Over the years, Cryptocurrencies have had their fair share in a hit-or-miss concept, especially this year and the fact that many businesses around the world accept Cryptocurrencies as a form of payment and are significantly investing in them has resulted in an ever-increasing demand for these digital currencies. The level to which the Bitcoin industry has gained respect over time cannot be expressed in words. As the economy learns to accept it as a real currency and asset class, it can only go up. Learn how to invest in Crypto in 2022 and beyond. Many analysts anticipated that the Crypto market would never recover from the 2018 fall. But this has not been the case this year; while it is excellent advice to “invest in Cryptos", but at the same time, it is not wise to invest in every first token you come across.

For example, Bitcoin was thriving at the beginning of 2021, and it hit a new all-time high of about $65,000. Then suddenly, there was a crash and Bitcoin's value collapsed by nearly half, and it was miserable to happen. However, Bitcoin isn't the only Cryptocurrency facing this tragedy. The majority of them have lost their value, with only a few gaining popularity. An even smaller number of them may be considered sensible, solid investments, at least when the risks are taken into account. However, there are a few tokens in which everyone seems to agree are a solid investment.  This doesn't mean that everyone who invests in them will make a lot of money, some will lose money, but it also does mean that they have the best possibility of an increase in the value over time. The optimism expressed is based on facts like, these tokens have history, and their applications have been verified by others.

Also read: 8 Useful Tools For Crypto Trading

So, let us see the top 5 digital assets that can be an appealing investment destination for 2022 in this Crypto blog.

1. Bitcoin (BTC) :

How could the list begin without including Bitcoin? The fact that most trading platforms and Crypto exchanges accept it is a strong sign of its popularity and supremacy. With its thriving market dominance since its debut, it is safe to assume that the trend will continue in future. Bitcoin, the first Cryptocurrency, is now the most extensively discussed Crypto, with some news outlets referring to all Cryptocurrencies as "Bitcoin". Even though there isn't much left to say about the token, the public knowledge of how it works remains low- partially because the Cryptocurrency principle and its operation are tough to grasp. Nevertheless, Bitcoin remains the undisputed master of Cryptos regardless of whether it is understood and immune to market volatility due to its widespread acceptance. This is one of the main reasons why it's the most popular Crypto for SoV (Store of Value).

Investing in Bitcoin has several advantages. To begin with, these Crypto transactions are both inexpensive and speedy, especially when compared to other possibilities. A new block is created every ten minutes, and the maximum throughput is roughly 7 TPS (transactions per second). Furthermore, unlike fiat currencies, BTC transactions do not need users to provide private identifying or financial information because BTC is currently the second-fastest growing digital currency as well as the most well-known Cryptocurrency across the globe. It's value peaked at around $64,000 in April 2021. According to the Blockchain Centre, over 488,000 Bitcoin addresses were created in the first half of 2021. Until today this figure should have surpassed 90 million, and it is steadily rising. BTC's strong liquidity and absence of links to the global financial system should also be considered by investors. All of these qualify this Cryptocurrency for macro investment. It does not require the use of a broker, as do stocks, and a private individual can buy and sell it on a variety of exchanges.

2. Ethereum (ETH) :

Ethereum is the largest Blockchain network for Decentralized applications with a market capitalization second to Bitcoin. Because of its smart contract capabilities, Ethereum is a strong contender in the top list. Smart contracts are similar to paper contracts in that they will execute after all criteria have been met but they do so without the use of an intermediary such as a bank or other middlemen. Developers use the Ethereum network to build Decentralized Exchanges (DEXs), Security Tokens (which can replace paper stock certificates and other financial products), non-fungible tokens (NFTs) that can be used to replace art and other valuable items and new Cryptos use Ethereum’s ERC-20 token standard. With the ETH2.0 upgrade, Ethereum is transitioning from a Proof of Work (PoW) to Proof of Stake (PoS) consensus mechanism. Stakers can now use their ETH as a staked investment to earn more money passively.

Ethereum has a wide range of applications thanks to decentralized apps and ERC-20 token standards, and it is the most popular platform for new coin production. All DApps, Smart contracts, security tokens, NFTs, and other products require ETH to run on the Blockchain and it is predicted that Ether is the sole coin to overtake Bitcoin soon. To implement smart contracts on Bitcoin, alternative level 2 solutions such as lighting networks are currently required. Even with its taproot upgrade, it will only enable basic smart contract capability, making Ethereum the preferable option for this procedure.

It's been a popular choice since 2015, and it is proven to be reliable, but with the ongoing ETH 2.0 upgrade, which switches to a lot more efficient and quicker PoS consensus method and Shards system, it's just getting better. For individuals who have ETH, staking provides an additional source of revenue of about 8% each year. However, since EIP 1559, ETH has begun to be burned, causing deflation to occur, and the price of ETH to rise even quicker. With the current gas price of 61 GWEI, the ETH supply is anticipated to peak at 118.7 million ETH in early February 2022 before falling.

Also Read: Top 9 Price Action Crypto Trading Strategies

3. Polkadot (DOT) :

Polkadot is one such invention that has revolutionized the internet’s decentralization. The quickness and security of this Cryptocurrency are two of it's strongest attributes. These two reasons alone demonstrate how trustworthy this digital currency is and why investing in it is worthwhile, without a doubt, in the Cryptocurrency industry. This digital money has carved out a space for itself. Polkadot has Crypto investors excited about its parachains, which are expected to be ready in late 2021. Parachains in general are parallel chains that run alongside Polkadot’s primary chain that can be used to host different projects; they are possibly the most essential feature detailed in the whitepaper. Parachains will be auctioned off in 11 auctions spread out over two days, according to CryptoPotato. The first batch will take place between November and December 2021, with the second group starting in December 2021 and continuing through March 2022.

Polkadot is one of the most anticipated initiative projects in the business with a rapidly developing user buzz. However, the indisputable winner of the Crypto arena is DOT, which has been on a rampage this year, climbing to the top of the Crypto list. By the year 2025, PricePrediction predicts that the price will average up to $136.96.

4. Monero (XMR) :

When deciding which Cryptocurrencies to buy in 2022, don't forget about privacy coins. Privacy is more critical than ever with CBDCs popping up all over the place and governments demanding regulation. Monero is one of the most established and well-known privacy coins available. This is because any corporate organization does not back it up and that it comes with all privacy settings turned on by default. Monero's price in 2021 hasn't increased by thousands, but it has increased by 81 percent so far. Thus, because of its privacy features, it gets harder to list on exchanges; therefore, the speculations have a smaller impact on its price.

Also read: 10 Common Myths About Crypto Investment Debunked.

5. Solana (SOL) :

Solana is another smash from 2021 that has all the makings of being one of the finest Cryptocurrencies to buy in 2022. Solana hosts decentralized applications and smart contracts just like Ethereum and Binance Smart Chain but with reduced fees and faster speed. If you thought that previous currencies growth was impressive, wait until you see how much SOL has grown over in 2021 -it's 13,662 percent! Yes! That's right. It would take a miracle for such a pump to happen again in 2022, but it is realistic to expect the rise to continue. On October 25th, SOL, like Ethereum reaffirmed it's all-time high price of $218.73; although the trends in various Cryptos are often similar, diversification is recommended to maximize gains. There have been no sustainable updates to SOL announced yet. The team now appears to be concentrating on onboarding users, products and given the current rate of progress, the next stage might arrive as early as 2022.

Solana's market cap is currently about $51.8 billion putting it in seventh place in that category. For the time being, it is putting Ethereum and Cardano (CRYPTO: ADA) in a tight race for the best smart contract platform. Not long ago, Solana made a massive move into NFTs with Degenerate Apes, a digital collection of dressed apes with diverse qualities from glasses to sandwiches and varying degrees of rarity. Over 400 proposals have already been submitted, with several of them being DeFi projects which eliminate the bank as a mediator. It's thought to be an ETH alternative that programmers are looking for; it won't kill ETH and its popularity, but it may put it out of business. SOL has developed a network wormhole bridge which is a very desirable attribute because networks rarely cooperate. Therefore, according to SOL, the next stage will be to link Terra (LUNA) with the Binance Smart Chain. Solana promises to perform more than 50,000 transactions per second (TPS) for less than $0.01 per transaction.

Conclusion:

Cryptos ultimately leapt the margins to be a mainstream asset for both retail and institutional investors in the year 2021. Thus, many Cryptos have a lot of potential and their investors might make a lot of money in 2022 if they invest now. This year BTC and ETH have reached new highs while other Altcoins like SOL have soared thousands of percent. Other spectacular acts like these are likely to occur in 2022 as well. 

Disclaimer: The author’s thoughts and comments are solely for educational reasons and informative purposes only. They do not represent financial, investment, or other advice.