3 of My Top Cryptocurrency Investments Heading Into 2022

After two years of impressive gains from the cryptocurrency industry, here are three of my top investments heading into 2022.

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With so many cryptocurrencies to choose from, offering tonnes of different catalysts for growth, it can be challenging to find high-quality cryptocurrency investments for 2022 that you not only understand but believe can continue to gain in value.

There are nearly 16,000 coins or tokens in existence, and more are being created each day. In addition, though, with cryptocurrencies being so volatile and each moving in different directions all the time, it can be a lot more challenging to track what’s going on in the space, especially compared to stocks, which will often move in unison with their peers.

This makes it even more important to do a tonne of research. And while diversification is still important, you don’t want to invest in too many projects, or it could be difficult to keep up to date with any developments.

So, if you’re looking for some of the top cryptocurrency investments heading into 2022, here are three of my top recommendations today.

Ethereum is one of the top cryptocurrency investments to make for 2022

The first cryptocurrency I would recommend investors consider is one of the most popular that there is, Ether, the native token of Ethereum. There’s a reason why Ether is the second most valuable cryptocurrency by market cap and accounts for over 20% of the total market value of all cryptocurrencies.

When Ethereum’s blockchain network was created, it opened up a tonne of opportunities. The possibilities of smart contracts are endless, and day after day, new ideas and projects are being born. So, as more projects are launched, and more investors, businesses and users join the space, naturally, Ethereum will continue to see a significant increase in popularity.

In addition, it’s also implementing several important upgrades in 2022, which will address many of its major issues.

Therefore, Ether has to be one of my top investment recommendations for investors looking to buy a cryptocurrency heading into 2022.

Polygon has the potential to continue rallying

Because Ethereum has had so many drawbacks, though, in the meantime, other solutions have been created to address these issues. One of the best solutions and also a top investment for 2022 is the Polygon network, which has the native cryptocurrency MATIC.

Polygon is a layer two scaling solution for building Ethereum-compatible blockchains. The blockchain uses the MATIC token for governance, staking and gas fees, much like Ether is for Ethereum. The major difference is that Polygon already uses a proof of stake (PoS) consensus mechanism, whereas Ethereum is looking to upgrade to that in 2022.

So, in the meantime, while transactions on Ethereum are still quite expensive, blockchains such as Polygon, which allow you to do transactions that are faster and often cost less than a penny, have naturally gained a tonne of popularity.

Many of the tokens and apps that run on Ethereum are also run on Polygon, and the network continues to make new partnerships. So, if you’re looking for a cryptocurrency investment to buy for 2022, MATIC has to be one of my top recommendations.

Decentraland

The last cryptocurrency investment I would recommend for investors to consider in 2022 is Decentraland, which has the native token MANA.

Decentraland is a decentralized 3D virtual reality platform that consists of more than 90,000 parcels of land. Each of these parcels of land and virtual real estate in Decentraland are created as NFTs. And in order to buy the real estate, you, of course, need MANA, which is one of the many tokens based on the Ethereum blockchain.

You don’t just buy the virtual real estate, though. Players can then use their imagination to build almost anything they can think of, which is why it’s been gaining so much popularity in 2021. However, it’s still extremely early.

Decentraland was one of the first examples of the metaverse, and therefore, as interest and popularity of virtual reality worlds continue to increase, MANA should naturally see a massive boost in popularity as well.

So, if you’re looking for a high-quality cryptocurrency investment for 2022 and beyond, I’d consider the best metaverse projects such as Decentraland.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Daniel Da Costa owns Decentraland, Ethereum, and Polygon. The Motley Fool owns and recommends Ethereum.

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