Top 5 Cryptocurrencies To Invest In 2022

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Top 5 Cryptocurrencies To Invest In 2022

It has been another eventful year for cryptocurrency, with significant price movements amongst the top 10 tokens and plenty of heated discussion on the future of the technology. One of the year’s biggest news was Facebook’s Project Libra, which promised to bring about mainstream adoption of digital currencies. Notwithstanding all good intentions, this and other ambitious projects have lost some momentum, and this has been reflected in lower confidence in the cryptocurrency markets. 

2021 is sure to bring renewed interest in the major coins which helped bring cryptocurrency and Blockchain to the leading edge of technological advancements. Not much has changed since we published our list of coins to invest in 2019, but there are fresh reasons why you should invest in at least some of these coins in the coming year.

So what advice do we offer for the best cryptocurrency to invest in 2021? Well, this can be many things but most of all it is depending on a number of factors. One being what type of investment, what kind of risk are you willing to take and for how long. This since no advice is “one size fits all”, sadly, but has to be considered in the extent to the person’s personality and financial means.

For those who are still debating which platform they should trust, check out the platforms listed below. All these trustworthy platforms offer a great service to trade cryptocurrency as well as other traditional assets such as stocks and indices.

Bitcoin

Invest in Bitcoin 2020

Whilst it might sound like old news, investing in Bitcoin is still a good idea. The coin’s volatility has decreased significantly since its phenomenal rise in December 2017, and 2019 has been a rollercoaster ride. Most analysts agree that the days of earth-shattering returns with Bitcoin are gone. However, if you are aiming for small, long-term returns, then the world’s first cryptocurrency is a relatively safe bet.

Although the average Bitcoin price for the year is expected to remain stable, this does not mean that day traders have nothing to look forward to. In fact, throughout the year the coin is expected to experience several dips, ideal for advanced traders looking to short sell the cryptocurrency. On the other hand, there are several reasons to buy Bitcoin and HODL until the end of 2021 and beyond.

Whether you are planning to invest in Bitcoin for the long term, or are eager to short sell, eToro offers the right platform to manage your investment. Apart from giving you access to leverage trading and charting tools, the mobile-friendly platform allows you to automatically copy successful investors through its CopyTrader tool.

Ethereum

Invest in Ethereum 2020

Ethereum’s legacy seems to be that of always being second to Bitcoin. More than just a cryptocurrency, Ethereum presented the world with the possibility of functional smart contracts as well as a platform upon which to build distributed apps (DApps). For some time, the currency has been losing market share to its rivals, including EOS and, to some extent, NEO. However, whilst EOS is attracting an increasing number of developers, market sentiment is still favouring Ethereum.

Following the split from what is now known as Ethereum Classic, Ethereum has the possibility to continue to develop and improve upon itself. Its main disadvantage is lack of scalability, and some believe that its shift to Proof of Stake (PoS) algorithms will help it grow. Whilst progress has been slow, it hasn’t been non-existent, leaving hope that 2021 might be the year in which Ethereum becomes the cryptocurrency on everybody’s mind.

If you are planning to use Ether in your project or are looking to trade it for a profit you will need a reputable cryptocurrency exchange. Binance allows you to buy Ethereum using fiat currencies or any of the 400+ supported cryptocurrencies.

Ripple

Invest in Ripple 2020

Ripple, or to be more precise, XRP, is an overlooked cryptocurrency that has been secretly beating traditional financial institutions in the money transfer process. Used by hundreds of banks and other institutions globally, Ripple will certainly play an important role in 2021. Unlike the majority of cryptocurrencies that have been fighting the system, XRP has found a way to transform it from within. It, therefore, exists in a space with limited competition, and a potential market running into the tens of billions of dollars.

Whilst most reputable cryptocurrency exchanges support XRP, not all offer in-built wallets. The best way to secure your digital currency is through a hardware wallet, and none is as secure and handy as the Ledger Nano X. Portable and lightweight, the Nano X cannot be hacked remotely and supports over 1,000+ different cryptocurrencies.

Bitcoin Cash

Invest in Bitcoin Cash 2020

Although Bitcoin is still the world’s largest cryptocurrency by market capitalisation, its value is mainly derived from speculation, not usability. Satoshi Nakamoto’s currency has many faults, including the inability to scale, but its arguably biggest fault is the lack of consensus amongst its community. This led to the hard fork which created Bitcoin Cash.

Whilst still far from Bitcoin’s market value, the price of Bitcoin Cash is expected to increase in 2021, following a drop at the end of 2019. Market analysts believe that the increase will be sustained throughout the year and will go on into 2021.

If you want to get hold of Bitcoin Cash before its expected rise, Coinbase provides some of the fastest coin delivery at very affordable rates. In addition, the exchange’s interface is ideal for novice traders, whilst Coinbase Pro is a great companion for experienced ones.

Litecoin

Invest in Litecoin 2020

Litecoin is a prodigy of Bitcoin is the most successful cryptocurrency amongst several which use Bitcoin’s base code. Its success is based upon its ability to innovate and develop the code by tackling its flaws. Unlike Bitcoin, Litecoin’s community seems to work much more efficiently, allowing it to improve on both scalability and security.

As with all Altcoins which use Bitcoin’s base code, Litecoin’s price movements often mirror those of Bitcoin. In 2021, this should mean that Litecoin will be seen as a stable investment, offering small, but safer returns. This currency is also much more affordable than Bitcoin, and it is likely to attract a greater audience in the future.

In order to invest in Litecoin without having to concern yourself with storing it securely, Plus500 offers Litecoin Contracts for Difference (CFDs). These high-risk financial instruments allow you to speculate on price movements and use leverage with only a small percentage paid upfront.

So what is the best cryptocurrency to invest in 2021?

As we said in the beginning, the best option is depending on a number of personal factors. What we tried to do here is introduce you to different options. What you end up choosing must be up to you, depending on your situation and preferences. There are several good options, but maybe not all suitable for you.

The best advice is to gather knowledge and be honest with yourself when it comes to investing.

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