The cryptocurrency market is one of the most popular investment markets in the world right now. Gone are the days when people used to keep their money in banks and not invest anywhere else. People these days are not just investing their money in stock markets, but also cryptocurrencies. That is exactly why, in this article, I am going to discuss the top ten cryptocurrencies in 2022 that you can invest in.
Just in the previous year, the cryptocurrency market had touched $3 trillion. Bitcoin, the most famous and popular cryptocurrency, also reached the mark of $65,000 in November 2021.
This has led many people to get attracted to the cryptocurrency market and invest their money in it. Especially for young investors, it is cryptocurrency that becomes their first choice of creating a digital asset. Even college students are investing their money in cryptocurrencies.
Factors to Keep in Mind while investing in Crypto
So, if you want to invest in cryptocurrencies in 2022, what cryptocurrencies should you choose to invest your money in? Well, if you want to invest in cryptocurrencies for the long term then you must choose the ones that have high investment rates, high liquidity, and high trading volumes. It is after considering these three important factors that you must choose the cryptocurrency you want to invest your money in.
When you actually sit and try to figure out which cryptocurrency you should invest your money in keeping in mind the factors that are going to play a vital role in the 2022 market, you will find a lot of them online. Starting from Bitcoin and Dogecoin to Ethereum and Tether, you will find a huge number of these cryptocurrencies online, and at a point in time, you might also end up feeling overwhelmed.
But do not worry, in this article, I will provide you with all the information that you need to know before investing your money in cryptocurrencies and also let you know about the top 10 cryptos that you should invest your money in depending on their rates, market capitalization, and circulation.
Top 10 Cryptocurrencies for 2022
Here is a list of the top 10 cryptocurrencies that you should think of making a long term investment in the year 2022 –
1. Bitcoin (BTC) – Originally named as Satoshi Nakamoto, Bitcoin (BTC) was first created in the year 2009 and was the first cryptocurrency to get launched in the market. Just like other cryptocurrencies, even Bitcoin runs on blockchain. A blockchain is a ledger logging transaction that is spread over a huge network of thousands and thousands of computers. Bitcoin and other such cryptocurrencies are produced only by solving mathematical and cryptographic puzzles which then get verified. This is a very secure process that stops fraudsters from getting into the market. And why should you invest in Bitcoin in 2022? Well, Bitcoin is the name that is common in almost every household and that is what has raised its value so much. A few years back, you could have bought Bitcoin for $500 but as of Feb 2022, one Bitcoin costs about $38,000. Although the rates of Bitcoin have fallen drastically in 2022, it will surely increase a lot in the future, thus making it a great digital asset.
2. Ethereum (ETH) – Ethereum is not just a cryptocurrency but also a cryptocurrency exchange platform. Its unique features like smart contracts, potential applications, provided to the customers make Ethereum the favorite cryptocurrency of all the program developers. Its smart contract feature also helps in automatically executing the non-fungible tokens (NFTs) when the conditions are met.
And if you are wondering whether Ethereum is as good as Bitcoin, well, yes it is. The prices of Ethereum have also increased tremendously from 2016 to 2022. Back in the day, one Ethereum would cost about $11 which now has gone up to $2700 which shows that its value has increased up to 25,000%. So, you can also invest your money in this cryptocurrency this year and gain a huge amount of profit in the later years.
3. Tether (USDT) – This cryptocurrency is quite different from the other cryptocurrencies in the market. Unlike the other cryptocurrencies that are independent of any other fiat currencies, Tether is a cryptocurrency that is also a stablecoin, meaning that it is backed by fiat currencies such as the euro and U.S. dollar. That is exactly why the value of Tether is always equal to one of those denominations.
This also means that the value of Tether must be more stable and consistent than other cryptocurrencies in the market. Theoretically speaking, Tether is a cryptocurrency for those investors who are extremely afraid of the volatility of the digital asset market.
4. Binance Coin (BNB) – Another very popular form of cryptocurrency is the Binance coin. This cryptocurrency allows its users to pay fees and even trade on this platform. The Binance exchange platform that was created only a few years back in 2017 has expanded greatly and has become one of the greatest digital trading platforms in 2022 as well.
The Binance exchange platform not just facilitates the exchange of Binance coins, but also is a great platform to trade or exchange other cryptocurrencies like Bitcoin and Ethereum. When it started in 2017, the price of one Binance coin was $0.10. But in Feb 2022, the price of one Binance coin has increased to $377, meaning a growth of about 377,000%. Thus, this is also a great cryptocurrency investment option this year.
5. U.S. Dollar Coin (USDC) – Just like the cryptocurrency Tether, even U.S. Dollar Coin is a stablecoin. As mentioned earlier, stablecoin is the kind of cryptocurrency that is backed by some kind of fiat currency, in this case, the U.S. Dollar. This cryptocurrency aims at achieving the value of the U.S. Dollar, meaning 1 U.S. Dollar equal to 1 U.S. Dollar Coin ratio. Another important thing that you must know about U.S. Dollar Coin is that it uses the cryptocurrency Ethereum and you can easily use this cryptocurrency to complete all global transactions.
6. Cardano (ADA) – This cryptocurrency became so famous because of its proof-of-stake validation. It is due to this method that the transaction time has decreased greatly and as a result, has also decreased the energy usage. Cardano also has a great impact on the environment as it has greatly reduced the competitive and problem-solving aspect of transaction verification, unlike the other cryptocurrencies in the market like Bitcoin, Ethereum, etc.
Other than that, just like Ethereum, Cardano also has smart contract features that are powered by ADA, which is its native coin. Although the growth of Cardano has not been as massive as the other cryptocurrencies I have mentioned earlier, Cardano has had a modest growth rate when it started back in 2017, one ADA’s price was $0.02 but now it has increased to $1.05.
7. Solana (SOL) – This cryptocurrency was primarily developed to help power decentralized finance uses (DeFi), smart contracts, and also decentralized apps (Dapps), this cryptocurrency enables quick and secure transactions. This cryptocurrency also works on unique proof-of-history and proof-of-stake mechanisms and is powered by its native token SOL.
It was launched in 2020 when its price was about $0.77. But now the prices of it have greatly increased to $100 for one SOL. Thus, if you are thinking of investing your money in this cryptocurrency, I would say, it is a good option.
8. XRP – Another very popular cryptocurrency and exchange platform, XRP is the cryptocurrency that was created by the founders of Ripple and thus is both a payment processing company as well as a digital technology company. Although, you can only use that particular network for XRP to facilitate exchanges.
It was first founded in 2017 when its price was set at $0.006 but now, the price of XRP has increased to $0.62. So if you are looking for low investment cryptocurrency that can give you good returns in the future, XRP is the one you should put your money in.
9. Terra (LUNA) – This is another blockchain protocol that uses stablecoins or fiat-backed cryptocurrencies. Terra is a cryptocurrency that combines a wide range of fiat currencies and price stability and thus, provides fast, secure, and affordable settlements. The TerraUSD is also tied to the physical currencies and the Terra platform is also used to mint more Terra coins.
This particular currency also works on demand and supply. Back in 2021, its price was around $0.64 but in just a year, its prices have increased to $51.39. This shows how profitable this cryptocurrency is going to be in the next few years and thus, a great investment for you to make in this year.
10. Polkadot (DOT) – The cryptocurrencies use a number of blockchains but Polkadot is the cryptocurrency that is trying to integrate the various cryptocurrency networks and the various blockchain networks so that all of them can work together in a single blockchain.
This is going to change the way cryptocurrencies are managed. Polkadot was also first launched in 2020 when its price was about $2.93 which now has increased to $19.49. Thus, this cryptocurrency can also be quite a good investment this year.
Why Are Cryptocurrencies The Future?
So the real question is, are cryptocurrencies the future of digital investments? Well, statistical records show that the number of people who have invested their money in cryptocurrencies has increased by 66 million from 2018 to 2020. Not just that, both the private and public sectors are thinking of settling their financial deals like making payments, investments, and value stored in the method of cryptocurrencies.
There are more than 5000 cryptocurrencies out there in the market today and almost everyone is trying to invest their money in cryptocurrencies these days. So does that mean that cryptocurrencies will become the new kind of digital asset? Well, experts believe that cryptos will not just become as important an asset just like gold, but even much more valuable than gold in the coming years.
It is true that cryptocurrencies do not have intrinsic value, but it is also true that they have other values. It can be used to make payments to buy goods and services, it can be used to store values, and also can be treated as digital gold. Although the value of cryptos has fallen greatly this year, experts of cryptocurrencies also believe that in the coming years, the value of cryptocurrency is only going to increase.