We’ve seen Bitcoin hit multiple new all-time high prices over the past year — followed by big drops — and more institutional buy-in from major companies. Ethereum, the second-biggest cryptocurrency, notched its new all-time high late last year as well. U.S. government officials and the Biden administration have increasingly expressed interest in new regulations for cryptocurrency.
All the while, people’s interest in crypto has skyrocketed: it’s a hot topic not only among investors but in popular culture too, thanks to everyone from long-standing investors like Elon Musk to that kid from your high school on Facebook.
In many ways, 2021 was a “breakthrough,” says Dave Abner, head of global development at Gemini, a popular cryptocurrency exchange. “Tremendous focus and attention are being paid to [the crypto industry].”
If you need evidence of how volatile, consider this: As of April 11, bitcoin’s value has ranged from a low of $28,893.62 to an all-time high of $68,789.63 over the past year. Despite that volatility, many cryptocurrency investors remain on the lookout for the next big payoff. Keep reading to learn which cryptocurrencies might explode soon.
The Top 5 Best Cryptocurrency to Invest in 2022
Some tokens in our list of best new cryptos are established with a huge market capitalization, others are still up and coming. This gives you the best chance possible of creating a diversified portfolio of cryptocurrencies.
1. Bitcoin – Best Cryptocurrency to Invest in for Beginners
Beginners asking which cryptocurrency to buy in 2022 might be best to stick with Bitcoin – the largest cryptocurrency. Bitcoin has hit highs of $69,000 per token – a market capitalization of over a trillion dollars. In early 2022, Bitcoin dropped below $40,000. This means you can now buy this cryptocurrency asset at a discount. In terms of where Bitcoin can go, some market commentators believe that $100,000 is possible by the end of 2022
2. Ethereum (ETH)
Ethereum, commonly known as ether, is the world’s second-largest cryptocurrency behind bitcoin, even outperforming bitcoin recently in terms of price gains. Last year, Ethereum instituted a major upgrade that included reducing the supply of ether, currently at 120.33 billion coins. The upgrade also allows the Ethereum network to handle more transactions per second, improve the platform’s scalability and lower transaction fees.
3. XRP – Top Cryptocurrency Project That is Partnered With 200+ Banks
XRP is the digital token backed by Ripple. Ripple specializes in cross-border payments for banks and financial institutions. Facilitated via blockchain technology, Ripple and XRP transactions take no more than five seconds to process. Whichever fiat currencies are being transacted, XRP transactions typically cost a small fraction of one cent. As a result of this efficiency and cost-effectiveness, more than 200 banks are either testing or using the Ripple network to transact.
4. Binance Coin (BNB)
Binance is the most successful cryptocurrency exchange in terms of trading volumes. Like bitcoin, the Binance coin keeps a hard limit on the number of tokens in circulation — in its case, 165,116,760 tokens. This helped the token price increase exponentially in 2021. In addition, Binance puts about one-fifth of its profits each quarter into permanently getting rid of, or “burning,” BNB tokens, which raises the value of the remaining tokens. Binance has two blockchains, which reduce the kind of bottlenecks Ethereum is vulnerable to. It’s also fast and scalable
5. Dogecoin – Most Promising Cryptocurrency to Buy in 2022
Elon Musk’s constant tweets and TV appearances mentioning Dogecoin saw this crypto asset increase by over 10,000% in 2021. Since it hit highs of over $0.70 per token, Dogecoin has dropped to 2022 lows of $0.12. Although this does represent a huge decline, at these levels, you are essentially entering the market at a highly favourable discount of over 80%.
The Future of Cryptocurrency
We can speculate on what value cryptocurrency may have for investors in the coming months and years, but the reality is it’s still a new and speculative investment, without much history on which to base predictions. No matter what a given expert thinks or says, no one knows. That’s why it’s important to only invest what you’re prepared to lose and stick to more conventional investments for long-term wealth building.
