Best cryptocurrencies to invest in August 2022
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Top 6 crypto to invest in August 2022

 best crypto to invest in

The unstable economic situation in the world has forced many investors to reconsider the way they invest. Most investors are reluctant to invest in fiat currency because it is no longer a reliable investment. Their course is influenced by many different factors, for example, various geopolitical changes. This is why cryptocurrencies have become so popular. They are more stable, not controlled by the authorities, and political events have little effect on rate fluctuations. The crypto market provides a wide range of digital coins, which is why many investors have doubts about which option to give preference to.

Let’s take a closer look at which crypto to invest in August 2022.

What is a cryptocurrency?

Bitcoin

Cryptocurrency is an electronic currency that is analogous to ordinary money and gold. To date, there are more than 5,000 digital coins, including such as bitcoin, altcoins (Litecoin, Etherium), tokens (Uniswap), and stablecoins (Tether). Digital coins differ from ordinary money in that they are protected and encrypted with special cryptographic algorithms. The main advantage of cryptocurrency is its decentralization and independence from a single control center.

This means that cryptocurrency cannot be controlled by either central or government authorities. That is, no one can manage digital coins and influence transactions made within the system since the process data is stored on several devices at the same time. All this is facilitated by blockchain technology, thanks to which cryptocurrency functions and transactions are carried out.

What is blockchain?

Blockchain is a continuous sequential chain of blocks containing data on all transactions made over a certain period of time and arranged in chronological order. This technology helps users avoid fraud, hacker attacks, and theft and also reliably protects personal data and an electronic wallet.

What does the blockchain transaction process look like?

Transaction

 Verification

 Recording

Identification

Storage

Best crypto to invest in August 2022

invest in crypto

Bitcoin (BTC)

Bitcoin has been and remains the leading cryptocurrency in the market. This digital coin was released in 2009 and is considered one of the most reliable cryptocurrencies to invest in. Even a drawdown in the value of BTC is considered by investors and traders as an opportunity to enter the cryptocurrency market.

You can buy and work with Bitcoin on any of the crypto exchanges. Buying and selling Bitcoin has the high liquidity that allows this coin to make a profit regardless of the state of the market. Many investors and analysts say that in the next five years, the value of Bitcoin could reach $100,000. Therefore, Bitcoin can be considered a long-term investment. 

Cost: $21,942.70

Market cap: $420,575,635,917

Daily trading volume: $45,900,148,879

Ethereum (ETH)

Ethereum is a cryptocurrency that ranks second in terms of capitalization and is considered the only competitor to Bitcoin. Technologically, this coin offers users different ways to use it. The main function that it performs is the automation of the exchange using smart contracts. Ethereum smart contracts allow users to make fast and secure money transactions without intermediaries.

The Ethereum team is constantly working on creating new business models and decentralized applications, which makes this digital coin a promising investment.

Ethereum price growth is expected to continue due to the reliability of the project, a good roadmap for 2022, and the transition to an updated version of Ethereum 2.0 in the current year.

According to many experts, the value of Ethereum could rise to $8,000–$10,000 by the end of 2022.

Cost: $1,524.47

Market cap: $186,315,428,033

Daily trading volume: $30,391,298,294

Solana (SOL)

Solana is a relatively new cryptocurrency that was launched on the market in 2020. Nevertheless, it is one of the most promising coins for investment. Solana attracts investors with some of its features: fast transaction processing and low commissions.

Solana was developed to support decentralized finance, decentralized applications, and smart contracts. The platform uses the Proof of Stake (PoS) and Proof of History (PoH) protocols, through which transaction confirmation is fast and secure.

SOL is the native token of the Solana platform. The cost of the SOL token began to grow from the moment the project participated in the initial coin offering (ICO) in 2018. Then the project managed to get 1.76 million dollars.

With the help of SOL tokens, platform users can access the Solana blockchain, which allows the creation of decentralized programs (Dapps).

It is worth noting that Solana processes transactions much faster than Ethereum. The number of transactions processed on the Solana network is approximately 3,187 – 65,000 transactions per second, while Ethereum processes only 15 transactions per second and Bitcoin – from 5 to 7.

Accordingly, the commission in the Solana network is much lower than in the Ethereum network since the size of the commission depends on the speed of work. Thus, the commission for Solana is less than one cent per transaction, for Ethereum it is $25-53, depending on the cost of electricity.

In August 2021, the value of the token increased by more than 500%. In September, the quotes for the coin reached $215 per token. The potential of this coin is very high, so investing in Solana is more than justified.

Cost: $43.57

Market cap: $15,086,753,168

Daily trading volume: $2,146,350,281

Polkadot (DOT)

Polkadot (DOT) is one of the most popular platforms that provides a variety of solutions through the efficient use of multiple blockchains from the same network, called parachains. With the help of parachains, the platform provides its users with the necessary level of anonymity. A feature of the system is that transactions can be executed at once and be apportioned between blockchains.

The project has its own DOT token, which is responsible for merging all connected blockchains.

The investment in Polkadot is expected to pay off in the coming months, as this project is developing at a tremendous pace and could have the same impact on the cryptocurrency market as Ethereum in the future.

According to many experts, the cost of the token can rise to $40-60.

Cost: $7.68

Market cap: $7,554,292,865

Daily trading volume: $782,298,391

Binance (BNB)

Today, Binance is the most popular cryptocurrency exchange that provides its users with fast, smooth, and secure transactions. This exchange allows its users to trade cryptocurrencies 24/7 while charging a small commission for their services.

BNB is Binance’s own currency, which is designed to pay fees for the exchange’s services. Many experts predict that investors who purchase the BNB token will make huge profits as the value of this asset could rise to $1,000 in 2022.

Cost: $260.88

Market cap: $42,458,929,443

Daily trading volume: $1,806,965,066

Cardano (ADA)

Cardano (ADA) is considered one of the most promising coins in 2022. According to Coinmarketcap, this digital coin is ranked #6 by market capitalization. The reason for the popularity of this project is justified by the fact that it is intended for use in the DeFI sector. Smart contracts based on the Cardano blockchain allow users to transact funds without intermediaries and in compliance with all obligations.

Cost: $0.4862

Market cap: $16,320,278,665

Daily trading volume: $1,592,540,086

Cosmos (ATOM)

One of the promising digital coins in June 2022 is Cosmos (ATOM). Cosmos is called “blockchain 3.0” which is decentralized and secure.

ATOM is a governance token. The owners of this coin can vote and choose the direction of the project development that they consider correct, and with the help of the distribution of tokens, voting is transparent.

Cosmos is a cross-chain solution that allows all blockchains operating in its ecosystem to interact not only with each other but also with external networks like Ethereum and Bitcoin.

More than 250 decentralized applications operate in the Cosmos network, and their capitalization exceeds $70 billion. Such projects use the Cosmos infrastructure as OKExChain, Binance Smart Chain, Qredo.

Cosmos is the only cryptocurrency that provides its users with cross-chain solutions. The only exception may be Polkadot, which allows creating parachains by yourself.

Analysts believe that this ecosystem is set for excellent growth in the future, as the leading cryptocurrencies already use Cosmos technology. Until the end of 2022, the value of this coin may rise to $40–50.

Cost: $9.51

Market cap: $2,722,045,910

Daily trading volume: $391,219,235

Types of investment in the cryptocurrency market 

invest in cryptocurrency

Conclusion

The cryptocurrency market is developing rapidly and can bring good profits. There is a small entry threshold here since crypto investors can start with small investments. The main advantage of investing in cryptocurrencies is their high profitability. However, each investor should take into account that his income will depend on the coin in which he invests and on the type of investment. For example, if you buy a promising digital coin, you can sell it for a much higher price in a few months and get a high profit. The main feature of the cryptocurrency market is its high liquidity, so investors can sell and buy cryptocurrency in seconds.

READ MORE: Investing in cryptocurrency: how to start and reduce risks

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Alina Sattarova

Alina Sattarova

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