What to invest in? Should I deposit it or lock it in a safe? How long is it better to invest, for a year or longer? Cryptocurrencies make a lot of money, should I invest in them?
These questions are natural for people who have spare cash and are wondering what to do with it.
Today, the cryptocurrency market is growing by leaps and bounds. Someone earns on bitcoin and gets into the Top 100 richest people on the planet, while someone burns out by investing their money in new virtual coins.
There are cryptocurrencies that everyone knows, expensive. And there are young and cheap, but very promising virtual coins. In this review, we’ll look at cryptocurrencies that have growth prospects and are profitable to invest in 2022-2023.
Cheap cryptocurrency is a new, young cryptocurrency
Low-cost cryptocurrencies are usually tokens of new projects in the early stages of investment. In other words, the project has not yet gone from an idea to a product finish, and is looking for help from investors, both large and small, to continue development.
That is, the team is working, and it needs additional funding. These cryptocurrencies are the most promising; they can show investors an annual return of more than 100%. At the same time, they are also the riskiest — according to statistics, 8 out of 10 startups cease to exist in the first year.
Decentralised assets worth less than $1 per unit are considered cheap cryptocurrency. Fresh examples of success were in 2022 — Dogecoin and Shiba Inu coins grew by tens or hundreds of times. Cryptocurrencies with the image of dogs on their icons have demonstrated not only the meme, but also the strong financial growth of the projects they provide.
The most stable cryptocurrencies for long-term investment
Here, of course, stablecoins will have no equal. Cryptocurrencies backed by fiat money, commodities, gold or oil are the most stable, reliable, least risky and at the same time the least profitable investment.
The most popular stablecoins are considered to be:
- TrueUSD (TUSD)
- USD Tether (USDT)
- USD Coin (USDC)
- Paxos Standard (PAX)
- Gemini Dollar (GUSD)
- Bitcoin Air (USDAP)
There are a lot of them, and Tether stablecoins are showing very good dynamics. As a rule, these are cryptocurrencies pegged to the dollar, euro or pound sterling. Their exchange rate is usually higher than the rate of the cash/non-cash currency they are backed by. However, the returns from them should not be expected to be more attractive than from a bank deposit. But they are the most ‘quiet’ investment for a year or more.
Cryptocurrencies with rapid growth
The most well-known promising coins that showed the most rapid growth and provided the maximum benefit to their owners are Bitcoin and Ethereum. One has to understand that these cryptocurrencies will never be cheap to buy, regardless of market volatility. But having time to buy at least a share of them during a bear market is a smart investment.
So far, apart from them, analysts consider the following cryptocurrencies to be promising for 2022 and 2023:
- Cardano. It is an actively moving project developing smart contracts.
- Binance Coin. Of course. It is seen by analysts as a potential competitor to Ethereum. Ethereum, as a large decentralized network, is becoming less agile, while Binance is moving very quickly.
- Polkadot. The task of this promising project is ambitious: to increase the interoperability of different blockchains within a single platform. And large platforms suffer from a lack of full-fledged internal interconnections. So the goals the team is moving towards are more than timely for the market.
- Avalanche. The project also has a narrow goal that the DeFi community, all the way up to the biggest players, desperately needs: to increase the speed of token transactions and the functionality of smart contracts, while simplifying and making it cheaper to use decentralised applications.
How to choose a cryptocurrency to invest in
Of course, it is a thankless task to offer you a specific choice in which crypto-currency to invest in. And only a few people know the development prospects of this or that project. But the most important things when investing in cryptocurrencies are:
- Follow the market by reading news and reports from analysts with authority.
- Diversify your investment portfolio. Don’t invest in one asset type. It is better to combine both risky, cheap, young cryptocurrencies and the most stable ones (stablecoins), without losing the wave on which projects move, those that have already emerged from the “youngster” stage, but have not yet become “monsters”. This third group of crypto-projects is still risky, but with the help of professional teams and timely investments, it has gained decent positions. Special attention should be paid to it.
