Disclosure: Please note that this blog isn’t financial advice, and I am not a “Financial Guru”. Consider this blog (and all its contents) as information that can help you make informed investment decisions. Please don’t invest blindly and always DYOR.
Are you trying to figure out the top cryptocurrencies to invest in 2022? If yes, you are in the right place.
Cryptocurrencies are relatively new to the financial scene, but their phenomenal success has already changed the game for business, investment, and financial markets across the world.
There are thousands of cryptocurrencies in the market today. Some of them are not worth your investment while others can make you rich overnight. As a result, crypto investments are often criticized for being speculative, risky, and volatile. While some investors find success with crypto investments, many others are left with nothing but losses.
Investing in cryptocurrency may seem like a daunting task to many people, however it is not as complicated as it seems. One needs to do their research and invest what they are comfortable with. But it is hard to tell which ones are worth your money because there are so many of them out there. Fear not, as I have compiled a list of top cryptocurrencies to invest in 2022.
Table of Contents
Basic Rules For Investing In Cryptocurrencies
- Awareness is the first step. Knowing more about the ever-expanding list of cryptocurrencies can help you better decide about your investments.
- Diversify your holdings. Investing a small percentage of your portfolio in cryptocurrency is a clever idea, but make sure to invest in different coins to spread the risk of investing all your money into one cryptocurrency that may not do well.
- Don’t be afraid of volatility. Cryptocurrencies are known to be volatile, but they have the potential for huge gains as well as losses if prices drop too quickly or too steeply.
“The key points for investing in cryptocurrency are awareness and diversification…that’s because you don’t want to risk all your money on one coin – stay aware and diversified!“Bishal Mukherjee
Top Cryptocurrencies to Invest In 2022
Cryptocurrency is the modern form of currency. It has seen a meteoric rise in popularity in the last decade or so.
But what are the best coins to invest in?
Here I’ve tried to list ten best cryptocurrencies to invest in 2022, which could be profitable ventures for you.
With a market cap of over $395 billion, Ethereum (ETH) is the second-largest cryptocurrency by market cap. Ethereum is the home for a diverse range of DeFi products and solutions, NFTs, and blockchain games.
In 2021, ETH witnessed meteoric growth, reaching an all-time high of $4,891.70 (November 16, 2021). Even though the network is currently facing congestion and inflated gas fees, the proposed ETH 2.0 upgrade is just around the corner. It will bring down the gas costs significantly, while also solving the slow transaction speeds. Besides, there are a ton of promising layer-2 scaling solutions that are already working to make Ethereum better than it ever was.
Since its launch, ETH has generated an ROI (return on investment) of 117154.49%. While it’s too early to tell whether Ethereum will overtake Bitcoin as the world’s most popular cryptocurrency, it is well-positioned to rally up manifold in 2022.
The first decentralized digital currency, Bitcoin (BTC), is also the #1 crypto by market cap. It has been dominating the crypto ecosystem for years now, hence it is the safest investment option. With a market cap of $916 billion and counting, BTC is a household name.
BTC reached a record all-time high of $68,789.63 on November 10, 2021. Since its launch, it has generated 32147.91% ROI (return on investment). BTC has also made its way as a legal tender in El Salvador, opening the doors to mainstream acceptance for goods and services.
Besides, newer solutions (sidechains) like RSK are also bringing DeFi primitives on the Bitcoin network, which was not available until now. So, BTC is the safest cryptocurrency to invest in 2022.
With a market cap of more than $78 billion, Ripple (XRP), functions as both a cryptocurrency and a digital payment network. With centralized payment services charging customers excessively for the services, Ripple is well-positioned to become the de facto payment service provider.
Since its launch, XRP has generated 13168.94% ROI. Yes, XRP has had a slow run in 2021, primarily due to its ongoing problems with the US SEC, but it caught pace in December 2021.
Every time investors put the cryptocurrency to the test, it passed with excellence. As a result, market analysts expect XRP to trade around $3 soon., even higher if the Ripple vs. SEC case results in a win for XRP.
Binance Coin (BNB)
Binance is all over the place, be it in terms of being the #1 exchange by trading volume, launching its own NFT marketplace, IGO (Initial Game Offering) and launchpad, or rolling out a bunch of DeFi programs.
The platform’s native token, Binance Coin (BNB), currently has a market cap of more than $82 billion, generating 429122.82% in ROI since launch. BNB registered its all-time high of $690.93 on May 10, 2021.
Personally, I feel that BNB is one of the top cryptocurrencies to invest in 2022. That’s because the number of users on Binance exchange are growing and using BNB allows them to get as much as 25% discount on trading fee. Then there’s the expanding list of Dapps, DeFi, and smart contracts operating on the Binance Smart Chain.
Cosmos (ATOM) is one of the most prominent “blockchain 3.0” projects. With blockchain interoperability becoming the primary focus, Cosmos has positioned itself as a fully decentralized network that connects independent blockchains.
The price of the ATOM token reached its all-time high of $44.70 in September 2021 and has generated 547.73% since its launch. ATOM currently has a fully diluted market cap of more than $11 billion and a market rank of #24.
ATOM’s prices shot up in 2021. The reason I think it will grow in 2022 is that its IBC (Interblockchain Communication) Protocol enables individual blockchains to transfer assets between one another, opening a world of opportunities for the evolving DeFi market. Hence, ATOM is among the top cryptocurrencies to invest in 2022.
Dubbed as the “Ethereum Killer”, Solana (SOL), has quickly become the go-to ecosystem for DeFi, NFT, and blockchain games. The price of the SOL token shot through the roof in 2021, while the number of active developers on the platform continues to rise.
The SOL token raced past prominent altcoins to make its place in the top 10 cryptocurrencies by market cap in 2021. It is currently standing strong in fifth position, with a market cap of more $76 billion. SOL reached an all-time high of $260.06 in November 2021 and has generated an ROI of 67774.83% since its launch.
While SOL is currently seeing significant correction, this token has all the ingredients needed to be the next big home for DeFi. If Ethereum’s scalability problems aren’t solved at the soonest, there are high chances that Solana will take over, making it a strong contender in this list of top cryptocurrencies to invest in 2022.
Terra (LUNA) sets itself apart from the other cryptocurrencies mentioned in this list through its use of fiat-pegged stablecoins. The platform has quickly established partnerships with several payment platforms across Asia-Pacific, which has helped in the recent price rally of LUNA.
The TVL (total value locked) in the Terra DeFi ecosystem crossed $20 billion in 2021, making it the second largest DeFi blockchain, as it rallied past Solana and Binance Smart Chain. In the last 12 months, LUNA’s value has appreciated by more than 13800%, as it registered an all-time high of $103.33 (December 2021).
LUNA is among the top cryptocurrencies to invest in 2022 because a lot of DeFi and metaverse projects are being built on it. Experts claim that 2022 will bring grandiose things for DeFi, such as the DeFi 2.0, and Terra (LUNA) is expected to benefit vastly from it.
Another titan in the making, Polkadot (DOT), is leading the race towards a “multichain” feature. The parachain slot auctions on both Kusama and Polkadot have achieved significant success, highlighting the fact that the value of DOT will appreciate big time in 2022.
With a fully diluted market cap of more than $31 billion, DOT registered its all-time high of $55 in November 2021. Compared to existing legacy chains, Polkadot supports multiple chains that verify different transactions independently at the same time, thus offering high scalability, faster throughput, and low gas fees.
A myriad of projects is being built on Polkadot, including DeFi, NFTs, blockchain games, and much more. With Web 3.0 just around the corner, it is no hyperbole to claim that DOT is among the top cryptocurrencies to invest in 2022.
Cardano (ADA) is another project that has the potential to break out in 2022. With over $65 billion in fully diluted market cap, ADA has held its position among the top 10 cryptocurrencies for quite some time now.
ADA registered its all-time high of $3.10 in September 2021, generating around 6576.97% ROI since its launch. Although Cardano moved sideways following its all-time high, experts claim that ADA has a significant chance of a bullish breakout.
The Alonzo upgrade has enabled smart contract functionality on the network. As such, it is most likely to become the preferred destination for projects that are looking for Ethereum alternatives. With DeFi and blockchain gaming sectors growing rapidly, Cardano (ADA) will gain value over the long-term, making it one of the top cryptocurrencies to invest in 2022.
As the first developer-friendly platform for Ethereum scaling and infrastructure development, Polygon (MATIC), combines the Plasma Framework and the proof-of-stake (PoS) blockchain architecture to enable easy execution of scalable and autonomous smart contracts.
The network boasts of up to 65,000 TPS (transactions per second), paired with extremely low gas costs. As such, it has quickly become home to a diverse range of Dapps. MATIC has a fully diluted market cap of more than $23 billion and has generated 52323.85% ROI since its launch.
Per experts, Polygon (MATIC) is among the most promising projects and the token’s value is poised for a significant upward movement in 2022. Besides, dozens of DeFi and other projects are entering the Polygon ecosystem, which will also help push the MATIC token’s price in the long-term.
I hope that this list of top cryptocurrencies to invest in 2022 helps you with your research. That said, please note that this blog isn’t meant to be taken as financial advice. The tokens listed in this blog are based on my personal research, and I would request that you do your own research before investing.
Cryptocurrencies are highly volatile. Hence, make sure that you know what you’re getting into and invest only what you can afford to lose.
If you’re new to crypto investing, make sure to learn the basics from my previous blogs.