As of now, there are over 5,000 cryptocurrencies listed on Coin market cap and probably twice as many that you’ll never know about.
That’s a lot. So, what is the best crypto to buy in 2022?
In this article, I will share 5 best cryptocurrencies to invest in for a strong, diversified portfolio.
Whether you are looking for the next big cryptocurrency, or for which Alt coins to buy to diversify, read on.
1. PayPal Holdings
- Market value: $333.5 billion
- Quarterly earnings growth rate (year-over-year): 1,206%
- Profit margin: 22.8%
- Return on equity — trailing 12 months (TTM): 29.4%
PayPal Holdings (PYPL, $288.12) announced in October a service that would allow users to hold Bitcoin, as well as the Ethereum, Bitcoin Cash and Litecoin cryptocurrencies.
Before the end of the year, Mizuho Securities survey of 380 users showed that, within roughly one month, 17% had already used PayPal to buy or sell the cryptocurrency. Investment firm and hedge fund Pantera Capital wrote in a letter to shareholders that “PayPal and (Square’s Cash App) are already buying more than 100% of all newly-issued bitcoins.”
As far as cryptocurrency stocks go, Wall Street analysts are upbeat on this one. They collectively believe PayPal will average 24.1% earnings growth annually over the next three to five years. That’s reflected in a consensus Buy rating, according to S&P Global Market Intelligence.
2. JPMorgan Chase
- Market value: $457.5 billion
- Quarterly earnings growth rate: 399.1%
- Profit margin: 34.2%
- Return on equity: 15.0%
During Bitcoin’s massive run in 2017, JPMorgan Chase (JPM, $151.12) CEO Jamie Dimon called the asset class a “fraud,” claiming it is “worse than tulip bulbs,” referring to the Dutch tulip bubble burst in the 1600s.
The bank is first looking at a blockchain-run system that can reduce the number of parties and time needed to verify global payments. Currently, some payments can take weeks; better verification technology could reduce that to hours.
Of course, this is one play that might take some time to pan out.
Investors willing to wait on one of the most unlikely of cryptocurrency stocks can collect a 2.4% dividend yield on JPM shares, which the analyst community currently says are a Buy.
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3. Nvidia
- Market value: $474.9 billion
- Quarterly earnings growth rate: 108.5%
- Profit margin: 27.7%
- Return on equity: 33.4%
Cryptocurrencies are generated from solving complex algorithms, rewarding those with the hardware to speedily get the job done. Much like gold miners panning for physical gold, with the right equipment, you can grab a bigger share with better tools.
That’s part of why Nvidia (NVDA, $762.29) enjoyed a surge along rocketing Bitcoin prices in 2017. As mining bitcoins became more lucrative, it created a rising demand for the company’s high-powered processors.
Nonetheless, Nvidia is enjoying some pickup, and the company released new processors in February specifically for use in cryptocurrency mining.
Nvidia is hardly the purest of cryptocurrency stocks. But in any gold rush, it pays to be the guy selling picks and shovels. Sweeter fortunes for Bitcoin and other cryptocurrencies should help boost NVDA’s bottom line.
4. Coinbase Global
- Market value: $59.2 billion
- Quarterly earnings growth rate: 2,313%
- Profit margin: 36.8%
- Return on equity: 54.2%
Coinbase Global (COIN, $226.01) has had a rough ride since going public via a direct listing in the second quarter. COIN was given a reference price of $250 per share, before opening at $381 on April 14. The shares rallied to nearly $430, but closed the session below $329. These struggles on the charts have continued, with COIN down about 31% from its close that day.
Off the charts, the company’s business model is a simple one. It’s a brokerage firm that connects buyers and sellers of major cryptocurrencies, and collects fees for each trade made.
The unit will tie together trading, data analytics and custody services. Unlike traditional brokerages, where institutions lead, digital assets are still driven by retail investors. This is a potentially huge market by volume.
And as far as cryptocurrency stocks are concerned, this one’s story is likely just beginning.
5. Bitcoin
Bitcoin is the most widely used cryptocurrency to date. It is often referred to as the king of cryptocurrencies, and its primary goal is to act as global, peer to peer, digital cash.
Bitcoin is the only cryptocurrency that I recommend with an anonymous founder. The creator of Bitcoin is known as Satoshi Nakamoto. There is a lot of speculation about who he or she is, but ultimately, no one knows.
Bitcoin has the highest liquidity in the space, making it the best cryptocurrency to buy for beginners. You will have no trouble buying or selling Bitcoin — there will always be someone on the other end to match your order.
What makes Bitcoin a good investment?
Market share. Did you know that Bitcoin accounts for over 60 % of the total cryptocurrency market cap? This dominance means it has tremendous momentum, which makes it the best crypto to invest in 2022 if you’re a beginner, or if you simply don’t trade much.
Simply put, Bitcoin is still the best crypto to buy today, if not the best. I would not recommend anyone invest in cryptocurrency without investing in Bitcoin.
