The 6 Most Profitable Long Term Crypto Investments for 2022
2022 has been a roller-coaster for crypto investors. Though currently in the green, global crypto market capitalization hit an all-time-low by dropping from $1.27 trillion on June 8 to $878.18 billion between June 20, 2022—that’s a total value drop of 30 per cent.
However, investors continue to ride the nerve-wrecking volatility hoping for massive gains in the process.
Plus, with Joe Biden expressing desire to explore the digital US Dollar, Elon Musk’s consistent advocacy of Dogecoin, and multi-million dollar crypto commercials at the Super Bowl, cryptocurrencies seem to be getting closer to the mainstream.
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Why do investors lose money in the cryptoverse?
The problem, though, is a lack of understanding of the cryptoverse and a short-term approach. Many investors lose money invested in crypto because of panic. FOMO investing and anxious selling will do you more harm than good.
If buying for the long term doesn’t fit your financial goals, don’t invest in crypto at all. Anyone who invests to make a quick profit is likely to lose money. In worse cases, you might see your capital erode by over 50%.
We can’t help you develop thick skin to ride the volatility, but we can help you find the best coins currently in the market.
We’ve compiled a list of the six best long-term crypto investments for 2022 so you can make informed decisions about your long-term investing goals.
Binance Coin (BNB)
Binance Coin is the native token for one of the most innovative blockchain ecosystems–Binance Smart Chain. It was the first coin to transact solely with other cryptocurrencies and not with fiat currency.
The primary purpose of the Binance Coin was to pay for the trading fees on Binance. Now, Binance Coin is one of the best utility tokens employed beyond the Binance framework across Blockchain and non-Blockchain companies.
Since its launch in 2017, Binance has proven to be one of the most stable investment options, with the price shooting up by 619,000% since its launch. BNB’s growth is the primary reason BNB tops this list as the best long-term cryptocurrencies.
However, it’s not just the growth that makes it highly valuable—the Binance factor has a strong role to play here.
Binance is one of the most reliable crypto platforms, offering various trading opportunities in smaller digital assets that wouldn’t be possible otherwise on a platform like Coinbase.
If you like the sound of it, go ahead and buy BNB as soon as you find a good entry price, provided you can hold it for the long term.
Polygon is the most successful Layer-2 scaling protocol for Ethererum created by the development team in the Ethereum blockchain platform.
As a layer 2 solution, Polygon handles transactions on a side chain system, improving verification and transaction speed.
Side chains play a critical role in scaling Ethereum, and Polygon is one of the first companies to use side chains on the Ethereum blockchain.
Through its robust technology, Polygon aims to allow limitless dApps to run on Ethereum, amplifying its utility amongst the users.
One of the main reasons for Polygon’s impressive growth are NFTs. The popularity of NFTs combined with the cheaper-to-mint advantage resulted in a lot more people minting NFTs.
As of 2022, Polygon has an intensive ecosystem with an ever-growing list of 700+ dApps developed for it—making it an excellent long-term crypto investment.
Often described as Ethereum’s rival, Solana is the fastest-growing smart contract platform. Solana has been around for only two years, during which its token prices have shot up 13000x.
Solana’s current market cap is roughly $13.97 billion and the ecosystem continues to grow exponentially. It’s consistently inching closer to Ethereum’s market cap and popularity. Solana could quite possibly become the most preferred smart contract platform in the future.
Solana is also home to several meme currencies like Samoyedcoins and hosts multiple metaverse projects disrupting the web3 space.
Many investors have put millions of dollars into the Solana blockchain and use it for both DeFi and NFTs.
The main reason why Solana entices its investors is its scalability. Solana uses proof-of-stake consensus alongside proof-of-history to process over 65,000 transactions per second.
Plus, the transaction fees on Solana are 99% lower than Ethereum, making it a pocket-friendly option for investors who don’t want to pay higher fees on Ethereum.
The SOL coin could realistically increase by over 1,500% in the future, making it one of the fastest growing cryptocurrency, and a great long-term investment.
Bitcoin was originally designed as a decentralized alternative to fiat currencies. But over the years, investors have started thinking of BTC as a safe-haven investment and a hedge too.
While considering a digital asset a safe-haven isn’t smart at this point, the institutional and retail adoption of Bitcoin certainly makes it safer than its alternatives. BTC is also a good leading indicator for the crypto market because most altcoins follow Bitcoin’s price trend.
As an open-source digital cryptocurrency, Bitcoin is created using a PoW(Proof-of-Work) model, wherein miners solve mathematical equations and receive Bitcoin as a reward. You can then use this Bitcoin to make online purchases or as an investment.
BTC was created with a cap in mind. Only 21 million Bitcoin can be mined in total. The rate at which BTC can be mined reduces by 50% every four years. The limited supply makes BTC a good store of value, at least when compared to other digital currencies.
With companies like Goldman Sachs, Microsoft, Paypal, and Rakuten accepting or investing in Bitcoin, it remains one of the most popular cryptos with an expected market value of $1 million by 2031.
If Bitcoin is digital gold, Ethereum is like owning a piece of the internet.
As a digital currency and a blockchain that morphed into the largest smart contract platform, Ethereum has far exceeded its place in the market since its inception in 2015.
Even though it lags behind Bitcoin in terms of market cap, the number of transactions and the diversity of each transaction makes ETH’s utilization much higher than Bitcoin.
ETH is home to DeFi apps, NFTs, and meme coins and is easily among the most robust crypto technologies in the world. ETH has almost become the de facto internet of blockchains.
The blockchain’s growth rate is extraordinary too.
From April 2016 to the end of May 2022, its price went from $11 to over $1,900—a 17,000% price appreciation. Additionally, seeing the growth prospects, Ethereum is expected to reach $4000 by the end of 2022.
Part of this appreciation is also attributable to the development of the Eth2, popularly referred to as The Merge. The update will move Ethereum to a proof-of-stake-based consensus, reducing the total energy consumption used by miners.
These developments will help Ethereum emerge as one of the most reliable blockchains, potentially appreciating its value even more, making it a good long term investment.
Created in 2013, Dogecoin is based on a popular meme with a cynical-looking Shiba Inu dog.
Dogecoin is an open-source, peer-to-peer digital asset using a proof-of-work consensus algorithm. Though it’s a meme coin, it’s anything but a joke. The coin has a market cap of more than $10 billion, making it one of the most valuable meme coins out there.
Market cap is driven by demand, but to invest, you should look at a coin’s use cases. The primary use of Dogecoin was to reward the DOGE community via tipping. Other than that, there aren’t any other use cases that can drive DOGE’s value.
Unlike Bitcoin, DOGE has no cap on the number of coins that can be minted. The unlimited supply makes DOGE an inflationary currency rather than a deflationary currency like Bitcoin.
DOGE’s value is mostly driven by demand, and that’s essentially the only argument for investing in it for the long term.
If you believe that DOGE’s demand will sustain for over five years, it’s a potential investment. But it’s appropriate to put DOGE at the very end of this list.
Cryptocurrencies are here to stay. Investing in the best currencies can help cushion the volatility, at least to some extent, and provide liquidity in case you want out. However, investing for the long term is typically the best approach.
As you pick a coin, keep the following things in mind:
- Consider the transaction fees
- If buying a dip, investigate the reason for the dip
- Use cases of the blockchain