If you’re a crypto investor this has probably been one of the wildest years cryptocurrency has ever seen. The market is still very much in it’s infancy and is still volatile but that also means there is also great opportunity to make money from it. This year has proven that cryptocurrencies like Bitcoin, Ethereum, Ripple and Litecoin aren’t going anywhere anytime soon.
If you’re interested in investing in crypto for the first time then sending a small amount of money to test out the waters is a wise move. In 2022, at this rate, I believe we will see several new digital currencies on the scene and will have already entered mainstream adoption.
Cryptocurrency can be a bit difficult to wrap your head around. Despite being digital, it feels like it is an abstract concept that is only understood by computer geeks (like myself). It’s only the second decade of the 21st century and this idea (cryptocurrency) is already changing the world for the better. This article will show you a brief history behind cryptocurrency, but I won’t bore you with every detail. It’s 2018, and the world is now more prepared to accept cryptocurrency into society.
Reasons you should invest in cryptocurrencies
- One the most important reason for investing in Cryptocurrencies is that it is high in demand.
- Their price is volatile, but again has always been showing a rising graph.
- The blockchain technology is improving things around us.
- They offer anonymity and privacy, some currencies more than others.
- Cryptocurrencies take away control from banks and governments and returns it to the people.
- Cryptocurrencies are digital and cannot be easily forged or duplicated.
- Cryptocurrency comes with low fees unlike traditional banks that charge you even for sending money within your own country not to mention other countries.
- Most of the cryptocurrencies are decentralized so there isn’t any central authority to manipulate its value.
Takeaway: The advantages of investing in cryptocurrencies far outweighs the disadvantages
Best crypto to buy in 2022
In this article, I am going to share my insights on the current trend of cryptocurrencies and why it’s important that you invest in it.
Bitcoin
In order to understand the importance of investing in cryptocurrencies, we need to understand what cryptocurrency is. Cryptocurrency is a digital currency that is used as a medium of exchange. It uses cryptography to secure and verify transactions as well as to control the creation of new units of a particular cryptocurrency.
Nowadays, there are more than 1550 cryptocurrencies that are being traded publicly, with a total market capitalization of over $453 billion. Out of these 1550 cryptocurrencies, bitcoin is the most popular. Bitcoin was founded by Satoshi Nakamoto in 2009 and has since then become the leader in the crypto community.
Bitcoin is a decentralized form of digital currency which means that it does not have a central point at which it can be controlled by any single authority or government. Its value fluctuates with time. For example, one bitcoin was worth $7000 in December 2016 and today one bitcoin is worth $13000! This clearly tells us that the price of bitcoin has seen an upward trend over the past few years and thus people started putting their money into it thinking about its future prospects.
There are many reasons why you should
Ethereum
Ethereum is the second most traded cryptocurrency and has gained a lot of popularity since its launch in 2015. It was introduced in 2013, and since then it has become one of the most popular cryptocurrencies. It is a decentralized platform that allows building smart contracts and Distributed Applications (ĐApps) to be built and run without any downtime, fraud, control or interference from third parties.
As of July 2018, Ethereum’s market capitalization is around $44 billion and it has a price of $455.54 per unit. It has grown at an exponential rate over the years. Many people are now looking for ways to invest in Ethereum cryptocurrency.
With so many cryptocurrencies on the market today and with more coming up every day, it can be difficult to decide which one is worth investing in. However, before you can make any investment decision, you need to have a good understanding of what cryptocurrency really is and how it works.
Tether
Tether (USDT) is a cryptocurrency with a value meant to mirror the value of the U.S. dollar. The idea was to create a stable cryptocurrency that can be used like digital dollars.
Coins that serve this purpose of being a stable dollar substitute are called “stable coins.” According to their site, Tether converts cash into digital currency, to anchor or “tether” the value of the coin to the price of national currencies like the US dollar, the Euro, and the Yen. 1 USD₮ is equivalent to 1 USD.
The biggest advantage of Tether is that it’s easy to use. It’s built on top of Bitcoin and Litecoin blockchains, so it uses their infrastructure for its transactions. It’s also available for trading on many major exchanges and has a daily trading volume of over $1 billion USD (or $1 billion USD₮).
U.S. Dollar Coin
Over the last few years, multiple governments and financial institutions have invested in blockchain technology. This includes JPMorgan Chase, Bank of America, and Wells Fargo, all of which are investing in digital currencies.
However, one of the most important investments that you’ll make is in a digital currency known as a U.S. Dollar Coin (USDC).
What is a digital currency?
A digital currency is a type of virtual money, which means it doesn’t exist physically like paper money or coins do. Instead, it’s created and stored electronically in the cloud. You can use it to buy goods and services, but not physical items like gold or silver. It’s also decentralized, which means there are no central banks controlling its creation or distribution.
The US government has been trying to create a single global currency for decades now, but has failed to do so due to political disagreements over monetary policy among world leaders.
Nowadays, there are several different types of digital currency available for investment purposes including Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Litecoin (LTC) Dash (DASH) and Monero (XMR).
These are all cryptocurrencies that have their own unique features and benefits compared with traditional fiat currencies like dollars or euros.
Binance Coin
Binance Coin is getting off to a good start in 2021 – after a massive rally that saw the coin’s value swell by more than 100% over the past few weeks, it has found itself in the 10th spot in the market cap rankings.
Now, let’s take a look at why BNB has been performing so well and whether or not it can continue its stellar growth.
Why should you invest in Binance Coin?
Let’s begin with why Binance Coin is one of the most promising altcoins to invest in right now.
For starters, there are only around 181 million BNB tokens in existence, which makes it a relatively scarce asset. This means that with increased demand for the coin, its price will go up as well.
BNB also offers financial benefits to users who hold onto their coins – for instance, the crypto exchange Binance offers discounts on trading fees for users who use the coin to pay for them. This is certainly going to fuel demand for the cryptocurrency and help it grow over time.
On top of that, Binance Coin also has solid fundamentals and a clear roadmap for growth. The token is also used by many other companies apart from Binance – this includes crypto exchanges like KuCoin.
Terra
The Terra cryptocurrency is based on the Stellar network and is designed to be a stablecoin. The goal is to create a digital currency that can work as a medium of exchange. Stablecoins are cryptocurrencies designed to minimize the price volatility.
Terra is a stable cryptocurrency pegged to different currencies. The idea behind Terra is to create an alternative payment solution that removes friction from ecommerce transactions by substantially reducing fees and making payments easier, faster and more secure. With Terra, you can transfer money anywhere in the world, with minimal fees and in a manner that’s extremely secure and user-friendly.
Terra aims to disrupt the global financial system by allowing for transactions at lower fees. It seeks to become the reserve currency for all transactions that occur on decentralized finance (DeFi) platforms.
It is no news that investing in cryptocurrencies has proven to be a very viable channel for making money.
Cardano
Cardano is a decentralized public blockchain and cryptocurrency project and is fully open source. This crpto is developing a smart contract platform which seeks to deliver more advanced features than any protocol previously developed. It is the first blockchain platform to evolve out of a scientific philosophy and a research-first driven approach. The development team consists of a large global collective of expert engineers and researchers.
It was founded by former Ethereum co-founder Charles Hoskinson; IOHK, an engineering company dedicated to using peer-to-peer innovations to provide financial services to the three billion people who don’t have them; and Emurgo, a venture capital firm supporting companies building on Cardano’s blockchain technology
They recently celebrated its third anniversary on September 29, 2020. In three years, the team has built one of the most advanced blockchains in existence today – with more upgrades coming in the near future.
Solana
Solana is an open source, fast, secure and censorship-resistant blockchain-based platform for decentralized applications (dApps). The Solana blockchain was launched in March 2020 and has its native SOL cryptocurrency. Solana operates using a Proof of Stake (PoS) mechanism.
History of Solana
Solana was founded by Anatoly Yakovenko, the current CEO of the company. He is a technology genius who previously worked at Qualcomm as a software engineer and architect. He also worked at Dropbox as an engineering manager prior to founding Solana.
Why you should invest in Solana
Solana’s PoS consensus mechanism allows it to process more than 50,000 transactions per second with minimal fees. This is what sets it apart from other cryptocurrencies such as Ethereum and Bitcoin, which can only handle 10 transactions per second and 3 to 7 transactions per second respectively.
Conclusion
The importance of cryptocurrency cannot be stressed enough these days. In fact, many are predicting the end of fiat money within a few years, especially given the increasing complexities involved in printing it. We’re not investment advisors by any means, but we suggest checking out what some of the sites listed above have to say for themselves before you make your decision about whether or not to buy into the cryptocurency hype.
