Despite some regulatory roadblocks and criticisms from policymakers, we know for sure cryptocurrencies are here to stay. It could be considered as the revolution in the global payments network and play a crucial role in the economy. Looking from that perspective, it offers a lucrative option for people looking to diversify their investment strategy for wealth building. As the year nears the end, such people must be wondering what could be the best cryptocurrencies to invest and hold in 2022 or what could be the next big cryptocurrency?
If we look at such lists, we find it very common that the next big cryptocurrency to invest in 2022 is the ones that already had a grand slam home run. We still believe a lot of them can still be considered as the best cryptocurrency to invest in 2022 for the long term and definitely one can. But we try to make our list of top 10 cryptocurrency 2022 that offers much higher potential upside than the ones like Bitcoin, which is still the best of best but already made a lot of money.
What are the most profitable Cryptocurrencies to invest in 2022?
Ethereum becomes the top next big cryptocurrency on our list. There is no doubt it has already been proved as a winner. However, we still believe it has a long way to go given the fact that it allows developers to create their own cryptocurrency. Its potential applications like the so-called smart contracts to automatically execute when conditions are met and non-fungible tokens (NFTs) are something to hold on to for the long term in the crypto world.
Binance Smart Chain, BNB
Binance, the world’s largest exchange for trading cryptocurrencies, first launched Binance Coin in 2017 as an ERC-20 token on the Ethereum blockchain. It was created as a utility token that could help users of the exchange pay lower fees if they used the token for transactions. Binance coin then changed to Binance Smart Chain in late 2020. It’s a smart contract-enabled blockchain network with an aim of creating a decentralized financial (DeFi) ecosystem.
BNB comes in our list of the next big cryptocurrency because it made huge progress in catching up with Ethereum in terms of the trading volume. This is because both have similar applications supporting decentralized exchanges, however, they operate on distinct consensus mechanisms.
BNB can now be used for trading, payment processing, or booking travel arrangements. It can also be traded or exchanged for other types of cryptocurrencies like Ethereum or Bitcoin.
Solana is a newcomer in the crypto world but it’s one of the fastest-growing cryptocurrencies in 2021. In 2021 so far, the growth in its price (~15,000%) has, in fact, surpassed that of Ethereum (which is grew ~500%) and Bitcoin (up by ~95%). But why? It’s because it shares similar features with Ethereum. It’s a smart-contract platform that lets developers build decentralized applications (dApps) on the blockchain. It hosts more than 400 projects that range from DeFi to NFTs.
Polkadot is a new cryptocurrency but it threatens other popular cryptos like Ethereum due to its interactive nature. Polkadot offers parachains, which are a series of connected blockchains. It created protocols that allow developers to interact with other blockchains. Its flexibility increases the ability to serve specific requirements. It lets developers link blockchains to its system and help create entirely new blockchains.
Investors always flock to new cryptos when they see developers preferring their technology over others due to several unprecedented advantages. Hence, it is definitely one of the notable cryptos to buy before 2022 or afterwards.
Ripple’s XRP cryptocurrency is counted among the four major cryptocurrencies in the world, the others being Bitcoin, Ethereum & Tether. The journey of XRP Cryptocurrency aka Ripple can be traced back to 2004, 5 years before Bitcoin’s launch.
Most private cryptocurrencies like Bitcoin are used to buy goods & services. However, XRP is used as a settlement currency for cross-border payments between banks around the world. Existing settlement systems mainly use US dollars as a common currency for converting different currencies and take up to 3 days to complete the process. In the XRP-based system, the value of the transfer is converted into XRP, instead of USD. It is being used for the transfer of other currencies as well as commodities like gold or oil over the Ripple network.
Investing in XRP could be a good move. Its niche use in international money transfers makes it another next big cryptocurrency. It can also facilitate cross-border transactions at high speed & extremely low cost, which is 0.0001 XRP for each transaction.
Cardano, whose ticker symbol ADA is inspired by the name of English mathematician Ada Lovelace, has been gaining popularity due to its proof-of-stake validation. The POS mechanism expedites transaction time and decreases energy usage cum environmental impact by eliminating the problem-solving aspect of the transaction verification process as done in platforms like Bitcoin.
Moreover, ADA follows the most popular crypto Bitcoin as it has a fixed supply. The token supply of Bitcoin is capped at 21 million while Cardano has an arbitrary value of 45 billion in its supply cap. Currently, there are ~31 billion ADA tokens in circulation.
Polygon MATIC is one of the biggest successes in the crypto world in 2021. It was launched in 2017 while the network was renamed as Matic in Feb 2021.
It provides a framework for creating and building interconnected blockchain networks when it comes to setting up smart contracts. The most common platform for using smart contracts is Ethereum. However, Ethereum has a problem of slowing down or delaying transactions due to too many users for DApps.
Matic seems to fix these issues with a technology called Plasma. It can move transactions quickly with being slowed down due to a huge number of DApp users and developer base despite using the general Ethereum technological ecosystem. Analysts believe internal developments and upcoming partnerships might aid faster growth of MATIC and hence it could be another next big cryptocurrency.
Tether, which was first published in January 2012, is a stable coin and is pegged to the US dollar. It means, it keeps a value equal to one unit of the fiat currency. At one end, this implies the cryptocurrency is more consistent than other cryptos and is good for investors who like to avoid the extreme volatility that other cryptocurrencies face. On the other end, it implies Tether is not ideally a candidate for long-term investment.
So it’ll not grow your investment but it is very useful to hold as it’s very easy to swap any cryptocurrency for Tether. It becomes a favourable choice for investors because converting a cryptocurrency to cash would take days and cost transaction fees. Hence, it is best to put some money in Tether to add flexibility and stability to your portfolio.
US Dollar Coin, USDC
Like Tether, USD Coin (USDC) is another stablecoin, meaning it’s pegged to U.S. dollars. However, it is more popular than other stablecoins because it expects to have the least fluctuations compared to its peers. This is because it can always be swapped 1-to-1 for U.S. dollars. Looking from that perspective, it’s better to hold this coin, powered by Ethereum, in your portfolio to complete global transactions.
Dogecoin had a stupendous run so far this year barring a steep fall in the mid-2021. Despite being started as a meme coin offering little or no value compared with established counterparts like Bitcoin or Ether. Thanks to famous people like Elon Musk, Mark Cuban, strong community engagement & the efforts of the development teams for value appreciation.
There is no limit on the number of Dogecoins that can be created, which leaves the currency susceptible to devaluation though as supply increases. However, still, the coin continues to be hot due to an ever-increasing force of social media supporting it.
What is the next big cryptocurrency price predictions?
It’s difficult to say which crypto has the most potential given the different mechanisms and developer preferences that drive them. To answer this question in a different manner, we show how these cryptos have risen over the years.
Ethereum: Over five years, its price went from ~$11 to $4,000+, increasing ~40,000%.
Binance smart chain: In 2017, it was trading at $0.10 and by the end of November, it surged to over $500, reflecting a gain of ~500,000%.
Solana: At the time of its launch in 2020, it was trading at $0.77 and by the end of last month it grew to ~$200, a gain of more than ~26,000%.
Polkadot: Since its launch in 2020, DOT grew ~900% from ~$3 to ~$30.
Ripple: The price of XRP rose from $0.006 at the beginning of 2017 to ~$1.00 at the end of last month, reflecting a rise of 16,666%.
Cardano: ADA had an astronomical increase of ~2,000% over the past year. In 2017, its value was ~$0.02. It surged ~8,000% till the end of last month to $1.57.
Polygon: It was initially sold at $0.00263 a token, and for a while, it hovered around that price. While it went up slightly to $0.04168 in December 2019, it went down again and started 2021 at $0.01781.
Tether: According to Trading Beasts’, the average Tether future price is expected to be $1.285 by the end of 2022. Another algorithm-based prediction site, Wallet Investor, expects the USDT price at a range between $0.988 and $1.023 for 2022.
US Dollar Coin: The USD Coin price prediction at the beginning of 2022 is pegged at ~$1.28. The maximum price is expected at $1.60, while the minimum price could be $1.09 throughout the year.
Dogecoin: Dogecoin was trading at $0.0002 in 2017. By the end of last month, it rose ~110,000% to $0.22.
There are a few more in the league of the next big cryptocurrency that needs a special mention! They include the names of Algorand, Shiba Inu, Uniswap,Litecoin, inSureDeFi, MicroStrategy Inc., Coinbase Global Inc., Nvidia Corp., Stellar
Share your views and experiences with the best cryptocurrencies to invest in 2022.