Thirteen years ago, when people began investing money in Bitcoin, many of us thought they were throwing money to the wind. Now it’s clear who was right and who was wrong. Keeping in mind the Bitcoin return on investment, millions of people want to try their luck by investing in new crypto.
The trouble is that about 16 000 cryptocurrencies are circulating their crypto assets within various blockchain platforms. For a beginner investor, it makes the choice really difficult. Which one has the best future? Let’s try to figure it out by concentrating on the 5 most prospective assets of 2022.
Bitcoin – an Always-Best Choice
Are you a pro in crypto investment and trading? No? Is it your first try at making a profit via this sphere? Then you’d better start with buying some Bitcoins. It is probably the best choice for a beginner investor. Its market cap reaches $895.647 billion, which is a sign of the stability of the coin. Despite a significant drop at the beginning of the year when the price of the token landed at $40 000, the price of the coin has been increasing lately.
The current price of the coin is $47 000, but it’s far from the all-time high of almost $69 000. Nevertheless, experts say that this record could be broken by the end of 2022. Based on their prognoses, the cost of the token will get to $100 000! It’s the best cryptocurrency to invest in 2022, and you won’t find a better time to do this.
GT-Protocol – Investments in Liquidity Pools
Investing in a new project is always risky. However, there are some good reasons to say that it’s the best cryptocurrency to invest in 2022.
GT-Protocol with its GTP token allows you to create DeFi pools backed by smart contracts. GTP applies the profit-sharing model to manage the liquidity of the investments on the DeFi markets. Besides, this decentralized protocol can also be used as a platform for copy-trading on CeFi and DeFi markets. Still, these are only some of the opportunities that GTP opens in front of you.
Binance Coin – Popular Currency with Promising Perspectives
The native token of the Binance exchange is ranked third in the world by market capitalization. The BNB tokens open access to the products available via the Binance platform. The decentralized applications on Binance Smart Chain can be paid for with Binance coins. But due to paying with utility assets, the users can save up to 25% on trading fees. The tokens are also used as “gas” for processing transactions within the Binance Sat Chain platform.
BNB might be the best cryptocurrency to invest in 2022 for long-term. Why? The daily trading volume on the Binance exchange reaches $90 billion daily. With the growth of the trading volume, the traders’ need for BNB grows. They need tokens to reduce their trading fees. That’s why the demand for the currency is always high.
The burning of Binance coins also has a significant impact on the price of the tokens and the perspectives of your investments in BNB.
Another reason why it’s worth investing in BNB long-term is a number of the upcoming and newly launched crypto projects related to Binance. They will likely bring BNB into high demand, increasing the cost of the token.
Shiba Inu – the Best Performing Crypto of 2021
The rapid jump in the token price of Shiba Inu brought the cryptocurrency to the top recommendations for crypto investors. In 2021, the Shiba Inu made huge progress in its price, rising from $0.000000000078 to $0.0000312 within a year. At the beginning of 2022, the price fell by 60%. It has returned to growth, and the current price is $0.0020.
A significant fall might look risky from the investor’s perspective. Still, market experts say that Shiba Inu deserves a chance. The upcoming crypto-project called Shibarium, which aims to reduce the transaction fees for the token owners, sounds very perspective. It is still being developed and the launching date is unknown, but the market has already reacted to such a perspective.
Another reason Shiba Inu got on the top rating of the best new cryptocurrencies to invest in is its team’s announcement about the Shiba Inu entering the metaverse. It is one of the most trending topics for investors, and the perspective of buying virtual plots of land is considered the core of the coin’s price growth.
Yearn Finance – Investment for Yield Farming Revenue
Yearn.finance is one of the best cryptocurrencies to buy in 2022. Built on an Ethereum basis, it became popular due to yield farming. It’s a decentralized platform that provides its users with the possibility to accumulate revenue by lending their coins to others. In fact, Yearn.finance is a decentralized financial system that helps the borrowers and the lenders meet. The borrowers pay interest rates for the possibility to use the tokens of the lenders.
The investments made at the beginning of 2021 gained over 320%. Those who paid $22 000 at the beginning of the year would have paid $93000 if they were only 5 months late with their decision. The current price of Yearn.finance exceeds $23,300. If you don’t have such assets, that’s not a problem. Similar to Bitcoin, these coins can be fractioned. So you can invest in Yearn.finance even if you are ready to spend as little as $10.
The perspectives of Yearn.finance investors look rather promising. Unlike other expensive cryptocurrencies, which don’t demonstrate significant progress, YFI shows consistent growth.
What Matters When Choosing the Right Token for Investment
With new projects appearing, the number of options for a crypto investor has grown huge. So how to choose the best new cryptocurrency to invest in 2022? Experienced crypto market players check several basic metrics, which can help them make the right choice. They are
- Market capitalization;
- Volume within 24hr;
- Max supply;
Let’s get into some detail about each of the metrics.
- Market cap is the full price of all the coins you can buy. Potential investors always take market cap into account when assessing the potential of cryptocurrency. This value is the reflection of the number of investments made in the tokens. Cryptocurrencies with a high market capitalization are considered more stable, thus promising safety for your funds. On the other hand, a low market cap gives more perspectives for growth.
- 24hr volume is the total cost of financial operations with the currency performed within one day. This figure demonstrates the liquidity of the tokens, which is how easy you can buy and sell them. If it is high, then it’s the best crypto to invest in 2022.
- Supply displays the number of coins that are circulating. Still, it is not as unambiguous as it might seem. No one actually knows the exact figure because some coins may be lost, some forgotten, and some burned. The supply itself can’t give you an answer to the question of whether you should invest or not. It should be evaluated together with other metrics.
- Max supply shows the utmost of coins that can ever be in supply. Some cryptocurrencies are not limited in supply. If this is the case, you should check the inflation index. The mining of coins increases the supply but makes the cryptocurrency inflationary. This process can be reversed by coin burning.
- Price. While the traders wait for the price to get high to sell the coins, the investors wait for the lows to make their investments maximum favorable. By checking the price over different periods of time, you can follow market fluctuations. Recent highs and lows can also give a hint on whether to wait or act now.
Investing in the crypto business is always a risk. However, knowing some details and being able to analyze the current situation in the crypto market, it won’t take you long to find the best cryptocurrency to invest in 2022.