8 Best Cryptocurrencies To Invest In for 2022

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Cryptocurrency is digital money that isn ’ thyroxine managed by a cardinal system, like a government. alternatively, it ’ s based on blockchain technology, with bitcoin being the most popular one. As digital money continues to gain grip on Wall Street, more and more options become available. There are presently over 19,000 cryptocurrencies on the market .
While you can use cryptocurrency to make purchases, most people treat it as a long-run investment. however, volatility makes investing in cryptocurrency bad, as demonstrated by the late freefall among cryptocurrencies, including stablecoins pegged to the U.S. dollar. It ’ sulfur significant to know what you ’ re getting into before you buy in. That said, these are eight clear cryptocurrencies that could prove to be worthy of investment in 2022.

Top 8 Cryptocurrency Investments in 2022

Cryptocurrency	Price	Market Cap
Bitcoin	$28,336.14	$539.49 billion
Ethereum	$2,035.97	$244.33 billion
Binance Coin	$265.26	$43.31 billion
Cardano	$0.4862	$16.91 billion
Polygon	$0.6212	$4.85 billion
Terra	$1.05	$1.34 billion
Avalanche	$28.38	$7.63 billion
Chainlink	$6.75	$3.11 billion
Data is accurate as of May 11 , 2022.

1. Bitcoin (BTC)

Bitcoin has been around for the longest of any cryptocurrency. It ’ sulfur easy to see why it ’ s the drawing card, with a price and market cap that ’ sulfur much higher than any early crypto investment options .
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many businesses already accept bitcoin as payment, which makes this cryptocurrency a smart investment. Visa, for exercise, transacts with bitcoin. The larger banks are beginning to incorporate bitcoin transactions into their offerings as well .
additionally, Tesla announced in February 2021 that it had invested $ 1.5 billion in bitcoin, and for a time, the company accepted it as payment for its cars — and it might again if mining it becomes more environmentally friendly. In a step toward that end, Blockstream and Block, once known as Square, are launching a bitcoin mine in Texas that will be amply powered by Tesla ’ s solar range and Megapack barrage, CNBC reported on April 8 .
Bitcoin besides got a boost in May, when the Luna Foundation Guard announced it would make $ 1.5 billion in loans denominated by Bitcoin and terra USD to stabilize the latter, Fortune reported .

Risks of Investing In Bitcoin

The rate of bitcoin tends to fluctuate a set. You may see the monetary value go up or down thousands of dollars during any calendar month. That surely has been true indeed far this year, as bitcoin prices have correlated to the Nasdaq, as CNBC reported, challenging former assumptions that bitcoin would serve as hedge against inflation. If wild fluctuations like these make you nervous, you may want to avoid bitcoin. otherwise, ampere long as you keep in take care that cryptocurrency could be a fresh long-run investing, these fluctuations shouldn ’ t be excessively concern, and the current low price could present a good bribe opportunity .
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Another reason to reconsider investing in bitcoin is its price. With a single bitcoin costing over $ 28,000, most people can ’ metric ton yield to buy whole bitcoins. For investors who want to avoid buying a fraction of a bitcoin, this is a minus .

2. Ethereum (ETH)

Ethereum is a network that allows developers to create their own cryptocurrency utilizing the network. While ethereum is far behind bitcoin in value, it ’ sulfur besides far ahead of the other competitors .
even though it came out years after some other cryptocurrencies, it has far exceeded its place in the market because of its alone engineering. It ’ randomness presently the most popular blockchain and the second-largest cryptocurrency behind bitcoin. It stands to gain even more footing once an approaching upgrade nicknamed “ The Merge ” is deployed this year. The upgrade will shift Ethereum to a proof-of-stake-based consensus that will reduce the number of coins and try mining disused. The Merge is besides expected to drastically reduce Ethereum ’ s energy consumption.

Risks of Investing In Ethereum

While the Ethereum platform utilizes blockchain technology, it merely has one “ lane ” for conducting transactions. This can lead to transactions taking longer to process when the network is overloaded. transaction fees are besides gamey. The blockchain ’ south “ accelerator ” price — the come of quintessence needed to conduct a transaction on the Ethereum blockchain — rose 13 % in March due to high demand for block space, CoinDesk reported .
security has besides been an return. In 2016, for exemplar, a hack that took advantage of a security defect led to the passing of more than $ 50 million worth of ether. however, The Merge upgrade is expected to make the blockchain more procure .

3. Binance Coin (BNB)

After years of relatively degree prices, at least by cryptocurrency standards, binance coin took off at the beginning of 2021, surging from about $ 38 on Jan. 1 of that year to an all-time high of $ 683 in May .
Because of its performance over clock time, binance mint has proven to be one of the more stable investment options — relatively speaking. Binance is the earth ’ mho largest cryptocurrency exchange, according to CoinMarketCap — U.S. residents must use the Binance.US translation. But despite its extensive functionality and the mint ’ second success in Binance sub-projects, binance coin is however a highly volatile investment .
Investors who trade frequently should note that Binance briefly paused deposits and withdrawals for some networks recently, including Polygon and Solana, while it implemented upgrades. The most late one, on April 8, didn ’ t affect airdrops — rewards based on a percentage of users ’ deposit amounts .

Risks of Investing In Binance Coin

What sets binance coin apart from its competitors is that it was created by a company rather of a group of technical school developers. Although binance mint ’ s commitment to maintaining a strong blockchain has won over many skeptics, some investors remain leery of this cryptocurrency and its potential security issues .

4. Cardano (ADA)

The Cardano network has a smaller footprint, which is appealing to investors for several reasons. It takes less energy to complete a transaction on Cardano than on a larger network like Bitcoin. This means transactions are faster and cheaper .
last year, Cardano launched a “ hard fork, ” an upgrade that increased functionality — in this case, enabling smart contract deployment .
Cardano besides claims to be more adaptable and more plug. It systematically improves its development to stay ahead of hackers .

Risks of Investing In Cardano

even with a better network, cardano may not be able to compete with larger cryptocurrencies. Fewer adopters mean fewer developers. This international relations and security network ’ thymine appealing to most investors who want to see a high borrowing rate. The platform has big plans, such as launching an incubator that would help Africa reach its potential as a major economy, but it remains to be seen whether it can live up to that electric potential .

Advice

Don ’ deoxythymidine monophosphate be discouraged by fluctuations in the market. Your investment may lose money one day and make a profit the adjacent. alternatively of getting caught up in the daily changes, front at the big picture .

5. Polygon (MATIC)

Polygon was created by a exploitation team that made meaning contributions to the Ethereum blockchain platform. Polygon is designed for Ethereum scale and infrastructure development, according to CoinMarketCap. As a “ level two ” solution, it expands Ethereum into a multi-chain system, improving transaction and verification speed .
Polygon has back from the Binance and Coinbase cryptocurrency exchanges. Its nominal, MATIC, is used for payment services, transaction fees and as a settlement currentness .
New developments that could benefit MATIC prices include the launch by Zo World, a decentralized locomotion project, of its founder non-fungible token and other digital assets on Polygon, AMB Crypto reported on April 9. Individuals who buy those assets besides gain ownership of Zo Metaverse substantial estate .
possibly more significantly, an indian state government is using Polygon to issue caste certificates to help deliver government benefits to over 1 million low-income citizens, according to CoinTelegraph .

Risks of Investing In Polygon

late last year, Polygon disclosed that it had patched a vulnerability that put about $ 20 million deserving of its coins at risk, CoinDesk reported. A hack discovered the exploit and advise Polygon, which had a fix in station within two days. however, black-hat hackers had already stolen over 800,000 tokens, leaving Polygon on the pilfer for about $ 1.4 million .

6. Terra (LUNA)

The Terra blockchain uses stablecoins — that is, coins pegged to fiat currencies such as the U.S. dollar, south korean gain and the International Monetary Fund ’ s Special Drawing Rights currencies — to power ball-shaped payment systems, according to CoinMarketCap. Its native coin, LUNA, stabilizes the prices of the blockchain ’ sulfur stablecoins and serves as a administration nominal that gives holders a articulation in decisions that affect the network Terra .
Until a steep decline in early May, spurred by stablecoin volatility and overall skittishness in cryptocurrency markets, LUNA had fared well in 2022. That ’ s likely due at least in separate to Terra ’ s investment in assets such as bitcoin and avalanche to hold in allow as collateral for UST, a Terra stablecoin. The solution has been an increase in demand for UST and less excitability for LUNA than some cryptocurrencies have experienced over the last several months .

Risks of Investing In Terra

Terra uses LUNA to stabilize the rate of its stablecoins, putting it “ in the center field of the shock absorption serve, ” Matt Hougan, head investment policeman at Bitwise Asset Management, told CNBC Make It. In the event Terra ’ south stablecoins fail to maintain their peg to fiat currencies, LUNA ’ s operation could suffer, Hougan said. That risk came to fruition when UST “ depegged ” multiple times over several days in early May, causing terra ’ south price to nosedive .

Good To Know

Although Terra has done well in the long-run, it experienced a significant crash on May 12, dropping its price under $ 0.02. It announced in a tweet that it was halting the blockchain temporarily. Do Kwon, founder of Terraform Labs, announced a plan for recovery on Twitter anterior to the hesitate. Despite its holocene struggles, LUNA may silent be worth watching .

7. Avalanche (AVAX)

Avalanche is a new “ layer one ” blockchain — a blockchain that improves the base protocol to make the system more scalable, as Binance described it. It was founded as an Ethereum rival by Ava Labs and calculator scientists at Cornell University, one of whom, former professor Emin Gün Sirer, is a veteran in cryptanalytic research, according to CoinMarketCap. Whereas Ethereum ’ south nodes must all validate each transaction, Avalanche ’ s three individual blockchains can validate transactions independently. This makes Avalanche more scalable and better able to handle large volumes of transactions — up to 6,500 per second. As a result, it ’ mho increasingly democratic among Ethereum projects, U.S. News reported .
As for the coin itself, Bloomberg reported on April 7 that avalanche beat out ether as Terra ’ s reserve currentness for its own UST stablecoin. Luna Foundation Guard, the nonprofit organization organization that supports Terra, will acquire $ 100 million worth of avalanche as separate of that inaugural .
AVAX began trading in 2020, in a 24-hour initial mint extend. It price has fluctuated from a low of $ 9.34 to a high of $ 146.22 over the past year. The coin presently trades for $ 28.38 .

Risks of Investing In Avalanche

Sirer introduced the cryptocurrency via a flannel paper in 2018. Its launch took place in 2020. With such a short history, avalanche doesn ’ t have a track phonograph record for comparison, making it a riskier investment for potential buyers .

8. Chainlink (LINK)

Chainlink uses a decentralized oracle network to facilitate impregnable interactions between blockchains and external data feeds, events and requital methods the developers hope will allow smart contracts to become the prevailing form of digital payment, according to CoinMarketCap .
One thing working in Chainlink ’ s favor is a strategic partnership with Google under which Google uses Chainlink ’ s protocol to connect users to its cloud services, Benzinga reported. The visualize ’ s advisors include early Alphabet Chairman Eric Schmidt, DocuSign co-founder Tom Gonser and erstwhile LinkedIn CEO Jeff Weiner, according to Securities.io .
Chainlink is besides the option for the newfangled ostentation index being built by decentralized finance company Truflation to serve as an alternate to the consumer price index. Whereas the CPI measures inflation using survey data, Truflation ’ s index will use price data with the CPI ’ s calculation mannequin, CoinDesk reported. The Truflation index is designed to be more accurate, more transparent and more insubordinate to censorship than the CPI .

Risks of Investing In Chainlink

Despite its prove utility and back from major players, chainlink has experienced the like kind of excitability as other cryptocurrencies. Its monetary value dropped from about $ 20 on Jan. 1 to a high of fair over $ 8.25 on May 11 .

Advice

Don ’ t settle on any number of cryptocurrency investments without continuing to learn about the market. A new cryptocurrency network could well climb the ranks and emerge as a leader above other platforms. As an investor, the smartest thing you can do is to stay abreast of market happenings .

Rating the Top Cryptocurrency Choices

Run a promptly on-line search and you ’ ll find dozens of recommendations for how to invest in cryptocurrency. In choosing the top eight picks, the following factors were considered .

Longevity

How long has the cryptocurrency been about ? New cryptocurrencies aren ’ thymine immediately ruled out, but having historical data for comparison helps you see how a company has performed up until now .

Track Record

How has the company performed during its years in occupation ? If you see stability in prices, that ’ s a adept sign. If you notice that the cryptocurrency is gaining grip and becoming more valuable with time, that ’ mho even better .

Good To Know

past performance is not indicative of future performance. At any time things can change, and an investment may perform better or worse than it has in the past .

Technology

How does the platform compare to others in terms of serviceability and security ? The beginning thing you want to look for is the travel rapidly at which transactions occur. The network should be able to handle transaction traffic with facilitate .
You besides want to make indisputable your investment is secure. Most cryptocurrencies use blockchain technology, making all transactions crystalline and easy to track. Blockchain technology doesn ’ t necessarily make it harder for hackers to steal your cryptocurrency. It does make it easier to track your investment so it can be recovered alternatively of being lost following fraud .

Adoption Rate

How many people are investing in the cryptocurrency you ’ re considering ? When you see a high floor of adoption, that means the cryptocurrency has better fluidity. trade, selling or spend will be easier in the future .

Final Take

There ’ s no question about it : Cryptocurrencies are here to stay. The question becomes, where is the best place to invest your money in the market ?
As you decide which cryptocurrency is the best investment for you, here are some other things to keep in beware :

• The speed at which transactions are completed
• The fees associated with transacting
• The ability to use your cryptocurrency for regular purchases and bank transfers

If you ’ re strictly looking to invest without transacting within the network, remember that cryptocurrency international relations and security network ’ t a get-rich-quick scheme. rather, you should consider it a long-run investment .
Daria Uhlig contributed to the report for this article.

Data was compiled between May 10 and May 11, 2022, and is subjugate to change.

About the Author

Josephine Nesbit

Josephine Nesbit is a freelance writer specializing in real estate and personal finance. She grew up in New England but is now based out of Ohio where she attended The Ohio State University and lives with her two toddlers and fiancé. Her work has appeared in print and online publications such as Fox Business and Scotsman Guide.

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Category : Coin