Over the years, more and more innovative ideas have been developed, mainly in digital technology. One topic worth discussing is cryptocurrency, whose popularity has been growing. Cryptocurrency is essentially a virtual currency that runs on a blockchain network. More investors are becoming interested in cryptocurrency due to its security and decentralized and volatile traits.
The decentralization of cryptocurrency means that the value of crypto can’t be controlled by any governing body or a single institution. This also implies that cryptocurrency’s value often remains unaffected by economic events such as recessions and inflation. Furthermore, the facilitation and verification of crypto transactions are done over a distributed network or a blockchain network through cryptography, making it very secure.
Meanwhile, its high volatility can be seen as a double-edged sword as the opportunity to profit significantly comes with instability. High volatility means its value tends to change quickly and substantially over a short period.
However, if you have some money that you’re prepared to invest in cryptocurrency, you may be interested in learning about which are worth investing in. With more cryptos entering the market, the number of options is steadily growing. If you’d like to know about some of the best cryptocurrencies to buy in 2022, consider the following:
Bitcoin, arguably the most popular and well-established cryptocurrency, remains one of the most profitable cryptos to buy in 2022.
This digital asset was launched more than a decade ago, making it one of the earliest cryptocurrencies. This cryptocurrency remains valuable, with plenty of investors and interested parties dedicating their time to profit from its value growth. You may check out this site for events that may have contributed to Bitcoin’s recent bull run.
While Bitcoin remains a volatile asset, you’ll find plenty of reasons to consider investing in it in 2022. For one, it’s a well-established cryptocurrency with a market cap of more than 800 billion dollars. A crypto’s market cap is the combined total of all its circulating coins.
Overall, this implies that it has a very high value. It’s even predicted to rise much higher over the coming years, making it a desirable long-term investment despite its instability.
Ethereum is another excellent cryptocurrency to investin this 2022. However, it’s worth noting that Ethereum is a blockchain technology, while the crypto token under it that you may be interested in buying is Ether.
Its popularity as a blockchain and cryptocurrency may be attributed to its various applications and potential. For instance, one application of Ethereum that you may have heard of is smart contracts, which automatically execute once conditions are met.
Ethereum’s other popular application is non-fungible tokens (NFTs), which give you another compelling reason to invest in this cryptocurrency. When you buy Ether, you can also buy NFTs from Ethereum’s marketplace.
Finally, as a cryptocurrency on its own, Ethereum has proven valuable, with experts predicting a rise in value in the coming years.
Another cryptocurrency worth considering is Solana. This crypto is one of Ethereum’s most prominent competitors as it also helps support smart contracts. In addition, Solana competes with Ethereum in terms of network speed, which is essential in cryptocurrency. It’s also involved in decentralized applications and finance. Furthermore, as a blockchain, Solana utilizes a hybrid arrangement when processing transactions using proof-of-work and proof-of-stake (PoS).
Investors may find its proof-of-stake advantageous as this means cheaper transaction fees than cryptos that only run on proof-of-work. Moreover, the use of PoS also means faster transaction speeds, thus its rivalry with Ethereum.
Solana’s value is expected to grow as a cryptocurrency in the coming years, making it an attractive asset for long-term investment goals.
You may also want to check out Cardano as a cryptocurrency to invest in. Compared to the previous three items on this list, Cardano may not sound as familiar since its relatively new to the crypto scene. Nonetheless, it’s growing in popularity due to its long-term scalability and swift transactions.
Moreover, it’s known for its early implementation of a PoS validation system. Besides faster transaction speeds, PoSallows you to minimize the energy spent using the blockchain network. Much like Solana, this can imply more affordable and faster transactions for those hoping to invest in Cardano.
Because cryptocurrency can be a precarious investment, it would require plenty of research to ensure that you minimize the risks and invest in the best crypto on the market. With more cryptocurrencies to choose from, you may want one that will help you gain the most return on investment.