Cryptocurrency units had a great year overall in 2021. Digital assets gained mainstream adoption and cryptocurrencies (if they looked in the right places) brought tons of gains to their investors. However, some market experts think that things are just getting started. Investors are also looking for cryptocurrencies for 2022, which is expected to yield similar returns.
So where should we look?
Over the past year, several different themes have surfaced in the crypto world. Store-of-value coins like Bitcoin reigned in early 2021. Meme coins became a hot spot after the growth of Dogecoin (CCC:DOGE-USD), followed by tokens like Shiba Inu. Irreplaceable tokens (NFTs) have seen great confusion from those looking to monetize digital art. Now, as we close the year, the metaverse is in the spotlight, gaining traction after Facebook’s rebranding as Meta Platforms.
What does this mean in practice? If you want to have a really strong crypto portfolio, you should diversify the coins and tokens you have. Choosing leaders in each of these areas will help you strengthen your assets over the next year.
Without further ado, we’ve rounded up some of the best cryptocurrencies to buy for 2022:
Ethereum (ETH)
Ethereum is an easy bet for success in 2022 for many reasons. To begin with, it has a huge market capitalization, making it one of the safer investments. In other words, its high market value means it’s reputable. Considering the Ethereum roadmap for the next year, it’s hard to say that ETH is not one of the best cryptos to buy for 2022.
Ethereum acts as the home base for almost the entire NFT industry, as 97% of total NFT sales are made on its own network. In a market made up of dozens of major blockchain networks with smart contract capabilities, this share is staggering. Considering that the NFT industry is getting hotter, Ethereum is an easy choice to apply to make money.
Beyond what’s trending, there’s also the fact that Ethereum is very solid. It has thousands of decentralized applications (DApps) and an increasing number of developers want to launch their projects on Ethereum. This is because, in addition to its huge product network, it has the largest active user base of any blockchain network. Moreover, the Ethereum network is undergoing a major overhaul over the next year. The Merge update will bring many changes that users are eagerly waiting for and will be released in 2022.
Here are some of the most popular exchanges where you can buy Ethereum: Binance (CCC:BNB-USD), FTX, Coinbase (NASDAQ:COIN), and KuCoin (CCC:KCS-USD).
Decentraland (MANA)
Decentraland’s MANA token is already having a great 2021. After spending four years developing the team product, the metaverse is finally making its way into mainstream interest. Already, 2022 looks set to be the year of virtual reality and Decentraland is poised to lead it.
The Metaverse is certainly nothing new. But virtual reality platforms gained serious attention after Facebook’s rebranding as Meta. Because one of the world’s biggest tech companies is on it, investors really think there’s got to be some substance and potential here.
Decentraland is a place where users can protect their personal freedom and truly have a space of their own. Users can go anywhere in the metaverse, play games, hang out with friends and even attend virtual live events. They can also passively generate income by creating and selling NFTs on the network. As the Metaverse continues to grow in 2022, Decentraland’s MANA seems to have huge upside potential.
If you want to invest in MANA without waiting any longer, you have many exchange options. Users can trade using the token on Binance, Coinbase, Huobi Global, and KuCoin.
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Solana is one of the most notable coins among investors looking for the next big investment. The network is seen as a competitor to Ethereum. His entry into NFTs and his tremendous gains helped prove his worth. And as more users come to blockchain technology, its scalability will be quite attractive.
Indeed, Solana stands out for its enormous scalability. This scalability makes the obvious difference between Solana and Ethereum. As of now, Ethereum can only process a few dozen transactions per second. According to the developers, Solana can perform 50,000 operations per second.
There are currently 68 million crypto hardware wallets – this number helps to determine the number of network users. Additionally, developers expect this figure to increase drastically next year and beyond. If this happens, the volume of transactions will increase and networks like Solana will become much more important to drive growth.
Solana is also poised to stand out in the NFT fight for market share. With the release of Solana Apes NFTs in August, we saw 10,000 tokens sold in just a few minutes. The incident revealed that Solana was also in the NFT race.
SOL is listed on Huobi, Binance, Coinbase, and FTX for users who want it.
Uniswap (UNI)
Uniswap is a candidate for the next crypto to explode in 2022 due to the growing interest in DeFi. Some people cannot even open a bank account due to their personal circumstances and cannot find a chance to win. Again, some people dislike the bureaucracy and fees associated with traditional banking. This is where Uniswap comes into play.
As a DeFi protocol, Uniswap allows users to earn passive income from their crypto assets. Uniswap decentralized exchange (DEX) is very popular. It is an automatic market maker (AMM), meaning it algorithmically matches buyers and sellers to provide liquidity. Also, it does not need a custodian like a centralized exchange to facilitate transactions. This is a nice feature for those who focus on the security of their assets.
One of the most attractive factors driving investors towards Uniswap is the protocol’s willingness to change and adapt to the wishes of its users. Since the exchange’s launch in 2018, the protocol has experienced two updates. The Uniswap v3 launch took place in May 2021 and we have seen the implementation of a concentrated liquidity offering that both improves the efficiency of trade execution and creates unique NFTs for liquidity providers.
Of course you can buy UNI token from Uniswap DEX itself. However, if you don’t have any cryptocurrencies available, you’ll need to buy a stablecoin elsewhere first. This is because DEXs do not allow fiat currency trading. Alternatively, you can buy UNI on Binance, Huobi, Coinbase or FTX.
Bitcoin (BTC)
Have you really thought that Bitcoin will not be on the list of the best cryptos to buy for 2022? Although BTC has been around for over a decade, it is only just starting to deliver unprecedented gains. Indeed, the demand for Bitcoin alone is reason enough to add the coin to your portfolio. More importantly, it is the leading crypto in the market.
Bitcoin’s market cap actually accounts for about 40% of the entire industry. In general, if Bitcoin is on the rise, the crypto class is on the rise. This narrative can also be applied to the fall scenario.
When you put money in Bitcoin, you are investing in the success of the entire industry. Bitcoin has soared from under $30,000 to as high as $70,000 this year alone. It doesn’t look like it will slow down either. In fact, many analysts expect BTC to rise to staggering levels.
Bitcoin is ubiquitous, you can even buy it from a physical Bitcoin ATM. Less adventurous options include Binance, Huobi, FTX, Coinbase or KuCoin.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.