You know the deal, new year, new you, and it’s time to refresh your finances! Whether you are new to investing in the 2022 year, or you are a seasoned investor looking to grow your portfolio, it’s important to invest in cryptocurrencies which are quickly taking the world by storm.
It’s important to note, however, that not all cryptocurrencies are the same. And investing in the wrong token, like the Squid Games token could cause you to lose all your money. This is why it is absolutely necessary that you research every cryptocurrency you intend to buy before you buy it.
We’ve done some of the work for you, and below are some of the best cryptocurrencies to buy in the coming year. Keep reading so you can know what cryptocurrency to add to your portfolio in 2022.
First and foremost, if you don’t own Bitcoin yet, why not? Bitcoin has a track record that proves that it can do anything. From being worth a fraction of a cent, to hitting a high of over $60,000 USD in 2021, Bitcoin has long proven that it is on its way to the proverbial moon.
Of course there is still a chance that Bitcoin could go to zero tomorrow, but with the number of countries adopting the currency as their national currency (El Salvador) and many retailers accepting it as payment, you really can’t go wrong with an investment in Bitcoin. Plus, as inflation continues to climb to unreasonable highs, an investment in Bitcoin is much safer than a fiat investment, as it is possible to beat inflation with Bitcoin.
If you can’t afford a whole Bitcoin, feel free to buy a partial one. Then just remember not to panic, as owning cryptocurrency has it’s many ups and downs. When you buy Bitcoin, you are buying from the long run, so make your purchase and hold on!
The year 2021 was a rough year for Ethereum. It was the slated to be the end of their conversion to Ethereum 2.0, but like any other digital project, it was delayed. Again and again. Some investors began to lose faith and cashed out, looking to put their money in a coin which was making progress more quickly causing a rough ride for investors and users alike.
Despite the growing pains, Ethereum really is becoming a bigger and better blockchain. Besides just converting to a proof of stake mechanism which will allow transactions to process more quickly, Ethereum is also expanding its capabilities through NFTs, which exploded in 2021. Bitcoin used to be the only household name when it came to cryptocurrencies, but after 2021 many people know Ethereum too. And in the cryptocurrency world, this is generally a good thing when it comes to adaptation.
Gas prices are a little high right now, and it will be interesting to see how the team behind Ethereum solves all the problems the blockchain is currently facing. But overall, if they can solve the problems, it is highly likely that Ethereum will also climb in price. Therefore this is another long term investment strategy.
The reality is, Ethereum is becoming more and more a part of our world, so regardless of how you feel about it right now, your portfolio in 2022 should definitely contain at least some Ethereum.
It is very rare that a cryptocurrency coin comes close to rivaling the big two, Bitcoin and Ethereum, but Solana has proven time and time again that it is here to stay. While Solana is not as well-known of a project as Bitcoin and Ethereum, it may just be the answer the world is looking for.
Bitcoin and Ethereum are great, but one thing these blockchains lack is speed. This is where Solana comes in, as it can perform all the capabilities of the Ethereum blockchain while also processing transactions at a rate of 50,000 per second—much faster than its two main competitors. Solana is also cheaper, making it easier for beginning investors to hold an entire coin.
Although an investment in Solana is probably solid, it is still risky, as Solana has yet to prove that it can get the same level of interest and development as Ethereum. Of course it is newer, so it should be given time to do so. But so far, the returns on Solana have been good, and the program behind the cryptocurrency is solid, meaning you should give it a second look this year.
When looking at altcoins, you have to be very careful before you buy as this area is riddled with scams. But one coin which is shining above the others is Polkadot, which is a cryptocurrency that is used to increase compatibility between blockchains.
The reason this coin made the list is because as Bitcoin and Ethereum become busier, a program like Polkadot will become more in demand. The problem with this cryptocurrency is that, although it has a unique feature, it is in the same space as Solana and Ethereum. This means it faces lots of competition in its growth. Regardless, it has shown impressive growth in price since its inception and is probably a decent asset to add to an investment portfolio.
As of the writing of this article, Polkadot is the cheapest asset on this list, and while it may seem easier for new investors to buy in, it is not recommended that a beginner invest in Polkadot as it is riskier than investing in Bitcoin or Ethereum, which are more established projects.
Remember that any investment in cryptocurrency carries inherent risk and you shouldn’t invest any money you don’t intend to lose.
Overall, regardless of what you decide to invest in during 2022, the important thing is that you do invest, and you research any investments you want to place money in. As inflation continues to climb, you are better off investing in Bitcoin than you are most fiat assets, so don’t wait, and invest in cryptocurrency today.