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What cryptocurrency to invest in in 2022: analyzing the trends of the coming year

2021 turned out to be a difficult year for the global economy. Political upheavals, climate change and disasters have affected currency rates and even gold. Along the way, throughout the year, cryptocurrencies have changed their value. Either a sharp rise in late 2020 and early 2021, or a summer fall. Speaking in more detail about cryptocurrencies, it is important to understand their "unstable" position today. Now the cost of Bitcoin and Ethereum is hitting records again, but the growth will not last long and soon the prices will fall again. In this article, we will try to calculate the most promising currencies in 2022 as detailed as possible. Our TOP crypt was compiled based on the level of coin capitalization and their prospects for the foreseeable future.

How to determine which currency is the best to invest in in 2022?

It's worth starting with an interesting fact. Over the past 10 months, the first crypto currency has risen in price by 800%. Some people are inspired by this, while others are terrified, or at least doubtful. "What's the matter?" you ask. And the answer is simple — today, cryptocurrencies are a shaky currency. Although the popularity of exchanges dedicated to crypto-arbitrage is growing every year, questions remain regarding the safety of deposits. Although blockchain technologies are distinguished by their security (they are extremely difficult to hack), the financial model itself cannot boast of stability, and its decentralization is perceived as a method of “unfair” speculation. You can find a detailed analysis of the specifics of cryptocurrencies in the corresponding article on our blog.

Returning to the topic. It should be said in advance that the forecast for cryptocurrencies and their growth for 2022 is unambiguously optimistic.Financial experts predict that bitcoin will grow rapidly over the next 5 years. The most optimistic forecasts end at $ 400,000 per unit. True, there are much more pessimistic opinions, the growth limit for which does not exceed $ 100,000.

It is necessary to identify in advance the main factors of both the growth in the value of cryptocurrencies and its fall. Let's start with some really amazing news. El Salvador plans to soon integrate cryptocurrencies into its economic system. An inexperienced trader will ask “Well? What's the news then? ". But in fact, Salvador acts as a kind of pioneer, the country will be able to directly influence and participate in the auctions. But many questions remain regarding the security of the national economy, the degrees of freedom of the crypt, etc. For example, a "refund" mechanism, is it possible to withdraw money at once? How will this affect the national currency? And the main question is — will the transformation of crypto currency take place? Changes in its nominal value and how will the world economy react to such transformations? Remains a question. But the very fact of the integration of crypto currency into the economic system of Salvador evokes restrained optimism among depositors (current and future).

Without departing from the topic of states, one should also mention one more significant event. We are talking about the restriction on crypto currency trading in the PRC. Although it applies exclusively to companies and does not affect individual owners (not registered as a private enterprise). It aims to restrict the financial activities of commercial companies that use crypto currency (possibly) for illegal purposes. Although the ban did not affect ordinary people, the volume of trading in Bitcoin, Ethereum and similar units has significantly decreased. Understanding the reasons for the adoption of the law and the tendencies that it demonstrates, we can see the situation opposite to Salvador. But what was the reason? Dislike for crypto currency among party members? Unfortunately no.

A distinctive feature of China is its energy dependence. Today, the PRC is the main importer of energy resources in the world, and this situation will not change in the next 5 years. And the limitation of trade (and production) of crypto currency is directly related to energy consumption, because of crypt mining, rolling blackouts of urban areas from electricity are not rare, and the “farm” is to blame. We focused our attention on this event only because of the influence of China on the modern market of information and computer technologies. Today, the PRC produces the lion's share of equipment and its components, therefore the influence on related disciplines (such as cryptocurrencies) is great.

Having touched upon the topic of energy, the “trend” of the next 5-10 years should be noted. Namely, the energy crisis in the EU countries and the aforementioned China.A sharp jump in gas prices in Europe and the world entailed a significant increase in the cost of electricity, which, albeit for a short time, led to a drop in crypto currency prices. Although now the ministries of economics of different countries are assuring that the situation on the energy market is stabilizing, there remains a chance of "losing control" over the state of affairs. So, it is likely that the conclusion of agreements on the supply of natural gas to the EU and China may temporarily delay the rise in prices, but how long will the plateau last? Indeed, the course (and the compilation of the TOP) of crypto currency coins is influenced not only by the states and powers that be.

Elon Musk is a person who does not require introduction. Even last year, he spoke about the "promising future of cryptocurrencies" which led to the growth of Bitcoin by 16% (thereby increasing the number of depositors, of course). But the opinion remains the opinion, after a few months Elon changed his position and referred to the environmental harm of mining. His statements on social networks largely influenced the change in prices in the market and the compilation of the TOP cryptocurrencies.

The TOP of the most popular cryptocurrencies

There is one more point worth noting. This year, the total capitalization of the entire crypto currency market has broken the $ 2 trillion mark (one of the reasons for the TOP cryptocurrencies). This significantly strengthened the position of existing crypto units and attracted new investors. Apparently, this is just the beginning of the rise of digital currencies.

Changes occur monthly in the field of finance, trading, and especially in mining and buying / selling cryptocurrencies. But finally, let's move on to the forecasts and try to determine which crypto currency to invest in.

TOP popular cryptocurrencies

The TOP of the most popular cryptocurrencies was compiled on the basis of expert reviews and analysis of global trends. It should be mentioned in advance that all the given units took their places with an eye to the number of depositors and the stability of the exchange rate. We recommend paying attention to the TOP cryptocurrencies.

First place — Bitcoin

Bitcoin became the leader in investor sentiment at the beginning of 2022. It is called one of the most stable cryptocurrencies and for good reason. Bitcoin has been on the market since 2009 and every year it only strengthens its position. It is now the most popular cryptocurrency. If you look at any economic news outlets (paper or digital) you will see Bitcoin on the tabloids. Analysts' forecasts regarding the cryptocurrency rate are more than optimistic. Growth will be observed until the end of 2021 and by the beginning of the next, it will probably break its March record (64 thousand dollars).

Most investors prefer Bitcoin, as its capitalization is about $ 583 billion. For this reason, buying or selling "cue ball" has the highest liquidity — hence it will be profitable regardless of the state of the market. Although cryptocurrencies are an extremely volatile asset, Bitcoin is showing steady and consistent growth. Experts believe that this will be observed in a fairly long time frame.

More details about the future:

After the fall in the value of bitcoin as a result of the ban on trading in the People's Republic of China, the unit price begins to smoothly recover. The popularity of cryptocurrency continues to grow. In September, the number of Lightning Network nodes increased by 160%. Over the past few months, the number of token sales to individuals has increased, which influenced the recovery of quotations. After the ban on trading in China, Bitcoin lost 30% of its former value.

Due to the fact that the virtual currency cannot be affected by either the economic crisis (with a few exceptions) or the pandemic. Bitcoin positions have significantly strengthened, and it is expected to grow to $ 100 thousand in 2022.

Second place is Ethereum

The cryptocurrency strengthened its position in the market during 2020, and in 2021 it doubled its value. Today, interest in Ethereum is largely fueled by the launch of version 2.0. It should take place by the end of the year.

The currency will switch to the "Proof-Of-Stake" algorithm, which will eliminate most of the technical problems in the application. Users from all over the world are already looking forward to the update.

Ethereum itself is Bitcoin's closest competitor. Although now Ethereum is not in a position to argue with it directly, the growth in value and deposits is a matter of time. For 2022, the forecast for Ethereum is unambiguously optimistic. Especially in version 2.0. the elimination of the only controversial and really "unpleasant" factor is supposed — the expensive commissions within the networks.

More details about the future:

Despite the restrictions in the PRC, the number of transactions for the purchase of cryptocurrency in the future will only increase. One of the factors fueling future investments is the rise in inflation and unemployment in the United States. Thus, according to forecasts of financial experts, more and more companies will invest in "risky" assets. More and more experts agree that Ethereum is becoming more relevant and the demand for bitcoin. Also, cryptocurrency in the foreseeable future will become 99% more convenient and affordable.

From November 6, on the largest financial derivatives market CME Group, the launch of futures on 1/10 Ethereum will take place. On November 2, Ethereum again renewed its value record ($ 4.46 thousand) and raised the capitalization level to $ 527 billion. The projected cost of Ethereum by the end of the year is 5-6 thousand dollars. In the long term, growth is likely to reach $ 35 thousand.

Third place — Litecoin

A currency created on the basis of the Bitcoin protocol, but neutralizing its shortcomings. What is it about? About a user-friendly interface and transaction speed (Litecoin is 4 times faster). Sending and receiving payments in terms of efficiency is similar to the correspondence in the messenger. And the commission for withdrawing funds is much lower than that of Bitcoin.

To date, the capitalization of Litecoin is $ 5 billion and there are no reasons for a fall in the foreseeable future. Despite the general opinion about Litecoin as a copy of Bitcoin, we recommend that you take a closer look at it. During the past and early this year, the coin has shown stable growth and, apparently, is not going to slow down.

More details about the future:

Forecasts of financial experts agree — Litecoin will continue to grow steadily in 2022, largely due to its popularity among users. Thanks to the lightweight algorithm and the transformation of Litecoin into an analogue of paper money, the number of depositors is growing rapidly. The cost of Litecoin is in no hurry to beat the prices of Bitcoin or Ethereum, but steady growth is predicted. By the end of 2022, the likely price for Litecoin will be approximately $ 292 to $ 343.

The fourth place is Tether

The token is powered by the Ethereum blockchain. One of the high-cap currencies. It is especially beneficial for investments on a long-term basis due to its attachment to the dollar exchange rate. Thanks to this, the token is easily integrated into all exchange platforms and naturally turns out to be more stable (and more reliable) than most cryptocurrencies.

More details about the future:

Since 2020, Tether has shown amazing results. In 2017, its market share was 5%, and by the designated 20th — already 40%. Today its popularity has dropped somewhat and is in the range of 37-39%. The fall was facilitated by a litigation between US regulators and representatives of Tether and Bitfinex. At the beginning of 2022, stablecoin continues to occupy the leading places in the TOP of cryptocurrencies for investment and is likely to strengthen its position. But the fall in reputation is unlikely to be forgotten in the next few years.

For 2022, financial experts predict a stable rise in the value of the stablecoin Tether to almost $ 2 per unit. You should not expect significant leaps from this cryptocurrency. However, it can be classified as one of the most reliable cryptocurrencies in the world. Although Tether has yet to fully recover from the trial, everything is still ahead in the future. But despite all the difficulties described above, stablecoin strengthens new and regains lost positions. The estimated Tether amount for January 2022 is $1.16.

Fifth place — Binance coin

During the year, this cryptocurrency has been growing inexorably on all exchanges. The eponymous exchange is the issuer of Binance coin. Basically, altcoin is used as a means of paying commissions or transaction fees. Binance coin will not be mined, it was launched on the exchange even before the ICO, with a face value of $ 0.10. Today, altcoin is a stable unit. Binance coin is now a direct competitor to Ethereum. At the beginning of 2021, he broke his record and in less than two months increased in price by 767%, and its cost was $ 324.6. True, the altcoin did not manage to hold out above the $ 300 mark, and it traded at a lower price.

On March 30, 2021, the Binance coin rate skyrocketed to $ 683.8. But the sharp rise was followed by a sharp 67% drop. Binance coin price dropped to $ 225.6. In August, another growth of the currency took place and its peak was in the amount of $ 515.74. At the beginning of autumn, Binance coin sank again and amounted to $ 387.60. By the end of October, along with the soaring value of bitcoin, altcoin also grew. If on 10/01/2021 it cost $ 387.5, then its cost as of 11/03/2021 is $ 554.0.

More details about the future:

Long Forecast has released a pessimistic forecast for Binance coin, following which BNB will probably cost $ 472 in November and $ 396 in December. At the beginning of 2022, an increase to $ 459 is possible and it will last until February, and then it will be $ 503

The Economy Watch website is in contrast. Their forecast is more optimistic. Economy Watch estimates that Binance coin will end the year at $ 600 and hit last spring's record of $ 700 early next year.

Who to trust — the question remains open. It is important to understand that the BNB rate is directly related to the performance of the Binance platform. Recently, the site has been closed in different countries. Currently, access to users from Singapore is limited.

But in the third quarter, sales rose significantly, from $ 454 billion in July to $ 789 in September.

the TOP of growing cryptocurrencies

TOP promising cryptocurrencies

The top cryptocurrencies that will grow differ from the popular ones in terms of their prospects. The most famous tokens met with future competitors. Today, it is not easy to give an unambiguous forecast regarding their future fate, but the formation of new cryptocurrencies is quite likely. Although they still cannot compete directly with the leaders, they will be able to have their say in the future. The TOP promising cryptocurrencies include units capable of gaining price in the future or achieving popularity among users. Let's consider them further!

First place — Ripple

Fast growing cryptocurrency from China. Its original name in the XRP market. It is focused on large companies. Despite the restrictions in the PRC on the turnover of cryptocurrencies from corporations, the coin gained popularity in the vastness of South Korea and Japan (where it is actively used). Because of its purpose, Ripple can be called a "Cryptocurrency not for everyone". The development team strives to create a kind of "bridge" between the old economic system and blockchain technologies. Today large banks are interested in Ripple. The reason is surprisingly simple — the economic crisis caused by the epidemic has not hit Ripple as hard as other coins. Its place in the TOP of cryptocurrencies for investment is due to the potential and uniqueness of the currency, let's consider its prospects in more detail.

More details about the future:

At the time of this writing, Ripple is ranked 6th on CoinGeko's rankings. As a result of recent updates, development (in the future) features, it is likely that XRP will be able to rise in the near future. But speaking in more detail, you should look at the position of assets. At the moment, most of them are in a “bullish” position, in other words — long. There are no objective reasons for a sharp drop in Ripple now. But it is important to remember that this is possible in the future.

Objective price predictions agree on the likely growth of XRP to $ 15 by the end of 2022. Also, rapid growth is predicted at the beginning of the year, up to $ 25, slowdown and decline (not critical) is likely in the second quarter. Considering the upcoming partnership agreements of the founding company and the current stable policy of investors, XRP is likely to have stable growth and maybe this particular coin will soon be included in the list of the best cryptocurrencies.

Second place — Chainlink

In 2020, it took the first place in the list of the most profitable cryptocurrencies in the world. This remains relevant today. Chainlink token predisposes to long-term investments. Over the past year, the value of the coin has grown from $ 1.5 to $ 20. It makes sense to invest if the value does not fall by the end of the current year.

More details about the future:

As of November 3rd (time of writing) Chainlink is trading at $ 31.16 in US dollar terms. LINK's capitalization is currently $ 14 billion.

By the beginning of 2022, Chainlink will likely range between $ 31.18 and $ 35.08, and by the end of the year from $ 45.11 to $ 53.98. Given the stability and potential in investments on a long position (long), LINK is deservedly included in the TOP of growing cryptocurrencies and will probably take leading places in the lists of reliable coins in the foreseeable future.

Third place — EOS

Founded in 2017, the cryptocurrency quickly gained strength due to its unique asynchronous communication system and simultaneous request processing. It is designed to provide commercial proposals of a decentralized type.

By its structure, the cryptocurrency is similar to Ethereum, but the developers focused on increasing the number of possible operations per second. Tentatively, the EOS cryptocurrency system can conduct millions of transactions. Its task is to implement a blockchain suitable for a variety of business tasks.

Today it is called the future "killer" of Ethereum and, probably, in the future EOS will take the first places in the TOP currencies for investing. Today it demonstrates stable growth, and a considerable part of assets is in a long position, which means a probable growth.

More details about the future:

Forecasts for 2022 regarding this cryptocurrency are more than optimistic. If its competition with Ethereum continues in the current race for functional architecture and convenience, then by the end of the year the maximum amount of EOS could be $ 4.93.

But don't forget. Promising cryptocurrencies are an even more risky asset than those that have gained popularity. Today they have not yet been “heard”. But investors can be attracted over time, at the same time, tokens and altcoins that have not received wide publicity in society, in the event of crises (for example, bans in countries) can "collapse".

Fourth place — Cardano

Written in the programming language Haskell, the cryptocurrency declared itself as a "green coin" back in 2015. A distinctive feature of ADA is its environmental friendliness. Unlike Bitcoin and Ethereum, mining this cryptocurrency requires significantly less electricity than its direct competitors. This is especially true in light of the already onset energy crisis. It is becoming more and more difficult to bring cryptocurrency to the market today. In the near future, mining prices will increase significantly, which will lead to an increase in the cost of popular coins, but will significantly complicate the process of their production.

Therefore, Cardano is one of the contenders for the future leader of the cryptocurrency market. Although its cost is relatively small (as of November 3, 2021, it is $ 2.06), its future growth is obvious.

More details about the future:

At the time of this writing, Cardano ranks 6th in the TOP cryptocurrencies in terms of growth. With the Shelley update, the unit has become one of the most decentralized currencies in the world. At the moment, the capitalization of ADA is 6.7 billion. Although the price of the coin has fallen over the past month, in the near future, experts assume a strengthening and a likely, significant, growth of the currency.

Fifth place — TRON

A distinctive feature of this crypt is its deep integration into the world of Internet entertainment. Today this coin is part of the TRON platform and is traded with the TRX ticker. Cryptocurrency is used as an exchange unit in various platforms and online entertainment. Both in games with "donation" and in online casinos. TRON has established itself as a platform for hosting and promoting new games. Developers can easily share their project and quickly recoup the cost of its creation.

The specificity of TRX lies in its investment opportunities. Cryptocurrency price can change 4-6 times a week. But the coin has been showing rapid and stable growth for as long as 4 months. At the time of this writing, TRX is priced at $ 0.1.

More details about the future:

Every year the virtual entertainment market is developing faster and faster. All the big budgets go into game development. The entertainment industry requires more and more financial investments every year. Platforms like TRON are the future of online gaming. If you have an ingrained idea of ​​computer and telephone games as a child's play that cannot bring real profits, then we hasten to convince you that the development of computer games is one of the most profitable and relevant undertakings in the modern world. There is no need to look far for examples; last year's Chinese hit Genshin Impact (a shareware project) brought the developer $ 774 million in 2020.

Also, one cannot fail to note the growing popularity of online casinos. Although many countries have already adopted (or are being adopted) restrictions regarding their placement on Internet resources, they are in no hurry to disappear. What's the matter? It's simple, a lot of modern online games incorporate elements of gambling and thereby increase the "involvement" of players.

At the time of this writing, the TRX value was $ 0.1 and was in a stable growth position. This was facilitated by the popularity of games and casinos. Potentially profitable cryptocurrency, but the asset can be called especially risky in view of the energy crisis affecting both the cost of developing and maintaining servers.

If you thought about the question "in which cryptocurrency is it profitable to invest bitcoin"? We recommend that you take a closer look at promising coins! In the upcoming 2022, some of them will already show themselves, while others, less popular according to experts' forecasts, will establish themselves by 2025.

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