The year 2021 was great for some cryptocurrencies, most notably Solana. However, in the face of the notorious volatility of the cryptocurrency market, some tokens had their values triple, while others like Ethereum and Bitcoin fluctuated within various ranges.
After the failure of several ICOs (initial coin offerings) in recent years, there has been a spike in crypto investments. The two latest technologies drive this new interest in the blockchain, DeFi, and NFTs.
DeFi stands for Decentralized Finance. Pioneered by the Ethereum blockchain, DeFi has spawned a whole new wave of decentralized apps. Blockchain developers write these apps, many of them providing various financial services.
NFT means Non-Fungible Token. This technology uses the immutable feature of blockchain signatures to create unique, one-of-a-kind digital copies of art. People looking to invest in cryptocurrency and blockchain technology are sure to be interested in NFTs.
However, for this article, I will stick to cryptocurrencies alone. For individuals looking to invest in cryptocurrency in the New Year, here are the best cryptocurrencies to put your money into:
It is no surprise to see the pioneer cryptocurrency at the top of this list. Founded in 2008 by the anonymous Satoshi Nakamoto, Bitcoin has grown exponentially.
From being worth less than a dollar to be worth over $50,000, Bitcoin’s rise to financial dominance has been nothing short of remarkable.
By its status as the first cryptocurrency on the blockchain, Bitcoin’s status is near-unassailable, at least for the foreseeable future. However, in 2021, its value flitted between $40k and $60k.
Many experts have predicted that 2022 will be the year where Bitcoin’s value finally hits the $100k mark, having hit a peak of $60k in early 2021. Of course, such speculations are not necessarily concrete facts, but neither should they be dismissed altogether.
So, don’t be surprised to hear that Bitcoin’s value goes permanently above $50k in the coming months. Bitcoin’s protocol is secure, and its popularity, coupled with its gargantuan market cap (closing in on $1 trillion) and trading volume mean that it is good value for investors.
Ethereum is the second most popular blockchain for a good reason. In addition to its native Ether token, it hosts several other tokens (jointly known as ERC-20 tokens) on its blockchain.
One advantage that Ethereum has over Bitcoin is that it doesn’t just store value- it is also functional. At the heart of its functionality lies the protocols that power DApps.
Thus, Ethereum price and value go beyond the $3k that it is currently worth in the cryptocurrency market. Furthermore, it provides blockchain developers with a secure environment to build and test DApps, all for Gas.
Today, Ethereum constitutes one-fifth of the total cryptocurrency market. Although $3k is still far behind the $40k-odd required to topple Bitcoin’s financial stranglehold, Ethereum’s various uses mean that it remains well placed to dominate the industry.
Thus, it is an excellent cryptocurrency to invest in, in 2022.
After attaining highs of $250k in late 2021, Solana’s value has dropped slightly since then. Today, SOL is worth roughly half of its peak value. Nevertheless, there can be no underestimating the cryptocurrency of the year 2021.
Solana’s consensus is based on proof-of-stake and proof-of-history to boost efficiency. Like the Ethereum blockchain, Solana runs smart contracts.
Despite its current lows, Solana shows great financial promise. As a result, it is one of the best tokens to put money into in the new year.
Users of the Binance exchange will be familiar with BNB, its native token. Binance Coin (BNB) is yet to hit the $1k mark, but its consistency in the cryptocurrency market indicates its value will rise.
Binance remains the largest exchange platform, with a plethora of tokens, providing maximum liquidity for investors. For as long as it remains at the peak of the Crypto Exchange industry, BNBs will continue to rise in value.
Another promising project to include in your crypto portfolio is Yearn.finance (YFI). YFI has grown impressively over the last 12 months and is poised for an even stronger 2022.
At the start of 2021, YFI was priced at about $22k per token. By the middle of the year, its value had increased to nearly $100k.
The above fact points to two things: YFI is a highly volatile token. As with every kind of crypto investment, certain risks are involved. But if YFI is even remotely sure to be headed in the right financial trajectory in the long term, then it is a good investment.
PancakeSwap is similar to Binance in that it is both a token and a cryptocurrency exchange platform. Founded in 2020, PancakeSwap facilitates P2P crypto exchanges without a third-party facilitator.
Virtually all cryptocurrency tokens based on the Binance Smart Chin use PancakeSwap. Thus, it already has many users and a vast dollar reserve of locked liquidity.
The native token of the platform, CAKE, is currently priced at $11. But, in the light of CAKE’s venture into crypto farming and staking, it is only a matter of time before its value rises again.
Tips to finding the best tokens to invest in 2022
When looking for the best tokens to put your money into, you have to consider some factors:
- Launch Date – It is wise to invest in a project in the early stages of its launch. This way, you can buy low before the value spikes.
- Developer Team – This is especially important to prevent you from falling for a dubious scheme involving a scam coin. Do adequate research about the team creating the token.
- Ideology – Look out for projects with unique aims and objectives.
There are many other coins out there, hundreds of them. Most are obscure coins whose values will never rise. Others, like Solana, start slow and are then propelled to dizzying heights.
There is no sure way to tell which token is the next Bitcoin or which platform will be the next Binance. Nevertheless, the coins I highlighted above are sure to rise in 2022, making them an excellent choice for crypto investment.