Digital money continues to gain traction, and as a result, more options become available by the day. Currently, there are more than 19,000 cryptocurrencies on the market. While most buyers treat it like a long-term asset, investing in crypto can be risky due to the high volatility. Therefore, it’s paramount to know all the facts before buying in.
One of the most important things to consider is the exchange you’ll use, the coins they offer, their pricing and withdrawal options. The Bittrex list of coins, for example, has more than 440 cryptocurrencies and relatively low fees compared to other exchanges.
Here are the top five cryptocurrencies you should invest in in 2022, as well as everything you need to know about them.
Bitcoin is still a staple in the crypto world. It has been around the longest and still stands as a leader. Numerous businesses are already accepting BTC as payment, and larger banks are also incorporating it into their offerings, so investing in this coin can be a smart move.
Bitcoin is the best choice for beginners as it’s much less volatile. Another factor that makes Bitcoin the best crypto to invest in is that it can be fractionated. This means that you can buy a fraction of one bitcoin unit.
For instance, if Bitcoin is priced at $35,000 and you decide to invest $35, you would be buying 0.1% of one coin. This is an excellent option for those looking to get Bitcoin without depositing large sums.
Ethereum is a decentralized platform for building and executing smart contracts and decentralized applications (dApps) free from third-party interference, fraud, or control. While ETH is behind BTC in value, it’s also ahead of the other competitors. In 2015, Ethereum and Ether, its native cryptocurrency, both made their debuts.
The blockchain’s switch from proof-of-work to proof-of-stake, a consensus system for validating transactions that should significantly reduce transaction costs for Ethereum users, is the main driver for ETH. This occasion, formerly known as Ethereum 2.0 and now known as “The Merge,” is likely to increase interest in the most widely used blockchain in the world.
Filecoin is another crypto worth investing in in 2022. It leverages blockchain technology to provide a cost-effective way of providing storage. Users may rent out unused storage space on the decentralized storage network.
Individuals who want to store data use the network’s native token, FIL, to compensate others who provide storage space. Realistically, the need for storage space will only grow, and customers will inevitably favor the least expensive option. Filecoin could become the go-to platform for cloud storage if Web 3.0 includes a shift to more mainstream reliance on the blockchain.
Cardano is remarkable for its early adoption of proof-of-stake validation despite entering the crypto industry later. This is the second of the two main consensus techniques cryptocurrencies employ to verify new transactions, add them to the blockchain, and produce new tokens. By eliminating the competitive, problem-solving element of transaction verification, this solution speeds up transaction times while lowering energy consumption and environmental effect.
The Cardano blockchain is used for building smart power contracts and creating decentralized apps, much like Ethereum. Cardano’s native coin, ADA, can be used to send and receive funds or store value. ADA soared up in January 2021 and still shows a steady progression. Experts predict we’ll see ADA grow further over the next few years.
Solana’s public, open-source blockchain enables NFTs, smart contracts, and a wide range of so-called decentralized apps, or “dApps.” Digital applications (dApps) can be created for various uses, including gaming, finance, and social media, outside the jurisdiction and control of a single government.
Solana’s unique proof-of-stake and proof-of-history hybrid operating system enable it to handle transactions rapidly and securely. SOL, its native coin, powers the platform and is primarily used for staking. The coin has great potential and a relatively stable history among the best cryptocurrencies by market cap.
In the upcoming years, interest in cryptocurrency is anticipated to increase quickly. Hopefully, we’ve helped you make your next investment, whether you’re an experienced investor or want to purchase your first cryptocurrency. The best cryptocurrencies listed here have strong upside potential due to the significant decrease in value.