Cryptocurrencies have proven to be great assets to add to your investment portfolios over the last decade despite the high price volatility that makes them extremely risky. But there are thousands of cryptocurrencies in the market today, which can make it overwhelming for anyone to choose the best, especially if you’re diving into the world of crypto investment for the first time. To make it easier for you, we’ve selected 10 of the best crypto coins to invest in and diversify your portfolio. The list is based on factors such as longevity, stability, track record, technology, rate of adoption, and prospect. We believe that this list will guide your crypto investment journey for 2022 going forward.
List of Crypto Coins to invest
1. Bitcoin (BTC)
The world’s largest crypto is a household name in the crypto world, and still offers a massive opportunity for investors. As the oldest cryptocurrency, Bitcoin has maintained a reputation as one of the surest crypto investment options. This is because many businesses already accept Bitcoin as payment for goods and services. For example, Visa allows bitcoin transactions, and Stripe is also planning to allow its users to accept Bitcoin payments soon. Major banks too are also adding Bitcoin to the list of currencies you can transact.
The mainstream acceptance of Bitcoin is giving it a great boost, despite its recent price fall in the crypto bear market. As the trend continues, Bitcoin is likely to lead the crypto market.
2. Ethereum (ETH)
Ethereum is coming second in our list of the best crypto to buy in 2022 for obvious reasons. First, the second largest crypto by market cap is more than just a cryptocurrency but a network that allows developers to create their own crypto and deploy smart contracts. Over the last few years, Ethereum has attracted a large number of developers with its decentralized applications (DApps) and Non-fungible tokens (NFTs), and it's still growing to be a massive ecosystem to look out for in the future.
Ethereum is also changing its consensus mechanism from the energy-intensive proof-of-work (PoW) to a more sustainable proof-of-stake (PoS), which is likely to drive its adoption even more. We are already seeing traditional companies such as Fidelity coming on board to embrace ETH and build businesses around it.
3. Binance Coin (BNB)
Binance Coin, which is the native coin of Binance, has experienced tremendous growth over the last few years and is expected to continue surging in value and stability. Binance is the world’s largest crypto exchange, and this gives its native coin the needed legitimacy and stability. This is a great option if you want to grow with Binance and its products.
4. Tether (USDT)
Tether is a stablecoin, unlike other cryptocurrencies on this list. This means it’s backed by the U.S. dollar, which keeps its value hypothetically equal to the fiat currency. This is a great option for investors who wants even more stability or fear other volatile cryptocurrencies.
5. Cardano (ADA)
ADA is another great investment if you fancy a project with a network of developers. Cardano, which is a replica of Ethereum, has a smaller footprint than the latter. This can be appealing because it takes less energy and time to complete transactions, compared to other larger networks like Bitcoin and Ethereum. With projects such as AdaSwap under its belt, ADA is likely to grow in value to make its investors a happy lot.
6. Ripple (XRP)
XRP is a product of Ripple, a digital technology and payment processing company. The coin can be used on the Ripple network to facilitate exchanges of various currency types, including fiat currencies and other major cryptocurrencies. XRP has proven to be a great investment for many years and is expected to continue growing in value.
7. Litecoin (LTC)
Litecoin is an open-source project that was built to have better functionality than its older counterpart, Bitcoin. Though it imitated Bitcoin’s code, Litecoin has a faster transaction confirmation time, hence its preference for cross-border payments. With the growing need to cut costs of transactions, LTC is likely to grow in value hence a great investment option.
8. Solana (SOL)
Solana was built to power decentralized finance (DeFi), decentralized apps (DApps), and smart contracts, which have become quite popular in the crypto ecosystem lately. Running on a hybrid mechanism of proof-of-stake (PoS) and proof-of-history (PoH) mechanism, Solana can process transactions faster and securely. SOL, as the native cryptocurrency, has been growing in value due to the growing Solana network. This trend is projected to continue to benefit investors in the coin.
9. Polygon (MATIC)
Polygon is a product of a team that wanted to improve Ethereum efficiency by scaling the latter’s infrastructure development. The layer 2 network has achieved a lot by expanding Ethereum into a multi-chain system, which has consequently improved transactions and verification speed. Hosting thousands of DApps, Polygon is likely to grow into one of the largest networks thus spurring the growth of its native cryptocurrency, MATIC.
10. Polkadot (DOT)
Polkadot was created to provide unique blockchain interoperability that connects different chains. The network also allows the exchange of data and processing transactions for parachains without compromising their security. It allows developers to create their own blockchains while using Polkadot security. Its native cryptocurrency, DOT, is projected to continue growing with the network, making it one of the best crypto assets to add to your portfolio.
Conclusion
Cryptocurrencies can be great investments if you take into consideration all the factors to learn how to be a successful crypto investor. The best practice is to balance your portfolios and only invest what you can afford to lose.
It’s important to note that this is not financial advice. You need to take all the necessary precautions like proper risk management when buying any of these cryptocurrencies.
