Written by Daniel Da Costa at The Motley Fool Canada
Both cryptocurrencies have become popular after posting incredible rallies in 2021. In addition, both are among some of the most valuable cryptocurrencies. However, to that point, each has been sinking.
While the industry had been trading sideways in the months leading up until Christmas, Dogecoin and Shiba Inu have continued to lose value. Meanwhile, up and coming cryptocurrencies like and Avalanche (CRYPTO:AVAX) and Polkadot (CRYPTO:DOT) have recently passed Dogecoin and Shiba Inu.
So, after Dogecoin and Shiba Inu have underperformed the rest of the cryptocurrency market and now look extremely cheap, are they the best cryptocurrencies to buy in 2022?
Are Dogecoin and Shiba Inu two of the best cryptocurrencies to buy in 2022?
Although DOGE and SHIB have gotten much cheaper over the last few months, underperforming a cryptocurrency industry that itself has lost a third of its value recently, I still wouldn’t bother considering an investment in either of them this year. To find the best cryptocurrency to buy in 2022 and beyond, you’ll want a coin that has several catalysts for why it should increase in price.
So, although DOGE and SHIB have rallied in the past, it’s important to understand that neither is a great long-term investment. First off, they are highly volatile because of all the speculation they receive. Second, neither of them offers any proprietary technology that sets them apart from the rest of the cryptocurrencies.
Therefore, although they have some use cases, there are no fundamental catalysts for why they should rally in price. And with Dogecoin having an unlimited supply, too, the value of each coin will continue to be diluted forever. That doesn’t mean that Shiba Inu or Dogecoin can’t rally and earn you money as the entire industry rallies. It also doesn’t mean they can’t potentially see another massive spike due to a tonne of widespread speculation.
However, over the long run, and in 2022, there are far better cryptocurrencies you can have confidence buying that will surely outperform both Dogecoin and Shiba Inu. Even lately, these two cryptos have been some of the worst performers, as there has been a clear shift from investors to focus on finding better investments.
How to find the top investments in the crypto space
When I say there is a tonne of opportunities for investors to consider, it’s because so many projects are currently being built on different blockchain networks. And each of these projects, in addition to its associated token, could offer years of growth potential.
Of course, the blockchains themselves are some of the best investments to make, which is part of why MATIC has been climbing the list of the most valuable cryptocurrencies and even just passed Shiba Inu, now sitting one spot behind Dogecoin.
So, in addition to the fact that DOGE and SHIB are risky because of all the speculation, the opportunity cost of holding anything other than the highest-potential cryptocurrencies right now can be significant.
Therefore, if you’re looking for the best cryptocurrencies that you can buy in 2022 and hold for years, I’d recommend finding the top blockchains such as Polygon and Ethereum, which still have years of massive growth potential.
The post Dogecoin or Shiba Inu: What’s the Best Cryptocurrency to Buy in 2022? appeared first on The Motley Fool Canada.
Buy Alert: The Shopify of Cryptocurrency
We recommended Shopify before everyone knew about it… and now it’s up roughly 5,000% and while making some investors a fortune in the process.
Now, The Motley Fool is issuing a buy alert on another controversial investment with mouth-watering potential: cryptocurrency. But not just any cryptocurrency… one specific coin that we think could rise above the rest.
This is the first cryptocurrency The Motley Fool has ever recommended, so you probably don’t want to miss out.
Fool contributor Daniel Da Costa owns Ethereum and Polygon. The Motley Fool owns and recommends Ethereum.