Buy cryptocurrency 2022: Invest in coins for the long term

In addition to Ethereum, a number of other cryptocurrencies have also started to replace Bitcoin. But which coin has long-term potential? Decision-making aid for the question: "Which cryptocurrency to buy in 2022?"

Invest in coins for the long term

The past few months have been difficult for almost all cryptocurrencies. Ethereum (ETH), Bitcoin's (BTC) biggest competitor, slipped below the $3,000 mark and lost around 15 percent of its value year-to-date. The reason is shifting at the economic and political level, which reduces the attractiveness of cryptocurrencies as an investment in the eyes of many investors. Many countries are trying to regulate cryptocurrencies more strictly, and the US Federal Reserve is beginning to abandon the low-interest rate policy of the past few years. Against this background, many investors are wondering: which cryptocurrency to buy in 2022? COMPUTER BILD explains how Cardano (ADA), Solana (SOL), Ripple (XRP), Decentraland (MANA), and Ethereum are progressing and which coin has the potential to further expand its position in the long term.

Ethereum (ETH) 2022: what will update 2.0 bring?

Ethereum was able to position itself as an alternative to Bitcoin early on and is now the undisputed second-largest cryptocurrency with a market capitalization of currently (April 13, 2022) 372 billion US dollars (about 343 billion euros). The update to Ethereum 2.0 is expected in 2022, which should increase the advantages of the Ethereum blockchain and sharpen the profile of the cryptocurrency. The focus of the update is the shift to the less power-intensive proof-of-stake algorithm used to verify transactions on the blockchain.

The more efficient algorithm will also expand the capacity of the Ethereum blockchain. Currently, 15 transactions per second are possible. In comparison, Bitcoin only manages 7 transactions. With the update to version 2.0, this number should increase to 100,000 transactions per second. Ethereum is currently outperformed by smaller cryptocurrencies such as Solana (SOL) in terms of transaction speed and costs. What also speaks for Ethereum: The NFT hype could also play an important role in the development of cryptocurrency in 2022. Almost all NFT marketplaces are based on the Ethereum blockchain.

Cardano (ADA) and Solana (SOL) 2022: Faster and cheaper transactions than Ethereum

Cardano relies on the efficient proof-of-stake algorithm and thus already allows faster and cheaper transactions than Ethereum or Bitcoin. Resource-hungry mining is also eliminated on the Cardano blockchain. However, Cardano (ADA) is no longer the only cryptocurrency that wants to score with a fast, cheap, secure, and scalable infrastructure for crypto transactions. Currently, the main ADA competitor in the cryptocurrency Solana (SOL).

In contrast to Cardano, the competitor Solana relies on the highly efficient proof-of-history mechanism, which currently already enables more than 50,000 transactions per second. The developers expect that this value can be increased to several 100,000 transactions per second through optimizations. In the area of ​​blockchain-based decentralized financial services (Decentralized Finance, short: DeFi), Solana is currently the fastest and cheapest cryptocurrency for processing smart contracts (digital contracts that are also based on the blockchain).

In terms of market capitalization, the two alternative coins are currently close to each other at just under $34.3 billion for Solana and $32.7 billion for Cardano. However, the current listings do not allow any conclusions to be drawn about the future of a cryptocurrency: a stable rate that oscillates around the dollar price is even better for the financial economy than an expensive cryptocurrency whose price is subject to strong fluctuations.

By 2022, the Cardano network plans to host more projects for decentralized applications (DApps), made possible by the smart contract functionality introduced in 2021. In addition, Cardano intends to include more institutions in its open-source project structure in 2022.

Bank of America wrote in a research note in January that Solana could become the "Visa of the digital asset ecosystem." Since launching in 2020, Solana has seen massive adoption. Bank of America also pointed out that Solana is the fastest blockchain in the world with the fastest-growing ecosystem in the crypto economy. More than 400 projects from the areas of DeFi, NFT, and Web3 are currently based on the Solana ecosystem.

Decentraland (MANA) 2022: Investing in the Metaverse

Decentraland is a virtual world where users can purchase and trade land on a map. Every item in the world is an NFT (a non-fungible token or non-exchangeable digital object) and can be traded in a marketplace. The corresponding currency is called MANA. The cryptocurrency currently has a market capitalization of 4 billion US dollars. If the Metaverse theme picks up steam in 2022, MANA could rise significantly.

Ripple (XRP): The cryptocurrency of the banks

Ripple attracted attention last year primarily due to its ongoing legal battle with the US Securities and Exchange Commission (SEC). The SEC accuses the Ripple makers of having launched a de facto share with Ripple. RippleLabs defends itself against this interpretation. Despite the pending process, the Ripple price has remained relatively stable at around US$ 0.70. Ripple has a market capitalization of $34.4 billion. Conclusion: If RippleLabs wins the case, Ripple (XRP) is a promising cryptocurrency in 2022.

Conclusion: Which cryptocurrency to buy in 2022?

The past few months have not been easy for new investors in the crypto market. But cryptocurrencies like Ethereum, Cardano, and Solana are still doing relatively well. Both the Ethereum community and the Cardano project are working on new features that are intended to make transactions cheaper and more efficient and the ecosystem more powerful.
More and more applications are emerging in the DeFi sector, which offers numerous advantages over the traditional financial sector. This could be reflected in rising prices for Ripple, Cardano, and Solana.

The NFT trend and the further development of metaverses in gaming, e-commerce, and social media are also giving cryptocurrencies a boost. Ethereum and the Metaverse coin MANA could benefit from this. With the currently relatively cheap prices, there are good opportunities for buyers to buy cryptocurrency 2022.