In 2022, investing in cryptocurrency is absolutely a common topic on the news and in discussions relating to finance. People talk about it non-stop, especially since the spike in Bitcoin and many other tokens’ prices. Therefore, joining this venture is very attractive.
But, there’re now thousands of digital tokens. “Which cryptocurrency should I invest in 2022?” You may have had this question in your head thousands of times. So today, we’ll share with you the 7 best tokens for a strong, diversified portfolio.
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1. Bitcoin (BTC)
Bitcoin is, without question, the first cryptocurrency that you should think about while looking for one to invest in 2022. If you’re a beginner, you’re recommended to stick with this largest cryptocurrency. Created in 2009 by an anonymous founder known as Satoshi Nakamoto, Bitcoin is the original cryptocurrency. Since then, it has become the most widely known and used crypto up to date. As the first crypto to record transactions on a decentralized blockchain, Bitcoin has the purpose of revolutionizing traditional financial systems: Without the need for a third party, transactions are kept secured from fraudsters.
What makes Bitcoin worth an investment? It has a high market share, accounting for more than 60% of the market cap. It has the highest liquidity, so you have no difficulty selling the currency. Last but not least, Bitcoin can be regarded as the most stable cryptocurrency.
2. Ethereum (ETH)
Ethereum is not only a cryptocurrency but also a blockchain platform. When it comes to market capitalization, Ethereum is the second-largest digital token. Vitalik Buterin co-created this cryptocurrency in a project launched in 2015 to introduce smart contracts. Smart contracts are automatically executed only when the conditions set in code are met and allow program developers to launch decentralized applications (dApps) on top of the blockchain. In fact, most well-known dApps, NFTs, and security tokens are built on the Ethereum blockchain.
As the current leader of smart contract platforms, with its token being highly liquid and stable, Ethereum must be one of your investment considerations. The expected ETH2.0 upgrade by the end of 2022 also promises reduced transaction fees, sustained scalability, and an improved network.
3. Ripple (XRP)
XRP is another option for you if you’re searching for what crypto to invest in in 2022. Like Bitcoin and Ether, it has observed tremendous growth and turned out to be the third biggest token by market capitalization. XRP can be used on Ripple, the digital payment network created by a namesake company. Ripple is a global remittance platform specializing in cross-border payments for banks and financial institutions. It can be used to facilitate exchanges of different currency types, like fiat ones, with a small fraction cost of one cent. Thanks to the cost-effectiveness, numerous companies, including MIT, widely adopted Ripple as a legitimate payment form.
It would be a miss not to invest in Ripple, especially if you want to make fast and secure international payments. For more information, the price of XRP has risen by 10,000% in February 2022 from that of 2017, reaching $0.62.
4. Cardano (ADA)
Until now, Cardano has been a considerable competitor of Ethereum. Like Ethereum, it enables smart contracts and dApps. The smart contract feature rolled out on Cardano at the end of 2021 actually enables Cardano to compete with the second biggest token and offer developers a robust, scalable, and efficient blockchain platform.
Early embracing proof-of-stake (PoS) validation, Cardano can operate with considerably low gas fees and consumes less electricity than Bitcoin and Ethereum. Besides the environmental benefits, saving transaction time is an additional plus of this network with its native coin, ADA.
If you’re finding a way to hedge against Ethereum, ADA is a good investment. It has seen high trading volumes and a steady developing ecosystem recently, so there is no need to worry about the secondary market. When it comes to technology, you can be reassured as the co-founder, Charles Hoskinson, leads IOHK, a frontier in research and development facility for blockchain.
5. Litecoin (LTC)
Our list of what crypto to invest in 2022 cannot miss out on Litecoin, an early alternative to Bitcoin. Created by Charlie Lee in 2011, a Google employee, Litecoin is modeled on the Bitcoin framework yet has improved upon Bitcoin’s technology: It processes transactions 4 times faster at a rate of 2.5 minutes per block.
You can try investing in this peer-to-peer digital token, or a lighter version of Bitcoin, considering its lower fees and fast transaction feature. For your information, Litecoin has had a stable reputation and a large market cap since its creation. This indicates extreme liquidity for Litecoin.
6. Polkadot (DOT)
Despite being launched just in 2020, Polkadot has impressive growth and has its token DOT the 10th biggest digital asset by market cap. Aiming to integrate any number of blockchains and solve the issue of blockchain congestion, Polkadot utilizes heterogeneous multichain, or parachains. Polkadot is a secure, scalable, and interoperable network that connects various blockchains to work together. The innovative design also promises to help transactions be more private and efficient.
7. Celadon Coin (CELA)
Celadon Coin is the final candidate for you as a future generation of cryptocurrency implementing the latest technical aspect of blockchain technology like cross-chain bridging solutions. The native token of CELADON, CELA, serves as a link between the Ethereum, Binance Smart Chain, and Polygon networks. Besides enabling users to transfer their digital assets among blockchains via a low-cost, clutter-free network, CELA also makes use of the ultra-fast transaction execution speed of 35 per second.
For your confidence in investment, Celadon Coin is founded by Adam Widelka, a crypto space expert who has come up with the innovation of swapping tokens between ERC-20 and BEP-20; in other words, any amount of networks.