Unlike most of the copy-and-paste “best cryptocurrencies to invest in” lists that seem to pop up everywhere these days, we’ve put some time and effort into exploring the latest trends in crypto and blockchain in order to determine which ones have the staying power both as short- and long-term investments.
If you’re like most crypto investors, then you have a lot of
questions about the future of cryptocurrency,
especially in light of the ongoing crypto winter. Which
crypto is best for the future? What are the top 10 cryptos right now? Which
crypto has the most potential in 2022 and beyond? And with over 12,000
cryptocurrencies from which to choose, the ability to find new crypto coins as
well as knowing the best time to buy crypto become
crucial, especially since the market is open 24 hours a day, 7 days a week, 365
days a year.
While we’re not going to reveal our hand at the very outset of
this article, we will say that we’re bullish on Ethereum Virtual Machine (EVM)
chains and the many associated coins (more below). And we also have
recommendations based on privacy, scaling, and interoperability.
Why You Should Invest in Cryptocurrencies
Apple, Google, Tesla,
Samsung, Facebook, PayPal, Deutsche Bank—these are just some of the big-name
players that have made cryptocurrencies part of their long-term strategic plans
recently. Cryptocurrency has transformed from being a niche digital asset to
something that is experiencing widespread adoption for a variety of reasons
across various segments of society.
No longer the
exclusive domain of fintech disruptors and day traders, cryptocurrencies and
the technology used to trade them have gone mainstream. And with mainstream
traders and institutions increasingly eyeing digital assets, there can be
little doubt that cryptocurrencies have proven themselves to be both popular
and successful.
A Few Benefits of Crypto Trading
So what are some of
their benefits and why should you invest in them? Let’s start with a bit of
hype. If you invested $1,000 in bitcoin in 2010, it would be worth
roughly $287.5 million today. While we are not saying that crypto
trading is or should be viewed as a get-rich scheme, we mention this statistic
simply to illustrate the extraordinary opportunities that a cryptocurrency such
as bitcoin presents for traders.
Closer to reality,
crypto traders are drawn to the digital asset for a range of reasons: they can
function as a store of value; they are a useful portfolio asset; and they can
be used as a direct method of payment. Unlike gold, which has similar benefits,
cryptocurrency is easier to store, easier to transfer and easier to trade.
And now the moment
we’ve all been waiting for: drumroll please...
Best Cryptocurrencies to Invest in This
Year
Here’s a rundown of
some of the top cryptocurrencies to invest your dollars or other fiat
currencies for the year ahead.
Ethereum Virtual Machine (EVM) Chains
While we don’t have
the space in this article to examine the minutiae of Ethereum Virtual Machines
(it’s best to refer to Ethereum’s own description of EVMs), which can
be quite arcane even for experts, a few words by way of an explanation are in
order. The keyword here is interoperability.
Ethereum was the first
blockchain with smart contracts, but other chains have evolved to offer smart
contracts using EVM as their standard smart contract engine, meaning that
layer-1 blockchains are interoperable. Rather than developing completely new
ways of creating smart contracts, which are chain-specific and therefore
limited, EVM-compatible blockchains ensure that smart contracts created on,
say, Polygon are recognized by Ethereum nodes, allowing devs to copy their
dApps or tokens across different chains.
A token on an
EVM-compatible chain, then, becomes far more interesting as an investment
option given its increased compatibility and interoperability. Below are some
of the best EVM-compatible cryptocurrencies (for a list of EVM networks, check
out ChainList).
Binance Coin (BNB)
With $76 billion in
24h trading volume, 600+ cryptocurrencies from which to choose, 90 million
registered users, and some of the lowest transaction fees, Binance is
the largest and most popular cryptocurrency exchange in the
world. Originally an ERC-20
token on the Ethereum blockchain, Binance’s BNB is issued on Binance’s own
blockchain and is used for transaction fees payments (on the Binance Chain),
entertainment and online services, financial services, and even travel
bookings.
If you’re a fan of
footballer, Cristiano Ronaldo, and TikTok celeb, Khaby Lame, then you might be
interested in what Binance has in
store with its BNB Coin and NFTs. With Lame’s knack for making complex things easy to
understand, Binance is betting on the social media influencer’s potential to
draw newbies into crypto (and Binance).
If all goes to plan,
Binance will be able to leverage its partnerships, further solidifying its
place at the forefront of crypto-related developments.
Polygon (MATIC)
For those interested
in scaling Ethereum/Web3 apps, Polygon offers some impressive numbers.
According to its website, Polygon boasts 1.3 billion recorded transactions, 130
million wallets, and just under 3 million active monthly users. Its native
token, MATIC, is an ERC-20 token and is used within the Polygon ecosystem to settle
payments as well as for governance.
It’s also an
EVM-compatible sidechain with a long-term vision of becoming Ethereum’s
“internet of blockchains” as well as a Layer-2 aggregator, which will allow it to leverage Ethereum’s
security while providing faster speeds and lower costs for developers to use
independent yet interoperable blockchains.
Despite a steep drop
in price since autumn 2021 and a substantial increase in tokens in circulation,
MATIC’s value remains high, thanks in part to the Ethereum Merge, and investors
are bullish on its long-term prospects. And with 19,000 dApps running on the
network and Ethereum scaling solutions (Moonbeam,
we’re looking at you), MATIC is one to keep on your watchlist.
Fantom (FTM)
Fantom is a fast, high-throughput open-source smart contract
platform for digital assets and dApps (or decentralized applications).
According to its website, there are 200+ dApps that have already been deployed
on Fantom ranging from DEXes, cross-chain bridges, lending and borrowing, and
yield optimizers to NFT platforms, tools, and wallets.
Fantom uses a directed acyclic
graph or DAG, which looks more
like a graph than a chain and is seen by many as a possible substitute for
blockchains due to greater efficiency when processing online transactions or
when handling data storage. Due to a special proof-of-stake consensus mechanism
called Lachesis, Fantom can currently handle approximately 4,500 transactions
per second (TPS), while results of their
experiments suggest up to
10,000 TPS (!).
And with the number of daily
transactions per day on Fantom inching ever closer to the number of transactions seen on
Ethereum, there’s more than a few reasons to be bullish on FTM.
Avalanche (AVAX)
If you’re interested
in the fastest smart contracts platform in the blockchain industry, then look
no further than Avalanche.
In addition to Cardano and Solana, Avalanche is considered one of Ethereum’s
main rivals, although the former two have lost quite a bit of ground in this
respect.
Touting 6,500
transactions per second, Avalanche uses three separate blockchains, its
exchange chain (X-Chain), contract chain (C-Chain), and platform chain
(P-Chain), with each one having its own specific role to play in the Avalanche
ecosystem. And as you might have guessed, AVAX attempts to solve the blockchain
trilemma (fast, secure, scalable). Users might also be interested in “Core” non-custodial browser extension, which
enables users to interact with Web3 powered by Avalanche.
Fast, low-cost,
eco-friendly, and with NFTs gaining traction on its marketplace Joepegs,
AVAX has significant potential as a smart contracts platform for decentralized
applications, earning it a spot on our list of best cryptocurrencies in which
to invest.
Best Crypto for Privacy, Scalability,
Interoperability, and Digital Advertising
As we broaden our list
of the best cryptocurrencies for 2022, we’re going to move away from EVM
compatibility to include a broad range of use cases, from privacy and
scalability to interoperability and digital advertising.
Monero (XMR) and Privacy
A self-described
private, decentralized cryptocurrency that keeps money safe from prying
eyes, Monero was founded in 2014. Using the
proof-of-work (PoW) algorithm RandomX, which is an
ASIC-resistant and CPU-friendly algorithm, Monero employs numerous
privacy-enhancing technologies, including RingCT, Stealth Addresses, Ring Signatures, Transactions over Tor/I2P,
and Dandelion++.
So what’s so special
about a P2P privacy coin such as Monero? Well, as the cryptosphere becomes
increasingly subject to regulatory pressures in places such as the United
States and European Union (MiCA), investors will
look to privacy coins such as Monero to safeguard their identity due to the
added layers of anonymity when making transactions on the blockchain.
The overriding aim of
Monero’s founders is to make quick and inexpensive payments beyond the
reach of censorship possible. Unlike Bitcoin, for example, XMR is fungible,
meaning that all of the details involved in any given transaction, from the
sender to the receiver and even the amount, are completely confidential (unlike
Zcash).
Ripple (XRP/ XRP Ledger) and Scalability
Since 2020, Ripple Labs has
been targeted by the US Securities and Exchange Commission (SEC), which views
XRP tokens as unregistered securities. After only a cursory glance of their
website, it’s easy to see why Ripple is on the US government’s hitlist. Using
crypto and blockchain technology, they aim to provide faster, more transparent,
and more cost-effective solutions than traditional financial services.
Disruptors always have an uncanny ability to draw attention to themselves.
As a currency exchange
network and payment settlement system, one that can process transactions
globally, Ripple was designed to replace the cumbersome SWIFT system that is
used by banks, with the open-source XRP Ledger (XRPL) offering low costs, high speeds, scalability (1,500 tps),
carbon neutrality, and the first decentralized exchange (DEX).
If and when the dark
clouds of the SEC lift, XRP could be poised for a break out, especially if
Ripple’s ongoing interest in CBDCs result in it becoming an efficient clearing
house for the global banking system.
Polkadot (DOT) and Interoperability
Blockchain
interoperability is often a source of frustration for developers, particularly
as the number of DeFi and NFT-driven apps increases (i.e., multiple protocols
and chains), which is where Polkadot aims to make its mark.
A blockchain platform
and cryptocurrency that allows for distributed computing using proof-of-stake
consensus, Polkadot wants to be synonymous with future-proof interoperability,
with the token itself serving three primary purposes: governance, staking, and
bonding. As its team states on their website, “Polkadot is built to connect private and consortium chains,
public and permissionless networks, oracles, and future technologies that are
yet to be created.”
Polkadot has been in
the news recently with some exciting developments. According to a report in
Cointelegraph, DOT could surge in
price by more than 50% in the coming months on the back of the launch of
its Cross-Consensus
Message Format (XCM), an intercommunication
blockchain tool that allows parachains to connect the dots (see what we did
here?) and communicate with one another.
Basic Attention Token (BAT) and Digital
Advertising
When it comes to
browsers that offer privacy and security, there is only really one alternative
to Tor and that’s Brave. In fact, Brave integrates Tor, making for an unbeatable
browsing experience online.
If you’re looking to
break up with tech giants such as Google, who stalk your every move online,
then Brave’s built-in IPFS integration, onion routing with Tor, and custom
filter lists (among other things) provide the perfect alternative. Rather than
downloading countless browser extensions to block ads, Brave uses “Brave Shields,”
which is similar to the extremely popular uBlock Origin extension that blocks
ads, trackers, fingerprinting, and malicious scripts.
As if these features
weren’t enough, Brave offers its own token, the Basic Attention Token (BAT), which addresses the many problems with online ads.
BAT is at the center of a novel, blockchain-based platform for digital
advertising, one that offers rewards for your browsing attention. Rather than
bombarding you with irrelevant ads, Brave offers targeted ads based on your
interests and it allows you to determine the frequency with which you see them
(with a maximum of 10 per hour). In exchange for your time, you’re rewarded
with BAT.
Best Crypto: Marketing, Maxis, and Memes
For our final category
of the best cryptocurrencies to invest in for 2022, we’re including those that
are driven by marketing hype, maximalists, and memes. Although there may be some real-world use cases for these
tokens, their price is nevertheless determined to a large extent by hype from
Twitterati, Discord and Telegram evangelists, and Instagram influencers. Still,
there’s money to be made.
Cardano (ADA)
Rome wasn’t built in a
day. All good
things come to those who wait. Patience is a virtue. If you
have a stake in ADA, then these phrases might be something of a personal mantra
through thick and thin. Seemingly loved and loathed in equal measure, not least
because many view its founder Charles Hoskinson as either a misunderstood
genius or a cult leader, Cardano is considered by some to be the OG of Ethereum killers. Others describe it as nothing more than
(over)hyped vaporware. And ADA’s most scathing critics take it one step
further, referring to it as a
ghost chain. Platforms such as
Robinhood and Gemini have even given it the cold shoulder.
What is clear is that
in 2021 Cardano beat rival blockchains in terms of having the most development
on GitHub. As one commenter
quipped, “If Cardano is a
ghost chain, then it is experiencing a lot of paranormal activity.” Their
community is also a fantastically loyal one. The total number of ADA wallets has now
hit 3.5 million. And it has cross-chain interoperability with Ethereum
thanks to the sidechain built by the smart folks at Milkomeda.
Whether you think Hoskinson
is the second coming or a complete charlatan, a mix of maxis and marketing will
continue to bolster Cardano’s staying power. The jury’s out on whether ADA will
live up to the hype.
Solana (SOL)
Commonly referred to
as (yet another) Ethereum killer, Solana was the darling of the crypto world
(keyword: was). Officially launched in 2020 and buttressed by
impressive processing speeds, low transaction fees, and a growing NFT
marketplace, SOL quickly became one of the top ten cryptocurrencies in terms
of market capitalization. By combining a proof-of-history (PoH) and
proof-of-stake (PoS) consensus of the blockchain, the team behind Solana have
their eyes on scalability and accessibility, especially when it comes to decentralized finance (DeFi).
But Solana’s skies
have become overcast as of late. If you need a reason to use a hard (or cold) wallet, then the recent Solana hack is as good as any. While the price of
SOL plunged following the hack, maximalists have likely responded to the news
by adding to their bag. Nevertheless, Solana has taken it on the chin a number
of times, including fudging its token
numbers (20 million
rather than its stated 8.2 million) and persistent blockchain
blackouts (i.e., network
outages).
Still, there are signs
that SOL is still burning bright, making it an option to consider for those
interested in expanding their portfolio.
Dogecoin (DOGE)
And then there are
shitcoins (or “meme coins” in polite company) such as DOGE. Following its fork
from Litecoin (LTE) in 2013, DOGE flew under the radar until celebrity
endorsements from Elon Musk, Snoop Dog, and Mark Cuban hyped it to the moon.
Billing itself as “the people’s cryptocurrency,” DOGE is the Kim Kardashian of
crypto–an influencer we all laugh at but nevertheless wonder if the joke is on
us.
So if it doesn’t have
any real-world value, then why does it have any value at all? One word:
celebrity. One tweet from Elon Musk has the power to lift DOGE’s into the
stratosphere like a runaway SpaceX flight. And if Mark Cuban is to be
believed, Dogecoin has more potential
applications than Cardano.
With some people having made a fortune
trading DOGE and no signs of
celebrity endorsements slowing down, Dogecoin is certainly one to watch. After
all, if Elon Musk says that DOGE is better than
Bitcoin in terms of
handling transactions, then it must be true, right?
The Best Cryptocurrencies
If we’re talking
about the best cryptocurrencies, then there are still only two
tried and tested ones. Any list without Bitcoin and Ethereum would be
incomplete.
Bitcoin (BTC)
The first mover. The
OG of cryptos. The A1 from day one.
Whether you frequently
ride the BTC Express or prefer alternatives, you can’t deny its enviable
staying power, market dominance, and continued importance to the cryptocurrency
ecosystem, which are just a few reasons among many why Bitcoin is
referred to as “the King of Crypto.”
Developed in 2011 by
the pseudonymous Satoshi Nakamoto, Bitcoin has moved from cypherpunk outlier to
increasingly widespread acceptability. No self-respecting cryptocurrency
ranking would be complete without mentioning it, especially since it accounted
for roughly 65% of 2021’s market cap. In November 2021, Bitcoin reached its
all-time high of $69,000. It also outperformed both gold and the S&P 500
for the third straight year, even performing
ten times better than gold in 2020. And despite the current challenging market, Bitcoin maximalists
remain steadfastly loyal to it, committed in their belief that BTC will eventually transform
the financial system.
But you don’t have to
be a Bitcoin maximalist to see the writing on the wall. Bitcoin’s latest slump
is a golden opportunity to buy the dip through dollar-cost averaging (DCA) in
order to add to your bag. As a matter of fact, that’s exactly what El Salvador’s
President Nayib Bukele has
been doing since November 2021. Just remember to safeguard your key. After all,
you don’t want to end up like this guy with
half a billion in Bitcoin lost somewhere in a garbage dump.
Ethereum (ETH)
Last but not least is
the silver to Bitcoin’s gold. Ethereum is a decentralized, open-source
blockchain with smart contract functionality, and its native coin is Ether.
Among the thousands of cryptocurrencies out there, Ether is the second largest
cryptocurrency only to Bitcoin in terms of market cap and is the brainchild of
programmer Vitalik Buterin.
Many consider Ethereum
as a smart investment option, especially for those just getting started in the
cryptocurrency market. The strength of Ethereum’s token correlates with the
scale of the network, which means ETH is expected to increase in value as more
dApps and projects are launched on the network. Even the likes of J.P. Morgan
has begun to take notice, publishing a
report on the future
outlook of crypto markets. Included in the report are Ethereum’s upgrades,
decentralized finance (DeFi), and non-fungible tokens (NFTs), which it sees as
increasingly relevant to financial services.
More importantly, with
Ethereum’s long-awaited introduction of Ethereum 2.0, which will
enable users to validate transactions and mint new ETH based on their ether
holdings, the price and value of ETH will continue to rise.
Final Thoughts
Bulls, bears and even
the odd wolf in sheep’s clothing. Crypto trading can be exhilarating, but it
can also test your mettle. Perhaps you’re a first-time trader who is interested
in dabbling in the crypto market, or maybe you’re a jaded veteran looking for
some new perspectives.
In order to choose the
best cryptocurrency and get the best value for your money, you need to do your homework by considering a range of issues,
including market capitalization, the best crypto exchanges (and their commission fees), past
performance, market value, volatility,
and even taxes. But even the most comprehensive list of the best
cryptocurrencies to invest in won’t guarantee profits if you’re still manually
trading by trying to time the market, which is why it’s crucial to
leverage the power of automated trading by using crypto trading bots to ensure consistency, objectivity, reliability, and, more
importantly, profitability.
Disclaimer: The above
article is merely an opinion piece and does not represent any kind of trading
advice or suggestions on how to invest, how to trade or in which assets to
invest in! Always do your own research before investing and always (!) only
invest what you can afford to lose!