We deal things with physical money in a traditional way by carrying them around and exchanging them in the real world, but this is changing slowly into a digital system. Money and Digital information are getting fused into a single fast-growing and powerful entity, and that is by cryptocurrency. This is not about using but investing in it. It is a digital payment system that doesn’t depend on banks to verify transactions.
When you intend to invest in cryptocurrencies, you should invest in them based on their current ranking, and find the safe investing strategy to generate high returns without throwing money into random coins. So if you are looking for the best-suited cryptocurrency to invest in for the year 2022, then here are 5 cryptocurrencies you need to consider.
What is cryptocurrency?
Simply Cryptocurrency is a peer-to-peer system that allows anyone to send and receive payments anywhere. They exist purely as digital entries and the transactions are described in an online database. Cryptocurrency is stored in digital wallets, and when cryptocurrency funds are transferred, the transactions are recorded in a public ledger.
Many companies have created their own currencies that are traded for their products and services, which are also called tokens. The best cryptocurrency should be purchased by the customers with real money. They rely on a decentralized technology called blockchain, that manages and records the transactions.
Cryptocurrency is not linked to any government, and as it is not defined by any Nation it is more likely to be stable. So investors find it desirable to invest. The fees of cryptocurrency are comparatively low than the other forms of online payment. The more people hear about it, the faster its acceptance grows and becomes more realistic and viable. Moreover, it offers a higher degree of protection.
The best cryptocurrency to invest in 2022
This is a decentralized cryptocurrency that was created in 2009 by Satoshi Nakamoto. It was the first originated cryptocurrency that is most commonly traded. It is global, therefore it has the same value in every country and there is no exchange rate. If you invest $1000 dollars a year ago, you will have $2160 today, which is a 2.16 return. This is traded electronically peer to peer without a centralized 3rd party like a bank, and it is a long-term store of value.
It is risky for short-term investors, but it is one of the top cryptocurrencies to buy in 2022 for long-term profit because the price of Bitcoin was over the US $57,000 last November, which is a growth of about 11,400%.
It is a valuable currency that allows a wide range of complex financial and non-financial transactions such as lending and borrowing to be taken place. It was developed in 2015 and is the most popular cryptocurrency after Bitcoin. It is a decentralized opensource system of blockchain featuring its own cryptocurrency, Ether. Most of the Cryptocurrency tokens are actually issued over the network of Ethereum.
This is a worldwide creation of exchange, online brokerages, and trading platforms, and you make quick clicks change Ethereum for cash or valuables like gold at a very cheap cost. Moreover, it has a low danger of inflation because the blockchain system is limitless.
The price of Ethereum has witnessed tremendous growth from about 411 US dollars to over 4700 US dollars, which is about 42000 percent. Still has scaling that serves a ledger which is a platform for smart contracts that can lead to breakdowns, hacks, and flaws.
Cardano is fast, cheap, and more decentralized. Investing in Cardano is a wise choice to make. It is an environment that is open and inviting that works the same for all. when it comes to trading and entering there are no barriers. The energy usage and environmental impact are decreased by removing the problem-solving aspect and competition.
If you invest $1000 a year ago, you will have $8250 today. It uses Peer-reviewed research to build its protocol and it is one of the top cryptocurrencies that witnessed a growth of about 7,850 %.
They are low in fees, but this also indicates a low level of demand for space on the network that might change when more smart contracts start to flow through the network that demands more space than payments.
This is the fastest dealing in cryptocurrency and transactions cost less than 1 cent. Solano has caused a rapid growth of projects in its network in 2021. It is hybrid in nature and uses mechanisms of both proofs of stake and proof of history that helps in processing transactions more securely and quickly.
This was originally launched in 2020 but reached a high price last November when it was almost 213.42 to US dollars. If you invest $1000 a year ago, you will have $109240 today.
Although it has the third-largest future markets, it is not decentralized enough and has an unstable network.
It is a layer of one smart contract platform like Cardano and Ethereum that seeks to be the internet of Blockchain. This aims in combining them by creating a network of cryptocurrencies connecting various blockchains to work together. They have the ability to Para chain in their tokens, they have the advantage of scalability and interoperability. It is recognized as one of the most funded projects of blockchains in history with an estimation of 140 million US dollars raised during its making.
Between September 2020 and November, it grew from 2.93 US dollars to 38.61 US dollars which is a growth of about 1300%. If you invest 1000 dollars a year ago, you will have $5130 today.
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