Latest news about Bitcoin and all cryptocurrencies. Your daily crypto news habit.
Cryptocurrencies have stormed the market and investors are finding it hard to ignore. From crypto betting, making online payments, and having established firms add crypto to their investment offerings, it's evident that cryptocurrencies have gone mainstream. Among the reasons for this is the easy transactions, increased security and the potential for outsized returns on crypto investments. At the moment there are thousands of cryptocurrencies available. With the ever plunging and surging prices, it can be hard to decide on a worthy investment. Here is a list of top five cryptocurrencies to invest in in 2022.
As a pioneer in cryptocurrencies, Bitcoin still remains one of the most preferred and traded digital currencies. Ever since its creation in 2009, Bitcoin prices have skyrocketed and at the same time made steep declines. The current market price stands at $31,000 as of May and is expected to hit $100,000 once the Bitcoin is accepted as a gold alternative.
In addition to this, Bitcoin remains a base currency needed to purchase other cryptocurrencies making it the ideal investment. As it stands, liquidity is one of the main advantages of investing in Bitcoin. Investors can easily trade Bitcoin for cash or assets with very low fees.
Over the years, Bitcoin has become a highly accepted digital currency. Not only are firm offering it in their investment portfolios, but countries are adopting it as a legal tender. In 2021 lawmakers in El Salvador voted to have Bitcoin as a legal tender. More countries are on the path to follow suit.
As the second largest digital currency in terms of market capitalization, Ethereum is second on the list. Unlike Bitcoin, Ethereum serves two purposes which are to act as a cryptocurrency and as a software program that can be used to create new applications by developers. This reduces third-party involvement as people can complete direct transactions over the network.
Ethereum is built on the principles of decentralized finance, and so are the applications. These applications serve as cryptocurrencies exchanges and lending platforms. For creators to build these applications, they have to pay the Ethereum network. This is one of the reasons why there is slowed growth. However, an upgrade will seek to address this. The current price of Ethereum is $2,100 which has grown from $11 in 2015.
The crypto market is highly volatile, but Tether is one of the more stable coins. Tether is pegged on the USD, hence always at a constant value of 1USD for 1 Tether token. Due to reduced risks and speedy transactions, Tether is a go-to option for transactions that face difficulty when exchanging to USD. In addition, being pegged to the USD comes with reduced fees, unlike other cryptocurrencies.
Tether can also be a fruitful investment when there is a prediction in market fluctuations of the Euro or USD. At the moment, Tether ranks third in market capitalization.
U.S Dollar Coin (USDC)
Ranked fourth in terms of market capitalization, USDC is another stable coin pegged on the US Dollar and powered by Ethereum. For USDC the value is always equal to $1. This allows investors to have exposure to the crypto space without having to worry about massive fluctuations synonymous with the crypto market. Investors can therefore store their US Dollars in Tether tokens for more increased security using a private wallet.
USDC is backed by credible companies thus increasing transparency of it being pegged by fiat currencies. The digital currency is expected to grow dramatically after partnerships with Visa and Mastercard.
Launched in 2020, Solana has had tremendous growth to be the seventh largest cryptocurrency. Like Ethereum, Solana also uses small contracts that allows running decentralized applications. Compared to other currencies, Solana has an edge with fast transactions and low fees, a total of 50,000 transactions per second can be processed on the platform. Unlike Ethereum which charges developers to use the platform, Solana is more friendly. This has resulted in more projects in its ecosystem.
In addition, there has been a lot of activity going on in on-chain data and derivatives markets. This has also attracted a strong institutional attraction to the Solana's ecosystem.
Investing in cryptocurrencies comes with a high risk, but so are the returns when the market prices are at peak. This could serve as a great investment plan for retirement. Crypto trading is flexible since it's available twenty-four hours, seven days a week. Also, transactions take place between individuals and can be done globally.
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.