10 of the best cryptocurrencies to invest in 2022

10 of the best cryptocurrencies to invest in 2022

Who among us has not heard or clashed with the noise of digital currencies in the money market, or heard about it from his friends or from the news and social networking sites. Learn about the best digital currencies to invest, as everyone is constantly talking about it and wants to take a share of its profits!

We will explore: Best cryptocurrencies to invest in 2022 like Bitcoin, LiteCoin, Ethereum, Ripple, and more!

What are digital currencies?

Cryptocurrencies are a type of “digital financial asset” or “cryptocurrency.” It does not exist in physical form (as is the case with traditional currencies such as the dollar and the euro). Cryptocurrencies are not regulated or managed by any financial authorities or banks in the same way that traditional currencies are, but they are mostly self-regulated, through the use of various cryptographic techniques.

In addition, these operations are organized online, where users in linked networks verify and confirm the occurrence of these transactions.

The emergence of what we now know as digital currencies (or cryptocurrencies) began in 2009, and it all began with the launch of Bitcoin, the first digital currency. Bitcoin was originally proposed as an electronic payment system based on cryptographic evidence.

Cryptographic evidence came from emerging technology in the blockchain - a kind of list of digital signatures that provide computational clues describing the entire transaction history of each bitcoin.

This public domain chain allows peer-to-peer transactions, without any need to assign payment processing to a third party. The lack of any kind of third party acting in a supervisory role means that Bitcoin is a decentralized digital currency. In 2009, some market commentators dismissed this new digital currency as a fad, as a transitional response to the subprime mortgage crisis that reset the global economy in 2008.

But as Bitcoin has increased in value and credibility over the years, so has interest in this new type of cryptocurrency - and the technological framework on which it is based. As more investors have embraced Bitcoin over the years, its value has skyrocketed, which in turn has led to increased interest in this asset class as a whole. This has led to an amazing increase in its value and fluctuations in its prices.

As a result of all this, a large number of altcoins have entered the arena (and in some cases left just as quickly), based on blockchain innovation or similar concepts. In early 2016, the total value of all cryptocurrencies was estimated to be around $8 billion; By March 2017, this number had risen to about $25 billion, and five years later, in 2022, the number had doubled, bringing the global market value of digital currencies to $2 trillion!

10 of the best cryptocurrencies to invest in 2022

1# Bitcoin (BTC)

It is the most popular cryptocurrency and the most traded volume, except for the stablecoins. Despite the strong increase in competition, Bitcoin remains the absolute dominator of the cryptocurrency market according to its market capitalization.

The growth in the value of Bitcoin is staggering, with the average growth in the past six years averaging over 300% and only in 2021, the digital currency advanced nearly 80%.

Some events, such as the acceptance in El Salvador of Bitcoin as the FIAT currency, have led to an increased proliferation and recognition of this asset, which some call “digital gold.”

Additionally, there are many reasons why Bitcoin could grow further in the coming years. For example, nearly 90% of bitcoins have already been mined, so if demand continues to grow and the increase in supply decreases, what will happen to bitcoin? Will it be one of the 10 best cryptocurrencies to invest in 2022?

2# Ethereum (ETH)

The second cryptocurrency in our list of the best cryptocurrencies to invest in 2022 is Ethereum, which is also the second in terms of market capitalization in 2022 ($355.5 billion at the time of writing).

What is ethereum? Ethereum (also referred to as Ethereum and ETH) is a decentralized, blockchain-based computing platform that is much more than just a currency.

A case that has been repeated year after year for over 5 years, Ethereum is always at the forefront of Bitcoin.

However, these differences narrowed significantly in 2021, as Ethereum surged five times higher than BTC.

There are many reasons why Ethereum is one of the top 10 digital currencies to invest in 2022, including:

✔️ Increased burning of circulating tokens after the EIP-1559 update.

✔️ More efficient network, less electricity consumption for mining, and higher rewards.

✔️ Generous staking programs

3# Litecoin (LTC)

Litecoin started in 2011, when it was created by Charles Lee, while he was still a Google employee. Litecoin was, for a while, the second largest cryptocurrency, gaining a reputation as the silver in bitcoin's gold. In recent years it has been eclipsed by the newer cryptocurrency even though Litecoin's primary goal was to provide an alternative to fiat currency for payments.

Although Litecoin is technically similar to Bitcoin, it offers faster transaction times and lower fees, which means that it is more suitable for small transactions.

However, Litecoin's hack was a far cry from its rival Bitcoin. Will 2022 be the year when this situation will change?

4# Stellar (XLM)

The Stellar Network and the digital currency Stellar Lumens had a very positive 2021.

XLM saw an increase of more than 102% in 2021. Similar numbers to 2020. Will XLM continue the same trend in 2022? Will it be among the best cryptocurrencies to invest in 2022?

The network is emerging as an efficient digital platform through which all digital currencies can be combined in the same wallet.

Through its services, it is possible to exchange digital currencies for currencies of common use (FIAT), which are legally acceptable, depending on the country.

Its proponents consider that since the use of digital currencies is standardized, it is possible that the use of this digital currency will grow.

It is possible to repeat the surge in price that occurred in 2017, when Stellar Lumens increased its value by more than 14,500% in just one year.

5# Dash

Dash was created with the goal of reducing transaction costs and overcoming the scalability issues of other digital currencies such as Bitcoin.

Dash represents a revolution in the traditional financial system thanks to instant payments with extremely low commissions.

Dash's focus is on Latin America, where the Dash Foundation is making efforts to promote the use of cryptocurrency through proposals such as launching the first cryptocurrency credit card in Latin America.

For this reason, some analysts believe that 2022 could be the year of Dash and be among the best cryptocurrencies to invest in 2022, in the long run.

6# Monero (XRM)

Monero definitely deserves a place on our list among the best cryptocurrencies to invest in 2022.

It is a digital currency that focuses on providing privacy to its users, which is a fundamental difference with competitors such as Bitcoin and Ethereum that use transparent Blockchains.

Currently, financial regulators around the world are looking for ways to regulate cryptocurrencies, something that could benefit Monero.

Ironically, Monero is designed to be untraceable and some analysts consider it a sleepy giant of cryptocurrency.

Will 2022 be the year this giant awakens?

7# Polkadot (DOT)

For years, blockchain has faced a scalability problem.

Scalability problems can be defined as the problems that occur when the volume of users of cryptocurrencies grows exponentially and involves performance and operational problems.

Since its inception, Polkadot has endeavored to end the scalability problem. It is a multi-hash network in which many transactions from different chains can be processed in parallel.

This hashed-chain approach was revolutionizing the crypto industry and heralded the beginning of a new era of third-generation cryptocurrencies.

Basically, the Polkadot network is much closer to the Ethereum network than the Bitcoin project.

Polkadot offers a platform that supports smart contracts and favors decentralized application development (DApps).

However, it is a simpler approach than Ethereum, both in design, programming and publishing. This is why it might be among the best digital currencies to invest.

#8 Solana (SOL)

Solana is one of the most profitable cryptocurrencies in 2021, with a growth of over 12,500% from December 31, 2020 to November 26, 2021.

It is a new digital currency and as in the case of Polkadot, it is part of the third generation of digital currencies and again due to its characteristics, it is more similar to Ethereum than Bitcoin.

However, one of the main differences between these projects is the speed of transactions. Solana can support up to 50,000 transactions per second, compared to the 10,000 that Polkadot can support; In the case of Bitcoin, only 7 transactions per second.

According to market cap, as of November 30, 2021 Solana is the 5th largest cryptocurrency. Could it be among the 10 best cryptocurrencies to invest in 2022?

9# Polygon (MATIC)

Polygon (MATIC) is a digital currency that complements Ethereum and facilitates the increased scalability and uses of this network.

The launch of NFTs (non-fungible tokens) and Decentralized Finance (DeFi) are driving the needs of the Ethereum network.

The Polygon network acts as a bypass that connects to the Ethereum network and allows these bottlenecks to be removed, thus increasing the efficiency of this network.

Some companies have joined the Polygon protocol to offer corporate blockchain solutions, among others E&Y advisor.

In 2021, the value of the digital currency grew by more than 9000%. Will Polygon be able to keep pace in 2022?

10# UNISWAP

Uniswap allows you to exchange digital currencies in a decentralized manner, using smart contracts on the Ethereum network.

The Uniswap project has introduced some revolutionary innovations in the crypto world such as liquid mining. Uniswap allows users to generate revenue by injecting liquidity into the system.

Investors inject tokens into “liquidity pools” and since these tokens are used by third parties, commissions are generated which are used to maintain the protocol and award bonuses to said pool investors.