Cryptocurrencies can be used for making purchases but for most people, it is long-term investment. With volatility making cryptocurrency investment a risky affair, you want to know what you’re getting into before you dip your toes.
The continued uncertainty in many jurisdictions hasn’t slowed down the momentum surrounding cryptocurrency adoption. With cryptocurrencies like Bitcoin and Ethereum becoming more competitive by the day, there are more young people and first-time investors joining the cryptocurrency investment party every day. There are over 8,900 digital assets in the market. We selected the 5 best cryptocurrencies that you should keep your eyes on in 2022.
1. Bitcoin (BTC)
Bitcoin is the oldest cryptocurrency is now among the top 15 currencies in the world and leads with a price and market cap higher than all other cryptocurrencies. Many businesses, some banks, and payment processors like Visa and MasterCard have started incorporating Bitcoin transactions into their offerings.
The only downside with Bitcoin is its value, that’s still fluctuating a lot, which makes most new investors nervous. If you’re not too worried about the wild fluctuations, Bitcoin is an excellent long-term investment tool. However, with a single Bitcoin going for at least $40,000, most people can only invest a fragment of Bitcoin.
2. Ethereum (ETH)
The Ether token is the next most valuable cryptocurrency based on the Ethereum blockchain and is a cornerstone of the crypto space. Ethereum has introduced many innovations to blockchain usage, including smart contracts and, lately, NFTs.
The greatest challenge facing Ethereum is its “one lane” for conducting transactions. This makes transactions take longer when the network is overloaded and, of course, leads to high transaction fees. If Bitcoin takes the gold medal, Ethereum automatically takes silver among the cryptocurrencies.
3. Binance Coin (BNB)
Binance started as a means for paying fees on the Binance cryptocurrency exchange. Nonetheless, with time it has gained significant utility value alongside its quarterly burning schedule that maintains its market circulation numbers. BNB witnessed a considerable price hike at the beginning of 2021, roping in the interest of several enterprise investors.
The main difference between Binance Coin and its competitors is that it was created by a company, unlike others that groups of individuals developed. The commitment by BNB to maintain a robust blockchain has won over many skeptics, but many investors are still wary of the digital assets and their potential security issues.
4. Cardano (ADA)
Most investors love Cardano’s smaller footprint, meaning one can complete transactions using less energy than the Bitcoin network. The faster transactions are relatively cheaper; the network launched a hard fork last year that increased functionality that included enabling smart contract deployment.
The main challenge with ADA is that even with a better and faster network, it can still compete with the more prominent cryptocurrencies. There are still fewer developers, perhaps because of the smaller number of adopters who see the network’s potential.
5. Solana (SOL)
Solana astounded many crypto users with its performance from a measly 0.01% of the market cap at the beginning of 2021 to become among the top 10 cryptocurrencies by market cap. Currently, at ninth position, SOL has been described as one of the Ethereum killers. The coin’s appeal lies in its speed, scalability, and ease with which it can be used to create DApps.
On the downside, while Solana may have seen an astounding surge of over 4000% within one year alone, there’s always the underlying fear that he figures could one day drop as quickly.
Tom is a freelance writer with over 10-years’ experience in content creation, blog writing, and SEO specializing in the blockchain and cryptocurrency niche. As a philosophical figurehead, he believes that to make our world a better place, we must invest in incorruptible products and procedures, of which Bitcoin and other cryptocurrencies are leading examples.
