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Cryptocurrency
Do you want to skip the read and get right to the top picks? The best cryptocurrency to buy in 2022 is Bitcoin or Ethereum!
While Bitcoin is the leader, both by market capitalization and daily volume, it is not the only option on cryptocurrency investment. With the success of Bitcoin, a plethora of altcoins sprang up, making it difficult for investors to choose the best one. In fact, the cryptocurrency market is currently flooded with more than 15000 coins.
Best cryptocurrency to buy in 2022
If you are looking to expand your investment portfolio with a piece of the crypto cake, we believe the following crypto options will be the best fit.
- Bitcoin (BTC)
- Ethereum (ETH)
- Cardano (ADA)
- Ripple (XRP)
- Dogecoin (DOGE)
Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply.
A closer look at the top five best cryptocurrencies to buy in 2022
Bitcoin
Bitcoin is overall the best crypto to buy in 2022. It is arguably the standard in the crypto market right now. There is a good reason for that. Bitcoin is making it impossible for other cryptocurrencies to keep up. The blockchain leader has dominated the market since its inception in 2009.
While Bitcoin had few bumpy rides along the way, its price is expected to surge again, making it an even more alluring option for new investors. 2021 was a great year for Bitcoin.
In 2021, Bitcoin was trading at an all-time high price of $63k. Six months later, that price surpassed the $68,000 mark. It is clear that the other cryptocurrencies have a long way to go before they can achieve the milestones that Bitcoin has achieved.
With such an outlandish market cap and a daily volume of roughly $30B, many crypto pundits will no doubt be pouring their money into Bitcoin. Already, well-known public figures in the business world, companies, and institutions are warming up to Bitcoin with billions of dollars in investment.
So, if you are looking for the best cryptocurrency to invest in that millions of people trust, you wouldn’t want to look beyond Bitcoin.
Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply.
Ethereum
The second best crypto to invest in 2022 is Ethereum. While Ethereum boasts of a market cap that is 2 times smaller than that of Bitcoin, it has been invariably lauded as the most promising cryptocurrency this year. This is the second biggest cryptocurrency worldwide, both by market cap and daily volume. Ethereum’s advantage lies in its focus on superior technology as opposed to just being a digital asset.
Unlike Bitcoin, Ethereum is so much more than just a cryptocurrency. It is a platform where other developers can create their own digital assets using Ethereum’s tech, such as smart contracts. This adoption of other Decentralized Finance (DeFi) has made Ethereum a hot cake in the crypto market.
Although Ethereum’s current price is significantly lower compared to that of Bitcoin, it is quickly rising and getting the attention of more investors. Ethereum hit an all-time high price of $4,891 in 2021. This is a significant surge considering that it was only slightly above the $730 mark in the beginning of 2021.
So, while Ethereum is significantly junior to Bitcoin, there are a few things that make it a better cryptocurrency. For starters, it is blazingly fast. A transaction that might take 15 minutes with Bitcoin will only take 15 seconds with Ethereum. This makes it an ideal option for real-time use instead of merely being a store of value.
According to Crypto experts, Ethereum is worth buying in 2022. The digital asset is expected to grow even more this year. This means it will be getting the attention of more mainstream investors, and soon the Ethereum bandwagon will be bustling with successful investors.
Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply.
Cardano
Established barely three years ago, Cardano has risen to become the world’s largest third-generation cryptocurrency. This is the best option for investors who are looking for young crypto with plenty of potential for growth in 2022 and beyond.
According to data from CoinDesk, Cardano enjoys a market cap of $29.21B with an all-time high price of $1.20. This is significantly lower compared to our two options. In fact, it is so small that very few people already know about it. And as much as this may come off as a red flag, it is actually a sign of great potential.
ADA prides itself on some of the most exciting technological advancements in the blockchain industry. First of all, it runs on a proof-of-stake system which means that it is more efficient than the proof-of-work alternatives. Proof-of-stake basically means that the more ADA you have, the more mining power you have.
Just like Ethereum, ADA also heavily relies on smart contracts to easily handle payments and keep track of transactions. This makes an ingenious combination of both Bitcoin and Ethereum. So, although ADA has a lot of work ahead before it can reach the league of Bitcoin and Ethereum, it makes for a great investment for early adopters.
It only took Cardano three years to hit a market capitalization of $10 billion. This was much sooner than it took Bitcoin to achieve the same. This means that Cardano is quickly picking up momentum, and soon investors will start to pile in.
Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply.
4. XRP
Established in 2012, Ripple’s XRP makes for an easy bet for investors looking to start buying in 2022. According to the experts, the coin has the potential to double its value 10 times this year. XRP has already hit the $3 mark, which most of the other cryptocurrencies are struggling to achieve.
With a market cap of about $24 billion, XRP subscribes to a slightly different form of operation. Instead of being community-managed like Bitcoin, XRP is centralized and is only mined, controlled, and administered by its creator, Ripple Labs.
This gives the creators control over policies and the ability to execute trades quickly and negotiate with mainstream banks. However, this approach has been met with a lot of criticism as it seems to deviate from the very essence of a cryptocurrency; decentralization.
Despite this, XRP has shown a lot of potential and promises to be a good investment in 2022. It is now being used by some financial institutions in place of the SWIFT network giving it real-world application and widespread adoption.
The coin picked momentum in 2017 when it grew 36,000%. That is, raising its price from nothing at the beginning of 2017 to $2.4 in December that year.
Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply.
5. Dogecoin
Another crypto to buy and invest in 2022 is Dogecoin. It started as a joke. That is about what anyone who has been in the crypto market long enough will tell you. However, the joke can only go so far. Dogecoin is actually a pretty serious investment for traders who are just getting their feet wet.
Turns out, the initial virality of the Doge meme paved the way for Dogecoin in a market where giants like Bitcoin were already towering. Now, with a market cap of about $7B and an all-time high price of $0.087, the DOGE is set for slow yet steady growth. Apart from its meme popularity, the main attraction of Dogecoin stems from the fact that its price is continually increasing.
So, if you invest now, you are exposed to higher profit opportunities than other coins. In fact, like many of the other cryptocurrencies, Dogecoin was already starting 2021 on a profitable note. Endorsements by business gurus like Tesla’s Elon Musk have skyrocketed Dogecoin’s value making it one of the fastest-growing cryptocurrencies.
The newfound popularity seems to have worked well for DOGE as more investors pile in. However, being a relatively young cryptocurrency, Dogecoin is still highly volatile. So we advise that you only invest in it for a short time and take your profits as soon as they come.
The meme coin will probably keep rising in 2022 and might soon hit the $1 mark by the end of 2023. This is as long as it keeps growing its user base, maintains internet popularity, and sees more worldwide adoption.
Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply.
Factors to consider when choosing the best cryptocurrency to buy in 2022
Like with any investment sector, the cryptocurrency market is highly dynamic. However, despite the constant price change, market cap, and adoption, there are a few factors that, when you observe, could be the difference between profitability and loss.
Let’s quickly look at some of these factors to consider when choosing the best cryptocurrency to consider in 2022.
Market capitalisation
The first factor to consider when picking up the best crypto is the market cap or the size of the market a cryptocurrency controls can hint at its liquidity. The higher the market cap, the safer it is to invest. A higher market cap usually means a higher adoption rate and that more people are investing in that particular cryptocurrency.
So, if market cap matters in your investment portfolio, we recommend investing in Bitcoin and Ethereum.
Adoption rate
If a cryptocurrency is widely being used in real-world transactions, it means that it is trusted and has more profit opportunities. So, if you care about mainstream adoption, you might want to focus on cryptocurrencies such as Bitcoin that are now widely used in businesses, insurance, and investment.
However, being speculative investments, it is possible to find more plausible breakthroughs with newer coins such as Dogecoin and Cardano.
Technology
Some cryptocurrencies might have higher mainstream adoption with enviable market caps but do not have the right technology for your unique investment needs. That is why it is important that before choosing a coin to invest in, ensure that it has the features you are looking for.
For instance, Ethereum and Ripple grew quickly by focusing on new technologies that other cryptocurrencies were not exploring. So, you might find that these are more suitable than Bitcoin because they have the technologies that will help nourish your investments.
Security
The main attraction of blockchain technology is the anonymity it offers its users. This means that you transact anonymously and enjoy the freedom of decentralized finance. Other security features, such as the smart contracts offered by Ethereum, ensure that transactions are more secure and fraud-free.
Being a highly risky investment, it is only logical that you consider cryptocurrencies with better security features.
How to invest in the best cryptocurrency in 2022
The cryptocurrency market has changed a lot. Investors now have different reasons to invest than they did three or four years ago. While there are different ways to invest in cryptocurrency, the most common and secure is using an exchange.
These are platforms that enable you to buy and sell cryptocurrencies at a small fee. All you have to do is create an account, watch market trends and decide whether you want to buy or sell.
If you are still new, we recommend working with an expert who knows their way through the crypto market. Otherwise, here are some tips that can help you navigate the market on your own.
Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply.
Tips for profitable cryptocurrency investing:
Study the market - Before you sign up with any exchange, make sure that you understand market trends and what you are supposed to do to make profits. Again, if everything seems alien at first, feel free to work with an expert.
Diversify your risks - Don’t put all your money in one cryptocurrency. Make sure to invest in several options. This way, you will still make money even when the price of some cryptos falls.
Keep most of your cryptocurrencies in a wallet - This will be useful in case of a cyber attack. Also, ensure that your password is strong and stored in a secure place.
Conclusion - best cryptocurrencies to buy in 2022
With so many cryptocurrencies in the market, it can be overwhelming when it comes to choosing the best crypto to invest in. Bitcoin and Ethereum are the best cryptos to watch for new investors as they are less risky to market volatile compared to other coins.
Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply.
This content is for information and education purposes only and should not be taken as investment advice or a personal recommendation. Any references to past or future performance of a crypto instrument, index or a packaged investment product are not, and should not be taken as, a reliable indicator of future results.
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