Want to jump straight to the answer? The best cryptocurrencies in 2022 are Bitcoin, Ethereum, Polygon, Sushi, Cardano, and Chainlink.
With thousands of cryptocurrencies on the market, it can be difficult to decipher between a promising project with long-term growth potential and quick cash grabs that won’t last through a bear market. Considering a cryptocurrency’s market capitalization, development team, market position, and future price potential, we’ve compiled a list of some of the best cryptocurrencies to invest in 2022 and beyond.
Altcoins are usually riskier investments compared to Bitcoin, but they often provide higher returns in a bull market. Conversely, altcoins generally depreciate more in bear markets. In general, cryptocurrencies with a smaller market capitalization are more volatile than large and more established cryptocurrencies like Bitcoin and Ethereum. The coins on this list are within the top 100 largest cryptocurrencies, and each project has a market capitialization in access of $1 billion.
Check out our list of the best cryptocurrencies for 2022 and start investing in the future of finance today. The best cryptocurrencies that are ready to mine:
- Best Value Storage Cryptocurrency: Bitcoin (BTC)
- It has the greatest enthusiasm in the market: Ethereum (ETH)
- Most promising Layer 2 token: Polygon (MATIC)
- Best Decentralized App: Sushi (SUSHI)
- Best coverage against ETH: Cardano (ADA)
- Highest growth potential: Chainlink (LINK)
What are the best cryptocurrencies?
The best cryptocurrencies in 2022 are not just coins, they are native assets of some of the most promising startups and projects in the financial world. Mark Cuban and Andreessen Horowitz invest heavily in altcoins, specifically in decentralized finance (DeFi) investments that have been popular crypto investments this year. Here are some of the most promising venture capital-backed cryptocurrencies to buy in 2022.1. Bitcoin (BTC)
The king of all the best cryptocurrencies, Bitcoin, was the first and most well-known cryptocurrency on the market. It also benefits from the largest market capitalization and is among the best traded cryptocurrencies, ensuring liquidity to investors. Bitcoin is king when it comes to retail and institutional adoption. Most altcoins will follow Bitcoin’s price trend, so if Bitcoin does poorly, altcoins are likely to bleed as well.
Considering that the price of bitcoin is still below its all-time highs of over $64,000, buying now may be a good investment in the future. There will only be 21 million bitcoins in existence (with about 15% of this number lost), so as long as Bitcoin’s user base continues to grow, so will the price of the asset. Bitcoin currently has an inflation rate of 1.7%, and this rate is halved every 4 years in what is known as half of bitcoin.2. Ethereum (ETH)
As the currency and platform that made smart contracts part of the vocabulary of the best cryptocurrency market, Ethereum has seen massive gains since its introduction in 2015. Currently only behind Bitcoin when it comes to market cap, Ethereum has become one of the most discussed cryptocurrency projects in the world.
A consortium of some of the biggest names in the business, including Microsoft, Intel, Chase, and JP Morgan, are building business-ready versions of the software that powers Ethereum. With the momentum and market enthusiasm behind the Ethereum project, there is no reason to think that Ethereum has run its course, and investors should consider Ethereum as part of their portfolio of the best cryptocurrencies. Ethereum is available on Coinbase, Gemini, and Voyager.3. Polygon (MATIC)
Polygon is an Ethereum sidechain that is scaling DeFi at a rapid pace. Ethereum’s high gas fees have highlighted the networks’ struggle to upgrade to Eth2. Ethereum co-founder Vitalik Buterin has expressed support for Layer 2 scaling solutions, which handle transactions on a sidechain before sending a batch of transactions to Ethereum’s Layer 1 blockchain. As a result, users pay significantly fewer transaction fees and can settle transactions in just a few seconds.
Layer 2 sidechains play a critical role in Ethereum’s scale, and Polygon is one of the 1st to do so. Assets must bridge the sidechain, so there are some switching costs that will lead people to stay at Polygon in the long run. Polygon is available on Coinbase and Gemini.4. Sushi (SUSHI)
Sushi, also known as SushiSwap, began as a decentralized exchange that rivaled Uniswap. Since its inception, its developers have updated the app to host a set of features, with more use cases coming out soon. What makes Sushi different from Uniswap is that Sushi pays dividends to Sushi token holders. SUSHI owners can wager their tokens on the platform to receive trading fees of 0.05% of all trades on the platform.
In addition to SushiSwap DEX, the decentralized app hosts lending marketplaces, token launch pads, and even leverage trading. Sushi plans to launch Shoyu and the NFT platform that will compete with OpenSea, today’s largest NFT marketplace. A 2.5% fee will be charged to NFT sellers, which will be paid to SUSHI token holders in the form of dividends.5. Cardano (ADA)
Cardano is one of Ethereum’s biggest competitors. The project was founded by Charles Hoskinson, one of the former co-founders of Ethereum. The cryptocurrency is already a proof-of-stake, a consensus algorithm that Ethereum is still in the process of migrating to. Proof-of-Stake not only enables faster and cheaper transactions, but is also environmentally friendly.
Ethereum outperforms Cardano in its DeFi (decentralized finance) ecosystem. Cardano has yet to launch smart contracts on its platform, but the cryptocurrency plans to add this feature in 2022. Ethereum already has hundreds of decentralized applications on its platform, and the network has many more users than Cardano’s. Cardano is available on Coinbase and Gemini.6. Chainlink (LINK)
Chainlink (LINK) is an Ethereum token that powers the Chainlink network of decentralized oracles. This network allows smart contracts on Ethereum to securely connect to external data sources, APIs, and payment systems.
Chainlink entered the market in 2014 under the name SmartContract.com. Shortly after its launch, the name changed to Chainlink to better represent its core market.
Chainlink established a strategic partnership with Google in 2019. The deal secured Chainlink’s protocol within Google’s smart contract strategy. This move was seen as a huge win by investors as it allows users to connect to Google’s 2 most popular cloud services. Chainlink is available on Coinbase and Gemini.The best exchange platforms of the best cryptocurrencies
The best cryptocurrency exchange for you depends on your needs as an investor. Regardless of whether you are a long-term holder or a day trader, the security of an exchange should be among your top priorities. U.S.-based exchanges provide high security, usually offering 2-factor authentication and cold storage for their digital assets.
Among the top cryptocurrency exchanges on the market, Coinbase, Gemini, and Webull are some of the best places to start investing in the best cryptocurrencies. Gemini is unique in that it allows you to earn interest on your positions of the best cryptocurrencies only for holding the asset; if you’re a long-term holder, this is a great strategy to accumulate more coins. Coinbase has the best user interface of the 3 options, and its Coinbase Learn program pays crypto investors to learn about blockchain technology!