Savings and investments have been the decades-old processes in operation since times immemorial. Money begets money if someone diligently invests it in safe investment avenues and assets.
One such investment avenue is cryptocurrency, which came into existence in 2008. A group of a few unknown people, some call them software engineers, developed Bitcoin, the first cryptocurrency.
Today, cryptocurrency has grown as one of the hottest investment assets that promise quick returns to its investors. As a prudent investor, you must always look to invest your money in different cryptocurrencies. Let us look at some of the best cryptocurrencies to invest in 2022.
Top Five Cryptocurrencies to Invest
The saga of cryptocurrency began with the discovery of Bitcoin, which was the first of its kind. It is undoubtedly the world’s most popular and renowned cryptocurrency, often making it synonymous with “crypto”.
The present market capitalization of Bitcoin is approximately USD 1.1 trillion. With this capitalization rate, if someone transforms Bitcoin into a full-fledged listed company, it would be taller than several nations and even some established corporates like Meta and Tesla.
Such is the prominence of Bitcoin, accepted and recognized the world over. Year 2009 (the year of the onset of trading in Bitcoin) has always been on the radar of the investors.
If you are a new investor willing to diversify your portfolio, investing in Bitcoin is a good idea
We widely considered Ethereum to be the second fiddle to Bitcoin. It is the second most popular cryptocurrency after Bitcoin and enjoying a fair amount of popularity and acceptance.
The market capitalization of Ethereum stands at USD 500 million. It is almost half of the market capitalization of Bitcoin, but is gaining momentum and is rising with every passing day.
Ethereum holds a unique proposition over Bitcoin to create Non-fungible tokens (NFTs). NFTs are not cryptocurrencies but are tradeable tokens exhibiting the ownership associated with a cryptocurrency.
The blockchain system of Ethereum is well suited and fitting for the creation of NFTs.
3. Binance Coin
In terms of popularity, novelty, and acceptance, the Binance coin occupies the third spot after Bitcoin and Ethereum. It is a native cryptocurrency of Binance, the biggest cryptocurrency exchange.
Binance coin holds a market capitalization rate of USD 96 billion and promoted by its parent Binance. Further, the investors active on the Binance crypto exchange also receive lucrative discounts on the transaction fees incurred while purchasing Binance coins.
As we are all aware that a cryptocurrency is unregulated and does not have any single administrator to manage it, Binance coin offers some regulation and administration as it is a product of a well-known crypto exchange Binance.
On our list of some of the best cryptocurrencies, Tether occupies the fourth spot. We cannot compare its popularity and acceptance with Bitcoin, but certainly, it is a popular investment option among investors who wish to diversify their portfolio.
Tether is a stable cryptocurrency as it ties its value with the U. S. Dollars known as “crypto-dollar”.
The market capitalization rate of Tether is around USD 73 billion. The value of Tether determined via the market forces of demand and supply, but the value of U. S. dollars also plays a significant role in determining its worth.
Hence, if you wish to invest in stable crypto assets with their value tied down to U. S. dollars, then Tether could be a perfect investment option.
5. Avalanche (AVAX)
We consider avalanche to be a direct rival to Ethereum, as it also comprises the blockchain technique that supports the creation of Non-fungible tokens (NFTs). It is a native cryptocurrency of the high-tech Avalanche Blockchain, which can process over 4,500 crypto transactions per second.
On our list of stable crypto coins, AVAX takes fifth position, and investors can certainly look upon it to diversify their portfolio.
How Can You Invest in Cryptocurrency?
Making investments in cryptocurrency is not much different from investing in stocks. All you have to do is register with any centralized cryptocurrency exchange.
These are trading platforms that enable their members to sell and purchase cryptocurrencies. In the same way, a stock exchange allows its investors to invest in stocks.
Some popular centralized cryptocurrency exchanges are:
- Binance Exchange (it has a native coin as well the name of Binance Coin trades that in the crypto space)
- Coinbase Exchange
- Kraken Exchange