In this article, we are going to give some Best Crypto to Invest in 2022 based on their blockchain use cases. Within the past year, we have seen an incredibly volatile crypto market. The total cryptocurrency market cap has fluctuated between a huge gap of 1 to 3 trillion dollars. This is insane price action for just one year and amazing for new investors to open up opportunities to make life-changing gains through their investment. In 2022 we have seen even more reasons for volatility within the markets due to the Ukraine and Russia conflict. Of course, the development of crypto regulation investors is becoming more and more fearful.
Today it’s critical to put emotions aside and utilize the investing principles that have been proven to work through many successful investors. Even in the most recent weeks, bitcoin’s dominance in the market has gone up to $43000 for the first time since November. When its price was at an all-time high of $69000 a great number then why is this all happening and why are investors pulling money out of altcoins and putting it into bitcoin?
This is due to the basic investor psychology and being in that state of fear right now investors view altcoins as riskier investments compared to bitcoin because of the global recognition of bitcoin. Since it has become more widely adopted this far but these fearful investors are overlooking an important part about the underlying technology in digital assets and that is the utility that these coins and projects provide. In 2021 it’s been proven that most altcoins with proven utility outperform bitcoin by a significant amount.
Altcoin millionaires are made far more often than bitcoin millionaires. When it comes to long-term crypto strategies finding coins with undeniable utility at low prices will make you that crypto bread and work towards your financial freedom. Everyone has their own personal situations and what works for someone else might not work for you. So always do your own due diligence and invest within your risk limits.
Best Crypto to Invest in 2022
What is the best crypto to invest in 2022 right now?
The first crypto to invest in 2022 is going to be an avalanche. Why is avalanche essential in every investor’s portfolio and is it too late to invest in now? Among many crypto experts and analysts, AVAX is one of the favorite and most admired Ethereum killers. The Ethereum blockchain is currently the most popular choice for decentralized applications because it’s still the first of its kind but as time goes on there has been an increasing number of better alternatives. The Ethereum blockchain has been struggling with its high transaction costs, its proof of work methodology, and the speed of transactions completed per second.
Now they’ve been in the works of launching Ethereum 2.0 but the project has been delayed several times and there hasn’t been a clear indication on when that date for the new ecosystem to take place. There still has been a ton of competitors that have been looking to replace the flawed Ethereum blockchain. This is where AVAX comes into the picture a blazingly fast, low-cost, and eco-friendly.
To give you some insight into the speed comparison between Ethereum and AVAX. The Ethereum can complete just about 30 transactions per second and AVAX completes 6500 transactions while focusing on scalability. The issue with several blockchains is that once they get large enough there is an inevitable high-cost transaction fee required to remain decentralized. To solve this issue avalanche has a unique blockchain system that pretty much integrates three different and individual blockchains that all work together in dividing the different computing tasks and creates that insane speed and efficiency as well as those low costs.
Avalanche was launched in September of 2020 and has already become the 10th largest crypto in the entire market with a market price of $72.53 dollars. AVAX is supported by some of the largest DeFi companies and decentralized applications in the market. During the bull market in November 2021, AVAX made highs of 135 dollars.
2. Terra LUNA
Terra LUNA is essential crypto that you should also have in your portfolio. LUNA is another blockchain protocol that uses a stablecoin also known as UST in order to create their successful terra ecosystem. The explanation can get a little complicated but all you need to know is that LUNA and UST are mutually dependent and that luna is used to stabilize the price of the stablecoin UST.
So what makes this unique and a good option? Terra gives you the best of both worlds, when it comes to using crypto as a currency with LUNA you get the borderless benefits of cryptocurrencies with the price stability of fiat currency. The terra can do this because they allow you to swap LUNA and stablecoins at a profitable exchange rate. So they will always have a balance of supply and demand with stablecoins and will incentivize LUNA holders to swap their tokens with higher exchange rates. This makes LUNA super effective in the functionality of DeFi with its mirror and anchor protocols. Terra users can do things like invest in synthetic assets and earn interest on their crypto savings. This is something that you could do through traditional banks but over into the DeFi world.
This stablecoin platform gets popular too quickly. The total volume transacted over the network went from 50 million dollars to the beginning of last year to over 18 billion this year. That’s a 36000% increase and clearly, the speed security and low fees of the terra network have generated a lot of interest. It also helps with the anchor protocol you can also find yourself earning an annual interest of 20% on your UST holdings. This is strong for a coin that’s not actually designed to be an investment asset and it makes investing in traditional assets like bonds and CDs.
In the big picture as the DeFi sector grows the utility of UST is going to grow with it. More people are going to need stablecoins to interact with crypto financial services and UST is better positioned to capitalize on that demand than less stable and less reputable competitors that we’ve seen go through a lot of controversy in the space. LUNA is also a governance token, which means that as a LUNA holder you’re able to vote and make your voice heard in future projects. LUNA is currently trading at a price of $80.86. and is gone to this value from $50 in just a week. This is the best cryptocurrency to invest in 2022 for long-term investors.
3. Cosmos (ATOM)
The third crypto on this list is going to be the cosmos, also known as ATOM. Cosmos has a unique and innovative blockchain that focuses on solving some challenging problems faced by the blockchain industry today. Apart from its focus on offering a quick low-cost and scalable environment it also aimed towards making blockchain technology less complex and difficult for decentralized application engineers and developers. The coolest feature about the blockchain is the cosmos hub allows for blockchain networks to communicate with each other, also known as interoperability. This is so important because having a network that connects other cryptocurrencies together can allow for even more scalability and cooperation within the space.
There are hundreds of blockchains in existence and all of them are created to be singular. So when we get almost the glue to all these amazing projects we could see some tremendous impact happening within the space. As mentioned in the white paper cosmos permits blockchains to run concurrently with one another while retaining interoperability. The Cosmos hub essentially manages a number of other independent blockchains and acts as the central ledger for the entire system that allows anything that you can think of happening on one blockchain to happen on one another.
Other competing blockchains are looking to beat one another. The cosmos hub is looking to own the rest of them and makes them their daddy. Cosmos is currently number 20 in the crypto market with a current price of $28.75 and has a strong proven support price of around 20. Cosmos is currently on a discount but if you are looking for a safer and less risky entry point you can definitely wait to see if the price dips down to the lower $20.
4. Harmony (ONE)
Now the next cryptocurrency is harmony with token name ONE. Harmony has a powerful underlying blockchain technology using a rather old concept known as sharding. In crypto, sharding is simply to put a blockchain network that is broken into smaller more manageable segments. Instead of having one giant blockchain trying to process everyone’s transactions at the same time many blockchains are getting processed simultaneously and communicated back to the main chain once completed.
Blockchain sharding allows for transactions to become processed and validated significantly faster. Since harmony was one of the first projects to implement sharding, they have that leader’s advantage. In addition, harmony is also a proof of stake blockchain that allows for low cost and energy-efficient transactions, and It has an open governance feature as well. The total value locked (tvl) of harmony went from 135 million dollars to over 1 billion dollars in the past five months. This massive increase was largely due to harmony’s team dedicating over 300 million dollars to marketing and showing the crypto community what their platform offers.
Now compared to the other coins on this Best crypto to invest in 2022 list harmony has a lower market cap and a lower price as well. Now harmony is ranked number 59 in the market cap and is just at the price of $0.131. Within the past year, harmony has also reached a low of 2 cents and a high of 38 cents. This is a riskier and more volatile investment. so don’t invest in this project without doing your full research. So if you are bullish on this project as well then read their white paper and look for any further updates on the project.
5. Near Protocol
Now the last coin in Best crypto to invest in 2022 list is going to be near protocol. Near protocol is another layer 1 blockchain designed for fast transaction speeds with low cost but there is some additional utility added to this project. That is NEAR does a great job in catering their environment for decentralized apps by making it a user-friendly platform.
Now if have experience in programming decentralized apps all you need to know is that the Near protocol gives users and developers a platform that is similar to what they are familiar with. A simple example is that they use readable account names instead of the cryptographic wallet addresses used in other blockchains. If you are trying to send or receive any type of crypto and you guys have done this too before you’re gonna see a random string of numbers which can be fairly long.
In addition to that Near uses an improved variation of sharding that goes a step beyond the regular sharding process and actually produces a fraction of the next block in the blockchain. NEAR is able to process a hundred thousand transactions per second while being able to keep transactions pretty much at zero dollars. Go read NEAR protocol’s plans for Q4 2022, when they launched nightshade phase three it goes without saying that Near has some pretty awesome advantages and that is why developers are finding their way to the near protocol. Definitely keep this coin on your watch list if it has not been there already.
Apart from reading this article about “Best Crypto to Invest in 2022” spend some time going through white papers, articles, project websites, and social media outlets. When it comes to investing in cryptocurrencies you need to take everything into consideration. Doing your own research may even find the next cryptocurrency that goes 100x.
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