Cryptocurrencies have taken the world by storm since their inception, providing a new way to make transactions while providing security and privacy. As a relatively new market, these digital currencies experience a wild variation in price due to their extreme volatility. Several investors are drawn to this quality as they believe these digital currencies to be the currencies for the future. With a plethora of altcoins available in the market right now, what are the best coins to invest in in 2022? This article will discuss this. Let\’s take a look at the top 5 altcoins to invest in.
Bitcoin (BTC)
With a market capitalization of at least $882 billion. Introduced in 2009 by the pseudonymous Satoshi Nakamoto, Bitcoin represents the first cryptocurrency and remains the largest cryptocurrency by market capitalization and adoption. As with most cryptocurrencies, Bitcoin is supported on a distributed ledger, called Blockchain. The addition of transactions on this public ledger must be verified by solving a complex mathematical calculation, referred to as proof of work. This keeps the network secure and decentralized. Bitcoin has become a household name and its price has skyrocketed dramatically. As of Jan 2022, a single Bitcoin is sold for over $41,000. That represents a growth of at least 9,000%.
Ethereum (ETH)
With a market capitalization of at least $447 billion, this cryptocurrency – which is both a blockchain platform and a cryptocurrency – has become a favourite among program developers since it has so many potential applications, including the smart contracts that can be automatically executed once the necessary conditions are met, as well as Non-Fungible Tokens (NFTs). There has also been an enormous growth in price from April 2016 to January 2022. During this period, it experienced over a 33,500% increase in price.
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Binance Coin (BNB)
Binance coin represents a form of cryptocurrency that can be used to trade and pay fees on Binance, which represents one the largest cryptocurrency exchanges in the world. Its market capitalization is in excess of $86 billion. Since it was introduced in 2017, Binance coin has grown dramatically, well beyond facilitating trades on this exchange platform. In recent times, this coin can be used for processing payments or making trades. It is also possible to trade it for other cryptocurrencies, including Bitcoin or Ethereum. From 2017 to Jan 2022, its price has risen from $0.10 to about $520. After all, investing in a cryptocurrency that has seen a gain of about 520,000% is not a bad idea.
Tether (USDT)
This is a stable coin, unlike many other cryptocurrencies. This implies that it is backed by fiat currencies, including Euros and U.S. dollars. Hypothetically, this keeps it at a value that is equal to one of these denominations. For this reason, it is possible – in theory – for tether\’s value to be more consistent than other cryptocurrencies. This is more preferred by investors who are wary of the extreme volatility of other coins. A cryptocurrency with a market capitalization of over $78 billion has become a popular choice among investors.
Solana (SOL)
This coin was developed to power decentralized finance (DeFi) uses, smart contracts, and decentralized apps (DApps). This cryptocurrency is supported by unique hybrid Proof-of-stake and proof-of-history mechanisms, which can ensure that it can support fast and secure transactions. The platform is powered by the SOL, which represents Solana\’s native tokens. Launched in 2020, its market capitalization is now at $52 billion. Its price has also risen from $0.77 to about $171.
Conclusion
The high volatility of cryptocurrency ensures that crypto traders are exposed to investments that experience extreme rise and fall in value within a short period. For this reason, getting acquainted with the best altcoins to trade in 2022 cannot be ignored.
