When talking about cryptocurrency, Bitcoin is the first thing that pops right in mind. It is a fact that Bitcoin has been a trendsetter, paving the way for other variations of cryptocurrency. There has been a drastic change in different forms of cryptocurrencies over the last decade. But, despite all, Bitcoin is still considered to be a market leader when it comes to cryptocurrencies.
Now there are 5000 plus different forms of cryptocurrencies trading in the market. Though, you can make buying and selling transactions using cryptocurrency. But, many people consider it as a long-term investment. We all are well aware of the risks involved with cryptocurrency due to its highly volatile nature. But, as an investor, the higher the risk, the higher the chances of getting maximum return over investment.
So, suppose you are thinking of investing in cryptocurrency on a long-term basis. In that case, you must have some information about what is the best cryptocurrency to invest in. We have listed the top eight well-performing cryptocurrencies to help you pick the one or more than one to build an investment portfolio.
What Is The Best Cryptocurrency To Invest in 2022?
#1 Bitcoin (BTC)
Bitcoin(BTC) has by far been the most popular and the oldest cryptocurrency out there. It sure has been a market leader in many ways. Compared to the other cryptocurrencies, Bitcoin is still available at a higher price and market capitalization. Many businesses allow transactions in Bitcoins on an everyday basis. Also, Mastercard and Visa have partnered with Bitcoin to facilitate transactions.
BTC runs on a blockchain or says a diverse ledger logging in transactions spread across a vast network comprising thousands of computers. All the additions to Bitcoin have to be authenticated by a cryptographic puzzle. It is the reason why Bitcoin has remained so far a safe investment.
Though, there are quite some fluctuations in the value of Bitcoin. It’s normal to see many plunges and surges in the price of Bitcoin due to its volatile nature. But, it’s not something to worry about if you are thinking of investing in Bitcoin for the long term. Currently, the price of a single Bitcoin is over $65,000.
#2 Ethereum (ETH)
Ethereum has a very different nature compared to that of Bitcoin. It is a cryptocurrency and a network that gives the developers the freedom to create their own version of cryptocurrency via the ethereum network. Due to the use of unique technology, Ethereum comes second to Bitcoin.
Ethereum makes use of blockchain technology, but it has a limitation. The limitation of Ethereum is that it only has a single lane for making transitions. Due to this standard, transactions can take up quite a lot of time to process in case of network overload.
#3 Binance Coin (BNB)
The Binance Coin (BNB) gained popularity after 2017 and grew exponentially until it peaked in the bull market period. From over there its price started to decrease. But, ever since then, there has been a steady growth in the value of BNB, and in 2021 it has an increase of about 1,637%. So, considering the trend of Binance coins, we can conclude that it sure is the most stable cryptocurrency to invest in for a long-term basis.
The solid blockchain technology used in Binance coin is the primary reason for its strong foundation. It has led to a change of opinion and increased faith in it. But, since it is a form of cryptocurrency, it carries the inherent risks involved with a cryptocurrency on its own.
#4 Cardano (ADA)
The main reason investors are now looking into Cardano (ADA) is its energy-efficient functionality. Bitcoins have a vast network and can take up a lot of energy. But, with Cardano, it takes considerably less time to complete a transaction. It works similarly to Ethereum to allow smart contracts and decentralized applications using its native ADA coin.
It may take some time for Cardano to capture the market share of other similar cryptocurrencies, even with an excellent network. But, if you look at the bigger picture, Cardano has a high potential to turn into a very lucrative investment if it proves all its claims.
#5 Polkadot (DOT)
Polkadot (DOT) got initially created by a group of developers who strived to develop a much better network and work on the shortcoming of Ethereum. So, unlike Ethereum, Polkadot has several lanes to allow speedy transactions no matter how much the network overload. It is the best cryptocurrency for those looking to invest in cryptocurrency on a long-term basis.
Polkadot is a reasonably recent cryptocurrency making its debt back in 2020. Though, it was introduced on paper by its founder back in 2016. It’s far too early to make any assumption on the trend of Polkadot. Hence, compared to more established cryptocurrencies, it is a far risker investment.
#6 XRP (XRP)
XRP was founded by an online digital processing company named Ripple. It functions as a Paypal of cryptocurrency. As it offers maxim ease of transactions and works to bridge fiat and cryptocurrency. At its start back in 2017, its price came up to about $0.006. But ever since then, there has been an exponential growth of about 17,900% in its price.
Ripple is facing a lawsuit by the Securities and Exchange Commission on violating the Securities Act of 1933. It raised about $1 billion of capital through an unregistered digital asset securities offering.
#7 Tether (USDT)
Tether (USDT) is a stable coin. By stablecoin it means that its value gets based on tracking of the US dollar. Due to this reason, it is considered the most stable cryptocurrency to invest in, safe from the volatile fluctuations of the crypto market. You can not make fast money investing in Tether on a short-term basis. But, you can transfer another cryptocurrency to Tether without having to convert them to cash first.
Tether (USDT) has a solid backing of banking assets like bank deposits and cash, treasury bills, secured loans, corporate bonds, and so on. But according to the regulators, despite being a stablecoin, the value of Tether is also volatile.
#8 Solana (SOL)
At the start of 2021, Solana (SOL) took up the cryptocurrency market by storm. It only started with about 0.01% and rose exponentially, and now it comes under the best cryptocurrency to invest in. Solana has the fifth-highest market share with a market cap of $68.63 billion. Its popularity is its speed, scalability, and ease of creating decentralized apps that run on a blockchain.
Solana grew at the rate of 12,000% this year and expects to grow exponentially in 2022. But, just like any other cryptocurrency, its prices can go down as easily as they go up.