- What are the greatest long-term cryptocurrencies to invest in in 2022?
- What altcoins should you buy in in 2022?
- Apart from Bitcoin, what are the most important cryptocurrencies?
Do you want to know what the top ten cryptocurencies to invest in in 2022 are? Then you’ve come to the right location.
CoinSutra’s Fundamental Analysis Process
Before I provide my list, we’d like to explain about how we came up with these tokens. This portfolio was created based on four criteria.
- Diversification is the first step.
We’ve spread the portfolio over a number of emerging crypto industries, including Blockchain Networks, DeFi, Gaming, Metaverse, Insurance, Exchanges, and Oracles. Don’t worry if you don’t understand these concepts; we’ll explain them to you in a minute. Diversification, in essence, spreads your risk across the many segments of the crypto market.
- The second factor is the market capitalization.
We’ve selected a combination of Mid Cap and Large Cap Tokens to assist you with optimal portfolio allocation.
Mid Cap Tokens are the ones that have the potential to change your life. They are, however, equally perilous to invest in.
Top 10 cryptocurrencies to invest in 2021
1. Bitcoin (BTC)
Our initial initiative must be Bitcoin, the King of the Crypto Market. Bitcoin is a type of digital currency that has proven to be a viable replacement for our current financial system.
It’s a peer-to-peer network based on blockchain, a distributed ledger technology that keeps the network secure and decentralized. Bitcoin is also the name of the cryptocurrency used to power this network (BTC).
The network is run by open-source code, which is also the law that governs this digital currency. It cannot be controlled or confiscated by any government, individual, or group.
Furthermore, the quantity of BTC tokens is limited to 21 million, making it a scarce and inflation-free cryptocurrency. As a result, the era of inflation-free money will return.
Satoshi Nakamoto, a pseudonym whose identity is unknown to the rest of the world, founded Bitcoin in 2009. The concept of this new money was so revolutionary that it rapidly attracted a large following.
Today, however, it’s a very different scenario. In many regions of the world, bitcoin is regarded as money. There are Bitcoin ATMs in various locations where you may exchange your BTC for cash or vice versa. Furthermore, El Salvador recently became the first country to recognize Bitcoin as legal cash. This signifies that Bitcoin is equivalent to the country’s national currency.
BTC has earned the label of Digital Gold since it is now widely recognized as a store of value and a means of exchange around the world. Bitcoin is the most popular cryptocurrency today, with a market capitalization of $918 billion at the time of writing. To put things in perspective, Bitcoin’s market cap is 44 percent of the total crypto market cap.
Therefore, Bitcoin would hold the No. 1 position in our list for the foreseeable future. Available on all major exchanges. See here: How to buy Bitcoin
2. Ethereum (ETH)
Ethereum is our second choice. The worldwide dynamics of technological innovation have been altered by blockchain technology.
Smart contracts, however, are the most important invention in the crypto sector after blockchain. A smart contract is an improvised version of a traditional contract in which no third party is required to assure the contract’s execution.
Let’s say John wants to buy Bitcoin using US dollars. He meets David, whom he doesn’t know or trust, and David gives him the opportunity to sell BTC for USD.
In the old world, John and David would need to identify a trustworthy third party, such as a bank, to ensure that the transaction is carried out as planned. A large portion of this would be taken by the bank in the shape of a transaction fee.
A smart contract is a piece of code that can execute a contract without the need for a third party in a trustless and secure manner. The IF-THEN connection is used to write these scripts. Let’s take a look at how John’s transaction would look in a smart contract.
John’s USD would be held in a smart contract, and after David transferred his BTC to John, the USD would be immediately released to him. As a result, a smart-contract transaction removes the human element from the process, reducing the risk of fraud and error. Furthermore, the transaction fee for these contracts is significantly cheaper than what middlemen charge in a typical contract.
Further, the potential to which ETH can grow is unlimited, and so far, we have just scratched the surface about what we can do with smart contract technology. In our opinion, if any cryptocurrency could ever take over the value of Bitcoin, then Ethereum is the only possible contender in the market at the moment.
3. Chainlink (LINK)
Chainlink is the next big thing on our agenda.
We just spoke about how smart contracts can help with the development of decentralized applications. However, there was a flaw in smart contract technology. They had to labor alone.
As an example, consider the following smart contract:
If Barcelona wins a game currently in progress, I will give you 1 BTC, and vice versa. As a result, if Barca wins, you will receive 1 BTC, but if Barca loses, I will receive 1 BTC.
However, in order to execute this smart contract, the match result must be given into the contract, which is not saved on the network. As a result, the use cases for these smart contracts are limited without a real-world data feed. To keep smart contracts useful and secure, we needed a decentralized off-chain data supplier, often known as an Oracle.
Chainlink is a decentralized oracle network that enables smart contracts to securely interact with real-world data and services outside blockchain networks.
The most crucial bottleneck of smart contracts, namely off-chain data, was eliminated by Chainlink. Consider how many applications it could have.
- A cryptocurrency price feed is required for a decentralised crypto exchange.
- In order for supply chain smart contracts to work, location data must be included.
- We require event results information in order to place bets. Etc.
- So, why are we placing such a large wager on Chainlink?
It’s quite straightforward.
Smart contracts are becoming more popular every day.
This would raise demand for a decentralised oracle for smart contracts even more.
Chainlink is the most well-known and dependable player in this field.
In addition, Chainlink has a large number of collaborations in both the crypto and non-crypto markets. Chainlink has been connected with 679 projects as of July 31, 2021, including Google, Polkadot, Binance, Coingecko, AAVE, and many others.
LINK is the native token of Chainlink Network. It has a Market Cap of $12 Billion, which is way below its true potential. Therefore, a significant upside can be expected from this token.
Buy LINK on:
4. Polkadot (DOT)
Polkadot is the next item on our list, and it deserves to be in fourth place.
Polkadot is a blockchain network with a very distinctive appearance. It’s a multi-chain network that combines multiple blockchains into a single network. As a result, network-wide cross-chain interoperability is possible.
To put things in perspective, an Ethereum-based application cannot be used on any other network, including the Bitcoin Network. Polkadot, on the other hand, can unite various networks as one large, unified network thanks to its multi-chain design. As a result, two or more networks can use the same application. The overall efficiency of the crypto market improves as a result of this.
If Chainlink creates an oracle on Polkadot, it will be able to provide off-chain data to any other Polkadot-connected blockchain network. Chainlink’s resource requirements are reduced as it no longer needs to interact with as many blockchains that require regular off-chain data.
Polkadot is also known as the internet of blockchains since it attempts to integrate all blockchain networks into a single network. The network’s blockchains are known as “parachains,” and they operate in parallel at the same time.
DOT is the in-house token of Polkadot Network, and it can be used for governance of network, Staking, and Bonding. With a market cap of over $28 Billion with a token price of around $29, Polkadot is among the top 10 crypto projects basis market cap.
Buy DOT on:
5. Uniswap Exchange (Ticker: UNI)
Uniswap is the second CoinSutra Crypto Pick on our list.
Uniswap is an Ethereum-based Decentralized Crypto Exchange (DEX) application. The exchange is based on a smart contract and requires no human intervention to run or manage.
The most essential features of the exchange are:
- First, it does not know the identity of the buyer or seller. So, you can have complete anonymity on the platform.
- Second, it does not have the custody of funds of the buyer or seller. So, you have complete control over the funds.
- Third, the transaction is done without any trusted intermediary with the help of a smart contract.
Additionally, HODLers, or people who retain their crypto holdings for long-term gains, can lend their assets to Uniswap and earn additional benefits.
Hayden Adams created Uniswap in November of 2018. Adams was introduced to cryptocurrencies by a friend, and Vitalik Buterin, the co-founder of Ethereum, instantly inspired him. Adams won a $65,000 grant from the Ethereum Foundation to start his idea.
Those $65,000 now have a market capitalization of almost $15 billion. The company’s in-house cryptocurrency, UNI, can be utilised for governance and staking on the platform.
The level of security and anonymity that Uniswap offers its users will only draw more business in the future. As a result, the UNI token should be included in your holdings.
So, we are halfway there. As I have given our top 5 picks to you, Let me know your top 5 tokens in the comments section.
Buy UNI token on:
6. Terra Network (LUNA)
The Terra Network is the next gem on the list.
Terra is a Blockchain Network that allows users to create Decentralized Applications using smart contracts. The design of stablecoins on the platforms is a unique feature of this network. USDT, BUSD, USDC, and other stablecoins are examples of tokens that have remained generally stable throughout time.
Stablecoins exist on the Terra network as well. The most popular stablecoin on the platform is UST (Terra USD). This is a stablecoin that is based on an algorithm. This means that the value of UST is derived from another token called LUNA, which is the network’s native token.
Terra Network was created in 2018 by TerraForm Labs, a South Korean corporation. Do Kwon and Daniel Shin, the platform’s co-founders, previously had a payment gateway company named CHAI, which was a big success in South Korea. This user base aided in the Terra Network’s widespread acceptance.
On the internet, there are numerous useful programmes, like as
- Anchor Protocol – which gives a stable 20% return on the stablecoins
- Mirror Protocol – which is a synthetic assets platform
- Spar Protocol – which is a crypto asset management protocol. And many more.
LUNA is the governance token of the platform and can also be staked to earn additional income. The current market cap of LUNA is over $11.5 Billion.
Out of all the projects in our top 10 list, we are most bullish about LUNA. It has a strong use case and is highly undervalued at the moment.
7. FTX Exchange (FTT)
The next item on our list is FTT by FTX exchange, a crypto exchange token.
FTX Exchange is a centralised cryptocurrency exchange that offers a variety of unique products such as Tokenised Stocks, Leveraged Tokens, Prediction Markets, and more. (To learn more about these items, read our comprehensive review on FTX Exchange.)
The exchange features a cutting-edge user interface as well as a mobile app for Android and iOS smartphones.
But USP (Unique Selling Point) of the exchange is the team behind the platform and their prior work experience.
FTX team comes from some of the leading Wall Street quant funds and tech companies. The co-founders of the exchange are Sam Bankman Fried and Gary Wang had a previous venture called Alameda Research, a quantitative crypto trading firm.
FTT is the native token of the FTX Exchange and is the backbone of the whole FTX ecosystem. The token has a current market cap of over $5 Billion.
It’s important to note that FTX is amongst the top 5 crypto exchanges in the world in terms of the trading volume. In this context, the current market cap of the exchange is highly undervalued.
So, get some FTT for yourself.
Buy FTT on:
8. Decentraland (MANA)
Decentraland is the next item on our Moonshot list.
Decentraland is a virtual world based on the Ethereum blockchain. Virtual Reality, Gaming, and Blockchain Technology are all used in this project.
On Decentraland, the virtual environment is separated into pieces of virtual land that you may buy and own with Non-Fungible Tokens. (If you want to learn more about NFT, check out our NFT guide.)
As a result, the project is about owning virtual properties and doing all that real estate can accomplish in the actual world. You can start a business, rent a property, post an advertisement, hold an art display, and so forth.
It’s hard to comprehend that someone is paying real money for a virtual piece of property. However, a plot of land on Decentraland was recently sold for $900,000.
Moreover, the project has come a long way today. From a barren land, Decentraland today has some exciting running projects such as
- It has a casino named Decentral Games where you can gamble with people. Wait! There is more to it; Decentral Games has hired actual employees to greet and host guests in their virtual casino. You can also apply for this job. (Read our full research report on Decentral Games and $DG Token here.)
- Kraken has its Headquarters in Decentraland.
In short, Decentraland is one of those projects which are leading the technological innovation of Virtual Reality and taking it to the next level. Not only this, but also they have proved the real money value of a digital asset such as digital real estate.
The project has the potential to become a significant player in the Virtual and Augmented Reality space.
MANA is the in-house token of Decentraland and is used as a currency for activities such as buying the virtual land, buying an artifact or playing games, etc. MANA is also used to govern the Decentraland platform.
Currently, the token has a Market Cap of over $1 Billion, which is undervalued for a project that has the potential to be a self-sustained decentralized virtual economy.
Buy MANA on:
9. Lido Finance (LDO)
The Next initiative is one-of-a-kind and has a lot of room to grow over the next three to four years. Lido Finance is the name of the company.
You can’t do anything with your crypto assets until they’re unstaked, which is now the case when you put them on a platform. Furthermore, there is a lock-in time after unstaking before you can access these assets.
Lido Finance is a Liquid Staking Service that allows you to stake your assets while also providing liquidity for the duration of the stake. (Read our Staking Guide for additional information on staking.)
When you stake ETH on Lido Finance, for example, you receive a derivative token called stETH. Now:
- You can provide liquidity to stETH Liquidity pool on Curve and earn rewards,
- You can deposit stETH on Yearn Finance to maximize your yield,
- You can lend your stETH on AAVE and earn interest on it.,
- You can sell your stETH on 1Inch Exchange,
- You can convert your stETH to bETH and use it to borrow UST (Terra USD) on Anchor Protocol and earn a stable return of 20% p.a., and many more
Despite the fact that Ethereum staking payouts are roughly 5%, your net return would be substantially more. In addition to staking rewards, the platform provides liquidity, which may be utilised to make additional money on a variety of DeFi networks.
Lido has its own token, LDO, which is utilised to manage the platform’s governance. The LDO token serves as the backbone of the Lido Ecosystem, ensuring that the entire platform remains decentralised.
LDO’s current Market Cap is $226 million, and it has a lot of room to grow from here.
Disclaimer: At the time of the project’s inception, 64 percent of the entire quantity of tokens was reserved for the platform’s founders, developers, and early adopters. This 64 percent was locked for a year and will be unlocked on December 17, 2021, with a one-year vesting period.
Buy LDO token on:
- MEXC exchange
- HOO exchange
10. Nexus Mutual (NXM)
Nexus Mutual is the last project on our list.
It is an Insurance Protocol that allows you to insure your crypto money against loss.
We’ve seen multiple situations in recent years when people have simply forgotten their private keys and hence lost their crypto assets. Crypto monies can also be trapped in a contract after the advent of smart contracts. However, smart contracts are vulnerable to hacking, and we commonly see these vulnerabilities in Decentralized Finance (DeFi) Protocols.
As a result, DeFi is the least popular type of cryptocurrency among institutional investors. To encourage widespread adoption of Smart-contract-based applications, the industry must ensure that the risk of cash being lost as a result of these protocols is eliminated or at least significantly reduced.
Insurance is a way to mitigate this risk. Nexus Mutual is the insurance protocol by which users can cover their losses due to smart contract failures. This is known as Smart Contract Cover.
Further, the excess in the pool of funds received from selling covers is distributed back to the members who have purchased these covers.
The reason this project is in our top 10 list is that
- It opens the door for better adoption of crypto and specifically DeFi
- It is the lead project in the Insurance Niche
NXM is the native token of the Nexus Mutual. NXM holders can purchase smart contract cover, stake the token, and use it for governance purposes.
NXM currently has a market cap of over $ 841 Million and can be a massive hit once DeFi is secure enough for institutional adoption.
Conclusion: CoinSutra Top Crypto Picks for 2022
So, this is the list of our top crypto picks for 2021 and beyond. We have created a google sheet and have recorded the current price of these tokens and will revisit the sheet in few months to calculate how much money we all have made.