Top Cryptocurrencies To Invest In 2022- Long Term

Crypto enthusiasts are already searching and hunting down presumed cryptocurrencies that would yield good profits in 2022. Some outstanding coins this year were unexpected. You do not want to go into the next year uninformed. The cryptocurrency market has gained massive recognition and adoption of coins over time and so provides an ever-increasing digital currency demand. It is predicted that by the end of 2025, there would be around one billion global Bitcoin wallets.  The use of and reach of the internet over the coming years would influence this figure. Distributed Finance (Defi) is an even more interesting project, its growth has been very impressive, attracting over 3 times the number of users since the start of 2021.

Cryptocurrency

The crypto market is “risky” and this is no news. This however hasn’t deterred users and investors. After all, where there’s a high risk, there’s a pretty good chance of scoring even a higher reward. A crypto investment can be a valuable part of your portfolio if managed right. Having multiple crypto coins can even help maximize your investments as diversification protects you from losing all your hard-earned money.

There is no established manner to determine the best currencies for investment. We can however follow a trend and make predictions. After careful observation of trends, here are some top cryptocurrencies for 2022 in no particular order.

Bitcoin

Bitcoin was the first cryptocurrency created in 2009. It is unclear if a person or group with the pseudonym Satoshi Nakamoto.  BTC runs on blockchain ledger technology, like most other cryptocurrencies,  a complex network of thousands of computers. Bitcoin is a secure asset by computers on a blockchain to verify the correctness of data on the ledger called Proof-of-Work (PoW).

Bitcoin transactions do not require users to provide private financial or identifiable personal information. It is the most widely accepted digital currency with market dominance prevailing ever since it was launched, it is quite obvious this will continue in the coming days. Bitcoin offers lower fees than traditional payment methods and is operated by a decentralized system as it’s not backed by a government or any commodity.

It is the second fastest-growing cryptocurrency with a recent $65K as the highest price.

Why Bitcoin?

  • Bitcoin has not only the largest market cap but also the first-mover advantage. It is the first thought in a crypto discussion.
  • Bitcoin is the crypto choice for Store useful (SoV), considered an inflation-proof asset almost like gold.
  • The rate of acceptance and use is steadily increasing. Most companies adopting crypto as a mode of payment chose Bitcoin as the haven. More legitimacy has for Bitcoin as El Salvador became the world’s first country to accept Bitcoin as a national currency.
  • A compilation of data by the Blockchain Centre found that in the first half of 2021, as many as 488,000 Bitcoin addresses are being created daily, totaling 88,365,209 and steadily increasing.
  • Having SoV, lack of any ties to the global financial system, and Bitcoin’s liquidity makes it well suited for macro investment.
  • Bitcoin (and other cryptos) provide additional diversification to a portfolio and has historically outperformed the stock exchange since inception (though these returns will likely still decelerate).

A lot of predictions for the 2022 Bitcoin price are circulating. However, the median 2030 forecast comes down to $470,000. Having $318,000 by 2025, that’s an annualized return of about 60%, and it might get to maintain a 65% increase yearly to be 4.2million in 2030 (29% if we assume the median $470,000).

Ethereum

ETH’s smart contract functionality makes it a top contender. Recent speculations on Ethereum have shown that the majority thinks it has better chances and would surpass Bitcoins market cap by 2o25 and be the highest traded in 2025. A smart contract can be likened to paper contracts that will be executed once all conditions are met but without an intermediary. Over time, developers have used the Ethereum network to create several offerings like non-fungible tokens (NFTs), Decentralized Exchanges (DEXs), Security Tokens (which can is speculated to replace paper stock certificates and other financial products), as well as creating new cryptocurrencies entirely with Ethereum’s ERC-20 token standard.

Currently, ETH is switching its consensus mechanism to a Proof of Stake (PoS) from its PoW mechanism with the ETH2.0 upgrade. Users can now stake their ETH as a staked investment for additional passive income.

Why Etherum?

  • Ethereum is currently the largest blockchain network for decentralized applications and has the second-largest market cap behind Bitcoin.
  • Etherum has been a popular choice since 2015, showing a robust capability, still evolving to be better. With the continued ETH2.0 upgrade that changes to the far more efficient and faster PoS consensus mechanism and system of Shards.
  • Ethereum has many use cases and it is the predominant choice for new coin development due to decentralized apps and the ERC-20 token standard.
  • ETH is that the only coin being discussed to surpass bitcoin within the near term, and every one dApps, Smart contracts, security tokens, NFTs, or other products require ETH to run on the blockchain.
  • Unlike Bitcoin, ETH does not require other Level 2 solutions(like the lightning network) to run smart contracts.
  • Staking is an additional income generator(approximately 8% a year) for those holding ETH.
  • Since EIP 1559 ETH has begun to be burned, this may cause deflation increasing the worth of ETH even faster. With the current gas price of 61 GWEI, the ETH supply is estimated to reach 118.7M ETH in early February 2022 and begin to decline.

Ethereum shot up by more than 800% during the past year makes a lot of anticipation on how well Ethereum will do in 2022. The upgrades of ETH 2.0 are seen as very positive and with speculations of an average 2021 end-of-year price of $4,596, a December 2025 price of $17,810, and a December 2030 average of $71,763, a 41% annual rate of return not still up to the price of Bitcoin

Binance coin

You were of course expecting to see Binance mentioned in this article if you have been following up with the recent market trends. It has experienced an interesting increase in very recent times. Binance exchange platform launch may have influenced BNB’s growth and evolution. The Binance Coin (BNB) is used for trading and paying fees on the Binance crypto exchange.

The trend of BNB Over time, having unique and new developments has been associated with being its key driver in an exponential increase in its value.

How Good is BNB?

  • Binance Coin comes with a variety of applications and benefits.
  • Launched in 2017, BNB was used merely for trading, but it is currently the 4th highest ranked coin by market cap ($70billion), being an investment of the largest crypto exchange platform in the world.
  • BNB is now the way to pay for goods and services and transactions fees on the Binance Smart Chain.
  • Upcoming projects for BNB are likely to influence its price and certainly demand. Binance Smart Chain and some other projects would be putting BNB in the list of top cryptocurrencies with more than a $51.08 billion market cap and a wide range of secure applications making it better for investment.

Predicted to hit $500 by year-end and $1000 in the middle of 2025, Binance coin price will have a 170% increase, by 2030 $1,800. we have an expected BNB annual return of 22.03% in  2030.

Solana (SOL)

Solana, not only has ultra-low transaction fees, but its mining is more environmentally friendly, these SOL charms have made it gather a fast-growing following by enthusiasts of cryptocurrencies. Solana was described by Bloomberg as “a possible long-term challenger for Ethereum ” and recognized by The World Economic Forum, as having one of the most amazing price charts recently, having gained over 18,000% of its value since 2020 after its introduction.

SOL is currently one of the top 10 largest cryptocurrencies by market capitalization. With positive speculation to grow more.

Its unique use of DeFi makes Solana stand out also having different proof of stake mechanics which refers to a mechanism by which people can mine new coins, and it’s a more environmentally friendly

Is Solana A Good Investment?

  • Solana’s big move into NFTs with its famous Degenerate Apes, a digital collection of costumed apes that features various traits, glasses to sandwiches, and different degrees of rarity influenced its market prices.
  • Considered as an ETH alternative, which programmers are looking for (against ETH’s high transaction fees); SOL presents a strong competition for  ETH
  • Several DeFi projects, NFTs and over 400 projects, removing the bank as a middleman has been attracted by Solana.
  • Over 300% in the last 30days
  • Solana has created a wormhole bridge between networks, which is a highly desirable trait because networks can rarely work together.  Solana says its next step will be to connect Terra (LUNA) and the Binance Smart Chain.
  • Solana claims it can process over 50,000 transactions per second (TPS) at the cost of less than $0.01 per transaction.

In September 2021, Solana was priced at $175.79. According to a recent long-term forecast, Solana’s coin price will hit $500 by year-end and $1000 in 2022. Although another more conservative view  projects SOL will rise to $262.23 then fall to $245.39 by year-end, reaching a high of USD 346.61 in 2022.

NFTs are the main reason behind Solana’s rise with its native NFT marketplace.

Polkadot (DOT)

Polkadot may be called the next-generation platform. Having carved a niche for itself, Polkadot is a Parachain blockchain network that connects various blockchains and enables cross-blockchain interoperability, making them work together.

Polkadot has a rapidly developing fan following and like Ethereum, it allows developers to build apps and smart contracts. The relay chains of Polkadot allow communication of dApps with other blockchain networks.

Also, Polkadot has made a transfer of assets become effortless between different blockchains due to its interoperability and the potential transaction speeds Polkadot has are the best in the industry (over 150,000) , leaving DOT an uncontested winner of the cryptocurrency arena.

Why invest in Polkadot in 2022

  • Polkadot can talk to other networks, including Ethereum that’s not common for other networks.
  • Speed and security are two areas where Polkadot outshines its peers and this makes it a reliable digital currency and why investing in it is worth it.
  • Polkadot addresses scalability, a major blockchain issue. Polkadot’s para chains reduce congestion. This enhanced feature also makes it a good investment choice.
  • One of Polkadots founders, Vitalik Buterin, also co-founded Ethereum, giving it a strong foundation and immediate gravitas.
  • This digital currency has a fast growing programmer base. Keith Blissdiscussed its adoption, “Polkadot is an Ethereum competitor, and many programmers are using it considering it safer. It allows them to build their blockchains”

Several experts are optimistic for Polkadot’s future. A recent long-term forecast predicts Polkadot price will hit $50 by the middle of 2022. Another prediction sees a 1-year DOT forecast of $122.42 but a huge dip expected in Jan 2022.

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