Since the first cryptocurrency was launched in 2009, this market has evolved to become among the top financial investment destination across the world. The below list of the 5 best cryptocurrencies to invest in 2022 is just among the few with thousands of cryptocurrencies in circulation today.
What are cryptocurrencies?
These form part of digital money that runs on blockchain technology. They are mostly used as investment assets and transactional currencies.
Cryptocurrencies exist based on decentralization and elimination of third-party control that exists with the fiat money we use today.
Benefits of investing in cryptocurrencies
1. Value gain – Cryptocurrencies have attracted investors due to their nature to constantly appreciate. They operate just like other investment assets such as stocks and commodities. Hence, most investors buy them with expectations to sell them in the future at a profit.
2. Decentralization– the decentralization element of these currencies has made it possible to develop other products such as decentralized fiancé making it possible to deepen financial inclusion across the world.
3. Transactional- you can use cryptocurrencies to pay for goods and services. This transactional element makes it easier for holders to transact directly without converting them to fiat currencies.
5 Best Cryptocurrencies to Invest in 2022
This list contains some of the best cryptocurrencies with the highest possibility to give more returns in the future.
1. Solana (SOL)
Launched in 2020, the coin is based on the Solana blockchain that focuses on the development of decentralized finance (DEFI). Solana is very similar to Ethereum in most of its operations.
Through the Solana network, there is a Solana coin denoted as SOL. This coin has been receiving mixed market reactions since its launch.
However, as more people and organizations embrace decentralized finance, Solana will likely grow in value making good returns to the early investors.
Solana has a projected total supply of 489 coins with 260 million coins currently in supply. The coin ranks 9th in market valuation making it among the largest coins in the market.
2. Binance Coin (BNB)
Binance is the largest cryptocurrency trading platform in the world with operations across almost all countries globally. To support its operations, the platforms launched the Binance Coin (BNB).
Binance coin allows you to make transactions within the Binance ecosystem. The coin has a maximum supply cap of 200 million with at least 150 million in supply currently.
There are several benefits that you enjoy from transacting with the coin on the Binance platform such as discounts. Binance has also introduced a coin-burning mechanism targeting reduction of supply in the long term.
This will likely help in boosting its price resulting in more returns for the investors. The coin is also among the top 10 largest cryptocurrencies in the market today.
3. Bitcoin (BTC)
Bitcoin is the most famous and valued cryptocurrency in the world. It was also the first cryptocurrency to launch in the market back in 2009.
Due to this, the coin continues to attract a lot of interest from investors with most doing it for the long term. During its peak, bitcoin hit over 60,000 dollars.
The coin has a supply cap of just 21 million coins with less than 2 million coins left for mining. This popularity and limitation in supply make Bitcoin among the 5 best cryptocurrencies to invest in.
There has also been a new wave of countries legalizing its use such as the case of El Salvador.
4. Ethereum (Ether)
As the second most valuable cryptocurrency in the market, Ethereum is a top candidate to invest in. Through its first layer blockchain, Ethereum continues to innovate by creating services such as Non-fungible tokens and decentralized finance. It was the first network to launch NFTs in 2014.
Currently, it remains the market leader on this front with most NFT transactions happening through Ether.
These services will be a key driver for the coin’s value gain in the future. As the leading fiat currency, Ethereum has implemented a burning mechanism targeting to reduce its supply in the long term. This will likely have a positive effect on the price in the long term.
5. Cardano (ADA)
Cardano is a network that implements the proof of stake principles in offering services to its users. Proof of stake capability allows many industries to track processes and progress. It is also more open and less energy intensive compared to networks that use the proof of work concept such as Bitcoin.
Some of the areas where the Cardano network is used include agriculture and education. Launched in 2017, the coin, the coin has a maximum supply cap of 45 billion coins with 34 billion coins already in circulation.
Below is a recap of the 5 best cryptocurrencies to invest in 2022.
- Solana (SOL)
- Binance Coin (BNB)
- Bitcoin (BTC)
- Ethereum (Ether)
- Cardano (ADA)