With the cryptocurrency market’s valuation increasing by the day, it is only natural to want to get in on the ground floor of something that could make you rich.

However, with so many cryptocurrencies available for purchase on exchanges, how do you know which ones are going to pay off? This guide will walk you through what makes some cryptocurrencies more valuable than others.

It also points out some of the smartest investments you can make as an investor looking to cash in on the crypto craze over the next few years.

The 5 Most Profitable Cryptocurrencies to Buy and Hold in 2022

While cryptocurrencies have experienced a decline over time, it is not uncommon to see huge returns during any given year of market volatility.

With an expected bull run and increased public awareness due to blockchain becoming more mainstream and accessible, we are going to look at what some people believe are the five most profitable cryptocurrencies to buy and hold for 2022.

1. Ripple (XRP)

Launched by popular entrepreneur Chris Larsen, ripple is a real-time gross settlement system, currency exchange and remittance network by Ripple.

Released in 2012, XRP (ripples) are a digital asset that can be used to transfer money globally via banks or institutions at little or no cost.

In 2017 alone, XRP was able to do more than $16 billion of global transactions. With its current market cap sitting around $7.5 billion, it’s one of the most valuable cryptocurrencies out there in 2022. If you have some spare cash to invest long term, now would be a good time to start buying up some ripples before they take off.

2. Bitcoin (BTC)

Bitcoin, as most know by now, is considered to be digital gold for good reason. Bitcoin was created back in 2009, during a time when banks were collapsing left and right and people were losing their shirts (in part because of dubious practices by our very own Federal Reserve).

While some might argue that’s still happening (especially with regard to student loans), there are many who see Bitcoin as a safe haven. That is a digital bucket of cash you can always count on.

It is true that it hasn’t performed well over the last year or so. But if we zoom out and look at its history, it has been remarkably stable.

In fact, over its lifetime BTC has gone up against just about every fiat currency in existence (including US dollars) and done quite well.

It has never lost value against USD. Even today it remains one of only two currencies. The other being Tether (USDT) that have not lost value against USD since they began trading.

3. Ethereum (ETH)

Ethereum is an open-source distributed blockchain that is more advanced than Bitcoin, with faster transaction times. In terms of market cap and price, it is currently second behind Bitcoin.

What makes Ethereum different from other cryptocurrencies?

It has its own programming language, which developers can use to build applications on top of it (similar to how you can use Java for building Android apps).

It also has smart contracts, which are agreements written into lines of code that automatically execute when certain conditions are met. These two features make Ethereum very attractive for enterprise businesses.

Plus, unlike some other cryptocurrencies, Ethereum isn’t just a currency but it allows you to create tokens or digital assets that represent your business or organization.

For example, if you wanted to raise money by selling tokens related to real estate investments, then investors could buy these tokens instead of investing in your company directly. This means there are many ways for companies and individuals alike to benefit from using Ethereum.

4. Litecoin (LTC)

A peer-to-peer cryptocurrency, Litecoin was created as a fork of Bitcoin back in 2011 by Charlie Lee.

It is based on an open source global payment network that is not controlled by any central authority and uses scrypt as a proof of work, which can be decoded with the help of CPUs of consumer grade.

crypt means that miners need not invest in expensive and powerful ASICs to mine Litecoins, making it possible for regular users to take part in mining. This also ensures greater decentralization of the system compared to other cryptocurrencies like Bitcoin.

5. Shiba Inu

SHIBA INU, a parody cryptocurrency based on Dogecoin, is a great cryptocurrency to buy and hold in 2022. SHIBA INU Cryptocurrency to Buy and Hold in 2022 was created as a joke. However, do not let its meme-like appearance fool you.

It is among one of the most profitable cryptocurrencies to buy and hold in 2022. In fact, it has been predicted that by 2030 it will be worth over $5 billion USD. This means that if you invested $1000 today, your investment would be worth over $1 million dollars by 2030.

6. Iota (IOTA)

With a current value of $0.2475 per coin and a circulating supply of 2,779,530,283 MIOTA tokens, Iota has an incredibly small market cap but an impressively large circulating supply.

This makes it an excellent candidate for people who want to buy and hold cryptocurrency for 10+ years to come.

Its 1Giga transaction-per-second capability is easily rivaled by very few other cryptocurrencies, and its IoT (Internet of Things) focus will see it thrive in the coming years.

It is also one of only two currencies on our list that is not based on Ethereum or Bitcoin.

Conclusion

Buying cryptocurrencies is one thing, but holding them is an entirely different practice. There are a handful of coins that have shown they are more than just flash-in-the-pan fads. More likely than not, these safe bets will be around for years to come.