Over the last decade, the cryptocurrency market has expanded dramatically. Much of the excitement surrounding digital currencies is speculative, with speculators driving prices up at times. Several events in 2021 have represented significant milestones in the mainstreaming of blockchain technology.
With around 16,000 digital assets already in circulation, determining which cryptocurrency to invest in might be difficult. Finally, more and more bitcoin investors are seeking the next big thing in the hopes of making a fortune. In this article, we will cut through the clutter and look at the top 5 cryptocurrencies to invest in 2022.
Obviously, it has to be on the list of the top 5 cryptocurrencies.
Bitcoin is the world’s first and biggest cryptocurrency. It was first released in 2009, and the significance of this coin is greater than ever in 2022. Its price fluctuation continues to have a big influence on the rest of the market. This is one of the greatest cryptocurrencies, and it is poised to soar in the coming year. If you want to invest in cryptocurrencies for the long term, Bitcoin is a good choice.
But, wait! There are more reasons to invest in Bitcoin.
- Adoption is at an all-time high.
- It is the most effective inflation hedge.
- Increased institutional acceptance.
- Additional ETF authorizations.
- Bitcoin is superior to digital gold.
I believe these reasons are enough to convince anybody. So let’s move on to the next cryptocurrency.
To know more about Bitcoin: A Beginners’ Guide To Cryptocurrency and Bitcoin
2. Shiba Inu
The second entry on our list of the top 5 cryptocurrencies is one of the best-performing cryptocurrencies of 2021.
Shiba Inu was launched in August 2020, and its meteoric development in such a short space of time is nothing short of incredible. This digital currency was valued at $0.000000000078 at the beginning of 2021, according to CoinMarketCap.
In November 2021, the same digital currency reached a peak of $0.0000312. This implies Shiba Inu achieved approximately 40 million percent in profits in less than a year of trade. Although such increases are unlikely, there is still plenty of room for growth.
Shiba Inu is listed on all major exchanges, in addition to the ongoing excitement that this crypto asset receives from the larger market. This includes not just Binance, Huobi, Crypto.com, and Coinbase, but also eToro. As a result, daily trade volumes on Shiba Inu sometimes surpass $3 billion.
We have more reasons to invest in the Shiba Inu –
- Shiba Inu is a kind of ERC-20 token.
- Shiba Inu has a thriving community.
- Support from Well-Known Individuals.
- Its non-custodial exchange offers more protection.
- The liquidity ratio is incredible.
There are several advantages to investing in Shiba Inu. It is up to you to use your best judgement when deciding where to invest your money. Now, onto the next coin.
The third entry on our list of the top 5 cryptocurrencies is the token that is famous for outperforming bear markets.
Terra is a blockchain protocol that powers price-stabilised global payment networks with fiat-pegged stablecoins. It mixes the price consistency and widespread acceptance of fiat currencies with the censorship-resistance of Bitcoin (BTC) and provides quick and economical transactions. Terra is one of the greatest cryptocurrencies to invest in for the years 2022 and beyond.
Some more reasons to invest in Terra-
- Terra’s operations rely on an environmentally friendly consensus method.
- The ecosystem is still in its early stages of development.
- Supported by reliable investors and partners.
Also, it is always a good idea to diversify your portfolio. Adding a stablecoin like Terra will prove to be a brilliant idea. Let’s move on to the next entry on our list of the top 5 cryptocurrencies.
Learn more about Terra and Luna: Luna: The Shiny New Coin
Any top 5 cryptocurrency list is incomplete without Solana.
This currency was established in April 2019 as a project focusing on the permissionless nature of blockchain to deliver DeFi solutions. This project aims to make it easier to create decentralised apps. Furthermore, it employs a hybrid form of transaction validation using a combination of proof-of-history and proof-of-stake paradigms.
More reasons to invest in Solana-
- Project with a High Rating
- Rapid Technology Adoption
- Reduced Environmental Impact
- Excellent performance over the previous several months, exceeding Ethereum and Cardano.
- Outstanding ecosystem centred on Solana applications.
- It performs well on a variety of measures, including blockchain speeds.
- A cheaper gas fee than Ethereum
There are many more reasons to invest in Solana. 2022 is going to be the year for Solana. With that said, let’s move on to our last entry on the top 5 cryptocurrencies to invest in 2022.
5. USD Coin
The last entry in our list of the top 5 cryptocurrencies is another stablecoin.
USD Coin is a stablecoin that is tied to the US dollar at a 1:1 ratio. Every token of this coin in existence is supported by a US $1 reserve. It is made up of banknotes and short-term US Treasury notes. According to the Centre consortium, which created this instrument, USDC is distributed by licenced financial entities.
Why invest in USD coin-
- Simple to transfer
- Compatibility with third-party applications
- Better security and transparency
- Stable than other cryptocurrencies
USD Coin is one of the finest cryptocurrencies to invest in 2022. Its potential is huge, and you should not miss the opportunity to invest in this stablecoin.
And, that concludes your list of the top 5 cryptocurrencies to invest in in 2022.
As with every forecast, you go in knowing it’s going to have some flaws. The preceding remarks illustrate some developing parts of the crypto world that the general public has yet to witness. If current trends continue, large brands like Bitcoin and Ethereum may waver while smaller firms capture market share.
Read More: Is Crypto A Good Investment in 2022?