Cryptocurrencies are now a legitimate asset class, even for institutional investors. Despite this, deciding which crypto assets to invest in might be challenging, given the plethora of seemingly decent options.
However, not every crypto asset that appears appealing is a good investment, since some lack the capacity to endure over the long term. Therefore, you must choose your possessions carefully to avoid losses and regrets in the future.
So, listed below are seven of the best cryptocurrencies to consider based on their fundamentals that offer long-term potential in the crypto space.
1. Bitcoin (BTC)
Bitcoin has the largest market capitalization among cryptocurrencies. It currently controls 41% of the whole crypto market, which comprises more than 20,000 cryptocurrencies. Bitcoin was the first cryptocurrency ever produced, thus most investors view it as an asset, also known as digital gold.
Over the past few years, numerous institutional investors have backed Bitcoin, mostly owing to inflation affecting the US dollar and other foreign currencies. At the time of writing, we are in a bear market, but people continue to purchase Bitcoin, displaying their continued faith in its future.
It has also performed better than a number of leading assets, including the FAANG stocks. Bitcoin is comparatively secure compared to alternative cryptocurrencies, making it an excellent choice for crypto novices with less knowledge.
2. Ethereum (ETH)
Ethereum is now a household name, as it is the foundation of all decentralized applications (DApps) and smart contracts. Ethereum, the second-largest cryptocurrency by market capitalization behind Bitcoin, has a great deal of promise going forward with its transition to the proof-of-stake consensus method, expected for the latter half of 2022. (although it has been scheduled for years at this level).
The Ethereum merger is anticipated to result in significant positive changes like as faster transactions, Ethereum staking, and a reduction in Ethereum’s notoriously high gas costs.
The shift to Proof-of-Stake (PoS) for Ethereum has been a long time coming, so the crypto group will likely increase community use once it’s completed.
3. Dogecoin (DOGE)
If you’ve been anywhere near cryptocurrencies, you probably already know what meme cash are. Actually, Dogecoin is their king, but that’s not why it’s on this list. Dogecoin is moving from a mere meme coin to a cryptocurrency with real-world utility.
For a very long time, Dogecoin was only recognized as a humorous cryptocurrency, with the price soaring on the wings of personalities like Elon Musk. Nonetheless, Dogecoin developers have begun introducing real-world use cases to the community.
In December 2021, for instance, a Dogecoin developer issued the very first NFT on the network. As NFTs are one of the most significant problems in blockchain technology, this opens the door to potential growth for the community and the coin.
Dogecoin is now also accepted as payment at AMC theaters and for a few Tesla products. With these use cases and more to come, Dogecoin might earn its position among the leading cryptocurrencies—not just because of Elon Musk’s promotional tweets.
4. Binance Coin (BNB)
Binance is the world’s leading cryptocurrency exchange, and Binance Coin (BNB) is its native coin. This alone makes it a significant player in the bitcoin market, but there’s more. Binance routinely adds new features to its ecosystem, including a market for NFTs.
As the ecosystem expands, its consumers will increasingly use BNB for fees and other transactions, a situation that will inevitably boost the value of a crypto asset. BNB can potentially serve as the native token on the Binance Sentible Chain (BSC).
BSC has rapidly become a formidable competitor to Ethereum as a consequence of its faster transactions and lower transaction fees. All of these factors contributed to the token’s current value and will continue to play a significant role in its future growth.
5. XRP
XRP is the native token used to power Ripple’s international money transfer service (no, Ripple and XRP should not the identical). Currently the seventh largest cryptocurrency by market capitalization, the token fell to this place shortly after the lawsuit against Ripple in 2021. Traders lost interest in XRP as a result of the charges, but time could say otherwise.
Despite the ongoing court fight, Ripple has made significant progress. First, its currency XRP has been adopted as payment for autos in Japan, and in its most recent development, it has formed a partnership with Singaporean digital banking company FOMO Pay for treasury money.
6. Cardano (ADA)
Cardano is a cryptocurrency that is largely unknown to crypto investors. Charles Hoskinson, co-founder of Ethereum, designed ADA with a decentralized future in mind, incorporating support for smart contracts, NFTs, and more.
Similar to Binance, the project has developed new options, including an NFT market. Another essential Cardano feature is the Cardano Launchpad, where new crypto projects are launched.
All of these services are powered by ADA, the native Cardano currency, which, despite its current modest value, might increase as more use cases emerge.
7. Shiba Inu
Shiba Inu is another meme-based coinage that has been documented. Elon Musk has lent support to the coin based on Ethereum, helping to its spectacular growth in 2021. Despite the price gimmick, many continue to believe that the token is worthless because it has no utility beyond representing the popular Shiba Inu dog breed.
This scenario may change, though, as Shiba Inu has improved to assist real-world use scenarios. The primary use case for this meme token is item and provider cost. There are currently dozens of retailers who accept Shiba Inu as payment.
In 2022, the project could also integrate blockchain-based gaming as a major feature. It is a prevalent and rapidly-growing application of blockchain technology, therefore its addition can significantly alter the fortunes of SHIB, the native token for the project.
Which Cryptocurrency Will You Pick?
Now that you are informed about these cryptocurrencies and their potential for future growth, you can chose which ones to invest in.
Not everyone will be interested in the same cryptocurrencies, and that’s just fine. Always do research earlier than investing in cryptocurrencies, and by no means invest greater than you can afford to lose.
