The stock market experienced investors often advise newbies, ‘if you cannot handle being 20% down, you should not think of investing in the stock market.’ While this statement may be true for investments in the stock market, no one has said how much risk you must tolerate beginning a cryptocurrency investment.As we discuss the seven best cryptocurrencies to invest in 2022 youshould also keep in mind that this list is not exhaustive. There are many othercryptocurrencies that are good and have slid Devs.
Do you know why no one has made a statement like this about cryptocurrency investments? Because the investment ups and downs in the cryptocurrency market make the noisy stock market roller coaster seem like a ride with a teacup. Investors cannot have a risk-tolerant measurement for cryptocurrency investments because the market is full of surprises; at best, you can have good risk management skills.
Let me show you a vivid example of what I am saying. Since the beginning of 2022, cryptocurrency prices have shown a downward trend. At the beginning of May, the downward trend got deeper. Bitcoin dropped to about $26,000 even with the rise in interest rates. Even the stable coins were not left out; stable coins like TerraUSD fell in price.
The truth is that the market is full of investment shock and surprises; the 45% decline in the cryptocurrency investment market this year was unprecedented. One thing you should learn from this decline and never forget as an experienced crypto investor is this; one of the main features of the cryptocurrency market is volatility. However, this volatility constant in the crypto investment market houses its profitability. You know the business rule, ‘the higher the risk, the higher the profit.’
Do you see why there are no risk thresholds for a cryptocurrency investor? Simply put, cryptocurrency investment is not for the weak at heart. Therefore, if you have the heart to ride on the waves of volatility, here are six cryptocurrencies you should look at investing in this year apart from Bitcoin.
Ethereum (ETH)
Ethereum tops the list of the choice cryptocurrency to invest in this year. There is a simple reason why Ethereum is topping the list, and here is it; most of the cryptocurrency investments that are big shots this year, including some here, are built on the Ethereum blockchain.
In the ecosystem, most meme coins today and even projects related to the metaverse are all built on the Ethereum blockchain. With all these projects running on the Ethereum blockchain, you should not need any other proof to let you know that this cryptocurrency is a big shot that is worth your investment.
Over the years, Ethereum has proven to be a sustainable investment cryptocurrency, even though it has its own potential risk. A very known truth is this; if you are looking for a long-term investment cryptocurrency, go for Ethereum. Not only is Ethereum perfect for long-term investments, but it also can outrun other major cryptocurrencies present today.
Let me give you a perfect example of what I am saying. Between 2016 and 2022, Ethereum has witnessed over a 32,000% increase in price. It went from $10 in 2016 to $3500 in 2022.
With the way Ethereum is going in Value, it has a lot of room for growth in the coming days. An investor looking for a long-term investment in cryptocurrency should look at Ethereum first. Now, even with the price, the currency is still undervalued. Buying the coin now and holding it long-term can be one of the best financial decisions for you as a cryptocurrency investor this year.
Polygon (MATIC)
Polygon (MATIC) is a two-layer platform. Developers built it for the Ethereum dApp (Decentralized Applications) platform. Matic is called a Layer 2 platform for one reason, and it is very pivotal in reducing the cost of transactions on the Ethereum network. This role in transaction fee reduction has earned it a place as part of the Web3 infrastructure we have today. Developers designed MATIC to aid the development of infrastructure and assist the scaling of Ethereum.
Polygon’s central component is a flexible and modular framework (Polygon SDK). This core part is how developers develop and integrate infrastructures like Plasma, zkRollups, Optimistic Rollups, and Validium. These infrastructures are compatible with the Polygon because they are layer two infrastructures. Furthermore, developers can link side chains that stand alone like Matic Proof of Stake (POS). The MATIC POS is the flagship project of Polygon.
In February 2021, Polygon went through a rebranding process from the process of MATIC. The Polygon started gravitating towards support for infrastructures that are Layer 2. Even with the migration of Ethereum to 2.0, the need for the sidechain approach of Polygon is still valid. The current ZK rollups of Polygon are very compatible with the new Eth 2.0. These rollups added to Eth 2.0 has given Eth 2.0 more scaling potential. It means that both today and later on, Polygon will maintain its place as the core of Web3. With all these features of Polygon, it is a choice long term crypto investment coins. The cryptocurrency is here to stay.
Binance Coin (BNB)
Binance finally skyrocketed in 2021 after maintaining a level price for years. The coin went from $38 to $683 between January and May. Binance coin has gotten its place among the topmost stable investment coins because of its performance in the last couple of years. According to CoinMarketCap, Binance is the largest crypto exchange today. People who live in the United States cannot use any other version of Binance except the US version.
Binance has shown tremendous functionality and success in the last couple of years, but it is still a volatile investment cryptocurrency coin. This year, Binance paused deposit and withdrawal for some networks temporarily. These networks included Polygon and Solana networks. The reason for this temporary pause was for upgrade implementation.
Something similar to this happened on the 8th of April this year. Although, the April pause did not affect airdrops. Binance, unlike other cryptocurrency investment coins, was created by a company, not a group of developers. The cryptocurrency and exchange is a big shot for long-term cryptocurrency investment. Although, some skeptics still worry about the security issue that Binance may face in the future.
Cardano (ADA)
This cryptocurrency has a network with footprints that are not very big. The prints, although small, appeal to the appetite of potential experienced investors. Here is the reason this small footprint appeals to investors; unlike bitcoin, which requires more energy, Cardano needs lesser energy for transaction completion on the Cardano network. It means that transactions on the Cardano network will be faster and cheaper.
Cardano went through an upgrade last year by launching a hard fork. This hard fork aims to heighten the functionality of the network and activate the deployment of smart contracts. Cardano is very secure and adaptable, and it is constantly upgrading and improving. By all means, Cardano wants to stay ahead of hackers. With these, Cardano found its way to the top of the best cryptocurrencies to invest in this year. If you are looking for a cryptocurrency with long-term investment profitability, you have to consider Cardano as an option.
Avalanche (AVAX)
Avalanche is a programmable and open intelligent contact platform that decentralized applications can run on. Another description that suits Avalanche is a layer one decentralized application blockchain network. Avalanche also accommodates custom blockchain networks. It shares similarities with Ethereum in terms of methods of functionality.
Even with similar functions to Ethereum, it has some unique features that single it out as a valuable and unique platform in the cryptocurrency ecosystem. Avalanche is a strong Ethereum rival, and it aims to become the leading blockchain for smart contracts. Avalanche gives improved scalability when with comparison networks like Ethereum and Bitcoin. Without compromising its scalability, Avalanche can perform 6500 transactions in one second.
With all these beautiful features, you can see that Avalanche is a highly profitable investment. Look at the price trend of Avalanche as an example. Between 2020 and 2022, AVAX has witnessed up to a 2200% price increase. The price went from $4 to $98 between July 2020 and April 2022.
Polkadot (DOT)
This cryptocurrency is the creation of the Web3 foundation of Switzerland. It is a blockchain technology with an open-source system. Polkadot aims to create a decentralized web that is user-friendly and highly functional. Polkadot started in 2020 as a banking business solution software built using cryptocurrency technology.
Apart from being a part of Web3, Polkadot is a Gavin Wood product. Gavin Wood is a member of the team that founded Ethereum. This association with Ethereum is why Polkadot is commonly called the Ethereum killer. The native coin of the Polkadot network is DOT. Polkadot gained its place in the list of top investment coins because of its features. Polkadot can interact with more than two different blockchains.
It is not as though Polkadot is the only blockchain network with this idea, but it is the only network living this idea. With all these features, you will see that this cryptocurrency has potential. Just like Ethereum, investors currently undervalue Polkadot. A crypto investor who wants to make a high profit on coins similar to Ethereum will seize the opportunity and invest long-term in Polkadot.
