Best cryptocurrencies for investment in 2022
- George Solotarov
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When the underlying cryptocurrencies are at their lowest values, this is the "golden time" for investment purchases. Despite optimistic yield expectations, the decision to buy cryptocurrencies now comes with certain risks. Keep in mind that cryptocurrencies can still decline before the price goes up. Experts recommend choosing reliable coins with good signals for growth in the near future, as well as being ready to invest in the long term without panicking over short-term price fluctuations.
1. Ethereum (ETH)
Ethereum is one of the most attractive options for investment. The project has become even more promising after updating to Ethereum 2.0. The updated blockchain can process up to 100,000 transactions per second, easing the burden on the previous version, which created only 30 transactions per second.
The meta-universe boom has also contributed to Ethereum's growth. Support for the meta-universe helps grow the blockchain's audience and gives more opportunities for smart contracts. Over time, as the meta-universe grows, so will Ethereum coin prices.
Experts predict Ethereum's value will rise in the coming years. It is one of the best options for building a long-term investment portfolio.
2. Bitcoin (BTC)
Bitcoin, the most famous cryptocurrency, is on par with Ethereum when it becomes a question of long-term investments in crypto-assets. Like Ethereum, it has a number of features that support Bitcoin's high value:
An effective measure against inflation and declining quotes is halving - halving the amount of bitcoins miners receive as a reward for a mined block. Halving is done every four years. In the long term, the reduction in the number of coins available for purchase drives up prices and ensures stable demand.
The Lightning Network is a second layer for the Bitcoin blockchain, providing more efficient transaction execution. It uses micropayment channels for this purpose. This network includes multiple payment channels between parties or bitcoin users.
The clear advantages of the Lightning Network are faster and cheaper transactions between participants, which allows micro-payments to grow in popularity among ordinary users. Customers do not have to pay large fees for simple transactions and wait a long time for approval of the application.
Now many large investors, financial institutions, or even some governments are transferring some of their monetary assets into Bitcoin to diversify risk and provide passive growth in the value of payment assets.
Since the beginning of 2022, Bitcoin cryptocurrency quotes have fallen from $60,000 to $20,000 per unit. According to experts, now is the best time to buy Bitcoin at a bargain price for long-term investments.
3. Solana (SOL).
Although the Solana blockchain is less well-known, this project deserves the close attention of investors. The developers have created a technology that significantly reduces the time to synchronize nodes on the blockchain. Solana algorithms are used to develop and scale decentralized applications (dApps) Users of the Solana ecosystem are able to make fast transactions with minimal commissions within the network, as well as receive tokens via stacking, when the PoS algorithm automatically distributes coins among participants. Due to blockchain disruptions in June 2022, Solana's token quotes have dropped significantly, with the cryptocurrency trading at $35.7 per token in September 2022. Financial analysts predict multiple increases in the price of this cryptocurrency in the coming years, so Solana is worth adding to your investment portfolio.
4. Polkadot (DOT).
Currently, Polkadot is a powerful ecosystem, including two functioning parent blockchains, several dozens of subsidiary projects from different industries, and a DOT token, which is one of the top ten cryptocurrencies with the highest capitalization level. The Polkadot network integrates blockchains into a single space with the ability to quickly and securely exchange data between nodes. The developers of the project implemented the possibility of creating networks of other projects (parachains) based on their blockchain. According to cryptoanalysts, this ecosystem has enormous potential, and DOT token quotes could grow significantly in the coming months.
The maximum price for DOT coins was recorded in May 2021 at $49.69 per token, and the capitalization of the project reached the level of $43 billion.
5. Ripple (XRP).
One of the most promising assets for investment purchases is the XRP token, a payment instrument of the huge Ripple network that could compete with the VISA service in the coming years. The XRP token was developed as an affordable alternative to bitcoin with the ability to make instant, secure, and inexpensive financial transactions within the system. The Ripple network is easily integrated to connect any financial institution - bank branches, payment providers, crypto exchanges, and others. Clients of the network can make settlement transactions in real-time and reduce transaction fees. The Ripple project is among the top systems with the largest market capitalization, with more than 50 of the world's leading financial players among its users. Experts estimate the XRP token as a cryptocurrency with significant potential. In September 2022, the coin is quoted at $0.352 per token.
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