With various companies globally accepting cryptocurrencies as a mode of payment, investing in them has gained enormous recognition in recent years. However, with different available cryptocurrencies, getting started can be overwhelming. The following are eight top cryptocurrencies to invest in 2022 with the potential of earning you huge returns on your investments in 2022.
1. Bitcoin
With a market capitalization of over $1.17 trillion, Bitcoin (BTC) has gained dominance over the cryptocurrency market and become a household name. Initially, you could purchase a single Bitcoin for as low as $500. Today a single Bitcoin goes for over $62,000.
BTC was created back in 2009 by an individual or group under the pseudonym Satoshi Nakamoto. It runs on a blockchain, just like other cryptocurrencies or ledger logging
transfers on various platforms. Any addition to a distributed ledger is verified when you solve a cryptographic puzzle to keep BTC secure from scammers and fraudsters. Bitcoin is by far the most accepted cryptocurrency in the world today, making it one of the best cryptocurrencies to invest in in 2022. Check out CryptoChronicle for guides on how to invest.
2. Ethereum (ETH)
With a market capitalization of over $520 billion, Ethereum has gained popularity in the crypto world, thanks to its smart contract functionality. Smart contracts execute when all conditions are met. However, unlike a paper contract, smart contracts do not involve an intermediary.
The Ethereum network is used by developers to build various applications such as Security tokens,non-fungible tokens, and decentralized exchanges (DEXs). Just like Bitcoin, Ethereum has realized tremendous growth over the past few years. In the last five years, the price of Ethereum has shot from $11 to an impressive $4400. Thanks to its upgrade to ETH 2.0, you can provide Ethereum as a staked investment, therefore earning additional passive income, all the more reason you should invest in it in 2022.
3. Binance Coin (BNB)
BNB was launched in 2017 by Binance, one of the largest and leading cryptocurrency exchanges and trading platforms. Ever since its launch, the Binance coin has seen a tremendous increase in its value. Initially, a BNB coin was priced at $0.10. Today, BNB coins go for over $530. It also has a market capitalization of over $88 billion.
The Binance coin can be used to book travel arrangements, trading, and payment processing. BNB can also be traded or exchanged with other types of cryptocurrency, including Bitcoin and Ethereum.
4. Tether (USDT)
If you are looking to avoid the volatility that most cryptocurrencies bring, consider investing in Tether. Tether is a stable coin since it is tied to the US dollar and Euro and
maintains a value closer to these currencies. This means that its value is more consistent compared to other cryptocurrencies, including Bitcoin and Ethereum.
Since Tether is a ‘safe investment,’ it provides an excellent way to venture into the crypto market in 2022. Today, USDT has a market capitalization of over $70 billion, and it can be used for daily transactions and to buy other cryptocurrencies, including Ethereum, Bitcoin, and BNB.
5. Cardano (ADA)
With a market capitalization of over $66 billion, Cardano has gained tremendous popularity across the world due to its proof of stake validation. This means that Cardano has a faster transaction time, less power usage, and environmental impact, giving it a competitive edge over other cryptocurrencies. For instance, ADA can process 257 transactions in a second while Bitcoin only processes 7. This makes ADA a more viable option for digital transactions.
Like Ethereum, Cardano provides decentralized applications and smart contracts powered by ADA. Since its launch in September 2017, Cardano’s coin price has increased from the initial $0,02 to $2.01 in October 2021, an increase of close to 10,000%.
6. Solana (SOL)
Solana may be one of the newest cryptocurrency platforms, but it has seen a tremendous increase in its value since its launch. The initial price of SOL in its launch in 2020 was $0,77. In October 2021, the price had gone up to around $201, more than a 26,000% gain. It also has a market capitalization of over $60 billion.
Just like Ethereum, SOL offers smart contracts and decentralized apps. It also has a unique proof-of-history and proof-of-stake mechanism that facilitate quick and secure transaction processing.
You should consider investing in Solana in 2022 since it also avails of the cheapest transaction fees. Solana claims to process over 50,000 transactions per second for less than $0.01 per transaction!
7. Polkadot (DOT)
This Parachain blockchain network has integrated different blockchains that perform distinct functions to make them work together. This allows communication to other blockchain networks, including Ethereum. It also allows developers to build smart contracts and apps.
Thanks to the integration of different blockchains, DOT addresses scalability due to reduced congestion, making it a viable investment option in 2022.
Polkadot has a market capitalization of over $43 billion. It has also seen an increase in price by 1400% from $2.93 to $44.19 since September 2020 and October 2021. According to PricePrediction, the price of Polkadot could average at $136.96 by 2025.
8. Dogecoin (DOGE)
Popularly started as a joke in 2013, Dogecoin has become a viable cryptocurrency option owing to creative memes and a dedicated community, thanks to famous billionaires such as Elon Musk and celebrities. Unlike other cryptocurrencies, such as Ethereum and Bitcoin, there is no limit in the number of created Gogecoins, making it susceptible to devaluation in case of surplus supply. With that being said, Dogecoin has seen a tremendous increase in its price. The price of a DOGE coin in 2017 was $0.0002 and $0.29 in October 2021, which is close to a 145,000% increase.
Endnote
It is no secret that cryptocurrency is a risky investment, especially when you do not understand the industry, the volatility, and other aspects. You could end up losing all your money with your first investment. For this reason, familiarize yourself with these eight top cryptocurrencies and choose the best one for you. Remember only to invest what you can afford to lose.
