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How to Choose the Best Crypto to Invest in

Top 5 Cryptocurrencies to Invest in 2022

1. Bitcoin (BTC)

2. Ethereum (ETH)

3. Solana (SOL)

4. Cardano (ADA)

5. Polygon (MATIC)

Conclusion

5 Best Cryptocurrency to Invest in 2022

Cryptocurrencies have been growing in popularity since the first cryptocurrency, Bitcoin, was created in 2009. More people are considering adding crypto assets into their investments because they like theft that it's decentralized, which means there is no central authority.  Cryptocurrency provides a peer-to-peer network exchange that allows you to control and transact with your own crypto without a third party like a bank. 

You may also like cryptocurrencies because the crypto market allows flexible trading. Unlike the stock market, which is open five days a week from 9 am ET to 4 pm, the crypto market is open to buy, sell and access 24/7. Investing in cryptocurrency gives you a chance to diversify your investments with a fast-growing asset. Cryptocurrencies are volatile in nature but their growth has proved to be exponential. 

Businesses also like cryptocurrency because of its transformative technology. More businesses are incorporating Bitcoin and other cryptocurrencies as an investment or because it provides transparent and secure transactions. If you are new to investing in the crypto market and are not sure where to start, these are some of the most popular cryptocurrencies that you can consider investing in this year.

Key Takeaways

  • Investing in cryptocurrency is more flexible than investing in the stock market. It’s an emerging market with many crypto investment opportunities. 
  • There are several metrics you can use to decide whether you want to invest in crypto like market capitalization, its use case, and reading its white paper
  • Some of the top cryptos to invest in solving some of the problems that the crypto industry faces.

How to Choose the Best Crypto to Invest in

There are several factors to consider when you’re choosing which crypto to invest in. 

  • One of the first metrics you should look at is market capitalization. This is the total value of all coins that have been mined. Usually, the cryptocurrencies with the largest market capitalizations can be better long-term investments. 
  • Another aspect you should consider is the cryptocurrency’s use cases. Determine what the long-term utility of the crypto is. You don’t want to invest in a cryptocurrency that will disappear in a year.
  • A helpful resource that will guide you in picking the right crypto to invest in is reading the crypto’s white paper. This explains the history, mission, and purpose of the cryptocurrency and will give you all the details you need to know to make the investment decision. 

Top 5 Cryptocurrencies to Invest in 2022

Let’s dive deeper and learn more about the best 5 cryptocurrencies that ATAIX offers to invest in 2022.   

  1. Bitcoin (BTC)

  2. Ethereum (ETH)

  3. Solana (SOL)

  4. Cardano (ADA)

  5. Polygon (MATIC)

1. Bitcoin (BTC)

Bitcoin is the first cryptocurrency to be created in 2009 by a person or group of people named Satoshi Nakamoto. Bitcoin is a decentralized, peer-to-peer network exchange. Bitcoin’s value changes throughout the day and currently stands at about $30,458.73 (as of May 23, 2022). Bitcoin has the largest market capitalization of more than $580 billion. 

Benefits of Investing in Bitcoin (BTC)

The Bitcoin network has built a strong following because its users believe the cryptocurrency is transparent and reliable. Bitcoin operates on a blockchain or a decentralized public ledger that timestamps every transaction. These records are not reversible and in no way can be changed. Since Bitcoin is decentralized, it doesn’t require a third party, like a bank, to facilitate transactions. Rather, the network is maintained using a proof-of-work system to record and validate transactions on the network. 

Risks of Investing in Bitcoin (BTC)

Just like any investment, Bitcoin comes with risks. One of the biggest challenges with investing in Bitcoin is its volatility. You need to be able to deal with large price swings when investing in Bitcoin because its price changes quickly and sometimes can lose a large chunk of its value in a matter of seconds before hopefully recovering in the long run. So, before you put your money in Bitcoin, know that it's a high-risk digital asset. 

2. Ethereum (ETH)

Ethereum is a decentralized open-source blockchain network and its native currency is called Ether. It’s the second most popular cryptocurrency behind Bitcoin with a market cap of more than $250 billion. Ethereum has grown in popularity because it’s a network that supports decentralized applications like decentralized finance apps, for example. As these DeFi apps continue to grow in popularity, so will Ethereum. Ethereum is currently priced at roughly $2,074.47 (as of May 23, 2022), making it one of the best cryptos to invest in 2022.

Benefits of Investing in Ethereum (ETH)

Ethereum is becoming popular among businesses because the network’s blockchain technology provides a reliable record of transactions without relying on any intermediaries. Ethereum’s multiple functionalities make it an attractive crypto investment. Apart from its payment system functionality, Ethereum also has smart contract capabilities, allowing it to settle transactions in different industries like real estate, government, finance, and other areas.

Risks of Investing in Ethereum (ETH)

The Ethereum network faces some challenges such as high gas fees and high energy consumption to process transactions. These problems can result in the speed of transactions slowing down creating bottlenecks that end up increasing the cost of transacting on the platform. These Ethereum risks can be difficult when trying to attract more users to its platform and are things to keep in mind if you’re considering investing in Ethereum. 

3. Solana (SOL)

Solana is a blockchain that was released in 2019 and has grown very fast since its inception with a current crypto market cap of more than $18 billion and is priced at about $54.40 (as of May 23, 2022). Solana is said to be the fastest blockchain in the world with the fastest-growing ecosystem in crypto with projects that range from NFTs, DeFi, Web3, and others.

Benefits of Investing in Solana (SOL)

Solana allows for many functionalities, which adds to its long-term potential as successful crypto. Solana is not just a token that can be traded; it’s also the power behind DeFi to allow for permission-less payments, NFTs are powered by the Solana network. The Solana network also features smart contracts, which automatically execute agreements. Solana’s value has exploded in a short period of time. In June 2020, SOL reached $1, in September 2021, it rose to $190 and reached its peak of $260 in November 2021. Solana is up more than 1,380% for the year. 

Risks of Investing in Solana (SOL)

There have been concerns over the security of the Solana network since it was subject to a cyberattack on its server. This security risk is something crypto investors should keep in mind as it may impact the users on the platform since people may be concerned about losing money to hacks. 

4. Cardano (ADA)

Cardano is another one of the largest cryptocurrencies on the list. Cardano is a proof-of-stake blockchain that is seen as a competitor to Ethereum. The Ethereum blockchain has some challenges including high energy consumption and high transaction fees. Cardano is seen as a solution because its network is said to be sustainable and scalable for running smart contracts. Cardano aims to be an environmentally sustainable blockchain using its proof-of-stake consensus mechanism compared to the high volume of energy needed to complete an Ethereum transaction. 

Benefits of Investing in Cardano (ADA)

If you are concerned about energy efficiency, Cardano is a serious option for you to consider. Ethereum energy consumption is something the crypto industry has acknowledged is a problem and Cardano may be suited to be part of the solution. Cardano has prospects for long-term growth. It is in the process of incorporating smart contracts on its platform, which will enable people to use Cardano’s blockchain for decentralized exchanges, NFTs, along with other functionalities. The value this will bring to the industry can translate to a higher Cardano market price. 

Risks of Investing in Cardano (ADA)

While there is a lot of potential for Cardano, there are some weaknesses. Cardano was created in 2017 and its progress has been slow. 

5. Polygon (MATIC)

Polygon is a decentralized scaling solution for the Ethereum blockchain. Polygon is a layer 2 scaling solution which means it can help the blockchain lower transaction fees and increase processing time. Polygon contends that the network can process 65,000 transactions per second. You can think of Polygon as a more advanced Ethereum with much lower fees. Polygon’s cryptocurrency is called MATIC.

Benefits of Investing in Polygon (MATIC)

One of the main benefits the Polygon brings is its network efficiency through quick processing times, which helps reduce fees for its users. Polygon plays an essential role in the crypto universe because it’s part of the solution for solving the challenges that the current layer 1 blockchain faces.

Risks of Investing in Polygon (MATIC)

Just like any other cryptocurrency, Polygon experiences volatility. You should be aware of price fluctuations as you invest. A threat to Polygon is the rollout of Ethereum 2.0. This announcement, which is rumored to be unveiled in 2022, is said to solve all of the problems the layer 1 blockchain has, which Polygon addresses.

Check out different cryptocurrencies to invest in at ATAIX Trade

Conclusion

There are many opportunities in the crypto market for investment in 2022. You can find many different cryptocurrencies with varying purposes, which can ultimately impact their future value. Just because crypto is popular is not the only reason to invest in it. There are many other measurements you should use to determine whether crypto is the right investment for you. 

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