Did you know that there are 19,000 cryptocurrencies in existence and dozens of blockchain platforms that support these cryptocurrencies? Ethereum is a popular blockchain platform upon which many cryptocurrencies are built.
But experts warn that thousands of digital currencies will collapse, similar to the dot-com collapse of tech companies that had no value and were taking too much risk. If you are getting into investing in crypto for beginners, then you will want to stay away from the hundreds of cryptocurrencies out there and focus on the few that truly matter.
Keep reading to learn more about the 8 best cryptocurrencies we recommend in 2022.
Anyone who’s anyone knows about Bitcoin and its astronomical rise from anonymity to being everyone’s favorite cryptocurrency to invest into. If you only have a limited amount of funds to invest and you want one recommendation for a crypto coin to invest in, then Bitcoin is it. There’s no need to look any further.
It has longevity in its corner and the support of millions who believe that it’s going to go to the moon. Either way, its prospects are good and it’s an easy coin to invest into. You don’t even need to have an online account to buy Bitcoin.
All you need to do is find a Bitcoin ATM using this tool. Then you can buy Bitcoins as easily as you take out cash from the ATM.
Don’t delay though. There are a limited number of Bitcoins and as soon as they are all out, that’s it. It’s not like the US dollar where more bills can be printed.
Consider also that many businesses already accept Bitcoins as payment and many governments worldwide have started buying Bitcoins as a solid investment. Visa and Stripe also accept Bitcoins. All of this proves the immense confidence people have in Bitcoin and its future trajectory.
Another crowd favorite is Ethereum, the second largest cryptocurrency after Bitcoin. As iterated earlier, it’s the blockchain platform on which hundreds of other cryptocurrencies are built. This shows you the efficacy and trust that folks have in this cryptocurrency.
A lot of experts will choose Ethereum over Bitcoin because it has a lot of real-world uses and that makes it (in their opinion) more valuable long-term. If you have limited funds, you might consider putting a bit into both Bitcoin and Ethereum.
Right now, Ethereum is cheaper than Bitcoin (by a lot), so if you want to own one Ethereum coin, it’s much easier than owning one Bitcoin. As cryptocurrency is so volatile, you never know what the price will be from one day to the next. But you can trust that if you purchase Ethereum, you are holding a piece of the future and that’s nothing to sneeze at.
Solana is still a pretty new coin launched in March 2020 (yes, right before the COVID-19 madness). It’s one of the hottest crypto tokens that’s taken over the market by storm. Everyone has high hopes for this open-source crypto coin that provides Decentralized finance (DeFi) solutions.
It started trading at $0.78 in March 2020 and if you had invested $1000 then, you would have made 410000% profit. In general, lots of people expect Solana to go up to $450 or more, so this is a good crypto coin to keep your eye on or invest in.
In general, when you are investing in the cryptocurrency market, you want to keep your expectations low and not get swept away by all the ups and downs. You will want to keep the big picture in mind as well.
With Cardano, that’s quite easy. It’s one of the smaller cryptocurrencies on the market and isn’t trading for that much right now.
But because of all the hope pinned on this cryptocurrency, people expect it to go to $10,000 or more. Of course, you don’t want to listen to either the critics or the optimists.
Put some money into this cryptocurrency so you can keep an eye on it and see where it goes in the future. One project the platform is planning might interest you: an incubator that would help Africa reach its potential as a major economy.
The great thing about Cardano is that there are no barriers to entry when it comes to this cryptocurrency. It’s a very open and inviting environment that works the same for all. All you need to enter this market is some sort of deposit and within a short period, you are good to go.
Another reason why Cardano is such a popular crypto coin is that everyone expects that digitization of money will become quite impactful in the market in the future and Cardano (and other similar crypto coins) will bloom in power due to this.
This cryptocurrency originated in India and has backing from both Binance and Ethereum cryptocurrency exchanges. Its token is called Matic, and it’s used for payment services, transaction fees, and as a settlement currency.
You might be interested to know that the Indian state government is using Polygon to issue caste certificates. This will help them deliver government benefits to over 1 million low-income citizens. This is quite powerful and a clear indication that Polygon is a trustworthy, long-term crypto coin that deserves a place in your portfolio.
One reason why folks don’t like Bitcoin is that it’s extremely energy-intensive to mine Bitcoins and this is not sustainable in the future as oil prices rise and energy becomes more expensive. But Polygon has an advantage here because it’s investing heavily in carbon neutrality and that’s prompted price rallies by supporters.
Another stable crypto coin to consider investing in is the Binance token, which is created by Binance, the world’s largest cryptocurrency exchange. Since it has the backing of such a powerful exchange behind it, there are lots of folks who believe in Binance and its future potential.
Even so, Binance is still quite a volatile investment being a cryptocurrency that trades 24 hours a day, 365 days a year. Always be careful when putting large amounts of money into any cryptocurrency.
Binance Coin can be used for payment processing, booking travel arrangements, and investing. It’s also the digital token that’s used to support the Binance Smart Chain, which is where a lot of undervalued crypto tokens reside.
Primarily, Uniswap is a decentralized exchange that you can use to buy and sell digital currencies without requiring a centralized third party. This is why this crypto coin is quite popular and has zoomed up rapidly in value.
Uniswap also has an online marketplace for NFTs and the metaverse, which is another reason why investors appreciate this coin and invest in it with confidence. Even though right now, Uniswap is a bit discounted, you can consider it to be a crypto coin with a bright future. If you have some cash lying around that you won’t miss, then put it into Uniswap.
One thing every cryptocurrency investor is aware of is that they could lose their entire investment in a matter of days if the market goes south. This is something that happened recently to investors in Terra (Luna). It was the hot favorite of the market and within a few days, thousands of investors lost their investments as it disappeared into thin air.
This is a relatively new ‘layer one’ blockchain, which means that it improves the base protocol to make the system more scalable. If this doesn’t make sense to you, do not fear.
The best thing about Avalanche is its scalability since Avalanche’s three blockchains can validate transactions independently. This means that Avalanche can handle large volumes of transactions, up to 6,500 per second. That’s why this crypto coin is quite popular among Ethereum projects.
You will notice as with all cryptocurrencies that Avalanche is quite volatile and that’s why you need to keep your head about you when investing in such a coin. It’s not like the stock market where the prices stay relatively stable for a long time.
Investing In Crypto For Beginners Made Simple
Keep it simple, silly (KISS) – this is the primary principle you need to follow when investing in crypto for beginners. Too many folks lose money in the crypto market because they overcomplicate things and look for crypto tokens that aren’t market favorites.
Don’t do that to yourself. It’s not worth the anxiety and worry. Focus on the 8 crypto coins mentioned above and you can trust that you are making a good decision overall.
Of course, the crypto market is quite volatile, so you can never be sure. But with these 8 cryptocurrencies, you can boost the odds greatly.
Read through some of the other articles on crypto for beginners and keep learning!