So, cryptocurrency is one of the most demanded options among modern investors. On the other hand, the value of this asset fluctuates greatly depending on external factors, so finding the right choice is not so easy.
A team of experts determined what is the best crypto to buy right now and whether it is worth investing in this asset. Readers will also see ratings of the worthy options to buy depending on the level of risk, as well as a useful portfolio diversification tip.
Should You Invest in Crypto in 2022?
Let’s start with the most important thing – the feasibility of investing in digital assets. In fact, the future lies behind cryptocurrencies. However, the contribution should still be made carefully and consciously, not expecting to get rich in a few days or weeks. The main goal is to find such an asset that is profitable to buy in 2022 for subsequent storage for 5-10 years.
Currently, the market is undergoing a deep correction, and many assets have lost in total from 70 to 95% of their value. This is a time of great opportunity because markets cannot rise or fall all the time. Therefore, in 2023 there is a possibility of growth and earnings for those who start buying coins in 2022.
So, it`s a definite time to figure out what is the best crypto to buy right now. In addition, if you are planning to get serious about cryptocurrency, then be sure to find a reliable service for managing your assets – for example, ChangeHero.io. It allows you to do most of the actions in one click, provides favorable cryptocurrency exchange rates, and doesn`t charge commissions for deposits.
How To Invest in Crypto?
So, when considering an investment portfolio, diversification is important. This will help protect not only investments but also increase them. For example, if the total capital is 100%, then:
- 60% of funds are better to be allocated to the low-risk category;
- allocate 25-30% for assets with medium risk;
- invest 10-15% in high-risk coins.
And now, let`s research the best coins from each category to help readers create an initial investment plan.
The top low-risk cryptocurrencies include industry leaders such as Bitcoin (BTC), Ethereum (ETH), and Binance coin (BNB).
This is one of the best cryptocurrencies for purchasing and storing, not only in 2022-2023 but also in the subsequent period. Bitcoin is the leader of the entire market and its main reference point. 2021 was a significant year for the asset: it rose to $63,000, and six months later broke the record and set a new high of $68,000.
The future for Bitcoin is almost guaranteed to be positive. Key points for investors to know:
- Already today, it`s accepted for online payments in many countries, some have legalized the asset by making the coin an official means of payment.
- Considering the coin as a technology, BTC is outdated, and there are better projects, but traders and investors still use cryptocurrency as an index, and it`s still the safest asset to deposit and save money.
- The limited amount makes it in demand, the time will come when the demand for 1 BTC will be greater than it is now, but the price can be hundreds of thousands of dollars per coin.
Thus, at the moment, this is the best asset to buy.
The second cryptocurrency for low-risk investment is Ethereum. This is a promising altcoin, the advantage of which lies in its focus on innovation. Ethereum is not just a crypto but a complete platform for developers.
Inside it, customers can create their own assets using blockchain technology & smart contracts. The current value is around $1,000, but during the active growth, ETH has better dynamics than BTC. Within the network, transactions can take 15 seconds, while BTC takes about 15 minutes.
It`s a cryptocurrency of the Binance exchange, which ranks 3rd by market capitalization and operates using the BFT consensus method. This currency is deflationary, and once a quarter, a burning of tokens takes place, which benefits BNB itself. The asset may be one of the promising coins for 2023, showing a sharp increase. And according to Binance price prediction, by 2025, the $1,000 mark is considered to be the price floor, and the highest BNB can go from there on is at an impressive mark of 100x at $43,690.
Binance has been creating its own ecosystem for a long time, and any user can find a lot of useful things, from working on the exchange itself to receiving passive income, DApps, etc. The Binance platform itself is actively working with regulatory authorities, developing in many key countries, and representative offices work with local companies and regulators.
The second category includes cryptocurrencies with a medium investment risk, which should be represented in the portfolio by 25-30%. The listed projects are considered quite innovative and able to solve certain problems that industry leaders cannot deal with.
Here are the currencies worth buying:
- Polkadot (DOT). The project is rapidly developing, creating para-chain networks and operating in Web 3.0. The development was led by Gavin Wood, and the goal of the creators is to form a single decentralized network. Such globalization will make it possible to create a new version of the Internet, where all user information will be protected from regulators and central authorities.
- Cardano (ADA). This is a cryptocurrency with a large capitalization and great potential, despite its “youth”. The project works on Proof-of-stake, which speaks of efficiency and solves the following problems: decentralization, security, and scalability. Like Ethereum, ADA makes more use of smart contracts to facilitate transaction processing and control. Experts sometimes say that Cardano is a combination of Bitcoin and Ethereum technologies.
- Avalanche (AVAX). The project creates a single environment where people from anywhere in the world can conduct financial transactions using cryptocurrencies. This is the token of the Avalanche platform, which is needed to pay commissions for transactions and protect the network itself and several other tasks. Holders of the coin can stake it for passive income, and it`s a good substitute for energy-intensive mining. The whole Avalanche platform is moving toward the fact that, in the future it can overtake the Ethereum network in launching smart contracts.
Flow, DYDX, 1INCH, Monero, and Chainlink can also be considered worthy investment options.
Even though these cryptocurrencies were created to improve technology and the financial world, their capitalization is still small, and investor interest is weak. However, for the investment portfolio to be harmonious, it should also include high-risk options by type:
- Filecoin (FIL). It is predicted that the FIL base will grow in 2023, but not at a rapid pace (unless external factors or some critical world news favor it).
- Trust Wallet Token. This is the native token of one of the best cryptocurrency wallets for digital assets. The wallet itself has good protection against hacker attacks, and its token is practically not susceptible to market corrections and BTC drops.
- Gnox. The project creates a decentralized ecosystem, and cryptocurrency holders receive passive income. It uses the DeFi earning protocol, which enables staking by institutions and individuals.
Slightly less popular but also worthwhile options include Fantom, Hedera, Vechain, and PancakeSwap.
Finally, let’s sum up. If we evaluate all existing cryptocurrencies taking into account their risk and potential, and have to choose only one option, then a reliable leader like Bitcoin will be the best choice for investing.
However, according to experts, money should never be invested in one type of coin, even if it is BTC. Be sure to choose several options for diversification, with a preliminary and in-depth study of the project. For example, if an investor can afford several options, then in addition to the BTC, it`s better to take a few more tokens from the medium-risk and high-risk categories like Cardano and Filecoin or other ones mentioned in our article.
And remember that it`s critical to keep most of the assets in separate wallets – this is important in case of cyber-attacks and other hacker actions.