5 Best Cryptocurrencies To Invest In for 2022: Cryptocurrency is digital money that is not managed by the central system, such as the government. Conversely, this is based on blockchain technology, with Bitcoin being the most popular. When digital money continues to get charmed on Wall Street, more choices are available. There are currently more than 20,000 cryptocurrencies in the market.
Although you can use cryptocurrency to make purchases, most people treat it as a long -term investment. However, volatility makes investments in risk cryptocurrency, as shown by new free fall between cryptocurrency, including stablecoin is pegged into US dollars. It is important to know what you face before you buy.
Top 8 Cryptocurrency Investments in 2022
|Binance coin||$216.57||$35.37 billion|
|Terra 2.0||$2.05||$262.17 million|
1. Bitcoin (BTC)
Many businesses already accept bitcoin as payment, which makes this cryptocurrency a smart investment. Visa, for example, transacts with bitcoin. And after a four-year cryptocurrency hiatus, Stripe will also let customers accept bitcoin payments. The larger banks have begun to incorporate bitcoin transactions into their offerings as well.
While Tesla accepted bitcoin only briefly, it might again if mining it becomes more environmentally friendly. In a step toward that end, Blockstream and Block, formerly known as Square, are launching a bitcoin mine in Texas that will be fully powered by Tesla’s solar array and Megapack battery, CNBC reported on April 8.
Bitcoin also got a boost in May, when the Luna Foundation Guard announced it would make $1.5 billion in loans denominated by bitcoin and terra USD to stabilize the latter, Fortune reported. The investment firm VanEck seeks to establish a bitcoin exchange-traded fund, although the Securities and Exchange Commission denied the company’s first application.
Risks of Investing In Bitcoin
If wild fluctuations like this make you nervous, you might want to avoid bitcoin. If not, as long as you remember that cryptocurrency can be an intelligent long-term investment, this fluctuation should not be too concerned.
Another reason to reconsider investing in Bitcoin is the price. With one bitcoin for more than $ 19,000, most people cannot afford to buy all Bitcoin. For investors who want to avoid buying a small part of Bitcoin, this is negative.
2. Ethereum (ETH)
Ethereum is a network that allows developers to create their own cryptocurrency and use smart contracts using the network. While Ethereum is far behind its value, it is also far in front of other competitors.
Although out of years after several other cryptocurrency, he far exceeds his place in the market because of his unique technology. Currently the most popular blockchain and the second largest cryptocurrency behind Bitcoin.
It stands to get more soil after the increase dubbed “The Joint” is fully used. The increase, scheduled for August, will change Ethereum to the evidence -based consensus that will reduce the number of coins and make obsolete mining. This combination is also expected to drastically reduce the consumption of Ethereum energy.
Although Ether has no widespread revenue, Bitcoin, traditional companies come. Fidelity, for example, increases its technology workers to create the infrastructure needed to offer ethereum detention and trading services to its customers, Wall Street Journal reports.
Risks of Investing In Ethereum
While the Ethereum platform uses blockchain technology, currently only has one “path” to conduct transactions. This can cause transactions to take longer to be processed when the network is overloaded. Transaction fees are also high. Price of “Gas” Blockchain – The amount of ether needed to make transactions on Ethereum blockchain – up 13% in March due to high demand for block space, Coindesk reported. Although the merger will solve the problems, some have been tired of waiting. Cryptocurrency Dydx derivative exchange, for example, moved to your own blockchain.
Security is also a problem. In 2016, for example, hacking that utilized security defects caused the loss of ether more than $ 50 million. And in May, the network experienced security problems after the launch of a new blockchain that was running with Mainnet Ethereum. However, the blockchain is on the test network, so users are not affected. The increase in the final combined is expected to make the blockchain safer.
3. Binance Coin (BNB)
After years of relatively level price, at least with cryptocurrency standards, Binance Coin took off in early 2021, soaring from around $ 38 on January 1 that year to the highest of $ 683 in May.
Because of its performance from time to time, Binance Coin has proven to be one of the more stable investment options – relatively speaking. This is the original token in Binance, which is the biggest exchange of cryptocurrency in the world, according to Coinmarketcap – and at Binance.us, the version that must be used by the U.S. But regardless of its broad functionality and the success of coins in the Binance Sub-Project, Binance Coin is still a very fluctuating investment.
Investors who often trade must note that binance briefly stops deposits and withdrawals for some new networks, including polygon and Solana, while implementing an increase. Most recently, on April 8, did not affect Airdrops – prizes based on the percentage of the number stored by users.
Risks of Investing In Binance Coin
Although the position of binance coin as an original cryptocurrency in the biggest exchange in the world “legitimating” is in some ways, it also makes the currency very vulnerable to regulatory issues. BNB lost 7.3% of its value last month when the news broke the Securities and Exchange Commission investigation about whether Binance followed the right procedures in the supply of coins in early 2017, Fortune reported.
4. Cardano (ADA)
Cardano network has a smaller trail, which is interesting for investors for several reasons. It takes less energy to complete transactions on cardano than in larger networks such as bitcoin. This means that transactions are faster and cheaper.
Last year, Cardano launched “Hard Fork,” an increase that improves functionality – in this case, allows the spread of smart contracts. And recently, launched a platform test version called Adaswap where developers can build decentralized financial applications. Adaswap can improve cardano status as a web3 network and increase the price of coins.
Risks of Investing In Cardano
Even with a better network and improvement of smart contract functions, Cardano may not be able to compete with larger cryptocurrency. Less adoption means fewer developers. This is not interesting for most investors who want to see a high level of adoption.
This platform has a big plan, such as launching an incubator that will help Africa achieve its potential as the main economy, but it must still be seen whether it can meet that potential.
5. Polygon (MATIC)
Polygon was created by the development team which made a significant contribution to the Ethereum blockchain platform. Polygon is designed for ethereum scalp and infrastructure development, according to Coinmarketcap. As a solution “Layer Two”, it expands Ethereum into a multi-chain system, increasing transaction speed and verification.
Polygon has the support of the exchange of cryptocurrency binance and coin base. The token, Matic, is used for payment services, transaction fees, and as a completion currency.
New developments that can benefit automatic prices include the launch by ZO World, a decentralized travel project, from its uninterrupted tokens and other digital assets in Polygon, Amb Crypto reported on April 9. Individuals who buy these assets also get ownership of housing zo metaverse. Perhaps more important, the Government of the state of India uses polygons to issue caste certificates to help provide government benefits to more than 1 million low-income citizens, according to Cointelegraph.
Polygon is currently 19,000 decentralized applications – around 600% increase in October, according to a post on the Polygon blog. In addition, polygon fully supports tether stablecoin, which can contribute to future network growth. Another advantage is the investment in carbon neutrality, which has recently encouraged demonstrations.
Risks of Investing In Polygon
Late last year, Polygon disclosed that it had patched a vulnerability that put about $20 million worth of its coins at risk, CoinDesk reported. A hacker discovered the exploit and notified Polygon, which had a fix in place within two days. However, black-hat hackers had already stolen over 800,000 tokens, leaving Polygon on the hook for about $1.4 million.