Cryptocurrency is acknowledged as a good long-term investment given its growth trend, but a poor short-term investment due to market volatility. Here is a list of the top cryptocurrencies you should consider investing in during 2022:
1. Bitcoin (BTC)
Current Market Cap: $718 billion
Bitcoin was the first cryptocurrency created. According to the creator of Bitcoin, Nakamoto, it was created to enable “online payments to be sent directly from one party to another without going through a financial institution.” It is of the highest value and market cap, is most widely accepted as a form of payment, and is moving towards becoming more environmentally friendly.
2. Ethereum (ETH)
Current Market Cap: $330 billion
Ethereum enables users to create their own cryptocurrency using the Ethereum blockchain. It is particularly innovative as it has the benefits of NFTs and ‘smart contracts,’ which have become platforms for other apps. It is moving away from mining and into proof-of-stake-based consensus. Though, Ethereum is a more expensive platform to use.
3. Binance Coin (BNB)
Current Market Cap: $62 billion
Binance is one of the more stable cryptocurrencies and the largest cryptocurrency exchange in the world. This coin provides investors the greatest flexibility in usage and can be exchanged for other cryptocurrencies. It’s useful for booking travel, custom API keys, and custom investor charting, to name a few functions. One downside is its creation by a company, which opens up the possibility of security breaches.
4. Solana (SOL)
Current Market Cap: $28.7 billion
Considered by some to be the most popular cryptocurrency, Solana is the most user-friendly, enabling investors to transfer larger sums at far quicker speeds and keeping digital wallets safe. It is also cheaper than other cryptocurrencies, but not necessarily more stable.
5. Terra (LUNA)
Current Market Cap: $27.1 billion
Terra stablecoins work uniquely to balance market fluctuations by tying its value to two coins: terra stablecoins and luna. Based on changes in their values, users sell one to buy the other and keep the two stable by linkage as a result.