Top 4 cryptocurrency to invest in 2022
In recent years, thousands of different cryptocurrencies have entered the market, with Bitcoin and Ethereum leading the pack. As the popularity and adoption of cryptocurrencies continue to grow, so does the interest from investors and speculators. The cryptocurrency market is still in its early stages, and is highly volatile, making it an attractive proposition for those looking to make a quick profit.
The question on everyone’s mind is, which cryptocurrency will emerge as the leader in the space? Bitcoin, the original cryptocurrency, has the first mover advantage and the largest market cap, but at the same time, it is also the most expensive and hardest to mine. Ethereum, on the other hand, is cheaper and easier to mine, but still has a relatively small market cap. So, which cryptocurrency should you go for? Before you go watch the YouTube review and start buying, here is a list of the cryptocurrencies to invest in for the year 2022
Bitcoin (BTC)
Bitcoin is the original cryptocurrency, and is still the king of the space. It has the largest market cap and is the most expensive cryptocurrency, so it is definitely not for everyone. However, if you are looking to invest in a cryptocurrency with the highest potential return, then Bitcoin is the way to go.
Bitcoin’s all-time high was over $68,000 on November 10 2021, and it is currently trading at around $40,000. The last year was a roller coaster ride for Bitcoin, with its value almost doubling from January to March, only to crash down to $30,000 at the end of May.
However, the price isn’t the only factor that speaks for Bitcoin. The cryptocurrency has been around for over 12 years and has proven to be a reliable store of value. Many companies now accept Bitcoin as a form of payment, and its adoption is only going to grow in the future. That being said, it is still one of the safer investments in the cryptocurrency space.
Ethereum (ETH)
When talking about Bitcoin, you can’t help but mention Ethereum. The two cryptocurrencies are often compared to each other, but they serve different purposes. While Bitcoin is a store of value, Ethereum is a platform for decentralized applications such as NFTs.
Ethereum is the second-largest cryptocurrency by market cap and is currently trading at over $2,500. Ethereum had a great year in 2021, similarly to Bitcoin peaking in May and November. However, thanks to its extensive ecosystem, Ethereum is much more resilient to price fluctuations and, furthermore, is expected to increase its value in the long term.
If you are looking for a cryptocurrency with a bright future, then Ethereum is definitely a good option. The Ethereum network is constantly evolving, with new features and upgrades being added on a regular basis. As more and more decentralized applications are built on Ethereum, the demand for ETH will only grow, which in turn will drive up the price.
Tether (USDT)
Many cryptocurrencies rely on open market prices, which can be highly volatile. Tether, on the other hand, is a stablecoin – a cryptocurrency backed by a reserve asset, in this case, the US dollar. This means that each Tether token is worth $1, and with that, its price is very stable. So, Tether may not be the best investment if you are looking to make a quick profit, but it is a good option if you want to hedge your investment portfolio or make payments in cryptocurrency without having to worry about the price fluctuations.
Why should you invest in Tether? It won’t increase its value in the long term, but it is a very safe and reliable investment. Tether is often used as a medium of exchange on cryptocurrency exchanges, as it can be easily converted into other cryptocurrencies. Thanks to its nature, many exchange platforms list Tether as one of the base currencies, which further increases its utility and ensures its stability on the market.
XRP (XRP)
XRP is the native cryptocurrency of the Ripple network, which is a payment processing platform. The Ripple network is used by major financial institutions such as banks and payment processors to send and receive global payments. Thanks to its efficiency and low costs, the Ripple network is quickly gaining adoption, which is reflected in the price of XRP.
XRP is currently trading at around $0.70, which may not be a significant increase from the last year’s market crash. However, as the SEC lawsuit against Ripple is expected to be resolved later in 2022, the value of XRP can multiply. The verdict is yet unknown, and there aren’t any certainties that XRP will succeed, but if you take the risk and the lawsuit is resolved in Ripple’s favor, your investment can yield a great return.
Final thoughts
The cryptocurrency market is full of coins with high potential. However, as an investor, you should always remember to do your own research and never invest more than you can afford to lose. The investments mentioned in this article are only a starting point, and there are many other great options out there.
When choosing a cryptocurrency to invest in, always remember to consider the project’s fundamentals, the team behind it, the community’s sentiment, and the overall market conditions. You don’t want to sink your money into a project that is bound to fail, so make sure to do your due diligence before investing.
