What Are The 7 Best Cryptocurrencies To Invest In 2022

A cryptocurrency is a digital money without management by a central authority. Instead, it relies on blockchain technology, with Bitcoin as the most popular. With the rise of digital money on Wall Street, more and more options are becoming available. Currently, there are over 18,000 cryptocurrencies available.

With over 18,000 various coins and tokens on the market currently, investor interest is rising. Choosing the combination that maximizes your long-term return can be a challenge.  If you’re wondering about the best defi crypto to invest in 2022, read on to learn more.

1. Bitcoin (BTC)

Bitcoin (BTC)

Bitcoin is the world’s largest cryptocurrency by market capitalization. As a seller or buyer, you can use it both online and offline, or if you are an investor, you can view it as part of your buy-and-hold portfolio to earn interest on crypto. Since Bitcoin has evolved from being a currency to a safe-haven investment, it can be one of the cryptocurrencies to invest in 2022.

Many companies, including Microsoft, The Home Depot, PayPal, and Rakuten, accept bitcoin as payment, albeit indirectly. Different businesses have also invested in bitcoin. If you track Bitcoin daily, it is a volatile asset. Despite this, it has been the most reliable investment asset for the last ten years. A recent network upgrade has added functionality to the platform, making it more useful and potentially increasing its value.

2. Ethereum (ETH)

By market capitalization, Ethereum ranks second among cryptocurrencies. It’s both a cryptocurrency and a blockchain platform. Besides being a store of value, as bitcoin has become, Ethereum also has developed into one of the best platforms for building decentralized apps, or dApps making it a favorite for developers.

Ethereum is currently undergoing an upgrade. In an update originally called Eth2 and now known internally as The Merge. People expect it to improve the network’s scalability, security, and sustainability. Analysts estimate that the value of Ethereum could be more than double in 2022.

3. Binance Coin (BNB)

Binance Coin (BNB)

Binance is the leading cryptocurrency exchange globally regarding trade volumes and users. The crypto exchange also has a native asset — BNB, which offers commission-free trading for its users. You can use Binance coins to invest, pay for travel and make payments. You can also exchange for other cryptocurrencies, such as Ethereum or Bitcoin. Furthermore, BNB is the digital token that supports the Binance Smart Chain, which houses a variety of undervalued crypto tokens.

As a result, the Binance Coin’s price has taken a beating in recent months, as has the cost of most major crypto coins. Over the past several months, the token has fallen below the $410 mark several times, representing a discount of over 45%.

4. Cardano (ADA)

Cardano is a cryptocurrency developed to fix the scaling issues of Bitcoin and the principles of creating smart contracts in Ethereum. After the network update in September 2021, Cardano has seen tremendous growth.

The year 2022 could finally be the one traders have anticipated, as they have bought ADA in anticipation. Cardano also introduced other features, such as token creation and smart contracts. It further achieved some of its best gains ever in 2021, with a growth of over 720%.

5. Polygon (MATIC)

Polygon is a layer-two blockchain built atop the Ethereum network. It creates solutions for blockchain interoperability with around 350 different projects. Polygon recently bought the Hermez Network (HEZ) and will merge the two chains to take advantage of each.

Polygon acquired Hermez for $250 million, which is part of the $1 billion allocated to zero-knowledge technology so that you might see more acquisitions or investments in new technologies. Last October, Polygon hosted 19,000 decentralized applications, a 500% increase. Earlier this year, Polygon announced that it fully supports ether, which could lead to the network’s growth in the future.

6. Avalanche (AVAX)

Avalanche (AVAX)

A market can have multiple winners if it’s large enough. This parallel with smart contracts and DeFi, where Ethereum dominates, but other blockchains, such as Avalanche and Solana, are also making inroads. From its lows of $3 to its current price of $23, AVAX has surged over 500% since 2021.

The absence of the much-anticipated Merge event for Ethereum is a win for networks that can generate smart contracts at low fees and fast speeds, like Avalanche. Since the Avalanche ecosystem is viable, it remains a compelling option for risk-tolerant investors in the medium to long term.

7. KuCoin Token (KCS)

With a market cap of $1.7 billion, KuCoin Token is the smallest of the seven cryptocurrencies to consider investing in in 2022. KuCoin hasn’t poorly performed despite its size in 2022, down an average of 21.5% through early June. Its price has roughly doubled over the past year, going from $8.60 to its current level of about $17.

KCS, like BNB, has value because it is an exchange’s native token. Data from CoinMarketCap shows that as of June 3, KuCoin does about 75% of Coinbase’s trading volume while receiving more weekly visits.

Conclusion

The above are seven of the best cryptocurrencies to invest in in 2022. However, it would help to note that the best thing you can do as an investor is stay updated on market developments. Past performance is not a dependable indicator of future performance. Any investment can become better or worse as circumstances change.