There are two ways to approach a crypto market; the short-term and long-term. While the short-term approach that includes investing in crypto for a short period works well in the bull market, long-term investment is the best strategy to opt-in the bear market. The reason behind it is the absence of favorable price movements to benefit your short-term investments in the bear market, so it is better to go long-term.
But thousands of cryptocurrencies available today can overwhelm you in deciding which cryptocurrencies to buy in 2022. However, it would not be so if you read this blog till last.
To determine the best cryptocurrencies to buy and HODL, firstly, it is necessary to know the factors to consider. Hence, here are those-
Legitimacy
The legitimacy of a cryptocurrency is always the first thing to look for before considering investing in it. It is advisable not to invest in some newly launched and less known crypto projects because they can turn out to be a Ponzi scheme anytime.
Purpose
Go through the whitepaper of the crypto. It will tell you the motive behind that digital asset and how it will set itself apart from the existing cryptocurrencies. If you get satisfied with its purpose and utilities, you should shortlist it for your investment option.
Returns
Many cryptocurrencies will clear the legitimacy and purpose check successfully. But this does not mean that all of them are the best cryptocurrencies to invest in 2022. Read their past performance and price predictions to see if it aligns with your long-term investment goals and can give you the required returns.
But it looks like a lot of work, isn’t it?
Well, do not worry. You don’t have to do it because we have already done it for you and shortlisted the top 5 cryptocurrencies best for long-term investment.
Bitcoin (BTC)
Bitcoin is the first cryptocurrency and has proven itself in many bear markets. From utilities, past performance, and market cap to supply, support, and legitimacy, Bitcoin wins in every aspect and tops the list of cryptocurrencies to buy in 2022. It is the safe haven crypto investment preferred by most investors over any other crypto. Since it has a maximum supply of only 21 million of which 90% have been mined already, bitcoin is undoubtedly a brilliant store of value asset too. Many businesses and countries have started accepting it, and some big crypto institutions also use it as a reserve. Undoubtedly, it is the best-performing cryptocurrency that one must invest in for the long term. Due to the current bear market, you can get it at a pretty good price.
Ethereum (ETH)
Ethereum is the second biggest cryptocurrency by market cap that has spent the longest time in the crypto market after Bitcoin. It has established itself as one of the best platforms for developing and running dApps. Currently, it is in the process of shifting from proof of work to the proof of stake consensus mechanism that will solve its scalability problem and make it more sustainable. Be it DeFi, NFT, or Web3 programs, Ethereum has an important role to play in almost every advancement that takes place in the decentralized world. Some crypto analysts even claimed that Ethereum might surpass Bitcoin to become the most valuable cryptocurrency if its upgrade “The Merge” becomes successful. Therefore, it is worth investing for the long-term in Ethereum as it is currently trading at a very low price due to the downward market trend.
Cardano (ADA)
Cardano comes with some ground-breaking technologies that make it the biggest competitor of Ethereum. It has become one of the fastest-growing crypto assets that allow people to build smart contracts and create dApps at minimal fees. It is much faster than Bitcoin and Ethereum 1.0 in processing transactions which makes it scalable. In an interview, its developer claimed that Cardano is 1.6 million times more energy-efficient than Bitcoin. It has a limited maximum supply of 45 billion tokens. Since it has a limited supply, its high demand will make it scarce in the future and will help it to retain its value with time. Summing up, Cardano (ADA) has a high chance of giving good returns in the long term. Moreover, it also makes a good portfolio diversifier.
Polkadot (DOT)
Polkadot was launched in 2016 and has reached a market cap of $22 billion. Its unique blockchain interoperability protocol makes it efficient to connect different blockchains. It means Polkadot combines independent blockchains into a single network of new chains. This way it intertwines its proof of stake validation security in the blockchain built by developers on its platform. Unlike Ethereum and Bitcoin, Polkadot has no fixed maximum supply, but it has the support of some most knowledgeable personalities in the crypto industry. It got this support because it has been a remarkable improvement in solving the interoperability issue of blockchains. Polkadot is also very affordable compared to its competitors which attract the dApp developers to use it.
Decentraland (MANA)
Metaverse is the fastest growing technology at the current time. In that direction, Decentraland runs its most popular Metaverse project in which it sells its virtual plot and other virtual assets to its users. Many international brands like Coca-cola, Nike, and Dominos have bought Decentraland plots. The backing by such popular brands is one of the biggest reasons to add MANA to your list of best cryptocurrencies to buy and HODL. The play-to-earn feature and integration of NFT in its metaverse also strengthen the chances of MANA being the next big currency in the upcoming years.
Chainlink (LINK)
The last cryptocurrency in our list of cryptocurrencies to buy in 2022 is Chainlink. It facilitates secure interaction between blockchains and gives real-world data to smart contracts of the blockchains. One fascinating thing about Chainlink is that google uses its protocol to connect its users through cloud services. It has the most popular oracle platforms in its industry, which will act as a catalyst in the growth of Chainlink in the upcoming years. Another reason to buy Chainlink is that it is relatively undervalued compared to its competitors. Its ability to provide real-time data to smart contracts has immense potential and room for growth. Hence, buying it this year may prove as your best long-term investment.
Conclusion
The crypto market is probably at its best time for long-term high returns. The falling graphs of currencies are a golden opportunity to get the best cryptocurrencies for long-term investment. But for getting high returns on your long-term investments, choosing the right cryptocurrency is of utmost importance. Otherwise, long-term investment can backfire too. Though we provided some most promising cryptocurrencies to invest in 2022, doing your research is mandatory to become double sure of your investment.
