A cryptocurrency is a form of digital money that is not controlled by a central authority, such as a government. It is instead based on blockchain technology, with bitcoin being the most widely used. While bitcoin can be used to make purchases, most people consider it to be a long-term investment. Before you buy in, make sure you understand what you’re getting yourself into. That being stated, here are eight of the most promising cryptocurrencies for investing in 2022
8. Chainlink (LINK)
Chainlink employs a decentralized oracle network to enable secure interactions between blockchains and external data feeds, events, and payment mechanisms, with the developers hoping that smart contracts would become the de facto means of digital payment. Despite its demonstrated utility and widespread acceptance, chainlink has been subjected to the same level of volatility as other cryptocurrencies. Its value plummeted from almost $20 on January 1 to a little over $8.25 on May 11.
7. Avalanche (AVAX)
Avalanche is a new “layer one” blockchain, which upgrades the fundamental protocol in order to make the system more scalable. The three blockchains that makeup Avalanche may each validate transactions independently. As a result, Avalanche becomes more scalable and capable of handling high volumes of transactions. AVAX began trading in a 24-hour initial coin offering (ICO) in 2020. Over the last year, its price has ranged from $9.34 to $146.22.
6. Terra (LUNA)
The Terra blockchain uses stable coins to power global payment systems, which are coins that are pegged to fiat currencies like the US dollar and the International Monetary Fund’s Special Drawing Rights currencies. Its native coin, LUNA, stabilizes the prices of the blockchain’s stablecoins and serves as a governance token that gives holders a voice in decisions that affect the Terra network.
5. Polygon (MATIC)
Polygon was established by a group of developers who contributed significantly to the Ethereum blockchain platform. It expands Ethereum into a multi-chain system as a “layer two” solution, allowing for faster transaction and verification speeds. Binance and Coinbase, two cryptocurrency exchanges, have backed Polygon. MATIC, the company’s token, is utilized for payment services, transaction fees, and settlement.
4. Cardano (ADA)
The Cardano network has a smaller footprint, which appeals to investors for a variety of reasons. On Cardano, completing a transaction takes less energy than on a larger network like Bitcoin. As a result, transactions are both speedier and less expensive. Cardano might not be able to compete with other established cryptocurrencies. Most investors want to see a high adoption rate, thus this isn’t tempting to them.
3. Binance Coin (BNB)
After years of relatively stable pricing, at least by cryptocurrency standards, the Binance coin took off in early 2021, rising from around $38 on January 1 to a high of $683 in May. The cryptocurrency trading platform Binance is currently the largest in the world. Binance has delayed deposits and withdrawals for specific networks while it completed updates, which investors should be aware of.
2. Ethereum (ETH)
Ethereum is a network that allows developers to use it to generate their own currencies. While ethereum is far behind bitcoin in terms of value, it is also considerably ahead of its rivals. It is the most widely used blockchain and the second-largest cryptocurrency in the world, after bitcoin. It stands to gain much more ground once an upgrade dubbed “The Merge” is released.
1. Bitcoin (BTC)
Bitcoin has the longest history of any cryptocurrency. With a price and market size far larger than any other crypto investment option, it’s clear to see why it’s the leader. Because Bitcoin is already accepted by a significant number of companies, purchasing it might be considered a safe investment. The price could fluctuate by thousands of dollars. If you’re worried about dramatic changes like these, you might want to stay away from bitcoin. Otherwise, as long as you remember that cryptocurrencies could be a solid long-term investment.