Every person and every company can issue its coin. In the Middle Ages, every more or less powerful nobleman could produce his coins, now in the crypto world, the process of making coins is much easier. A crypto coin is not guaranteed by any state and it is on the market until other people want to sell and buy it. So it will cost nearly zero if nobody wants to buy it. The only question is trust – in the project, in the person who initiated the project, in other things that can raise the coin up.
But it is not only the means of investment or speculations. It is a possibility for blockchain companies to attract money and attention to the projects they offer. So the new possibilities the company offer - that is what makes the coin interesting, that attracts the attention of investors and speculators.
The volatility of the crypto market is more than the stock market. If we deep into the years we may see how cheap bitcoin was and how much money the first miners and investors have acquired by now. So the question of which cryptocurrency on the rise will maintain its growth is worth buying has no answer. Nobody could predict the fall of UST which was a trustworthy coin. There are speculators who take actions to “drop” this or that coin to buy it cheap, there are unpredictable events like the sudden death of key people, and there are political events – so many factors that influence. So the only way to choose the best cryptocurrency to invest in today is to consider various factors – and choose reliability in favour of quick income.
Cryptocurrency with the most potential: what to take into consideration?
First of all, we should understand that the best cryptocurrency to trade and the best cryptocurrency to invest in right now are not the same coins.
Most people who want to raise money on day trading profit from the ups and downs of this particular currency are interested in highly insensible trading and high volatility. Day-traders are not interested in the future of the coin as far as they can easily change it for another. The question of which crypto to buy today for the short-term has an easy answer – any coin which is actively traded as far as you plan to make many deals. This coin has a pretty good chance to disappear from your portfolio a bit later. The only question is to choose the best strategy to profit from price fluctuations.
Investors are interested in “Buy and Hold” currencies. They need an asset that in spite of all the ups and downs will steadily grow. So they need to take into consideration the following:
- When the coin appeared
The coin that appeared recently can bring higher profits, but maybe it is a fraudulent project which will collapse more or less quickly and investors might lose their money. So is the coin has existed for several years it can be considered as the best cryptocurrency to buy right now.
- People behind the project
For instance, TON was founded by the owners of Telegram. That adds reliability to the coin though the project does not promise high profits.
- General popularity
For instance, Sweet Love Portion is a game coin from Axies – a popular computer game. It has fallen down recently but is still on the market due to the popularity of the game. The lovers of Axies need this currency to breed their creatures – and thus they support the currency.
- The history of the exchange rate
It is a natural thing to look if the price of the coin has increased for the period of the year. For example, BTC costs around $30 000, a year ago it cost around $33 000. So BTC seems not so attractive as a long-term instrument. But we remember that BTC cost about 60 000 USD in November 2021. So if an investor had bought Bitcoin in June 2021 and had sold it in November 2021 he could have made about 200% annual profit. He could have put it for staking and make additional money.
- The project itself
If an investor knows a lot about the project itself and trusts in it, a good way might be to invest at the start and wait until the price will go up. It is a risky investment but the profit might be very high.
So a long-term investor should consider the “traditional” more or less stable coins to invest in. For example, Monero coin cost around $2 at the start of 2014, in 2017 it cost around $300 and it is still on the market. Monero is popular among online game lovers and casino lovers as far as it offers anonymity of transactions. So it is highly dependent on anti-money laundering regulations in various countries but is in demand from those who seek anonymity.
Some coins like BNB and Huobi tokens are “attached” to crypto exchanges. So if the crypto exchange goes down the coin won’t survive.
- Day trade amount
If it is relatively high it means it is in demand by traders and thus it is supported.
- Market capitalization
That is the total market value of all particular tokens. The bigger the market capitalization the more stable the coin is.
- Political issues
This relates mostly to the general situation. For instance, the total ban of crypto in China did not affect the market greatly. But what happens if US authorities try to take similar steps? So taking into consideration the political issues the best coin to invest in should be Bitcoin as far it has a better chance to survive panic.
How to invest in crypto?
There are some obvious things one should take into consideration. They are the theme for any investments.
Invest your free money. There is no good investing what you need to spend in your everyday life. Do not invest if you cannot afford to lose money.
Diversify your portfolio. Even if you trust the project, no need to invest too much in the particular coin. Stability and risk minimization are more important than extra prospective profit. Nothing always goes smoothly, and even a serious project can collapse quickly.
Find your own way toward investing. It should not be time-consuming, but it is better to have a plan when you should revise your portfolio.
No panic. Keep in mind that the volatility is great. Do not make hysterical deals, act as per your plan. If you cannot do it yourself, buy a bot. Hysteria never does any good to invest.
What is the top 10 virtual currency?
Some companies with a high reputation like Forbes like to make lists of the best crypto to invest in right now. But as far as they do not implement changes very often, these lists may be out of date. So it is better to look up specialized resources like Binance and CoinMarketCap.
We do not take into consideration stablecoins for obvious reasons – as far as they are “attached” to fiat money, there will not show substantial growth in the price. They may be bought but they are less suitable as crypto investment instruments. So if you seek the best cryptocurrency to invest in 2022 for the long-term you should consider the following "top-ten" coins:
Bitcoin
This is the most obvious decision. Bitcoin costs twice less as it cost in November 2022, so it is likely to rise once again. As far as it is a pioneer cryptocurrency it is more stable than any other coin if we look from the long-term perspective. Just consider: the day volume of trade is about 26 billion US dollars. Just consider its market capitalization - and you will see that bitcoin is worth investing in. Every crypto exchange trades bitcoin, and in some countries, there are bitcoin ATMs, where you can exchange bitcoins for fiat money or buy bitcoin with cash. Bitcoin was bought even by some states – Salvador, for instance. There is no secret that in 2021 there were a lot of forecasts that Bitcoin would be 100 000 USD. It did not happen. But Bitcoin has all the prospects to go up – not quickly, but steadily.
Ethereum
Ethereum is a second-generation blockchain-based coin. It operates on a Proof-of-stake mechanism and appeared as a side variant of the Ethereum Classic. Ethereum is a blockchain that is often used as an NFT base, so it is likely to be in demand in future. It was started by Vitalik Buterin in 2015 and its price was about $0,3. Now it is about $1800 – with a lot of ups and downs during the past years. It is good growth for 7 years. The day trade volume is about 12 bln dollars – much less than bitcoin has, but still impressive. The problem with Ethereum is that the technology is changing – the managers are implementing Ethereum 2.0 – a less energy-intensive version of Ethereum. So prospects seem nice for apps and NFTs providers. Ethereum should continue being in demand – of course, if everything goes smoothly. The experts predict that Ethereum could be $4 000 in 2022 – so maybe it is the best cryptocurrency to buy right now. CoinPedia is even more optimistic – it predicts $5 000 per Ethereum in 2022.
BNB – Binance coin
Binance coin is a relatively young coin. It appeared in 2018 and was issued by Binance cryptocurrency exchange. The initial price was less than $1, now it is about $300. The problem with BNB is that it can not be regarded separately from Binance. If Binance successes BNB will continue going up, if not – the coin will go down. Besides, Binance was banned from the U.K. – and that is reputational loss. Binance faced anti-money-laundering issues, and the problems might progress. On the other side, Binance supports its coin by charging fees in BNB with a discount – and this stimulates the users to buy the coin. Binance has the biggest nft market – and that is a huge argument to trust in Binance as far as the interest in NFT is growing rapidly. So maybe BNB is not the best crypto to buy now – but certainly one of the best.
Cardano
Cardano is also a relatively young project – started in 2018. Cardano was founded by Charles Hoskinson, whose professional start is associated with Ethereum. Cardano is his new project – based on a proof-of-stake mechanism. The thing is that Cardano suffered a dramatic fall in 2021. Just imagine – it was more than $3 – and now it costs below $1. It is not just general volatility – it is a lost battle. Cardano became less in demand as far as it somehow missed opportunities. Smart contracts were introduced only recently. Still, the key issue about investing is the right moment to buy and the right moment to sell. Cardano is cheap and if you ask yourself a question what cryptocurrency should I buy, maybe Cardano is the answer.
XPR
This is the coin of Ripple. Ripple is a money remittance project, which was designed for the finance industry. XPR is the currency to pay Ripple fees – as BNB for Binance. The key issue of the project was to fasten the operations and reduce the costs. Ripple is notorious for the fact that it is in demand by the crypto world, but also fiat money institutions. Santander and Bank of America use its network – and thus adds reliability. But is XPR good for investing? At the start the price was 0,005 USD, now it is 0,4. The amount of day trade is about 1 bln dollars, so it is worth considering.
SOL (Solana)
Solana is a relatively young project, that started in 2020. Since that time Solana has become a pretty interesting coin to invest into. It is certainly among coins which managed excellent return in capital. Just see: a year ago it cost less than $1, now it costs about 40 with the day trading amount about more than 1 bln USD. Fantastic results for a brand new project. Solana blockchain is popular among nft artists – which adds popularity to the coin. The prediction about its cost is mostly positive. Many expect it will grow up to 300 USD by the end of the year. So the question of what is the best cryptocurrency to invest in in 2022 has the probable answer – Solana.
Dodgecoin (DOGE)
This project coin started in 2014. For many years it remained at the level of $0,0001-0,0003, now it is $0,07. The price predictions are also positive – up to 0,3 USD in 2022.
Polkadot (DOT)
Polkadot is an interesting product for the 2021 year – new crypto to watch and to buy. It provides the possibility to generate several blockchains due to the open code and thus to produce “parachains”. As every cryptocurrency is came through rises and falls and how costs about $9.
TRON
Tron is a project that is designed to deal with the entertainment field and especially with authors who produce content. The idea is to skip using huge platforms which consumes a fare good portion of authors’ royalty. It started in 2018 at $0,0014 per item and is now about $0,08.
What is №10 of up-and-coming cryptocurrencies now?
New projects are always attractive as far as the gain can be great. Let's include some more brand new coins as point number ten of 10 virtual currencies - risky, and less stable, but the return from investment can be higher. So these are new crypto to watch – and maybe to buy to diversify the portfolio.
Near Protocol (NEAR)
Near Protocol started in 2020 at $1 per coin, but now it costs about $4. It is a project aimed at the functioning of apps. Proof-of-stake mechanism allows transactions to be carried out quickly. It is a successful project – and has all the prospects for growth.
Avalanche (AVAX)
That is a coin which also appeared in the 2020 year and now it occupies the 16th position in the CoinMarketCap rating of coins. It is designed to make DeFi apps and to facilitate the exchange of financial activities.
ApeCoin (APE)
The coin appeared in March 2022 and now it occupies the 40th position in CoinMarketCap rating. All the 1 bln coins were minted at once. The day trade volume is about $300 mln, which is a very good result for a new project.