Cryptocurrencies with the most future (2022)

Currently, there are more than 10,000 different cryptocurrencies, so it is difficult to select the projects with the greatest potential when making an investment portfolio.

If you want to invest in digital currencies and do not know where to start, this article may be useful to you. Next, I am going to share a list of some of the cryptocurrencies with the most future to invest in in 2021 and in the coming years.

How to Invest in Cryptocurrencies with long-term potential

When it comes to investing or trading cryptocurrencies, there are different ways to select projects that have growth potential.

The correct thing is to do an in-depth study of different cryptos to select the ones that are most promising for the future.

We would focus on factors such as understanding its value proposition, the distribution of tokens, the analysis of its whitepaper, review of the roadmap, or the study of its graphs (if you have doubts about these terms, you can see their meaning in the cryptocurrency dictionary )

This requires knowledge of fundamental cryptocurrency analysis, technical analysis, and risk management.

If we don't have time or advanced knowledge of digital currencies, we can simplify the selection of promising projects by focusing on cutting-edge, large-cap cryptocurrencies that are leaders in their respective sectors.

In this way, the list of candidates for our portfolio is greatly reduced and we can have exposure to the cryptocurrency market through a diversified portfolio.

The idea of ​​this post is precisely that, to make a selection of solid projects, which are in constant development and are part of growing sectors.

Best Cryptocurrencies to invest in 2022

Next, we are going to see cryptocurrencies that have a promising future in 2021 and for the next year.

1. Bitcoin (BTC)

Category: Means of payment and reserve of value

The profitability year 2022: 70%

We start the list with Bitcoin because it is undoubtedly the most important cryptocurrency of all. Bitcoin was a pioneering project that for the first time in history allowed its users to create and manage their money without the intervention of banks, governments, and third parties.

Some of the reasons why I consider it the most valuable cryptocurrency are:

• It has the highest liquidity and capitalization
• It is the most widely used cryptocurrency
• Easy to acquire by someone who starts in the world of digital currencies.
• Ease of investing in it since there are many ways to do it, such as buying Bitcoins directly, but also through futures contracts, options, CFDs, or investment funds.
• Low risk of inflation since practically 90% of Bitcoins are mined.

The main objective since its creation was to function as digital money, but currently, it goes beyond a means of payment.

The unique characteristics of Bitcoin and its adoption have made it often considered a store of value comparable to Gold.

At a time when Central Banks are carrying out abnormally expansive monetary policies, Bitcoin proposes the opposite: decentralization and a limited number of monetary units that are issued more and more slowly.

Why is Bitcoin a good investment?

In addition to all the above reasons, it is the most demanded cryptocurrency for being widely known and accepted. The exposure of both individuals and institutions is increasing, but overall adoption remains small, so there is still room for growth over time.

2. Ethereum (ETH)

Category: Smart Contracts

The profitability year 2022: 412%

Ethereum is the second cryptocurrency by popularity and market capitalization.

Unlike Bitcoin which is a payment method, Ethereum is a large open-source decentralized operating system. He pioneered the idea of ​​smart contracts, which allow developers to create decentralized applications (DAps)

Smart contracts allow transactions to be carried out if certain conditions are met. Said transaction would be carried out automatically and without the involvement of third parties, in addition to being irreversible and traceable.

It has its own programming language (Solidity) that allows the realization of decentralized applications that work on the Blockchain and not on a central server.

The main reason to invest in Ethereum is that it is the most demanded cryptocurrency on which they can build practical applications.

A clear example is an exponential growth of decentralized finance (DeFi) that aims to revolutionize traditional financial services. Defi platforms allow from receiving interest when depositing your cryptocurrencies to being able to request loans, all using smart contracts.

3. Chainlink (LINK)

Category: Decentralized Oracles

The profitability year 2022: 146%

Chainlink is one of the cryptocurrencies that we can consider cheap and is responsible for bringing data from the real world to smart contracts on the blockchain, which is known as a decentralized network of oracles.

The two fundamental pieces to understand Chainlink are:

• On the one hand, we have smart contracts, which as we have explained before, are programmed agreements that are executed when certain conditions are met.
• And on the other hand, we have the oracles, which are basically data sources of all kinds from the real world. Some examples of the information they provide are proof of payment in a bank account, the result of a sporting event, or the cancellation of an airline flight.

Summarizing what has been explained so far, we have smart contracts that will be executed automatically when a certain fact or event is fulfilled, which will be determined by an oracle.

This is where Chainlink comes into play, which is a decentralized network that brings together data buyers (smart contract users) and data providers (oracles). When a smart contract requests certain information, Chainlink chooses the best-valued information among all the information provided by the available oracles and then makes the payment between buyer and seller.

Ultimately, Chainlink is the link point between real-world information and blockchains.

The LINK cryptocurrency has potential for revaluation due to the fact that its use is increasing as it has key functions, such as being the means of payment for the different nodes that make up the network.

4.Yearn.finance (YFI)

Category: Interest Aggregator

The profitability year 2022: 70%

Yearn. finance is a decentralized application that maximizes the returns on our investments within the decentralized finance (DeFi) ecosystem.

To understand this, you have to think first of all that there are different decentralized platforms that allow you to request and facilitate loans in different cryptocurrencies. When you deposit your money to be lent, you receive a commission for doing so. Depending on several factors, the interest for depositing your money varies and therefore so does your profitability.

The function of YFI is to move the money through the different platforms to obtain the highest possible interest.

This protocol is based on Ethereum's "smart contracts" and allows you to automate tasks: seek the best interests, send the assets and pay the corresponding fees for the transmission of said assets.

5. Syntetix (SNX)

Category: Financial derivatives

The yield year 2022: 50%

Syntetix is ​​one of the cryptocurrencies that we can consider “cheap” but with a future in 2021. It is software that allows users to create new digital assets that replicate the behavior of real-world assets such as gold, stocks, or currencies.

The newly created assets, called “synthetic assets”, are brought onto the Ethereum network where they can be transferred. For example, the synthetic asset sUSD would replicate the behavior of the price of the American Dollar. And once created, it can be traded using smart contracts.

Syntetix can be said to be a decentralized platform for creating and trading financial derivatives. In some way, it could be compared to financial market derivatives, such as futures contracts on raw materials, indices, or currencies.

The utility of SNX tokens comes mainly from the fact that they are used to generate new assets on the platform.

6. Aave (AAVE)

Category: Decentralized Lending Platform

The yield year 2022:350%

AAVE is a decentralized system that allows you to lend, obtain loans and earn interest from different digital currencies. It does the work of a lender but all without third parties involved through the use of smart contracts.

The idea is very simple and Aave executes it perfectly: it brings together those who want to obtain a loan with those who lend cryptocurrencies in exchange for interest. For their part, those who apply for the loan put a guarantee called “collateral”.

It belongs to the DEFI sector (Decentralized Finance) and was the first project of its category. Since its inception in 2017, it has evolved a lot and currently allows you to request and lend a total of 17 different cryptocurrencies.

7. Polkadot (DOT)

Category: Interoperability and scalability

The profitability year 2022: 287%

Polkadot is a network that allows the connection between different blockchains, facilitating the transfer of any data or asset between them.

Polkadot is a project with potential because it is responsible for solving some of the problems encountered by the different protocols in the blockchain, such as the lack of interoperability and scalability.

Interoperability refers to the idea that different blockchains can interact with each other and communicate their information securely. Scalability is the ability of a network to process many transactions in a given time interval.

Polkadot is designed to operate two types of blockchains: the main network and secondary networks created by users, called “parachains”. These have the same security as the main one but can be customized by the creators and given many different uses.

Polkadot allows different blockchains to communicate with each other securely thanks to a common consensus algorithm.

8. Uniswap (UNI)

Category: Decentralized Exchange

The profitability year 2022:542%

Uniswap is a decentralized exchange, meaning it is not owned or controlled by any single entity. It allows the exchange of different ERC20 tokens through smart contracts.

To understand its advantages, you have to think that in a traditional exchange users cannot control their funds because they do not have private keys.

At Uniswap we always have our digital currencies under control, as they are deposited directly into our cryptocurrency wallet when performing any operation. If you want to use the platform, you only need an Ethereum address and a wallet like Metamask.

Another difference from traditional sites to buy cryptocurrencies is that Uniswap is open source and is designed to provide a service without directly charging commissions.

Investing in Uniswap is an option to consider since it is one of the most revolutionary and used projects today. It elegantly solves a real problem: the risk of depositing cryptocurrencies in traditional exchanges where we are not in control of our assets. Added to this is the possibility of operating more economically.

9. Binance (BNB)

Category: Exchange

Year YTD Yield: 1195%

A cryptocurrency that we cannot forget in the year 2022 is BNB. As most of you will know, BNB is the cryptocurrency created in 2017 by the Binance exchange.

The BNB token has several uses among which are:

• Payment of discounted commissions for the purchase/sale of cryptocurrencies within the exchange.
• BNB can be used as collateral to apply for loans on some platforms.
• Token used on the Binance decentralized exchange
• It allows investing in the launch of new projects (ICOs) through the so-called “Binance Launchpad”.

Since the birth of Bitcoin, exchanges have been a fundamental part of the cryptocurrency ecosystem. Without them, it would be impossible to invest or trade, being also the means through which we enter and withdraw our FIAT money.

As the adoption of digital currencies increases, their importance and use are increasing. An example of the expansion of this sector is the IPO of the Coinbase exchange on April 14, 2021. The data published in the first quarter of this year, with revenues of 1,800 million dollars, give us a clue to where the market is headed.

Continuing with Binance, in addition to all of the above, we must take into consideration that:

• Binance is the largest exchange in the world
• It is constantly innovating both the products and the services it offers.
• Every quarter, as indicated in its whitepaper, part of its tokens are burned. In practice, this means that the number of tokens remains finite, being increasingly scarce and with a long-term price increase trend.

10. Flow (FLOW)

Category: Blockchain NFTs

The yield year 2022:5%

Something that is marking the year 2021 in the crypto world is the emergence of Non-Fungible Tokens. Investment in NFTs is growing rapidly and is one of the sectors to consider when investing in cryptocurrencies. For this reason, we are going to include one of the most promising projects on this list.

Flow is a decentralized blockchain designed as the foundation for a generation of games, apps, and digital assets. Behind this project are the developers of Krypto Kitties, a collectible game that went viral in 2017.

The design of the Flow blockchain allows developers to create businesses related to crypto-assets, many of which are already in operation today. One example is the game NBA Top Shot, in which key moments from NBA games are collected and traded.

The token of your blockchain (FLOW) is necessary for the network to work and all the applications that are created. It is also designed as a payment method and store of value in the Flow economy.

11. Sunshine (SUN)

Category: Smart Contracts

The profitability year 2022:6200%

Solana is an open-source project competing in the race to be the fastest, most secure, and most scalable blockchain. Its rivals are Ethereum and other high-performance blockchains like Cosmos.

For this, it has great innovations, among which its consensus called «Proof of History» stands out. Solana's features have attracted more than 300 Defi, NFTs, Oracles, or WEB 3.0 related projects running on its platform.

12. Earth (MOON)

Category: Payment method

The profitability year 2022:4885%

Terra is a protocol made up of various stablecoins linked to a wide variety of FIAT currencies (Dollar, Euro, Yen...) with the aim of being able to be used in payment systems around the world. Terra stablecoins are very easy to spend, they can be sent instantly anywhere in the world and with low fees.

Currently, Terra has achieved several agreements with payment platforms, especially in Asia and the Pacific region, such as the collaboration announcement in 2019 with the company CHAI.

13. Polygon (MATIC)

Category: Ethereum network scalability

The profitability year 2022:8217%

Polygon is a platform developed to solve the scalability problems of the Ethereum network by verifying transactions on lateral blockchains or sidechains.

Ethereum almost always works at the limit of its capacity and in 2021 the problem is very noticeable due to the NFT market and the massive adoption of DeFi applications. This causes the network to work very slowly and the commissions to be very high, problems that Polygon tries to solve.

14. Avalanche (AVAX)

Category: DeFi

The profitability year 2022:1085%

Avax is a platform designed for the issuance and trading of any financial asset, such as shares or commodities, globally. The idea is to unify the exchange of financial products in the same network, creating a global system for the issuance and trade of all digital goods.

Avalance is made up of 3 blockchains (X-Chain, P-Chain, and C-Chain) which are validated and protected by the primary network. It is a network with high-performance thanks to the design of its consensus protocol called Avalanche, which allows thousands of transactions to be validated per second.

15. Fanthom (FTM)

Category: Smart Contracts / Defi

The profitability year 2022:4660%

Fanthom is a smart contract platform that overcomes the limitations of old blockchains. It uses the DAG technology that allows building distributed systems identical to those created using blockchains but presents many advantages.

In addition to being more efficient and scalable than other platforms, its consensus mechanism is specifically created to facilitate the operation of DeFI applications and other related services based on smart contracts.

2021 Crypto Returns Source (%YTD): Coinmarketcap

CONCLUSION

As I said at the beginning, all the cryptocurrencies on the list are promising projects in their respective sectors, so they are good candidates when it comes to investing in 2021 or planning a portfolio with a view to the future year.

Before I finish, I would like to remind you that this article does not constitute financial advice. If you want to buy Bitcoin or any other cryptocurrency, you should educate yourself and make your own considered decisions.