Cryptocurrency is a digital currency that is not controlled by a central system like government. Instead, it is based on blockchain technology, and the most popular bitcoin. As digital currency continues to gain momentum on Wall Street, more options are available. Currently there are about 8,900 cryptocurrencies on the market.
While you can use cryptocurrency to make purchases, most people consider it a long-term investment. However, volatility makes investing in cryptocurrency risky, so it is important to know where you are going before you buy. These are the top eight coins worth investing in by 2022.
Top 8 Cryptocurrency Investments 2022 Cryptocurrency Price Market Cap Bitcoin $ 734.81 billion Ethereum $ 2,569.95 $ 308.217 billion Binance Coin $ 382.91 $ 63.22 billion Cardano $ 0.7973 $ 26.85 billion Polygon $ 1.45 $ 11.04 billion Solana $ 83.14 $ 26.4 $ Chainlink billion $ 6.157 billion Accurate data as of March 8, 2022. 1. Bitcoin (BTC)
Bitcoin has been around longer than any other cryptocurrency. It is easier to see why it is the leader, in terms of price and market capitalization than any other crypto investment options.
Many businesses are already accepting bitcoin as payment, making this cryptocurrency a smart investment. Visa, for example, trades in bitcoin. In addition, Tesla announced in February 2021 that it had invested $ 1.5 billion in it, and in the meantime, the company had accepted it as payment for its vehicles – and it could also if the mines became natural. In addition, major banks are beginning to incorporate bitcoin transactions into their offerings.
Risks of Investing in Bitcoin
The value of bitcoin is often very variable. You can see the price go up or down by thousands of dollars every month. If uncontrollable fluctuations like this make you nervous, you may want to avoid bitcoin. If not, as long as you keep in mind that cryptocurrency can be a smart long-term investment, this fluctuation should not affect you much.
Another reason to reconsider investing in bitcoin is its price. With one bitcoin costing about $ 40,000, most people cannot afford the full bitcoins. For investors who want to avoid buying a fraction of bitcoin, this is bad.
2. Ethereum (ETH)
Ethereum is different from bitcoin in that it is not just a cryptocurrency. It is also a network that allows developers to create their own cryptocurrency using a network. While ethereum is far behind bitcoin in price, it is also far ahead of other competitors.
Although it came out many years after other cryptocurrencies, it has long surpassed its market place due to its unique technology, and is currently the second largest currency behind bitcoin.
The Risks of Investing in Ethereum
Although the Ethereum platform uses blockchain technology, it has only one channel for conducting transactions. This can lead to the process taking longer to process if the network is overcrowded. Transaction fees are also high, reaching a peak of $ 71.72 in May 2021, according to CoinMarketCap.
In 2016, a robbery that took advantage of security breaches led to the loss of more than $ 50 million ether.
3. Binance Coin (BNB)
After years of modest prices, at least by cryptocurrency standards, the coin exchange rate rose from early 2021, rising from about $ 38 in Jan. 1 of that year reached its highest of $ 683 in May. As of March 8, the reversal has returned to $ 382.91.
Due to its performance, binance coin has proven to be one of the most stable investment options. Binance is the largest cryptocurrency organization in the world, according to CoinMarketCap, but despite its extensive functionality and coin success in small Binance projects, the binance currency is still a highly volatile investment.
Risks of Investing in Binance Coin
What makes a binary coin different from its competitors is that it was created by a company instead of a team of technology developers. While the binance coin’s commitment to maintaining a strong blockchain has won many skeptics, some investors remain concerned about the cryptocurrency and its potential security issues.
4. Cardano (ADA)
The Cardano network has a small footprint, which attracts investors for a number of reasons. It takes less power to complete a transaction in Cardano than with a larger network like Bitcoin. This means that transactions are faster and cheaper. Last year, Cardano introduced a “strong fork,” an enhancement that enhances performance – in this case, allowing for smart contract deployment.
Cardano also says it is flexible and very secure. It constantly enhances its development to stay ahead of hackers.
The Risks of Investing in Cardano
Even with a good network, cardano may not be able to compete with large cryptocurrencies. A few recipients say a few engineers. This does not appeal to many investors who want to see a higher acquisition rate. The stage has big plans, but there are doubts about whether it can survive in that capacity.
Do not be discouraged by market fluctuations. The money you invest may lose money one day and make a profit the next. Instead of participating in daily activities, look at the big picture.
5. Polygon (MATIC)
Polygon was created by a development team that makes significant contributions to the Ethereum blockchain platform. Polygon is built for Ethereum rating and infrastructure development, according to CoinMarketCap. As a “second layer” solution, we expanded Ethereum into a multi-chain system, improving transactions and authentication speed.
Polygon is backed by Binance and Coinbase cryptocurrency exchanges. Its token, MATIC, is used for payment services, transaction fees and the type of payment method.
Risks of Investing in Polygon
Late last year, Polygon disclosed that it had issued a risk that put about R20 million of its coins at risk, CoinDesk reported. The hacker found that exploitation and no