Top 5 Cryptocurrencies To Invest Profitably in 2022

Top Crypto for Investment

Cryptocurrencies are the latest investment vehicle that many investors have found valuable in terms of profitability. Some coins are known to have increased exponentially in value within a short period of time.

With the increasing awareness that cryptocurrency can be a viable investment instrument, more investors are seeking opportunities in the space with the hope that they too would benefit from the immense rise in the value of some digital assets. The value of a digital asset is usually associated with its use cases.

In other words, if the community around an asset finds it valuable and useful, the effect is that many investors go for such assets and demand for it usually results in higher value for the asset.

Another factor that could be responsible for profitability of an asset is the pump and dump phenomenon. This is when an asset is intentionally manipulated by people who want to take advantage of an increase in its value to make profit. This is why it is important to understand which assets would be beneficial as investment vehicles.

Based on the performance of the market, it is possible to understand cryptocurrencies that are worth investing in preparation for the next year. Here is a list of coins that have proven their resilience and so are worth investing in for 2022.

Polkadot (DOT)

Polkadot is a blockchain that facilitates the interaction of blockchains. This is usually called cross-chain interoperability. Interoperability is the ability of a blockchain to interact with another.

This feature has been an issue within blockchain circles because most blockchains operate independently and in isolation. What the Polkadot network accomplishes is enabling tokens and assets that are hosted on one blockchain to be moved across another. This is why its token, DOT has appreciated over time.

In December 2020, the DOT token traded at less than $5. The same token is valued at $25.21 according to data available at Coinmarketcap. This is even a modest gain compared to last month when the asset traded at $53.26 at its peak value.

This is a more than 1000% increase in value compared to its price in 2020. Even with the recent correction, it is apparent that the DOT token will see higher values in 2022. It is currently ranked Number 11 according to its market capitalization of $24,896,089,792.

Ripple (XRP)

Ripple is the company behind the XRP currency which has found massive use in international remittance via its RippleNet. The company operates the XRP Ledger which is an open-source platform that is centrally controlled. Despite an extended lawsuit by the SEC and another by the New York Attorney General’s Office, XRP is among the top performing cryptocurrencies through 2021.

Ripple has had several partnerships and collaborations with financial institutions and these have facilitated the use of its RippleNet for global real-time money transfer. According to the company, with its RippleNet, users can send funds in just 3 seconds.

Data from Coinmarketcap shows that XRP is currently trading at $0.8902. This is a 6.46% increase in the past 24 hours. XRP is ranked 7th in terms of market capitalization which is presently $42,008,207,322.

Chainlink (LINK)

Chainlink is a decentralized network that enables the interaction of real-time data feeds through its oracle solution. The network plays an important role among smart contract platforms through the provision of real-time data that have been proven to be reliable. Off-chain data for smart contracts demand high credibility. This can be accomplished through a reliable live-data solution such as is available on the Chainlink network.

Chainlink was launched in 2017 and is the source of valuable real-time data for several blockchain networks. Its internal currency, LINK is currently ranked number 22 according to market capitalization which is currently $9,013,393,455. Link is valued at $19.30 at the time this report was filed. It reached an ATH of $52.20 in September 2021.

Shiba INU (SHIB)

Shiba INU is the popular meme that has been marketed as the Dogecoin killer. Shiba INU has an interesting history in that it was launched by an anonymous team in 2020. Since then, the SHIB token has attracted many investors who are thrilled with the prospect of having a coin similar to DOGE but built on the Ethereum network.

The SHIB token also benefited from the support of influencers such as Vitalik Buterin and Elon Musk who promoted the token at lengths. SHIB is currently trading at $0.0000319 and has a market capitalization of $17,578,708,271. It is ranked 13 according to market cap, being an active competitor of Dogecoin.

Solana (SOL)

If Shiba INU is the Dogecoin killer, Solana has been described as the Ethereum killer. The network is a smart contract platform designed to host decentralized applications (dApps), decentralized finance solutions (DeFi) and more. Since its launch in 2020, the network has seen a lot of support from the coin community and investors, especially considering that it boasts of a scalability feature that the Ethereum network is still struggling to accomplish through Ethereum 2.0.

The Solana token (SOL) is currently trading at $178.52 and ranked number 5 according to market capitalization. The SOL token traded around $30 in July, 2021. The massive rise in the value of the coin has been termed a SOL summer.

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Author: Jofor Humani

Jofor is a crypto journalist with passion for investigative review of projects with the aim to determine the authenticity of their claims.