investing in cryptocurrencies
Similar to other investment opportunities, cryptocurrency certainly has its risks. Understanding these risks should be a critical part of your development process. investment.
The main problem that arises with an investment in cryptocurrency is the fact that these digital currencies are highly volatile. It is extremely difficult to predict the future movement of cryptocurrencies.
Summarizing best cryptocurrency to invest in 2022
The cryptocurrency industry is booming more than ever and continues to grow even more.
With thousands of altcoins on the market, though, finding ones worth investing in can be a hassle.
Our list of the top 10 cryptocurrencies gives you a good starting point. Take a closer look at our list to help you determine where you should put your money.
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