Best-Performing Cryptocurrencies: May 2022

Last Updated April 28th 2022
4 Min Read

These are the 20 best cryptocurrencies, based on year-to-date performance

August has been quite a volatile month for crypto. The market started the month on a high note, but by mid-month, momentum had slowed down. This has seen most cryptocurrencies consolidate for the second half of the month.

Considering that most cryptos are trading at record prices, current prices may confuse investors about the direction the market could take. That’s why it is most prudent for investors to have a long-term view of the market.

To help make long-term strategic decisions, this article compiles the best cryptocurrencies in the market based on year-to-date performance.

However, that is not to say that these are the best cryptocurrencies in the market today. It also does not mean that they will be the best performing in the future.  No one knows how the markets will perform going into the future.

For someone looking for the best cryptocurrencies to invest in, they might want to consider investing in cryptocurrencies through ETFs.

Best Cryptocurrencies as of May 2022

Symbol Cryptocurrency Name Price-Performance (This Year)
SAFE Safe 10962.11%
HEX HEX 880.49%
LUNA Terra 443.6%
SAND The Sandbox 328.52%
AXS Axie Infinity 290.18%
NEAR Near Protocol 151.29%
LEO LEO Token 147.91%
YOUC YOUCash 146.05%
QNT Quant 140.22%
AVAX Avalanche 137.9%
SOL Solana 124.15%
CRO Crypto.com Coin 106.05%
FTM Fantom 59.9%
KNC Kyber Network 57.51%
LRC Loopring 53.21%
KCS KuCoin Token 41.23%
MATIC Polygon 38.54%
MANA Decentraland 24.81%
DFI DeFi Chain 18.66%
OKB OKB 5.5%

 

The Answer: Index Funds

Picking individual cryptocurrencies is no mean feat and can easily lead to losses if a project does not deliver as expected.  That’s why more investors are now looking to ETFs that loop in multiple cryptocurrencies together.

Most ETFs that track certain aspects of the market, such as top altcoins and DeFi cryptos, have recently performed much better than most individual cryptos.

For instance, an ETF that mirrors the top 10 DeFi cryptos in the market gives investors good exposure to the overall performance of the DeFi market. An investor gets exposure to a group of related assets without having to bet one or the other.

The idea is that, when investing through an ETF, you do not have to struggle to pick winners from losers.  Some may win, and some may lose, but at the end of the day, the winners will balance out with losers, giving you a good average return.

Of course, you may miss out on some big runners, but you also save yourself from losing by double-digit percentages if things go wrong.

The other advantage of investing through ETFs is that you do not have to deal with the storage challenges of holding individual cryptos directly. Due to the unregulated nature of crypto, this asset class has become a haven for hackers.

Even the best storage wallets out there are always at risk of being exploited. Since most crypto ETFs in the market today are derivatives and do not involve ownership of the underlying asset, the security risk is eliminated.

This explains why most institutional players getting into crypto are doing so through ETFs and other crypto derivatives.

Managing Expectations

Your investment in a crypto ETF will not beat the market. There are some cryptos that will perform thousands of times better than top crypto ETFs. However, beating the market is not the goal. The goal is sustainable growth at low risk.

ETFs are inherently secure due to their highly diversified nature. As such, while you may miss out on some significant gains short term, you will be in a good position long term.

The downside: The biggest downside to crypto ETFs is that you end up missing on some hot cryptos that could make you rich. For instance, the average diversified crypto ETF does not have meme coins. Yet, these were some of the biggest gainers in the bull rally that peaked in 2021.

To get around this problem, one can choose to divide their investable resources. Put a percentage into ETFs and the rest into hot coins that hold the potential to rally.

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Virtual currencies are highly volatile. Your capital is at risk.

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