Earlier this year, the cryptocurrency market saw a significant downturn. Many investors experienced tremendous losses, and crypto-skeptics saw their greatest concerns realized. There were even those that claimed the cryptocurrency market was going the way of the dinosaur, never to return again.
Now, just a few months later, we’re beginning to see the market gradually starting to heal. At the time of writing this, many industry experts predict we are in the early stages of the next cryptocurrency market boom. If you’re interested in being a part of this boom, here are the best cryptocurrencies.
It should come as no surprise that Bitcoin finds itself at the top of the list. As the first major cryptocurrency on the market, Bitcoin has been the king of the hill for over a decade now, and it doesn’t look like any altcoin is poised enough to take the throne any time soon.
Bitcoin’s status as the most consistently valuable token makes it one of the best cryptocurrencies to buy in 2022. Since its origin in following the 2008 global recession, Bitcoin has seen its fair shares of highs and lows. After all this time, one thing has remained consistent about Bitcoin – it always finds its way back up again.
In 2021, Bitcoin hit its highest market price yet, at $68,000. This number outpaces anything else on the cryptocurrency market. For the sake of comparison, Ethereum, the second most valuable cryptocurrency, saw its price peak at just $4812. If you’re looking to buy cryptocurrency for the first time, most industry veterans would recommend starting with Bitcoin.
As one of the most valuable cryptocurrencies on the market, Ethereum is second only to Bitcoin. We already mentioned that Ethereum’s highest recorded price at $4812 is eclipsed by Bitcoin, but by no means does it make it a bad investment. In fact, it is quite the opposite.
Ethereum’s advantage on the market is that its blockchain platform allows for smart contracts, and for others to host their own third-party crypto projects on the Ethereum blockchain. This sets Ethereum apart from Bitcoin, and makes it one of the best cryptocurrencies to buy in 2022.
Cardano is regarded by many as the third generation of cryptocurrency. Despite being relatively new on the market, Cardano has quickly become one of the most valuable cryptocurrencies, steadily competing with the likes of Bitcoin and Ethereum since its launch in 2019.
Cardano has been heralded by the blockchain industry as being the most innovative crypto being offered on the market. Rather than relying on the proof-of-work system that Bitcoin and Ethereum are based on, Cardano functions using proof-of-stake – a system that has proven to be faster and more efficient for those looking to buy cryptocurrency.
To put things into perspective, Cardano hit its market cap of $10 billion in just three years, a feat that even Bitcoin took far longer to accomplish. Metrics like these are why many see Cardano as one of the best cryptocurrencies to buy in 2022.
XRP by Ripple Labs has been somewhat of a dark horse in the cryptocurrency race, for several reasons. For starters, the altcoin breaks the mold on what a cryptocurrency is supposed to be. The fundamental idea behind cryptocurrency was always to be completely decentralized. XRP subverts this expectation by being mined and controlled by its creator, Ripple Labs.
The way Ripple Labs administrates XRP allows them to execute trades faster, as well as work efficiently with major financial institutions both in the cryptocurrency market and the traditional banking sector. Despite this, many have been quick to criticize XRP. Some investors see it as being unreliable, and the SEC even tried to have XRP registered as a security.
Still, XRP’s market performance since its inception has proven it to be one of the best cryptocurrencies to buy in 2022.
What to Know Before You Invest
Before you make up your mind to buy cryptocurrency, it’s important to understand that every investment you make is a risk. Most veteran investors will tell you that you should never invest money that you aren’t willing to lose, and this is sound advice.
Take into consideration your own finances, and take the time to see what cryptocurrency is right for you. Don’t panic if you happen to lose some money in a market downturn, always be patient and wait for the market to rise again. If you take this advice to heart, you should find success in the cryptocurrency market in no time.