Cryptocurrencies have had a very positive year in 2021, attracting more and more attention despite the fact that it is still a developing sector. How far can cryptocurrencies go in 2022?
In this article, we will review the 10 best cryptocurrencies to invest in 2022 and how you can trade cryptocurrency contracts for difference (CFDs) with Admirals. So what are the promising cryptocurrencies in 2022? Those with strong 2022 potential?
Introduction: The best cryptocurrencies to invest in 2022
This article includes the top 10 best cryptocurrencies to invest in 2022 that could be a possibility to trade with CFDs.
However, before trading or investing in the cryptocurrency exchange, you should bear in mind that cryptocurrencies are high volatility assets and therefore, before making a decision, we recommend that you consult your financial advisor to confirm that these are the right options for you.
Also ask yourself two important questions related to your money management: These are questions that only you have the answer to.
- Question 1: How much to invest in cryptocurrency?
Never invest funds in the stock market that you need immediately.
- Question 2: Should you invest in cryptocurrency?
The cryptocurrency market is exciting, but the risk of losing money is great. If you are prepared to experience high volatility and potentially lose your investment, then you can invest in cryptocurrencies.
Finally, it is important that you form your own opinion before investing in a cryptocurrency.
We cannot know exactly which is the best cryptocurrency to invest in in 2022, but we have made a selection of those which could have a more positive or more stable behavior.
This selection is based on the trajectory that digital currencies have experienced in recent years, the current market capitalization, the sector trend and the investment arguments offered by each of the selected cryptocurrencies.
Stable currencies such as Tether or Binance have not been taken into account, because due to their characteristics they will always be linked to the evolution of the USD.
Each of the analyzed cryptocurrencies includes a brief description of it, some of the reasons why it could emerge in 2022 and a daily chart for the last 6 months which includes two technical indicators.
- RSI indicator (Relative Strength Index).
- Exponential Moving Average (EMA): 20 periods (blue), 50 periods (red) and 100 periods (green).
Additionally, the individual descriptions have included how each cryptocurrency has evolved over the past five years, which has been expanded upon in the paragraph Top Cryptocurrencies Over the Past Five Years Evolution (later in this article) .
If you want to invest in cryptocurrency while being a beginner, do not hesitate to read our dedicated article entitled Virtual Currency: A Guide for Beginners.
What is the best cryptocurrency 2022?
Bitcoin (BTC)
It is the most famous cryptocurrency and the one with the highest trading volume, excluding stablecoins. Despite the sharp increase in competition, Bitcoin remains the absolute dominator of the digital currency market according to its market capitalization.
The growth in the value of Bitcoin is spectacular, with an average over the last 6 years exceeding 300% and only in 2021 the cryptocurrency has advanced almost more than 80%.
Certain events, such as the acceptance in El Salvador of Bitcoin as FIAT currency, have led to an increase in the popularity and recognition of this asset that some call “digital gold”.
Also, there are several reasons why bitcoin’s progress may increase in the coming years. For example, nearly 90% of bitcoins have already been mined, so if demand continues to grow and the increase in supply is reduced, what will happen to bitcoin? Will it be part of the top 10 best cryptocurrencies to invest in 2022?
You can graphically see the price fluctuation of bitcoin (with USD) over the last 6 months.
Source: Admirals MetaTrader 5, BTCUSD, D1 – Data range: July 17, 2021 to January 25, 2022, conducted on January 25, 2022, 9:30 a.m. Keep in mind that past performance is not a reliable indicator of results future.
The performance of bitcoin over the past five years:
- 2021 = + 59.74%
- 2020 = + 302.28%
- 2019 = +94.01%
- 2018 = -73.22%
- 2017 = + 1337.66%
If you want more information about bitcoin, we recommend that you read our article How to trade Bitcoin CFDs?
Additionally, at Admirals we offer a comprehensive library of articles and tutorials so you can educate yourself on CFD trading in general, among many other financial topics.
But if you prefer, we also offer free webinars every two weeks.
Why not sign up for one of them?
Ethereum (ETH)
The second cryptocurrency in our ranking of the best cryptocurrencies to invest in in 2022 is Ethereum, also second in terms of market capitalization in 2021.
A situation that has been repeated year after year for more than 5 years, Ethereum is always behind Bitcoin.
There are several reasons why Ethereum may be among the top 10 best cryptocurrencies to invest in 2022, including:
Graphically, you can see the evolution of the price of Ethereum (paired to USD) over the last 6 months.
Five-year Ethereum past performance:
- 2021 = +400.47%
- 2020 = + 469.57%
- 2019 = -2.04%
- 2018 = -82.10%
- 2017 = +9144.29%
If you want to learn more about Ethereum, we recommend that you read our article What is Ethereum?
Stellar (XLM)
The Stellar network and the Stellar Lumens digital currency had a very positive year in 2021.
XLM saw an increase of over 110.27% in 2021. Similar numbers to 2020. Will the XLM trend continue in 2022? Will it be part of the top 10 best cryptocurrencies to invest in 2022?
The network stands out as an efficient digital platform in which it is possible to integrate all cryptocurrencies into one wallet.
Through its services, it is possible to exchange cryptocurrencies for commonly used currencies (FIAT), legally accepted, depending on the country.
Its supporters consider that with the normalization of the use of cryptocurrencies, it is possible that the use of this cryptocurrency will grow.
It is possible that the price rally in 2017 will be repeated, when Stellar Lumens increased in value by more than 14,500% in just one year.
We can graphically observe the evolution of the price of Stellar Lumens (against USD) over the last 6 months.
Source: Admirals MetaTrader 5, XLMUSD, D1- Data range: July 16, 2021 to January 25, 2022, performed on January 25, 2022 at 11:00 a.m. Note: Past performance is not a reliable indicator of future results.
Past performance of Stellar Lumens over five years:
- 2021 = +110.27%
- 2020 = + 183.92%
- 2019 = -59.13%
- 2018 = -69.52%
- 2017 = + 14513.20%
You can follow the XLM live price and trade XLMUSD CFDs with Admirals and MetaTrader 5.
Dash (DASH)
The Dash cryptocurrency was created with the aim of reducing transaction costs and overcoming the scalability issues of other cryptocurrencies such as Bitcoin.
Dash represents a revolution for the traditional financial system thanks to instant payments with very low commissions.
Dash is focused on Latin America, where the Dash Foundation is working to promote the use of cryptocurrencies with proposals such as the launch of the first cryptocurrency debit card in Latin America.
For this reason, some analysts believe that 2022 could be the year of Dash and be among the top 10 best cryptocurrencies to invest in 2022, both short-term and long-term.
Graphically, you can see the evolution of the Dash price (against USD) over the last 6 months.
Source: Admirals MetaTrader 5, DSHUSD, D1- Data range: July 20, 2021 to January 25, 2022, performed on January 25, 2022 at 11:00 a.m. Note: Past performance is not a reliable indicator of future results.
Dash’s five-year past performance:
- 2021 = + 31.33%
- 2020 = + 141.77%
- 2019 = -47.89%
- 2018 = -92.48%
- 2017 = + 9281.62%
If you want more information about Dash, we recommend that you read our article What is Dash?
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Monero (XRM)
Monero definitely deserves a place in our list of the top 10 cryptocurrencies to invest in 2022.
It is a cryptocurrency focused on offering privacy to its users, a fundamental difference with competitors such as Bitcoin and Ethereum which use open Blockchains.
Currently, financial regulators around the world are looking for ways to regulate cryptocurrencies, which could benefit Monero.
Ironically, Monero is designed to be untraceable and is considered by some analysts to be the sleeping giant of cryptocurrencies.
Will 2022 be the year this giant wakes up?
Graphically, you can see the evolution of the price of Monero (against USD) over the last 6 months.
Source: Admirals MetaTrader 5, XMRUSD, D1- Data range: July 16, 2021 to January 25, 2022, performed on January 25, 2022 at 1:00 p.m. Note: Past performance is not a reliable indicator of future results.
Performance of Monero over the last five years:
- 2021 = + 45.94%
- 2020 = 251.29%
- 2019 = -3.59%
- 2018 = -86.75%
- 2017 = 2432.87%
If you want more information about Monero, we recommend that you read our article What is Monero?
Litecoin (LTC)
Litecoin was born in 2011 as an “enhanced alternative” to Bitcoin, offering faster block generation and more efficient commissions.
However, so far, Litecoin’s penetration is far from that of its rival Bitcoin. Will 2022 be the year this situation changes?
You can graphically see the evolution of the price of Litecoin (against USD) over the last 6 months.
Source: Admirals MetaTrader 5, LTCUSD, D1- Data range: July 17, 2021 to January 25, 2022, performed on January 25, 2022 at 1:00 p.m. Note: Past performance is not a reliable indicator of future results.
The performance of Litecoin over the last five years:
- 2021 = + 17.80%
- 2020 = + 201.62%
- 2019 = + 35.67%
- 2018 = -86.87%
- 2017 = + 5260.28%
If you want more information about Litecoin, we recommend that you read our article What is Litecoin?
Polkadot (DOT)
For years, the blockchain industry has been grappling with the problem of scalability.
Scalability issues can be defined as the problems that cryptocurrencies present when the volume of users increases significantly and involves performance and operability issues.
Since its inception, Polkadot has sought to end the scalability problem. It is a multi-fragmentation network with which many transactions from different chains can be processed in parallel.
This fragmented chain approach was a revolution for the cryptocurrency industry and marks the beginning of a new era, that of third generation cryptocurrencies.
In essence, the Polkadot network is much closer to the Ethereum network than the Bitcoin project.
Polkadot offers a platform that supports smart contracts and promotes the development of decentralized applications (DApps).
However, it is a simpler approach than Ethereum, both in terms of design, programming and deployment. This is why it could be among the best cryptocurrencies to invest.
We can graphically observe the evolution of the price of Polkadot (against the USD) over the last 5 months.
Source: Admirals MetaTrader 5, DOTUSD, D1- Data range: July 17, 2021 to January 25, 2022, performed on January 25, 2022 at 1:00 p.m. Note: Past performance is not a reliable indicator of future results.
No data is available on the price of the Polkadot asset before 2019.
- 2021 = + 1604.43%
- 2020 = + 201.62%
Solana (SOL)
Solana is shaping up to be one of the top cryptocurrencies in terms of profitability in 2021, growing 12,145%.
It is a new cryptocurrency and as in the case of Polkadot, it is among the third generation cryptocurrencies and again, due to its characteristics, it is more like Ethereum than Bitcoin.
However, one of the main differences between these projects is the speed of transactions. Solana can support up to 50,000 transactions per second, compared to 10,000 for Polkadot; in the case of Bitcoin, this number is reduced to 7 transactions per second.
According to market capitalization, January 25, 2022, Solana is the seventh largest cryptocurrency. Could it make it into the top 10 best cryptocurrencies to invest in 2022?
We can graphically observe the evolution of the price of Solana (against the US dollar) over the last 5 months.
Source: Admirals MetaTrader 5, SOLUSD, D1- Data range: July 17, 2021 to January 25, 2022, performed on January 25, 2022, 1:00 p.m. Note: Past performance is not a reliable indicator of future results.
Polygon (MATIC)
Polygon (MATIC) is a complementary cryptocurrency to Ethereum which increases the scalability and uses of this network.
The launch of NFTs (Non-Fungible-Tokens) and decentralized finance (DeFi) is causing an increase in the needs of the Ethereum network.
The Polygon network works as a side corridor that connects to the Ethereum network and helps eliminate these bottlenecks and thus increases the efficiency of this network.
Some companies have joined the Polygon protocol to offer blockchain solutions to businesses, including the consulting firm Ernst & Young.
In 2021, the cryptocurrency grew in value by more than 15,400%. Will the Polygon be able to keep pace in 2022?
Graphically, you can see the price development of Polygon (against USD) over the last 6 months.
Source: Admirals MetaTrader 5, MTCUSD, D1- Data range: July 20, 2021 to January 25, 2022, performed on January 25, 2022 at 1:30 p.m. Note: Past performance is not a reliable indicator of future results.
Polygon Performance:
- 2021 = + 15464.16%
- 2020 = + 0.20%.
Uniswap (UNI)
Uniswap lets you trade cryptocurrencies in a decentralized way, using smart contracts on the Ethereum network.
The Uniswap project has introduced revolutionary innovations in the world of crypto-currencies such as liquidity miners or liquidity mining. The Uniswap protocol allows users to generate revenue by injecting liquidity into the system.
Investors inject tokens into “liquidity pools”, and as these tokens are used by third parties, commissions are generated which are used to maintain the protocol and give rewards to investors of said pool.
Graphically, you can see the price development of Uniswap (against USD) over the last 6 months.
Source: Admirals MetaTrader 5, UNIUSD, D1- Data range: July 20, 2021 to January 25, 2022, performed on January 25, 2022 at 1:30 p.m. Note: Past performance is not a reliable indicator of future results.
Uniswap Performance:
There is no data on the price of Uniswap before 2020.
- 2021 = + 258.61%
Evolution of the best cryptocurrencies over the last five years
This section shows the evolution of the top 10 best cryptocurrencies to invest in 2022 over the last 5 full years.
Here you can see how the volatility of cryptocurrencies is very high. Although it is important to note that these numbers are heavily influenced by the year the sample is taken.
In 2017, the average growth was close to 7000% and in 2018, there was a strong contraction, on average more than 80%.
The selection made includes 6 historic cryptocurrencies over 5 years old and 4 that were created in the last two years.
In recent years, older projects tend to exhibit less volatility than newer projects which tend to attract more attention and be the focus of stronger rallies.
According to the arithmetic average of the last 5 years, Stellar Lumens and Ethereum would be the best cryptocurrencies to invest in the long term.
Keep in mind that past performance is not a reliable indicator of future results.
What were the best cryptocurrencies to invest in 2021?
The best cryptocurrencies to invest in 2021 according to the selection that was made were Solana and Polygon, with performances of 12,145% and 15,464% respectively. These may be promising cryptocurrency news for 2022.
The best broker to trade cryptocurrencies CFDs
With Admirals, it is possible to buy or sell cryptocurrencies through contracts for difference (CFD). Through this popular product, you can invest in a wide range of CFDs on cryptocurrencies.
The process is as simple as following the steps below:
- Download / open the platform.
- Open a new account or log in.
- Open a chart of a cryptocurrency.
- Start trading!
The best way to practice trading is through a demo account. You will be operating with virtual funds, so there is no risk of capital loss.
In any case, if you ask yourself the question Where to invest crypto today? The answer is right before your eyes.
Come and discover our page dedicated to cryptocurrencies at Admirals!
Conclusion: The Best Cryptocurrencies to Invest in 2022
The cryptocurrency industry is still at an early stage and therefore there are great opportunities and great risks.
Moreover, despite the dramatic median growth figures, 4 of the 6 historical cryptocurrencies selected in this sample are currently trading below the levels recorded at the end of 2017.
However, these assets stand out for their high volatility, which is why it is difficult to define which are the 10 best cryptocurrencies to invest in 2022.
This situation is expected to continue and therefore it is not possible to clearly define which cryptocurrency will increase the most in 2022.
That said, it is possible to anticipate that there will be both upside and downside trading opportunities in all the CFD cryptocurrencies listed.
If you have already decided to start trading CFDs on cryptocurrencies, you can open a real account by clicking on the following banner:
