The cryptocurrency market is growing at a fast rate that financial experts were unable to fantom. It is estimated to be worth $2.6 trillion with over 13,000 crypto assets and 300 exchanges.
This market is fast becoming the top choice for investors who are looking for where to diversify their portfolios and make more money.
However, looking for the right cryptocurrency to invest in can be challenging because of the available large number of coins.
This article aims to help you to solve that problem as we are going to pick the best cryptocurrencies out of the multitude. So just keep reading and find out the cryptocurrency that will explode in 2022.
BITCOIN (BTC)
This should be a no-brainer as it is the pioneer of the cryptocurrency market which is why it starts the list. Bitcoin is currently accepted in most trading and payment platforms such as crypto exchanges all over the world. It is the world’s most valuable cryptocurrency.
Bitcoin is used as a form of reserve currency of the cryptocurrency market just as the US dollar is used as the reserve of the global stock market. Many crypto exchanges do not pair altcoins to the value of fiat currency due to regulatory issues but instead are paired to bitcoins.
BTC makes use of a proof-of-work mechanism maintained by millions of miners all over the world who participate in the decentralized network. The high number of miners makes the network the most secure in the world.
Most other cryptocurrencies are also known as altcoins are more or fewer alterations of bitcoin. While these cryptos aim to be an improvement in bitcoin, they follow its lead.
BINANCE COIN (BNB)
Like bitcoin, the Binance coin has gained lots of attention in a short time. It keeps a hard limit on the number of tokens in circulation which is one of the reasons its prices have increased astronomically over the years.
Also, Binance smart chain BSC burn a good portion of their coin to inflate their price. They recently activated BEP-95, which integrates a real-time burning mechanism into its structure. This makes the burning process much faster.
CARDANO (ADA)
Cardano has been gaining massive popularity in the eyes of investors all over the world. Some reason for this is its reduced energy consumption, fast transactions, flexible network, cheap gas fee, A higher degree of centralization, and also eco-friendly.
Another advantage of this coin is its price action which has seen relatively stable growth over time when compared to other major coins.
ETHEREUM (ETH)
Ethereum is the second-largest digital currency by market capitalization next to bitcoin. It became popular because of the smart contract platform it uses to power different decentralized apps.
Ethereum’s astronomical price increase over the years is a good reason to invest in this coin in 2022.
UNISWAP (UNI)
Uniswap is a decentralized finance protocol used to exchange cryptocurrencies. This protocol allows automated transactions between tokens on the Ethereum blockchain through smart contracts.
Uniswap is said to be the largest decentralized exchange in the and the fourth-largest cryptocurrency exchange. The main reasons uniswap will explode in 2022 are utilization and the ease of delivering liquidity.
STELLAR (XLM)
Stellar a is an open network that can be used to move and store money efficiently. Its transaction fees are also extremely low which is about 0.00001 XLM per transaction. Stellar network can process anywhere from one to five thousand transactions each second.
Stellar network is a secured digital token protected from money laundering. For this reason, institutional investors see this token as an ideal cryptocurrency to invest in.
DECENTRALAND (MANA)
Decentraland is a virtual reality platform powered by Ethereum that allows users to buy land where they can build content and application and monetize them. This platform was launched in 2020 but has already seen massive adoption where it has already been used to build virtual reality 3D games.
Mana is one of the tokens used by the Decentraland platform. It can be used to pay for avatars, names, and other things in the decentraland marketplace. This token has a solid future as it is backed by an innovative project with huge potential.
ALGORAND (ALGO)
Algorand is a blockchain-based cryptocurrency with a high-security standard. It is scalable and decentralized. Like Ethereum, it supports the smart contract and uses what is called “pure proof-of-stake”.
What makes Algorand stand out is the team’s focus on eco-friendliness as the world is becoming more ecologically conscious. Cryptocurrency like algo that has been built to be eco-friendly and sustainable has an advantage over other coins like Ethereum that is forced to change to meet the new standard.
SOLANA (SOL)
Solana is a fast, efficient, and secure blockchain. It uses the permissionless nature of blockchain to provide an efficient decentralized finance solution. It used the proof-of-history consensus mechanism which allows the Solana network to be fast and effective.
It can carry out transactions of up to 50 thousand per second and can scale up to a million. Solana transaction fees are extremely low so which makes it an attractive investment for investors.
VeChain (VET)
Vechain is one of the two tokens of VeChain which is a blockchain that aims to solve major problems in the supply chain industry with the help of distributed governance ecosystem and the Internet of Things (IoT) technology.
The supply chain industry has suffered a major setback this year due to Covid-19. VeChain aims to use blockchain technology to revitalize this industry. Vechain has the experience and established reputation to get ahead of the competition.
Conclusion
Although other altcoins will probably blow up in 2022, the coins on this list are your safest bet, especially for new investors. Most of these coins have their ecosystem which increases their chances of being more valuable in the future.
It is important to note that crypto investments are relatively high risk which is why you must do your research before you choose which coin you want to add to your portfolio.
