Every cryptocurrency has had its advantage. The world's first crypto, Bitcoin, was first traded at $0.08 in 2010, and later reached $69,045.00, making uncountable investors millionaires. Thereby, we are going to discuss the popular cryptocurrencies to invest in 2022 without hesitation.
What are the Best Cryptocurrencies to Buy in 2022?
We don't think that the craze of cryptocurrency will fade out soon. With each rising dawn, technological evolution is shaping the disruptive world. The development took shape from the non-editable ledger to the current Metaverse is gaining mass attention. Nike chooses Roblox to create its metaverse, naming "Nikeland ". If you can spare a moment, go and have a tour of Nikeland. The shift is sharp but defines how the world might look after the definite time. Therefore, the importance of virtual currency might increase in the coming future.
The early, the better. Keeping this in mind, let's shift our focus to the best cryptocurrencies to invest in 2022.
In general, most of us choose to invest for the long term. The currency you know to invest in is promising. You are much aware of the downfalls, safeguarding you to sell your crypto at a loss when compared.
In addition, when you choose the coin, you should follow the included criteria:
- Understand the market trend
- Active developments
- Has a large community
1. Cardano: ADA has had a great performance in 2021, bringing it to the 3rd position, as per market capitalization, according to coinmarketcap earlier. The sole reason that made Cardano also laid out a roadmap of five stages designed to attain a goal of becoming a self-sustained decentralized system. For this, Cardano launched smart contracts this year. As of now, the ADA is more focused on completing its last two stages of development. Part of the plan also involves peer review before launching any updates. Examining such approaches, Cardano price seems to have enough potential to perform even if the market deals with the bearish run.
2. Polkadot: The strength of DOT is the 'Communication'. The problem with cryptocurrencies is that each operates itself, without the ability to share information or transfer coins from one to another. But Polkadot has the solution. The cryptocurrency allows the exchange of data across different blockchains. It involves the relay chains and parachains, running alongside. By the method of bridging, these parachains connects to other blockchains like Ethereum. After the development of Ethereum, one of its co-founders started a project to create Polkadot. Its leadership and advantage of connecting other blockchains may help DOT stay at the front of the pack.
3. Ethereum: ETH is one of the known players in the crypto world. It stands second as per the market capitalization. Since its launch in 2015, Ethereum has come a long way. In 2022, you may see Ethereum looking for the bulls. Why? Ethereum's blockchain is set to release an important upgrade. Therefore, Ethereum 2 will be solving the most critical problem, i.e., its transaction speed facing right now. At present, it processes 30 transactions per second, but after the upgrade releases, it will process 1,00,000 transactions per second. Understand now how Ethereum has achieved such an impeccable surge in transaction processing. Firstly, it moved to the Proof-of-stake validation, cutting the time-consuming validation method that involves complex computations. And secondly, Ethereum is adding shared chains to relieve congestion on the main network. If the upgrade goes as per the expectations, it will grow even bigger.
4. Aave: It is a decentralized lending platform built using Ethereum. A platform used to lend, generate income through lending and borrow or simply invest and hold Aave. If you decide to lend or borrow, you get an opportunity to choose from 30 different cryptocurrencies. As per the current rates, you can get 3 percent of the lending benefit on an annual basis. Bankrate data shows that in December, you get 0.5 percent of the best saving account yields. You as a borrower get various interest rates and borrowing possibilities. For instance, Aave issues flash loans. The loan is taken out and settled in the same transaction. It facilitates numerous opportunities for Aave to trade much higher, as the number of borrowers increases daily.
5. Litecoin: It was in the top five by market capitalization in 2017. LTC also adopted Segregated Witness (SegWit). Later in the same year, the first Lightning Network Transaction was performed transferring 0.00000001 LTC from Zürich to San Francisco in under one second. After the lightning network transaction achievement, PayPal allowed transactions to begin in Litecoin in 2020. In 2022, it is expected that Litecoin will exceed its investor's expectations.
Note: The opinion expressed in the article is of the writer. These do not represent or clue to invest in any of the above-mentioned cryptos. It is advised to do thorough research before investing.