Let’s refresh your memory and go over the basics before diving into the best cryptocurrencies to invest in. A cryptocurrency is defined as a virtual currency in the form of tokens or “coins”. Think cash but in digital form. You can use it to buy products and pay for services just like fiat currencies.
Cryptocurrencies are created through a process comparable to cryptography. Digital signatures protect the transactions, which users can also use for verification. These tokens exist on a distributed and decentralized ledger referred to as the blockchain.
Most cryptocurrencies are designed to shy away from government regulations and manipulation. Its integration with a decentralized peer-to-peer is one of the many characteristics that set it apart from traditional currency. You pretty much have control over your assets and where it will go with potentially more options with the integrated technology behind crypto!
The cryptocurrency selection continues to grow and extend its reach across the globe. It is important to stay on track and focus on the options with the most potential. That said, we go over some of the best options for new and experienced crypto investors for 2022.
Top 10 crypto predictions for 2022
1. Ethereum (ETH)
Ethereum is the only other digital asset besides Bitcoin worthy of being labeled as a blue-chip cryptocurrency. Bitcoin makes up for over 40% of the entire asset class’s market cap. Meanwhile, Ethereum holds almost 20% of that cap. It is the only other crypto that comes near the frontrunners. No coin has even 4% of the market.
What makes ETH attractive is the fact that it possesses its unique elements. Its growing popularity heavily relies on its functionality as a medium for decentralized finance. Developers gravitate towards building decentralized applications (DApps) on Ethereum. It is the most-used blockchain in the world and the default network for emerging non-fungible tokens, or NFTs.
Furthermore, ETH 2.0 is set to have a major upgrade in 2022, the blockchain is set to answer its issue and that’s transaction speed. Currently Ethereum can only run 30 transactions per second, however with the upgrade, it is set to process 100,000 transactions per second.
Yet, one of the main concerns for ETH is the transaction fees or more particularly gas fees which means every transaction of ETH made within their blockchain will cost depending on the amount of transaction made. However, there are several Ethereum based tokens that seeks to answer this problem by implementing low gas fees and some even offer no gas fees in their protocols.
Since its introduction in 2015, we witnessed Ethereum’s price skyrocket from USD 1.50 to an all-time high of USD 4,850 in November.
Crypto analyst, Nick Ranga predicts that Ethereum will hit USD 5,000 easily in 2022, while others forecast more stability at its current value hovering around the USD 4,500 mark until the next year. However, with the impending arrival of an upgraded Ethereum 2.0, an expected price soar closer to USD 8,000 will be met by the end of 2022, USD 10,000 in 2023 and surpass USD 16,000 by 2025.
Market cap as of December 2021: Over $528,641,000,000 USD
2. BinanceCoin (BNB)
Binance is one of the biggest crypto exchanges in the world, and the native BNB token was initially modeled after Ethereum but now runs on its Binance blockchain. The exchange introduced the coin in 2017 as an ERC-20 token on the Ethereum blockchain. It was a utility token that made way for cheaper fees if they used the token for transactions.
Eventually, the token deviated from the Ethereum network to an original chain in 2019. It was transferred again in 2020 to the Binance Smart Chain (BSC) and released in September 2020. It is a relatively safe coin, growing alongside Binance’s popularity. Prices soared from 10 cents at its initial coin offering to over USD 600 today. BinanceCoin increased over 1,300% so far in 2021 alone.
Long-term predictions for BinanceCoin highlight an exponential increase between 2021 to 2024. Nick Ranga expects the coin to hit the USD 1,000 mark by the end of 2022, while doubling its value between 2023 and 2023. BinanceCoin is anticipated to find stability at roughly USD 2,400 by 2025.
Market cap as of December 2021: Over $103,127,000,000 USD
3. Bitcoin (BTC)
Created in 2009 by an individual(s) under the pseudonym Satoshi Nakamoto, Bitcoin pioneered blockchain technology. It is the first-ever cryptocurrency to come to light. Bitcoin remains one of the top choice cryptocurrency to buy and invest in in 2022.
You could purchase a single Bitcoin for USD 500 no more than a decade ago. But at the time of this writing, prices stay north of the USD 30,000 mark. It reached an all-time high price of USD 68,521 early in November 2021. It surpassed 11,400% growth in several years, and there’s no sign of stopping. Ultimately, Bitcoin remains one of the top crypto for both long-term and short-term investors.
What is also prominent which investors need to watch out for is Bitcoin’s blockchain is halving meaning it will lead to a price inflation by deducting the amount of Bitcoin circulating. Inevitably it will lead to an increase in the demand for Bitcoin. This has been done every four years and since it has happened the price has gone up exponentially throughout this cycle.
There is a growing sentiment that Bitcoin will slowly lose its grip in the crypto market due to the increasing number of altcoins with better solutions and technology. Yet, that will take some time and perhaps it may not come to fruition as many analysts see the crypto challenging several companies like Apple and Microsoft as the most valuable asset in the future.
Nick Ranga tells us that although the market has seen a lot of volatility in the end of November and early December, we need to be reminded that it was also recently that Bitcoin hit its all-time high in October after a crash in summer which was USD 60,000. However, he believes that Bitcoin will follow this same trend and going into 2022, the crypto will trend higher throughout 2022 to hit another all-time high north of USD 90,000.
Market cap as of December 2021: Over $1,065,000,000 USD
4. Polkadot (DOT1)
The easiest way to conceptualize Polkadot is to see it as a translator. In this list we’ll see a couple of different blockchains that exist and all of them have different features and purposes, however the issue is those different blockchains aren’t able to somewhat communicate which limits the interconnectedness of each blockchain. Enter Polkadot, which considers itself as the blockchain of all blockchains, its purpose is to try to connect all of them which makes it easier for investors and decentralized apps to work together.
There’s a lot of potential traffic and hassle if a developer or investor wants to move from Bitcoin to Ethereum, Polkadot seeks to have both in a direct link in order to move this transaction.
The potential for this is huge specially with more on more blockchains and dApps being implemented the growth for Polkadot is somewhat boundless… but that can be said with all the cryptocurrency here!
Currently, Polkadot is fluctuating around $23 to $30 USD and its popularity is still increasing which will most likely reach new heights in 2022. Nick Ranga predicts that Polkadot will reach a solid $60 USD, however much of this will also depend on the crypto climate heading into the coming years.
Market cap as of December 2021: Over $27,464,000,000 USD
5. Solana (SOL)
The year 2021 saw a handful of crypto tokens skyrocket. However, Solana might be the year’s main dark horse. It started the year with just 0.01% of the market but skyrocketed to the top ten cryptocurrencies by market cap in nine months. It’s a story that everyone loves to hear. The technology is fortified by technological advancements. Like Ethereum, the SOL protocol was formed to accommodate the easy creation of DApps. What gives it the edge is a faster network, lower fees, and a more forgiving scale compared to other big names in the circle.
Solana reached all-time highs in late October and early November. It started the year hovering at the USD 4.00 mark and made its way to over USD 219 per coin this December.
According to Nick Ranga, Solana will reach USD 300 by the halfway mark of 2022 and almost double in value by 2023. The next five years would introduce a substantial move if this trend continues, starting from USD 1,140 to all-time high figures of USD 8,722 by 2027.
Market cap as of December 2021: Over $70,300,000,000 USD
6. Cardano (ADA)
Another token that now shares the limelight with the heavy hitters is Cardano. It has a significantly improved blockchain structure that is more adaptable, scalable, and energy-efficient all at the same time. Additionally, the platform is driven by data and peer-review, which introduces a systematic approach that limits volatility.
Cardano might present higher-risk propositions at this time. It is a young player in the market and does not possess the same history as other cryptocurrencies. However, it brings new features to the table that could play plenty of dividends in the long run. It was priced at USD 0.37 at the start of 2021 and reached an all-time high of USD 2.79 in August 2021. At the time of this writing, ADA is valued north of the USD 1.70 mark.
After hitting rock bottom recently, crypto expert Nick Ranga believes that Cardano is primed for a promising recovery. An 18% increase in price in the first week of December offered lucrative returns. It was a short-lived celebration for its investors as the price dropped 4%. Nevertheless, long-term investors can look forward to a bullish market. Predictions tell us that the average price could surpass USD 2.00 by 2022, climbing to USD 4.0 by the end of 2022 and by the end of 2026 reach north of USD 12.0.
Market cap as of December 2021: Over $57,484,000,000 USD
7. XRP
Put together by some of Ripple’s founders, XRP can be utilized on the same network to mediate exchanges of various currencies. The list includes both fiat currencies and major cryptocurrencies, making it easily accessible to anyone who wants to start looking into digital coin investments.
XRP has a lot going for it, and it’s a good alternative for those who want to try something other than Bitcoin or Ethereum. It started 2013 valued at USD 0.01, and eventually worked its way to an all-time high of USD 2.28 in December 2017. We witnessed its price move from $0.43 in January 2021 and now increased its value to more than double in Dec 2021. XRP sits at around USD 0.99 at the time of this writing.
Despite going through several challenges and lawsuits, there’s plenty of hope for the coin. Investors can take their time before the cryptocurrency bounces back. Price forecasts from Nick Ranga projects that the average price could recover to USD 1.3 by the beginning of 2022. This could improve to USD 1.9 by the end of 2022, and even hit the USD 3.75 mark by the end of 2025.
Market cap as of December 2021: Over $46,015,000,000 USD
8. Litecoin (LTC)
Litecoin was among the first cryptocurrencies to follow Bitcoin’s suit. It was launched in 2011 and dubbed as one of the first “altcoins” in the market. It is an open-source payment network that works without any central authority. It utilized “scrypt” as proof of work, which can be solved with commercial computers or high-powered CPUs. Although Litecoin is similar to Bitcoin in many ways, it features a faster block generation rate and quicker transactions overall.
As of 2021, Litecoin hit its market capitalization of USD 14 billion and a per token price of about USD 200. It is the seventh-largest cryptocurrency in the world at the moment. With solid foundations, Litecoin can be a viable medium for long-term crypto investments.
Long-term forecasts by Nick Ranga tells us that Litecoin can end at around USD 203. The positive trend for LTC/USD price seen in the latter weeks of 2020 going into 2021 is expected to continue. Somewhere along 2022, we expect to see the coin perform a surge and take back to the USD 300 range followed by sharper changes nearing the end of next year.
Market cap as of December 2021: Over $14,214,000,000 USD
9. Avalanche (AVAX)
Avalanche is one of the youngest players in the market today. It is a smart contract platform designed to solve congestion and accommodate lower fees. The ferns on this platform are significantly cheaper than Ethereum and its other counterparts. Avalanche introduces unique benefits for corporate and commercial users. These are just some of the characteristics of AVAX that draw more crypto investors.
The coin saw consistent declines over the past weeks due to a widespread crypto market-sell off. However, this can be seen as a good thing for investors who want to buy in and hold. Avalanche started the year at roughly USD 3 per coin. By the start of December 2021, its price drastically increased to around USD 120 per coin.
At present, AVAX price prediction from Nick Ranga projects that the coin will hover at USD 123 by the end of December. The algorithm-based forecasting site estimates that the average price could hit USD 257 by the end of 2022, and more than double to hit USD 655 sometime in 2025.
Market cap as of December 2021: Over $24,913,000,000 USD
10. Monero (XMR)
Monero is one of the fastest-growing cryptocurrencies at the moment. It offers unparalleled security and confidentiality of its coins and users. One of the primary reasons to keep an eye on XMR is a rapid increase in its popularity. The number of people adapting XMR is directly linked to the degree of privacy it offers.
Monero brings long-term investments into the open because people want privacy. It continues to prove that it can meet the security standards of most clients better than other cryptocurrencies. The coin was priced at USD 156 each in January 2021. It experienced extreme price movements throughout the month but eventually found some stability above the USD 200 mark. Monero is currently at $228 each as of December 2021.
The price of Monero slumped several times in 2021, plummeting from recent highs to sub USD 200. However, Nick Ranga forecast that Monero could potentially rise to USD 250 by the end of 2021 and increase by nearly 75% in 2022 to USD 430. Watching XMR recover from several ruts leads us to believe that the coin is here to stay and reward long-term investments.
Market cap as of December 2021: Over $4,311,000,000 USD
Emerging players to watch for in 2022
Aave (AAVE)
Aave has great potential and it’s on this list due to its main purpose as a decentralized lending system that grants the investors to borrow, lend and even earn crypto assets without having to go through a middleman.
Aave in its core is embedded with smart contracts that runs on the Ethereum blockchain. The way it works is that the code implemented in the system works for you in making those transactions which eliminates the need for intermediaries such as banks to do the work for you.
Aave has had a good run in 2021, it reached an all time high this summer of USD 600, however with recent events affecting the market and perhaps with the scare of crypto falling, Aave fell substantially due to this.
AskTraders believe that Aave will journey through a considerable run next year due to the upgrade Ethereum will be receiving and more specifically the purpose of it is quite substantial and worth investing into. Nick Ranga forecast Aave to reach a stable USD 500 and could even potentially go higher due to again, the backing of the new technology of ETH.
Market cap as of December 2021: Over $2,378,000,000 USD
Algorand (ALGO)
Algorand is similar to Ethereum, it works to provide an improved scalability solution, security and a faster transaction speed for users. Algorands blockchain as of right now can process 1,000 transactions and seeks to increase that throughout to a greater goal of 45,000 which is faster than what Visa can currently process.
One of the key takeaways from Algorands potential is not only to answer the three factors of blockchain but it also provides lower transaction costs or fees compared to Ethereum. Many decentralized applications (dApp) are looking for other options than Ethereum due to its high gas fees, meaning Algorand is another potential Ethereum alternative.
Algorand currently sits around USD 1.50 yet the potential for growth is considerable specifically through its purpose and technology, however, Algorand might be overlooked at some point due to the advances with competitors such as Ethereum’s 2.0 upgrades. However, several decentralized applications developers have moved to Algorand meaning potential is there for a run-up next year.
Market cap as of December 2021: Over $9,790,000,000
Loopring (LRC)
Loopring is an Ethereum based token it labels itself as ‘an open-sourced, audited and non-custodial exchange protocol’. LRC’s purpose is to answer one of Ethereum’s issues and that’s by applying zero gas fees on Ethereum’s layer 2 protocol which is set to be the upcoming future of the Ethereum blockchain.
Loopring made quite a steer in late October and early November with its price going from $0.38 USD to reaching an all time high of $3.46 USD on November 10.
With the recent crash it is surprising that Loopring did not dip considerably, with the volatility of the market, LRC has gone to a different route compared to BTC which crypto trends have mainly followed. Yes, it has also dipped but it hasn’t been far off it’s recent all-time high.
LRC will reach new heights next year and is a long term investment due to its great solution which many have looked for. Nick Ranga’s prediction would be that LRC will reach $5.00 USD in early 2022 and potentially $10.00 USD by the end of the year.
Market cap as of December 2021: Over $3,176,000,000
What to watch out for in 2022 – (spoiler: NFT’s, technological upgrades and multi-market integration!).
The year 2021 was significant for cryptocurrency. With multiple industries integrating crypto payments on top of breakthroughs in technology, the trend is likely to continue through 2022. Expect more crypto-intensive businesses to come to light. We believe that there is an abundance of businesses that can adapt to crypto and go public. There are a plethora of businesses that crypto companies can take part in, including exchanges, digital asset mining, to payment processors. As the market extends its reach, we are likely to see the market feature more listings, and also shift as companies gain and lose market share.
Here are several highlights that make cryptocurrencies full of promise in 2022:
- Non-Fungible Tokens added another dimension to the cryptocurrency circle in 2021, but we know that this is just the beginning. Since NFT’s are relatively new to the market, there’s a certain learning curve to them. We are set to see better user interfaces for NFT platforms, a broader process to reach non-crypto natives and even digital wallets that can store NFT’s. The future is bright for this space. We expect more industries to tap into the market and help it establish more solid foundations.
- Ethereum may have a smaller market cap than Bitcoin, but we might see it rival the latter very soon. Ethereum is currently the second-largest cryptocurrency. But at this rate and if the trajectory continues, ETH may well overwhelm Bitcoin as the most valuable crypto next in 2022 or early 2023.
- Central banks are foreseen to issue their own digital currencies following the crypto boom. China is a frontrunner nation that seeks to implement its own central bank-issued digital currency. This could be a result of crypto threatening more traditional currencies. Additionally, other countries look to create their own digital currency. By overseeing and having more control of their own digital currency, nations can steer away from the unregulated and decentralized characteristics of current cryptocurrencies.
Crypto analyst from AskTrader’s Nick Ranga says “despite a surge in cryptocurrency use, more altcoins materializing, there’s still a long way to go from seeing digital coins used as mainstream mediums for payments and transfers. But, we are sure that things are headed in the right direction. There’s no reason to rule it out of the picture in the coming years or even decades. Cryptocurrencies can co-exist with traditional currency. It’s up to the investors to decide which crypto caters to their needs and which one is likely to survive as long-term players.
Yet as with any investing ventures, there are risks that come into play and this is also applied for crypto. Many can affect the rise and fall of prices, one of these factors is COVID-19 and emerging variants such as Omicron, this was one of the many challenges that affected the market recently and might also affect the market in the coming years.
Research is also key with any investments, the technology and protocols featured in the various cryptos in this list serve real purpose and solutions, yet they differentiate in a lot of ways. So I would advise to take time and read these goals and ask yourself if you can invest into a technology from a long term perspective and backing the technology of your chosen crypto.
Ultimately, participating in this emerging market and placing investments is a major commitment. Performing due diligence before taking a step forward is of paramount importance if you want to secure long-term success”.