What Is The Best Cryptocurrency To Invest In 2022 – The rise of cryptocurrencies has been one of the most interesting and debated events in modern finance. Love it or hate it, there is no denying that cryptocurrency has brought a new discussion to the financial world.
Some coins, like bitcoin, seem to be increasing in value fairly steadily every year. However, other coins like DogeCoin seem to dominate the conversation for about a month before fading in popularity.
What Is The Best Cryptocurrency To Invest In 2022
Because of this, it can be difficult to predict what might be the best cryptocurrency to invest in in 2022. But if you do it right, you could be BIG rewarded.
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After all, the world’s largest cryptocurrency (Bitcoin) was created in 2009 and has already grown in value by over 19,000%. That puts it ahead of almost every best-performing asset in history.
This makes Bitcoin more valuable than all but some of the largest companies in the world. Because of this, it can be easy to miss the boat when it comes to cryptocurrency investing. However, this couldn’t be further from the truth.
The first cryptocurrency was only created 13 years ago, and cryptocurrencies are still a long way from widespread adoption. So far, only one government in the world has announced that it will accept Bitcoin as legal tender.
If anything, today’s cryptocurrency environment resembles the early stages of the internet. Just as many investors wanted to get into internet companies in the early and mid-2000s, many investors want to get into cryptocurrencies.
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Disclaimer: As with any investment review, this is our own opinion and not financial advice! Always do your own research (DYOR) before making any investment decision.
Cryptocurrencies are a new form of decentralized digital money. By decentralized I mean that there is no bank or government controlling cryptocurrencies. Instead, the maintenance tasks are distributed among the users.
There are other characteristics of cryptocurrencies that we will discuss when we talk about the first coin to invest in.
However, before you dive into the best cryptocurrencies to invest in (2022), there are two important things to keep in mind:
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Bitcoin is the most popular cryptocurrency in the world and currently the currency with the largest market capitalization. Market cap is a method of valuing coins and is calculated by multiplying the total number of coins by the value of each coin. In the last 5 years, the price of bitcoin has increased by 8,700%. So far in 2021, Bitcoin’s price is up 115%.
First, the creator of Bitcoin is completely anonymous. Although he sometimes goes by the alias Satoshi Nakamoto, this person (or persons) is completely unknown.
While this may sound a little fishy or suspicious, it’s actually a good thing for Bitcoin. Cryptocurrencies are meant to be decentralized by nature.
The fact that Bitcoin’s creator does not play an active role in its launch is a
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Another reason Bitcoin is so popular with investors is that the total supply of Bitcoin is capped at 21 million.
This means that the value of existing bitcoins can never be devalued by the creation of new bitcoins. This process is actually common in traditional currencies and is known as inflation. Yes, I’m sure you’ve heard about this little cash drain. When an investor buys some bitcoin, they can be assured that no more of that asset will ever be created.
Finally, Bitcoin is by far the most widely accepted cryptocurrency. Although its price remains volatile, it is one of the main contenders for the best cryptocurrency to invest in 2022.
After Bitcoin, Ethereum (ETH) is a close contender for the best cryptocurrency to invest in in 2022. We have to admit that Ethereum has always been our personal favorite. In the last five years, Ethereum’s price has increased by more than 36,000%.
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In 2021, Ethereum price increased by 422%. In addition, Ethereum has the second largest market capitalization after Bitcoin. That number fluctuates quickly, but it currently sits at around $450 billion! For current pricing and updates, see our Ethereum Simply Explained article.
The biggest complaint about most cryptocurrencies is that they require a huge amount of electricity and energy to function. Even Elon Musk has spoken out: he likes cryptocurrencies, but questions their long-term validity because of this problem. Maybe a bit hypocritical for a man with multiple private jets…
Regardless, Cardano is one of the newer coins working to solve this problem. When it comes to the amount of energy different coins require to run, here’s how Cardano compares to its competition:
In addition, Cardano is capable of processing around 257 transactions per second. Bitcoin can only process 7 transactions per second. Because of this, investors see Cardano as a more viable option for digital transactions.
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Despite these advantages, Cardano does not receive the same level of media attention as other cryptocurrencies. For example, your media attention will be dwarfed by the next coin on this list…
If you are interested in finding a cryptocurrency that has a strong use case and is off the radar of most investors, then Cardano is a great option for you.
The inventors essentially wanted to poke fun at cryptocurrencies by creating a coin that had a famous dog meme as its logo. However, what started as a joke quickly grew into a cult following. Reddit traders rallied behind the coin and it quickly went viral, sending its price skyrocketing!
Over the past year, Dogecoin’s price has increased by over 9,000%. It peaked at 69 cents per coin and is currently around 24 cents per coin.
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Dogecoin became so popular that Dallas Maverick owner Mark Cuban even announced that Maverick fans could use Dogecoin to buy tickets.
Dogecoin had recently disappeared from the media. However, could the coin’s viral nature make it the best cryptocurrency to invest in in 2022? If you have a knack for predicting price movements, there is a chance of making big bucks in the short term.
Additionally, Dogecoin has already found acceptance with the Dallas Mavericks. As other companies start accepting Dogecoin, something that started “as a joke” could quickly become mainstream.
In 2017, Bitcoin went through a fork that led to the creation of an entirely different currency. Bitcoin Cash is a slightly different version of Bitcoin that uses larger blocks. These larger blocks allow more transactions to be processed and improve the overall scalability of the coin.
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Bitcoin was originally created to be used as a digital currency. However, as we saw above, the Bitcoin network can only process a certain number of transactions at a time. This limits the capacity to what could be used as currency.
However, investors continue to turn to Bitcoin as a store of value (which has pushed up its price). Bitcoin Cash was created in 2017 with the intention of being usable as a currency. However, despite its improved functionality, the price of BCH has not increased with the same ferocity as BTC.
If you think cryptocurrencies should be used as a long-term digital currency (rather than an asset), then Bitcoin Cash is a great potential option for you.
The price of Bitcoin Cash skyrocketed to $3,000 per coin about 5 years ago in 2018. Since then it has been reduced by 80%. Bitcoin Cash is currently priced at around $600 per coin. Will Bitcoin Cash triumphantly return in 2022?
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Before we wrap up this review, we know that a week in the cryptocurrency market can be a year in real life, so we wanted to leave you with 3 more altcoins to invest in.
Avalanche is a Tier 1 blockchain, meaning it was once dubbed the “Ethereum Killer.” While the future will be more of a multi-chain existence, Avalanche is good at defi (decentralized finance). Transactions are much cheaper than Ethereum and offer a higher number of transactions per second, which keeps them that way.
AVAX as it is known has a growing ecosystem that includes marketplace building apps like Trader Joes and also aims to compete in the gaming world.
Backed by venture capitalists and larger investors, coins bought in early rounds of fundraising are now being unlocked, and while this may increase selling pressure, there are no new surprises.
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As of 2022, the fully diluted market cap is $45 billion at a coin price of $117 per Avalanche crypto token. That’s 1/10th of Eth’s market cap, and while it doesn’t have the big network effect, it has one of the largest aggregate values locked into its Defi Smart contracts and is likely to stay around for a while. . .
Polkadot is the work of Gavin Wood, former founder of the Ethereum Foundation. Polkadot and its Kusama incubation network are focused on the goal of web interoperability 3. This means that it is not an Ethereum killer but an Ethereum integrator. With Polkadot, applications from one blockchain can be easily integrated into another.
It’s still early days and development work on Kusama’s “Canary Necklace” has really been seen through December 2021, but longer term