In the last 10 years, cryptocurrencies have been all-the-rage, with a market capitalization of $170 billion. The question is: where do you invest? Here are five top cryptocurrencies to watch for in 2022.
In the “next cryptocurrency to explode 2022” article, the author talks about the top 5 cryptocurrencies that could see a huge increase in value over the next few years.
Cryptocurrencies may be used to make purchases, but for the most part, they are a long-term investment for most individuals. With bitcoin investing being a hazardous business due to volatility, you’ll want to know what you’re getting into before dipping your toes in.
The persistent unpredictability in many jurisdictions hasn’t hindered the popularity of cryptocurrencies. With cryptocurrencies such as Bitcoin and Ethereum becoming more competitive, more young individuals and first-time investors are joining the cryptocurrency investing party every day. With approximately 8,900 digital assets on the market, we’ve compiled a list of the top five cryptocurrencies to watch in 2022.
Bitcoin is number one (BTC)
Bitcoin, the first cryptocurrency, is currently among the top 15 currencies in the world, with a price and market capitalization that exceeds all others. Many companies, banks, and payment processors such as Visa and MasterCard have begun to accept Bitcoin transactions as part of their services.
The sole disadvantage of Bitcoin is that its value is still volatile, which makes most new investors anxious. Bitcoin is a good long-term financial instrument if you don’t mind the erratic oscillations. Most individuals, however, can only invest a fraction of a Bitcoin since it costs at least $40,000.
Ethereum is number two (ETH)
The Ether token, based on the Ethereum blockchain, is the second most valued cryptocurrency and a cornerstone of the crypto sector. Ethereum pioneered numerous blockchain concepts, including smart contracts and, more recently, NFTs.
The “one lane” for executing transactions is Ethereum’s biggest issue. When the network is overcrowded, transactions take longer and, as a result, transaction costs are higher. If Bitcoin wins the gold medal, Ethereum is relegated to second place among cryptocurrencies.
Binance Coin is number three (BNB)
Binance began as a way for users to pay fees on the Binance cryptocurrency exchange. Nonetheless, it has accrued enormous utilitarian value over time, owing to its quarterly burning schedule, which keeps its market circulation numbers up. At the start of 2021, BNB saw a significant price increase, attracting the attention of various enterprise investors.
The key distinction between Binance Coin and its rivals is that it was established by a corporation, as opposed to others that were developed by a group of people. Many critics have been won over by BNB’s promise to maintain a stable blockchain, but many investors remain leery of digital assets and their potential security risks.
Cardano, number four (ADA)
The fact that Cardano has a smaller footprint than Bitcoin means that transactions can be completed with less energy. The speedier transactions are cheaper; the network released a hard fork last year that added capabilities, including the ability to execute smart contracts.
The primary problem with ADA is that it can’t compete with the most popular cryptocurrencies even if it has a stronger and quicker network. There are fewer developers, maybe because to the lesser number of early adopters who see the network’s potential.
Solana is number five (SOL)
Many crypto fans were shocked by Solana’s rise from 0.01 percent of the market value in the start of 2021 to among the top ten cryptocurrencies by market size. SOL, which is now ranked ninth, has been dubbed an Ethereum killer. The coin’s attractiveness stems from its speed, scalability, and simplicity of usage in developing DApps.
On the flipside, although Solana’s statistics have increased by almost 4000 percent in only one year, there’s always the risk that they may decline as rapidly in the future.
The “best cryptocurrency to invest in 2022 for beginners” is one of the top 5 cryptocurrencies to invest in for 2022. If you are a beginner looking for some great returns, this might be the perfect choice for you.
