Cryptocurrencies are digital currencies that are not governed by a central system such as a government. Instead, it is based on blockchain technology, with Bitcoin being the most popular. As digital currencies continue to gain traction on Wall Street, more options become available. There are currently over 20,000 cryptocurrencies on the market.
At its core, cryptocurrency is an incredibly forward-thinking industry. One of the main goals of many projects is to change the status quo in certain industry. Therefore, finding the best future cryptocurrencies can put investors in a good position for the months or years to come. However, that’s easier said than done.
In this article, we will be discussing the five (5) Future Crypto Coins to Buy in 2022.
5 Future Crypto Coins to Buy in 2022
1. Bitcoin (BTC)
Bitcoin is the largest cryptocurrency in the world by market cap. You can use it to make purchases online and off, or, if you’re like most bitcoin investors, view it as one of your buy-and-hold assets in your investment portfolio. It has become more of a safe-haven investment than a currency, earning it a place within your long-term cryptocurrency portfolio.
Bitcoin got a boost last year when Tesla CEO Elon Musk announced the company had purchased $1.5 billion worth and later that it would accept bitcoin as payment for its cars.
Although Musk rescinded shortly after, citing environmental concerns, plenty of other companies, including Microsoft, PayPal, The Home Depot and Rakuten, accept bitcoin as payment, albeit indirectly in some cases. Other businesses are adding bitcoin to their investment holdings. And in April, Goldman Sachs made its first cash loan secured by bitcoin.
Bitcoin is a volatile asset as you track it day to day, as evidenced by its recent price dip to under $18,000 from a one-year high of over $68,000. However, it has been the best-performing investment asset for the last 10 years, and a recent network upgrade to add functionality will make the platform more useful and could make the coin more valuable.
2. Ethereum (ETH)
ETH ranks as the second-largest cryptocurrency by market cap. Ethereum is the name of both a blockchain platform and the platform’s native cryptocurrency. The token can be used as a store of value, which is bitcoin’s strength, but Ethereum also has emerged as one of the best platforms for decentralized apps, also referred to as dApps.
In fact, it has become a favorite platform for developers because of its support for applications such as smart contracts, which automatically execute a function when specific conditions are met.
Ethereum is in the process of an upgrade. Initially called Eth2 and now referred to internally as The Merge, the result will be improved scalability, security and sustainability of the network, according to the Ethereum website.
3. Solana (SOL)
Another cryptocurrency that rose to prominence during early 2021 amidst the NFT boom, Solana (SOL), has established itself as a competitor to Ethereum due to the network’s scalability, impressive throughput, and innovative proof of history (PoH) consensus mechanism.
The reason why Solana grew so exponentially during 2021 was the need for a network that provided low-cost, energy-efficient transactions for NFTs and dApps. The project certainly achieved this goal as it’s now one of the biggest networks on the market in terms of NFT volume. Despite enjoying massive success in 2021, the network has been plagued with outages and claims of centralization, but as the number of network validators grows, these problems should become lesser.
Although Solana has fallen from grace somewhat in recent months, the network still facilitates a massive amount of transactions and remains a favourite among NFT enthusiasts. If it can successfully beat out Ethereum after the release of ETH2.0, then Solana certainly has the potential to be the best cryptocurrency of the future.
4. Cardano (ADA)
Another large, well-known project, Cardano (ADA), is the brainchild of Charles Hoskinson, who was also a co-founder of the Ethereum network. Cardano is a proof-of-stake blockchain with smart contract capabilities and a massive fan base.
Like Solana, Cardano is positioned as an Ethereum competitor. The network is designed with scalability and security in mind, which could be precisely what’s needed to help keep the project relevant amidst all the new releases. Despite the development of the Cardano network being fairly slow, the project continues to chug along with new updates being announced and released semi-frequently. The ADA token is used by investors to vote on the future of the Cardano network in a similar way to a decentralized autonomous organization (DAO).
Cardano has an excellent team, a strong network and frequently receives updates helping it potentially be the best crypto of the future. With the Vasil hard fork dropping soon, it’s worth checking out our ADA price prediction to get an idea of where the crypto could go.
5. Ripple (XRP)
XRP (XRP), created by Ripple, is an open-source technology created to facilitate fast and low-cost transactions. Furthermore, the project has a focus on scalability and energy efficiency, both factors that heavily impacted Ethereum toward the height of the NFT craze. While the project is currently under scrutiny by the Securities and Exchange Commission (SEC), the case seems to be going in Ripple’s favour which could help XRP to become the best future crypto to buy.
The project was founded in 2012 by David Schwartz, Jed McCaleb, and Arthur Britto as a more efficient alternative to Bitcoin. However, since its release, the project has escaped its humble beginnings and has grown to provide smart contract and DeFi capabilities, with full support for NFTs also on the horizon. The company behind XRP, Ripple, has already partnered with several national entities including the Bank of America and the Digital Pound Foundation.
While XRP is currently being held underwater by the aforementioned SEC lawsuit, once that concludes, we could see some explosive growth from the token. With current prices hovering around $0.35 and all-time highs breaching higher than $3, XRP could be the best crypto to invest in for future returns.
How to Find the Best Future Cryptocurrency
With thousands of exciting projects and even more releasing daily, finding the best future crypto to invest in can be challenging, but it doesn’t have to be. Below, we’ve shared a few simple techniques that can be employed in order to find the best future crypto to buy.
1. Social Media
One of the easiest and most common ways to find exciting new crypto projects is by scouring social media. By seeing which tokens are being spoken about by real people, an investor can get an idea of trends within the market and know where the demand is. Furthermore, by taking a look at the social media profiles of crypto projects, an investor can get a feel for how serious the project is and the direction it’s likely to go. As social media statistics are fairly easy to manipulate, it’s advisable to use at least one of the below techniques in conjunction with using social media.
All of the best future crypto coins should have a solid, well-written whitepaper. For investors checking out new projects, reading the whitepaper is a must. They tend to contain crucial information like the project’s tokenomics, development goals, and utility. Without exception, every project should have a comprehensive, easy-to-understand whitepaper. Without one, there’s no way for investors to actually know the ins and outs of what the team is intending to do. Therefore, it’s always worth taking a look at a project’s whitepaper to check for inaccuracies or fluff, both of which are very negative signs.
When it comes to trying to find the best cryptocurrency of the future, analyzing a project’s roadmap can offer a much-needed glimpse into the project’s goals and development schedule. Typically, roadmaps with dates with goals next to them. This allows investors to both the direction of the project and roughly when key developments are likely to take place. An investor can use this information to judge the functionality of a project. On top of this, they can also see how good the team is at keeping its promises.
Cryptocurrencies are highly volatile assets. While investing in digital assets can be one way to amass wealth quickly. However, it’s crucial to keep in mind that investing in cryptocurrencies exposes your investment to volatility and numerous risks, such as wallet hacking. Therefore, you must understand what you are putting your hard-earned money into before venturing into the cryptocurrency space.