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The popularity of cryptocurrency, as a capital gains investment, has been increasing over time. In 2011, the value of Bitcoin was 1 dollar. This fact means that the cryptocurrency was at par with US dollar. However, the value of Bitcoin kept increasing overtime, which means that those who bought it in previous periods would make high capital gains if they sold the cryptocurrency today. As at 14th November 2021, the value of Bitcoin was 64,823 US dollars. A number of cryptocurrencies also have potential to increase their value by looking at their market capitalization, prices, and risk. The top five cryptocurrencies to consider for investment in 2022 include Bitcoin (BTC), Ethereum (ETH), Solana (SOL), XRP (XRP) and Bitcoin Cash (BCH).
- Bitcoin. BTC is the highest ranking cryptocurrency in terms of market capitalization and price. The market capitalization of the cryptocurrency, as at 14th November 2021, was 1,218,828,894,374 USD at a price of 64,823 USD per Bitcoin. Therefore, being a market leader, this cryptocurrency is the best to invest in for both short and long-term capital gains, even though it has the highest risk as explained in The Basics of Bitcoins and Blockchains: An Introduction to Cryptocurrencies and the Technology that Powers Them (Cryptography, Crypto Trading, Digital Assets, NFT). The price of Bitcoin is still likely to continue skyrocketing in the near future.
- Ethereum. ETH comes second after BTC by considering both capital gains and price. The market capitalization of Ethereum, as at 14th November 2021, was 547,761,244,539 USD at at price of 4,628.96 USD per ETH. This cryptocurrency is also worth investing in because of its performance and the fact that it is among the top, even though it has high risk as explained in Mastering Ethereum: Building Smart Contracts and DApps. ETH would also be the best cryptocurrency to invest in for both short and long-term capital gains.
- Solana. SOL is the fifth ranking cryptocurrency in terms of market capitalization. As at 14th November 2021, the market capitalization of Solana was 71,739,515,516. However, SOL’s price as at the same date was 236.60 USD. What is Solana? A Scalable, Decentralized Network for Dapps postulates that SOL is the best for long-term capital gains since it has a lower risk. Short-term investment might not yield much returns. Therefore, investors who want to reap capital gains in the long-rum should consider buying Solana.
- XRP. When considering the market capitalization of cryptocurrencies, XRP ranks seventh. The cryptocurrency has a market capitalization of 56,010,991,520 as at 14th November 2021. However, the price of XRP on the same date was 1.19 USD. This fact means that it is one of the best cryptocurrencies to invest in for long-term capital gains. In addition, it favours investors who do not have much money because of the price. Therefore, XRP is a low risk investment in cryptocurrency, hence, good choice for new investors.
- Bitcoin Cash. BCH ranks nineteenth in terms of market capitalization. As at 14th November 2021, the market capitalization of Bitcoin Cash was 12,717,405,311. The price of the cryptocurrency on the same date was, however, 672.88 USD. This fact means that the price was increasing very fast vis a vis the market capitalization. Therefore, BCH is the best investment for both long-term and short-term capital gains, especially for a middle-risk investor.
Most operations in the business world have gone digital. This fact means investment and use of cryptocurrencies for commercial transactions is likely to increase over time. Therefore, considering market capitalization, price, and risk, the best cryptocurrencies to invest in in 2022 include BTC, ETH, SOL, XRP, and BCH.