6 Of The Best Cryptocurrencies To Invest For 2022

In a high inflation rate world, the best cryptos to buy could reward investors massive returns in the long run

Last Updated December 16th 2021
10 Min Read

2021 was an adventurous year for the crypto market. Bitcoin and other major altcoins saw their prices reach new all-time highs. Although the market experienced some pullback recently, experts have predicted that 2022 will be a successful year for virtual assets.

Despite its popularity, Bitcoin is not the only cryptocurrency that is flourishing. Innovators and spinoff currencies have emerged in large numbers, and there are more than 7,000 cryptocurrencies available in the market today. So how do investors know which is the best crypto to invest in with so many available options?

Based on critical considerations such as buy ratings, price history, network updates, etc., we have put together a list of the 6 best cryptocurrencies to invest in 2022. These digital assets are popular among investors and traders as they have room for growth. So let us take a look at these assets and understand what makes them suitable candidates for investment right now.

6 Cryptocurrencies To Buy For 2022: 

 

Algorand 

The name Algorand derives from Algorithmic Randomness (Algo and Rand), and it refers to a pure PoS blockchain platform that employs algorithmic randomness to solve the blockchain trilemma. Unlike most blockchain projects, Algorand requires minimal computation. Moreover, as it is a public blockchain platform, developers can utilize it to build decentralized applications (dApps) on top of it.

The protocol aims to tackle the inefficiencies of ledgers, which is the core of every blockchain project, including Bitcoin, Ethereum, etc. These include scalability, wastage of energy, and high cost of transactions.

Algorand uses the benefits of both centralized and decentralized blockchain projects. It is efficient as a centralized platform and has a governance model of decentralized projects to ensure accountability.

Algorand has executed a creative solution to offer security within the Algorand Network. Byzantine consensus-based Pure Proof-of-Stake (PPOS) is at the heart of Algorand operations. Unlike the Proof-of-Stake (POS) mechanism, the platform's PPOS mechanism factors in the majority of Algorand tokens instead of depending on a small portion of the entire ecosystem. In this way, Algorand keeps the network secured. The process of selecting block proposers and verifiers is random.

No majority controls the Algorand network as generating blocks is not limited to a small group of users. Additionally, there is no delegation process in Algorand. Instead, all token holders play a crucial role in the Algorand blockchain network by aiding, proposing, and casting votes.

The platform is used by many global businesses, including Circle, Republic, Tether, Archax, Meld Gold, Marshall Islands, Global Carbon Holdings, StakerDAO, Hummingboat, Instimatch, Opulus, Voyager Digital, Asset Block, etc.

Check Out: 5 Reasons Why Algorand Could Double Your Money

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Avalanche 

Created by Ava Labs, Avalanche is a layer-1 blockchain that operates as a platform for custom blockchain networks and decentralized applications (dApps). As the Ethereum network is one of the leading currencies and the most popular blockchain for smart contracts, Avalanche is directly competing with the Ethereum network. It has set its target on surpassing Ethereum on that front.

The platform is equipped with an elevated output of nearly 6500 transactions every second without compromising scalability. In addition, it describes itself as a programmable and open smart contracts platform for several decentralized applications. It is also compatible with the Ethereum programming language, and users can implement it to deploy public and private blockchains as subsets.

Developers using the Avalanche platform can build reliable and secure applications easily. They can also create custom blockchain networks having a complex set of rules. Avalanche allows its users to create anything they imagine by providing complete control over applications layers and the network itself.

Furthermore, the Avalanche-Ethereum Bridge represents a step towards migrating Ethereum's slow and costly DeFi infrastructure to the significantly faster and cheaper Avalanche network. Transaction fees on Avalanche are rarely more than a few cents. At the same time, complicated computations cost in the single-digit dollar range to execute and are significantly faster and near-instantaneous.

One of the prominent players in this new DeFi ecosystem is Pangolin, a "community-driven decentralized exchange for Avalanche and Ethereum assets with rapid settlements, low transaction fees, and a democratic distribution."

Alongside Pangolin, many other dApps are joining the Avalanche ecosystem across various use cases, making it a fully-featured network right from launch. Such applications include bZx, Prosper (a decentralized non-custodial prediction market), Jelly Swap (atomic cross-chain swaps and token trading across Avalanche, Bitcoin, Ethereum, Harmony, and Binance Smart Chain), etc.

Don't Miss: What Might Happen If You Invest $100 In Avalanche (AVAX)?

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Polygon

Crypto investors looking to diversify their portfolios are always searching for the “next Bitcoin.” By this, they mean emerging assets with a lot of room for growth. Experts consider Polygon to be one such digital asset platform. 

MATIC is an Ethereum token used to power the Polygon Network, an Ethereum multi-chain scaling solution. Polygon, formerly known as Matic Network, aims to improve interoperability between the Ethereum blockchain and compatible networks. Over the past few years, the platform has seen a significant increase in traffic. 

Polygon began as Matic Network, but it rebranded as Polygon as the scale of the protocol grew. Originally, Matic Network was only a Layer 2 Scaling Solution, but later it became an ecosystem of independent, collaborative, and interactive Ethereum-based blockchains.

The team built Polygon to scale Ethereum decentralized applications (dApps) and other blockchains. Features like ETH compatibility, scalability, security, interoperability, user experience, developer experience, and modularity help the platform reach its goal. In other words, Polygon increases the processing speeds of all applications and blockchains deployed on its network.

Many experts believe Polygon will continue to be the scaling solution of choice for numerous players in the DeFi sector. The CEO of OKEx, Jay Hao, pointed out in an interview that “Polygon is one of the most efficient full-stack scaling solutions for Ethereum, so the transactions on Polygon are fast and cheap. And Polygon has already integrated with most mainstream DeFi applications. We would love to give our customers access to all these great products and financial opportunities.”

Polygon helps other blockchains and applications to collaborate with its network in a fast scaling manner while lowering costs. Aside from this, Polygon aims to reduce the complexity of scalability and enable instant blockchain transactions.

Using a customized version of the Plasma Framework built on the proof-of-stake (POS) algorithm, Polygon handles up to 65,536 transactions per block on each sidechain. This means Polygon processes around 65,000 transactions per second (TPS), leading to several partnerships in the process.

Currently, more than 400 dApps are using the Polygon infrastructure. These include applications in decentralized finance, NFT & gaming, decentralized autonomous organizations (DAO), oracles, wallets, and business-to-business (B2B) technologies.

Read Also: 15 Reasons Why You Should Invest In Polygon

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Axie Infinity 

Blockchain-based game Axie Infinity saw its native crypto token rally by 2,100% in 2021 and now boasts a strong community. Notably, Axie Infinity is extremely popular at this time. The network has registered over 250,000 daily active players. Impressively, the game has generated more than 13,000 ETH in revenue. The network also offers a fun and educational way to introduce the world to blockchain technology.

Axie Infinity (AXS) is a play-to-earn cryptocurrency ecosystem and gaming network. The platform enables users to earn AXS by playing games within the Axie Infinity Universe and user-generated content initiatives. Players can earn rewards by collecting, trading, battling, raising, and mating digital assets called Axies.

Axie Infinity entered the market in 2018. Since its launch, it has seen impressive adoption. The platform features a massive gaming community and an equally notable social media presence. It airdropped 800,000 Axis Infinity Shard (AXS) tokens to its early adopters and opened up staking capabilities, allowing users to lock in their coins and earn new ones in return, sending the value of its token soaring. AXS holders can receive rewards for playing, voting, and staking the token and will get paid dividends from Axie Infinity’s community treasury, valued at more than $2.3 billion.

In Axie Infinity, players buy, breed, and pit digital monsters called Axies against each other to win in-game currency (called small love potions), which can be exchanged for fiat cash. This business model is known as play-to-earn, where players earn crypto rewards for playing a game.

Each Axie is a non-fungible token (NFT), a unique collectible that can be bought or sold across exchanges outside of the game. To initiate battles, players must own at least three Axies. One of the most expensive monsters was sold in 2020 for 300 Ether (worth about $130,000).

Users gain many benefits when they participate in the Axie Infinity ecosystem. For one, blockchain-based trading and battling games are very entertaining. Users can spend hours exploring, battling, and collecting valuable NFTs (non-fungible tokens). These tokens range in value based on their scarcity and usability in the game.

Another significant advantage of the Axie Infinity universe is its open-source nature. The developers behind the concept encourage other community members to create tools to better the overall user experience. In this way, the platform takes a forward-looking stance.

Don't Miss: Could Axie Infinity Be A Millionaire-Maker Coin?

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Sandbox 

The Sandbox (SAND) is a blockchain-based virtual gaming ecosystem. The network enables anyone to create, trade, and monetize digital property called “LAND.” The project combines the popularity of NFTs (non-fungible tokens) with a programmable landscape to create a more immersive gaming experience for users.

The Sandbox provides players with multiple ways to build value and transfer it into other titles or out of the gaming ecosystem. The developers utilized NFT technology to ensure that players could easily keep track of their creations. NFTs are blockchain-based tokens that can represent in-game assets. They are blockchain verifiable and transferable.

Another issue that The Sandbox resolves is a lack of transparency. There is no way for gamers to know the scarcity of a digital item without trusting the word of the developers in a typical centralized gaming scenario. Instead, the game lets users confirm the scarcity, history, and capabilities of in-game assets using an Ethereum blockchain explorer. 

Players can secure passive rewards charging other users to access their land. They can then decide to trade, sell, or create an estate. In addition, Sandbox users enjoy access to an excellent selection of gaming options. 

The native utility token of The Sandbox is SAND. Sand lives on the Ethereum blockchain and is ERC-20 compliant. Users use SAND to conduct transactions in the Metaverse. Additionally, rewards and fees are paid in this token. This strategy helps to drive SAND’s value up. 

The Sandbox is a community-driven project. Users who hold SAND tokens can put forth proposals regarding upgrades and more — the more NFTs and SAND tokens you have, the more weight your vote holds. Community governance mechanisms such as this are now more popular than ever. Notably, these systems help improve transparency and ensure that a project community remains in control over the platform’s future. As such, the gamers finally get a say in their favourite titles.

Check Out: Where Will A Metaverse Launch Take The SAND Crypto Asset?

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Uniswap 

Uniswap is a unique decentralized exchange that allows users to create liquidity pools to earn rewards. It uses a new type of paradigm known as automated liquidity protocol. Users can deposit tokens into a liquidity pool smart contract quickly. They will further receive pool tokens in return. These received tokens can be traded for ETH whenever the user wants. 

Uniswap has also announced its four incentivized liquidity pools that reward liquidity providers with extra UNI tokens. The token holders have an added privilege to vote and add more incentivized pools after an initial 30-day governance period. 

UNI is a pure governance token, facilitating users with voting rights. It also provides users an opportunity to participate in fundamental development decisions. The token holders can participate in Uniswap's governance by delegating their votes to a third party or voting on different proposals. 

Uniswap allows users to swap any token with the ERC-20 protocol employed by Ethereum. Moreover, it makes the swapping process easy with just a few clicks by connecting MetaMask or other compatible wallets to the exchange. 

With the decentralized exchange enjoying colossal success, Uniswap will be one of the popular projects in the coming decades. Moreover, with the unique features of its governance token, crypto enthusiasts predict that the price of UNI can triple in the long term.

Yet another factor that boosts UNI value is Uniswap's third iteration, the Uniswap V3. It has featured high liquidity, flexible fees, and a license to use its open-source code for users. Considering all these factors, the value of UNI will exponentially increase in the market, and it will probably explode in 2022, positioning itself as a strong investment option for investors.

Read Also: Pros and Cons of Investing in Uniswap

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Conclusion

Cryptocurrencies have become a popular way to make good returns for investors and traders globally. The digital currencies mentioned above are some of the best long-term crypto investments for 2022. That said, cryptocurrencies are volatile, so investors are advised to perform due research before investing in digital assets.

eToro – The Best Platform To Buy Cryptocurrencies 

eToro have proven themselves trustworthy within the Crypto industry over many years – we recommend you try them out.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Read More:

Top 10 Cryptocurrencies To Buy And Own In 2022

Top 5 Cryptos Price Predictions Until 2025

What Are The Next Cryptocurrencies To Explode In 2022?

7 Weird Cryptos To Watch