The Seven Best Cryptocurrency to invest in for 2022

The Seven Best Cryptocurrencies To Invest In For 2022

The stock market experienced investors often advise newbies, ‘if you cannot handle being 20% down, you should not think of investing in the stock market.’ While this statement may be true for investments in the stock market, no one has said how much risk you must tolerate beginning a cryptocurrency investment. As we discuss the seven best cryptocurrencies to invest in 2022 you should also keep in mind that this list is not exhaustive. There are many other cryptocurrencies that are good and have slid Devs.

Do you know why no one has made a statement like this about cryptocurrency investments? Because the investment ups and downs in the cryptocurrency market make the noisy stock market roller coaster seem like a ride with a teacup. Investors cannot have a risk-tolerant measurement for cryptocurrency investments because the market is full of surprises; at best, you can have good risk management skills. 

Let me show you a vivid example of what I am saying. Since the beginning of 2022, cryptocurrency prices have shown a downward trend. At the beginning of May, the downward trend got deeper. Bitcoin dropped to about $26,000 even with the rise in interest rates. Even the stable coins were not left out; stable coins like TerraUSD fell in price. 

The truth is that the market is full of investment shock and surprises; the 45% decline in the cryptocurrency investment market this year was unprecedented. One thing you should learn from this decline and never forget as an experienced crypto investor is this; one of the main features of the cryptocurrency market is volatility. However, this volatility constant in the crypto investment market houses its profitability. You know the business rule, ‘the higher the risk, the higher the profit.’ 

Do you see why there are no risk thresholds for a cryptocurrency investor? Simply put, cryptocurrency investment is not for the weak at heart. Therefore, if you have the heart to ride on the waves of volatility, here are six cryptocurrencies you should look at investing in this year apart from Bitcoin.

Ethereum (ETH)

Ethereum tops the list of the choice cryptocurrency to invest in this year. There is a simple reason why Ethereum is topping the list, and here is it; most of the cryptocurrency investments that are big shots this year, including some here, are built on the Ethereum blockchain.

In the ecosystem, most meme coins today and even projects related to the metaverse are all built on the Ethereum blockchain. With all these projects running on the Ethereum blockchain, you should not need any other proof to let you know that this cryptocurrency is a big shot that is worth your investment.  

Over the years, Ethereum has proven to be a sustainable investment cryptocurrency, even though it has its own potential risk. A very known truth is this; if you are looking for a long-term investment cryptocurrency, go for Ethereum. Not only is Ethereum perfect for long-term investments, but it also can outrun other major cryptocurrencies present today.

Let me give you a perfect example of what  I am saying. Between 2016 and 2022, Ethereum has witnessed over a 32,000% increase in price. It went from $10 in 2016 to $3500 in 2022. 

With the way Ethereum is going in Value, it has a lot of room for growth in the coming days. An investor looking for a long-term investment in cryptocurrency should look at Ethereum first. Now, even with the price, the currency is still undervalued. Buying the coin now and holding it long-term can be one of the best financial decisions for you as a cryptocurrency investor this year.

Polygon (MATIC)

Polygon (MATIC) is a two-layer platform. Developers built it for the Ethereum dApp (Decentralized Applications) platform. Matic is called a Layer 2 platform for one reason, and it is very pivotal in reducing the cost of transactions on the Ethereum network. This role in transaction fee reduction has earned it a place as part of the Web3 infrastructure we have today. Developers designed MATIC to aid the development of infrastructure and assist the scaling of Ethereum. 

Polygon’s central component is a flexible and modular framework (Polygon SDK). This core part is how developers develop and integrate infrastructures like Plasma, zkRollups, Optimistic Rollups, and Validium. These infrastructures are compatible with the Polygon because they are layer two infrastructures. Furthermore, developers can link side chains that stand alone like Matic Proof of Stake (POS). The MATIC POS is the flagship project of Polygon.

In February 2021, Polygon went through a rebranding process from the process of MATIC. The Polygon started gravitating towards support for infrastructures that are Layer 2. Even with the migration of Ethereum to 2.0, the need for the sidechain approach of Polygon is still valid. The current ZK rollups of Polygon are very compatible with the new Eth 2.0. These rollups added to Eth 2.0 has given Eth 2.0 more scaling potential. It means that both today and later on, Polygon will maintain its place as the core of Web3. With all these features of Polygon, it is a choice long term crypto investment coins. The cryptocurrency is here to stay.

Binance Coin (BNB)

The Seven Best Cryptocurrency to Invest for 2022