Although there are many articles about investing on our blog, so far none of them have dealt with cryptocurrencies, despite the fact that they have become very popular over the past 2 years. Which ones are worth buying? While we will try to point out the best crypto to buy now, we encourage you to do your own research if any of the suggestions interest you.
Although cryptocurrencies are fashionable now, you need to keep in mind the high volatility of their prices. It's quite unlikely that cryptocurrencies will become worthless, but before you see profits, the value of your portfolio may temporarily drop very low.
Crypto BTC - Bitcoin
Bitcoin is one of the oldest cryptocurrencies. It may not offer modern solutions like Cardano or Polkadot do, however, Bitcoin is the real king. Its ATH is $68744 and this is an absolutely unparalleled value when compared to stock and commodity prices. Such a high price does not at all mean that you have to be a millionaire to invest in Bitcoin. As with other cryptocurrencies, you only need about $20.
Bitcoin is the best crypto to invest in as a novice. Why? Because it is relatively stable. Although the potential returns are smaller than for Ethereum and Binance Coin, every investor should invest at least a few pr in Bitcoin. In addition, Bitcoin is a good asset to protect against inflation. The maximum number of coins is fixed in advance and will never exceed 21 million, so over a period of several years, its price will seek to rise.
ETH - Ethereum
Even though Ethereum's market cap is less than half of Bitcoin's MC, and therefore the investment risk is even higher, ETH is one of the best crypto to invest in. In mid-September, there was a change in Ethereum's fundamentals, which from now on will not require a lot of computing power to validate transactions (ETH 2.0).
Ethereum is not only a cryptocurrency, but also a blockchain platform. Developers love it for its huge potential. Smart contracts and NTFs are just some of its advantages. Ethereum prices are dependent on Bitcoin prices, but are more volatile, so you should have at least some experience in investing to be prepared for the dynamically changing value of your portfolio.
If you don't want to buy real coins, you can invest in ETF's`, offered by many brokers. Of course, there are also ETF's and CFDs on Bitcoin.
USDT - Tether
The tether exchange price is unchangeable. It is the so-called stablecoin, which always has a value of $1. What is the point of this cryptocurrency? It allows you to accumulate money that your bank doesn't know about, and in some situations it allows you to avoid paying tax, as stablecoins are not considered real money, although they have the same value as a dollar.
If you are still considering the best cryptocurrency to invest in 2022 and are waiting for opportunities, you should consider accumulating USDT. This way you will be able to convert them to Bitcoin, Ethereum or Luna in a few minutes, and at the same time your funds will be safe, because the Tether exchange rate is fixed.
BNB - Binance coin
It is the native currency of the largest crypto exchange in the world - Binance. BNB allows you to pay transaction fees and exchange fees on the site.
Binance coin was created in 2017, but it has already managed to gain gigantic popularity. Although its initial price was just 10 cents, by April 2022 it was as high as $450. Surprisingly, despite its rather low market cap(~$70 billion), binance coin has proven to be more stable than Bitcoin, making BNB a good candidate to be named the best cryptocurrency to invest in 2022.
Although BNB is a cryptocurrency, it may be similar to stocks. If you have read our article on investing in stocks, you will surely remember that the stock price depends on the popularity of the company and the situation in its industry. BNB is strongly associated with the Binance exchange, so if the value of that company increases, BNB also becomes more attractive. In addition to Bitcoin, this is the best crypto to invest for risk averse people.
ADA - Cardano
Cardano is a very underrated project. Although developers have implemented plenty of excellent features in it, such as Proof-of-Stake validation, smart contracts and decentralized applications, Cardano's price has never been impressive. At the time of its market debut, it was $0.02, while ATH was $0.44.
Due to its very small market cap of only $15 billion, Cardano is very volatile. There is a risk that ADA will never reach spectacular prices, but perhaps it is the top crypto for 2022, precisely because of its current low value. Consider Cardano as an interesting, albeit risky, investment with fairly high future potential.
DOT - Polkadot
This is a very interesting project that was established in 2016. Its uniqueness comes from the fact that Polkadot is designed to connect different blockchains. It is also used to exchange data and process transactions for parachains. This makes it possible to create custom blockchains that benefit from the security features of the entire Polkadot network.
DOT is a groundbreaking project, just like Ethereum, and we mention this cryptocurrency for a reason. ETH and Polkadot share a common creator, Gavin Wood. Both currencies also have in common the lack of a specific coin limit, which may or may not augur the problems that happened to Luna.