We know you've already seen a ton of social media content where people share their thoughts on the
top 10 cryptocurrencies in 2022. after all if these guys had made videos a year ago about
Solana you would be up 575 percent you'd be up 1,067 percent and Shiba Inu you would be up
93,693... my goodness! it took Amazon 13 years to deliver a 10,000 percent
return to their investors and it's now taken dogecoin five months! Let's be honest, these
returns are insane and we know so many people that are either investing in cryptocurrency or planning
to do so in the future this got us thinking what are the best cryptocurrencies to invest in based
on their current rankings and how can we find the best investing strategy to get the highest returns
okay let's start off by establishing what cryptocurrency is cryptocurrency is a
decentralized digital money designed to be used over the internet bitcoin was launched in 2008
and was the most popular first cryptocurrency and it's still the largest and best known today
over seven trillion dollars worth of bitcoin has been transferred since 2009 cryptocurrency allows
for the online transfer of value without the need of a middleman like banks and payment processors
this allows global near instant 24/7 transaction for low fees sending bitcoin is typically 60 times
more cost effective and 48 times faster than an international wire transfer in this visual the
typical time to process is one to two days versus a bitcoin at one hour the typical
cost is 45 dollars versus bitcoin at less than a dollar. Cryptocurrencies are not usually issued
or controlled by any government instead they're managed by peer-to-peer networks of computers
that are running free open source software the transactions are vetted by a technology called
blockchain a cryptocurrency blockchain is similar to a bank's balance sheet or ledger form
each currency has its own blockchain an ongoing constantly re-verified record of each transaction
ever made cryptocurrency is distributed across all participants of the cryptocurrency network no
company country or third party is in control of it okay so now that we've talked about some
of the basics of cryptocurrency let's talk about the best investing strategy that we've found for
investing in crypto this comes from a site called market sentiment Graham Stephan a popular youtuber
he recommended this analysis to us a while back with cologne reviews and once we took a look at it
we were amazed too he has previously analyzed how the markets have reacted during periods like the
Russia Ukraine war the best times to buy an IPO whether or not wall street vets beat the market if
you should follow congress's stock picks and how the federal interest rate is going to affect the
stock market this time he analyzed cryptocurrency to find the best way to beat the market without
winding up with the next quid game and losing everything to do this he extracted the historical
data based on price market capital trading volume across 317 different exchanges and close to 2 000
cryptos to compare the first listing price on the exchange going all the way back to 2013
with the latest available price the result was shocking he found that only 40 of them had gained
so this means that if you had blindly bought every cryptocurrency that came available you could
expect that about 60 of them would lose value although only 40 of cryptocurrencies go up in
value the ones that do go big in fact the average gain across the winners was three thousand forty
eight percent even though that sounds incredible it's equally as impressive that most of that is
driven by a few outliers that skyrocket if you remove just one percent of the cryptocurrencies
the return drops all the way down to 641 percent and if you remove the top five percent the return
would just barely be higher than the s p 500. so that means even though forty percent of
cryptocurrencies go up in value only two percent of those actually earn enough to provide a return
higher than the stock market in the long run 98 of the time you would be you have been better off
buying index funds per warren puff it's consistent advice for the average investor i mean look at
how much turnover there's been over the years with a few currencies like bitcoin and ethereum
remaining at the top now in terms of the best investment strategy for cryptocurrencies to take
full advantage of that two percent that skyrockets to the moon here's what we found according to
market sentiment study based on past performance the most reliable method of investing is to buy
and hold equal amounts of the top 10 coins every single month and then do nothing remember the goal
is to develop strategy that anyone can do that does not require much work that isn't reliant on
luck while keeping the largest coins that are at least likely to be a scam there are two ways to
do this first a weighted average split but most of your investment will go to bitcoin the second is
an equal split where you are taking on a much higher risk since you're investing in smaller
cryptos and also being rewarded for the extra risk you took as you can see by the results regardless
of choosing the equal split or the weighted average split the return is incredible the
monthly investment amount was a hundred dollars and the total investment was nine thousand three
hundred and ninety dollars which produced returns of 10 400 or over 5700 respectively okay so you
might be wondering what if i started late or only invested during the years with the lowest returns
as you can see from the image we're going to show no matter which year you started by following the
strategy you would make a significant return on your investment far beyond that of the stock
market this tells us that the most effective way to invest is to buy them all and wait today the
top 10 coins include bitcoin ethereum tether bnb usd coin xrp tara cardano solana and avalanche
now if you don't include stable coins in this list you can also include polka dot
and dogecoin now a word of caution on creating a portfolio like this is that we like we've seen in
times like 2018 where a portfolio can drop 85 and never recover but if you believe in cryptocurrency
long term have extra money to invest and hold it and you trust yourself not to pay and excel
then this strategy might be a good fit for you of the different cryptocurrency investment strategies
that we've researched this appears to be the most effective and the most doable for the average
investor historically we focus the most on bitcoin and ethereum since they're the largest and have
the most consistent returns in fact if you would invested in bitcoin five years ago the return
would be over four thousand percent if you had also invested 100 in ethereum on the same day its
return would have even been higher at over 25 000 wow statistically speaking investing in just these
two coins would be the safest approach but studies have shown us that if you invest beyond the top
five cryptocurrencies there's a bigger risk but there's also a bigger reward to help our channel
grow please do these three things right now make sure to give us a thumbs up hit the notification
bell so that you receive those notifications when we upload a new video and subscribe to our channel
also check out our video where we break down our million dollar stock portfolio with you and
watch our stock market investing playlist so that every penny you save and earn is invested wisely