The 7 crypto-currencies to invest in 2022

In summary ...

We have selected for you the crypto-currencies in which to invest in 2022: Bitcoin, Ether, Cardano, Polkadot, Solana, Ripple, BNB, stablecoins and the token Basic attention.

The article "The 7 crypto-currencies to invest in 2022" was written by an experienced wealth management professional. We pay special attention to the quality, accuracy and objectivity of the information provided.

Introduction

With nearly 14,000 different crypto-currencies on the market (and that number is growing every day) at the time I'm writing this guide and a market at over $3 trillion (which is almost as much as the valuation of the CAC40 all companies combined), I can understand how difficult, if not impossible, it can be to know which crypto-currencies to invest in in 2022 while giving you the best chance of not making a mistake.

Don't panic, in this objective, comprehensive and accessible guide, I'm going to deliver everything you need to know if you're looking to trade cryptocurrencies and know which cryptocurrency to invest in in 2022.

What are the fundamental crypto-currencies to own, the altcoins to watch, and the high-potential startups? You'll know all this and more once you read this guide. Are you ready? Let's get started.

REMINDER: first and foremost, we owe it to you to remind you (although we hope you've been aware of this for as long as we've been saying it...) that investing in digital assets, also known as crypto-currencies or digital currencies, carries a risk of capital loss that can be as high as 100%. Here's how it's done.

PREAMBLE ON CRYPTOCURRENCIES

First of all, it is important to understand that exchanging crypto-currencies is done in a decentralized universe that works thanks to a system called crypto-currency mining. This means that there is no need for trusted third parties (such as banks, PayPal or governments) to validate contracts.

Exchanging cryptocurrencies is done in a "peer to peer" way, in other words, from one individual to another. These are the so-called "miners" who validate the transactions. The mining of crypto-currencies secures the network and earns money for the miners.

After making an initial deposit on the site of a broker that you have carefully chosen, the storage of your crypto will be on what is called a "wallet", translation: a digital wallet.

1. Bitcoin: the king of crypto

Yes, I know I'm pushing an open door. Obviously, you won't learn anything and you suspected it but I told you, I have to be objective so if we talk about crypto currencies and digital assets portfolio, we can't not talk about bitcoin and consequently, we can't not have Bitcoin in our portfolio.

And this is finally regardless of its price. 50K, 60K, 100K, 150K or 20K it doesn't matter. Bitcoin is the most incredible digital store of value in the world and its value will most certainly increase for two fundamental reasons:

- Its rarity: there will never be more than 21 million Bitcoins.... Ever. Unlike the euro or the dollar, which can be printed at full capacity without anyone seeming to worry

- Its adoption: the more people who want Bitcoin, the more its price will rise. This is obvious in theory at least, but it's worth remembering, because behind the fantasies about the volatility around bitcoin, too many people still forget that this market is also based on the fundamentals of supply and demand.

If you're interested in Bitcoin, you've probably heard of Litecoin. This crypto was created from Bitcoin's software with some technical modifications. It is considered digital money because it is much less scarce than Bitcoin: its quantity is limited to 84 million. Its purpose is to be used as a common currency thanks to its high speed and low fees.

As examples, the video game company Atari has launched its "Atari Token" and uses mainly Litecoin in exchange for its tokens. The Miami Dolphins soccer team has also adopted this crypto as its official currency.

2. ETH: before ETH 2.0

If you have the chance to buy ETH before the release of ETH 2.0 then do not hesitate.

ETH 2.0 is THE big, very big and major evolution expected by the whole cryptocurrency ecosystem. Ethereum's teams, led by founder Vitalik Buterin, have been working on improving their blockchain for several years.

Today, the ERC20 blockchain (ether) is widely used but it is still expensive, energy consuming and limited in the number of transactions.

As an example, the Visa credit card network performs 1736 transactions per second, the Bitcoin network would perform 4 per second. The upgrade with the release of ETH 2.0 will literally revolutionize all this: 90% less fees, 10 times faster and 90% less polluting and energy consuming. In short, paradise.

Although we do not know yet precisely when is planned the release of the ETH 2.0, we know however that the first update of the ETH 2.0 should intervene in the course of spring 2022 and the phase 2, announcing the definitive release of the evolution is as for it awaited at the end of the year 2022, provided that they do not know new delays.

It should also be noted that to date the Ethereum blockchain hosts a large part of the smart contracts, which represents one of the most important features of Ethereum and whose applications are endless. An example of a smart contract project: imagine that you don't need an intermediary (such as AirBnB) to do seasonal rentals and that all the exchanges are done from person to person. This might be possible one day thanks to a smart contract.

HOW MUCH: Along with Bitcoin, Ether is unquestionably the second major crypto to own, so it's safe to say it's a promising currency. You can consider having 30 to 40% of it in your digital asset portfolio, especially if you had the chance to read this guide before the release of ETH 2.0.

3. ADA, DOT, SOL: the alternative trio

Perhaps I should remind you that behind the dreams and fantasies that fuel the world of cryptocurrencies, there is real, operational and radically disruptive technology. Ether is the first ambassador of this.

But Ether has serious competitors who also want their share of the huge pie of the new value that is being created on the Internet 3.0. There are many competitors, but the three main ones are :

- Cardano with his crypto-currency ADA

- Polkadot : with its crypto DOT

- Solana : SOL

There are plenty of new currencies out there, such as Uniswap (UNI) but I really urge you to focus on these three first.

The year 2021 has seen a vertical takeoff in the price of the Solana crypto, which has gone from €1.37 to €175...

Cardano and Polkadot are developing and exploiting very high velocity, high value technologies. As I write this guide, no one knows yet who will be the big winner in this new value war.

HOW MUCH: I recommend shuffling 10-15% on these three cryptocurrencies.

4. RIPPLE

Another crypto-currency that is as closely watched as it is strategic in the stakes of the decentralization of global finance is Ripple, symbolized by the sign XRP. XRP is so "scary" to central bank-like bodies that the SEC has launched a real witch hunt to symbolically kill Ripple.

Why? Simply because Ripple technology is 100 times more efficient and less expensive than the tools and technologies currently used by the world's banking sectors.

But what's most incredible is that despite the ongoing SEC scare in the US, Ripple technology is already being used by hundreds of major financial institutions around the world to speed up their processing while reducing fees for their customers.

Many experts in the crypto world agree that XRP is a true revolution and as such should be held in portfolio.

HOW MUCH: 5 to 10% in your crypto wallet.

5. BNB

So obviously this recommendation makes sense if you are one of the traders who use the Binance platform to trade crypto-currencies because if this is the case it is very likely that you already know or even already own BNB. BNB is the Binance coin, the token of the Binance platform.

However, even if you don't use Binance to buy, sell or hold your crypto-currencies, it's still a good idea to hold some in your portfolio. Indeed, BNB is simply the third largest cryptocurrency in the world in terms of capitalization, just behind Eth and Btc.

It's simple: its price has gone from €24 to over €400 in one year!!! And I think that this is not finished.

Finally the evolution of the BNB price depends largely on the number of users of the platform. However, as we are still at the very beginning of the advent of cryptos and massive adoption (congratulations to you for being interested in it now) it is likely that the price of BNB will continue to rise. Moreover, it is a currency frequently used on DEFI sites as an exchange or transaction currency. So holding it is often useful beyond just making money.

Be aware that you can also earn BNB by stacking crypto-currencies or participating in liquidity pools from the Binance website.

HOW MUCH: 5 to 10%.

6. USDT or EurT: stablecoins

How can you write a special guide on which crypto-currencies to focus on in 2022 without talking about stablecoins.

So yes, for the possible purists among you, stablecoins by definition do not offer the earning potential that other crypto currencies do, but stablecoins are highly necessary if you want to stay and evolve in a crypto universe and transfer your assets without reverting to euro.

Stablecoins are these cryptos, these tokens that replicate one for one, the price of a classic fiduciary currency. In this case the dollar for USDT or the euro for EurT.

If you change 100 € you will have 100 EurT. So far you may say, not much interest, except that not only you can store your stablecoins and thus generate returns (up to 12% / year anyway for USDT) but above all you will use these stablecoins a bit like a transit zone, between two cryptocurrencies.

Example: You want to invest in crypto-currencies, especially Bitcoin, and want to secure your gains by liquidating your position. If you sell your Bitcoins to get Euros, which is perfectly possible, then you will be subject to the Flat Tax regulation and will go through the 30% capital gains tax and you will be out of the crypto eco system.

If now you want to secure your positions and your gains while staying in the crypto universe, because you are waiting for a market correction to come back down, then in this case, sell your bitcoins against USDT, wait for the eventual correction and then you can use your USDT to buy back bitcoin.

7. Basic Attention Token

For this last recommendation in your allocation, I wanted to talk about a company and its token. This is the brave.com website which has designed and put online a browser that not only respects our privacy but also allows us to choose who we want to pay and how much.

In return, users can be paid in tokens when they watch certain content. In short, we are here at the heart of the very philosophy of the DEFI, a system that organizes freely with and around its users and that is no longer dictated or imposed by a central body.

The brave site offers a plug in that you can download directly to your usual browser and start using theirs.

The token of this company is the BAT: it stands for basic attention token.

For this 7th token, we are there in a bet on the future and on an adoption of the concept of the economic model of brave. I recommend you this token only if you believe in the virtuosity of their model and if you would be likely to use their browser.

HOW MUCH: a few euros, just to see. 1 to 3% maximum of your allowance. It's a very small token but there is a high viral potential if they manage to increase the number of users

BONUS: I could also have told you about all the "shitcoins" (I won't translate, I'm sure you'll understand). Basically they are all these little coins that are not based on anything, that in theory are worth nothing but whose price can explode for viral marketing reasons or because a person made a good tweet about it. I'm obviously thinking of the now famous dogecoin or shiba inu.

You must have heard about Elon Musk's tweets on Dogecoin that made the price explode. After buying some shiba Inu at the very beginning of 2021, my gain was phenomenal, but I did it more for fun than because I believed in the business model as there was none at the time.

These shitcoins are created every day and the vast majority of them crash as fast as they go up. If you decide to buy them, only invest what you are fully prepared to lose and especially know how to get out at the right time.

After all, an announcement or a momentum can make the price go up very strongly but make it go down just as quickly, so stay very measured and for the time being, very short termist on this type of crypto-currencies.

Conclusion

We have truly entered the second phase of the financial transformation of the world, the economy and politics are strongly impacted by this news, the impact of crypto-currencies is not only virtual. It is in this phase that more and more people are starting to take an interest in the subject and gradually adopt it. We have seen it in the past for the Internet or for mobile, for contactless payment with his smartphone or the health pass... it takes a little time for the individual to get used to the change. 2022 will certainly mark the beginning of the popular advent of crypto-currencies and consequently of decentralized finance.

The transition will take another ten years or so before it is truly and widely adopted and recognized as a matter of course, but if you have the foresight to realize this and the personal requirement to do your research, follow the news and enrich your knowledge on the subject of digital currencies, then there is a good chance that in the end, you will not only have enriched your knowledge.