Best Cryptocurrencies for Investment
There are thousands of different cryptocurrencies on the cryptocurrency market, from Bitcoin and Ethereum to Dogecoin and Tether. If you are new to the cryptocurrency market and want to invest and earn more, this difference may overwhelm you at first. One of the most important indicators for you to make a decision is to look at the total value of all cryptocurrencies currently in circulation. Who knows, maybe ‘the invisible hand of the market’ will shake hands with you and your coin basket, which you have created according to the market values of these coins, will be successful and bingo! You are rich! Unless of course speculators!
In this article, the coins with the highest market value in the crypto money market will be listed. Of course, this article does not provide you with investment advice.
Some investors say you shouldn’t invest in the stock market if you can’t handle a 20% or more drop. There is no tangible evidence yet as to how much risk you have to take to successfully engage in cryptocurrency. Still, they say, higher risk brings opportunity for greater reward.
1. Bitcoin
Created by Satoshi Nakamoto in 2009, Bitcoin (BTC) is the original cryptocurrency preferred by individuals and businesses alike. Because BTC is a blockchain and must be verified by solving a cryptographic puzzle, a process called proof of work, Bitcoin is secure and safe from scammers. While one BTC could be bought for around $500 in May 2016, it is over $27,000 as of May 12, 2022. One of the reasons for the high price in BTC is because it has a limited supply of coins. On the other hand, sharp decreases in BTC make investors nervous. BTC, which started at $ 43,000 at the beginning of March and reached $ 47,000, shows a continuous downward trend as of May, as I mentioned above.
2. Ethereum
Ethereum, which has an unlimited supply of tokens according to the inflationary token economy model, is one of the favourites of program developers in the cryptocurrency market as both a cryptocurrency and a blockchain platform.
Ethereum is also one of the most profitable cryptocurrencies. From April 2016 to mid-May 2022, its price increased by about 18,000% from about $11 to $2,000. In addition to making a lot of money, Ethereum has steered the cryptocurrency market with its innovative ideas. For example, he pioneered the idea of decentralized finance, or DeFi, a disruptive new financial system that cuts through traditional middlemen and intermediaries such as banks, brokers, and centralized exchanges.
On the other hand, ETH is currently one of the best cryptocurrencies to buy due to the upcoming event known as “Merge”. Merge, once known as Ethereum 2.0, is expected to launch in the second half of 2022. However, it looks like the incorporation of Beacon Chain into the existing Mainnet Chain will help speed up the Ethereum ecosystem again and revive Ether. One of the things that makes Ethereum the best among cryptocurrencies to buy right now is its robust Dapps ecosystem. It has dominated the market since its launch as the first Dapps blockchain in 2015.
Considering that the popular cryptocurrency is currently trading for under $3000 per coin, it could be a good option for investment considering that Ethereum could double in 2022.
3. Tether
Tether (USDT) was one of the first and most popular of a group of stablecoins called cryptocurrencies that aim to fix the market value to a currency or other external reference point to reduce volatility. Most digital currencies, even large ones like Bitcoin, experience frequent periods of dramatic volatility. Tether and other stablecoins try to smooth out price fluctuations to attract users who might otherwise be cautious. USDT was later updated to run on Ethereum, EOS, Tron, Algorand and OMG blockchains.
The stated purpose of USDT is to combine the unlimited nature of cryptocurrencies that can be sent between users without a trusted third-party intermediary with the stable value of the US dollar. Stablecoins have been used more and more as a hedge against inflation lately. As of May 13, 2022, Tether is the third-largest cryptocurrency by market cap, with a market cap of $82.3 billion and (you guessed it!) nearly $1 per token.
4. ApeCoin
ApeCoin is an ERC-20 governance and utility token used in the APE Ecosystem based on web3. ApeCoin holders manage themselves through the decentralized governance framework that controls the ApeCoin DAO.
ApeCoin allows token holders to participate in the ApeCoin DAO. It also gives its participants a common and open currency that can be used without central intermediaries. In this respect, 62% of all ApeCoin is allocated to the Ecosystem Fund, which will support community-driven initiatives voted on by ApeCoin DAO members.
Unlike many cryptocurrency platforms, ApeCoin also provides access to certain parts of the Ecosystem that are otherwise unavailable, such as exclusive games and services. In this context, ApeCoin also gives importance to third-party developers. Third-party developers use ApeCoin as a tool to join the ecosystem by including it in services, games and other projects.
ApeCoin token has adopted the inflationary model in the context of economy. Its total supply is pegged at 1 billion coins, all minted at once. ApeCoin is an ERC-20 token launched on the Ethereum blockchain, as I mentioned above. As a result, Ethereum’s proof of work (POW) is secured by the consensus mechanism.
5. Binance
Launched in July 2017, Binance is the world’s largest cryptocurrency exchange by daily trading volume. Binance’s goal is to bring cryptocurrency exchanges to the forefront of financial activities globally. Binance has launched a full functionality ecosystem for its users. In this context, the Binance network includes Binance Chain, Binance Smart Chain, Binance Academy, Trust Wallet and Research projects using blockchain technology. BNB forms an integral part of the successful operation of many Binance subprojects.
What sets Binance apart from other cryptocurrency centers is its ecosystem of decentralized and blockchain-based networks. Thus, the company attracts great attention, becoming the leading crypto exchange in many countries.
Binance has taken measures such as BEP-95. Thus, it raised the deflationary tokens, making BNB even more deflationary. Although BNB started as a traditional ERC-20 token on the Ethereum blockchain, it later migrated to its own blockchain(BFT).
ERC-20 tokens are based on proof-of-stake (PoS) consensus, which makes them highly scalable and allows the creation of smart contracts. Unlike PoS, Binance blockchain does not support smart contract functions. In contrast, the Bitcoin blockchain is secured by the consensus of proof-of-work (PoW), which is much more limited and consumes large amounts of electricity and computing power.
6. Solana
Solana is open-source project that uses blockchain technology to provide decentralized finance (DeFi) solutions.
The Solana protocol is designed to facilitate decentralized application (DApp) creation. Due to its innovative hybrid consensus model, Solana continues to attract both small-time traders and institutional traders. Solana, on the other hand, is of great importance in the cryptocurrency space due to the incredibly short transaction times the blockchain offers. Solana’s hybrid protocol provides significantly reduced verification times for both transaction and smart contract execution. With lightning-fast transaction times, Solana has also managed to attract corporate attention.
Solana’s Protocol is designed to have low transaction costs while ensuring scalability and fast processing. Solana stood out as a competitor that could compare and even challenge Ethereum in terms of speed and performance.
As a result, in the long run, Solana could gain in value thanks to strong support from exchanges like FTX.
Conclusion
Cryptocurrency markets are open to instant changes. More generally speaking, the situation of perfect competition in the economy is nothing but a fantasy. The general state of the economy and therefore the markets are always open to fluctuations. The exception is when there is no fluctuation. By its very nature, like every precious commodity traded in capitalist markets, cryptocurrencies get their share of these fluctuations. In this case, it is necessary to look at longer-term data than daily, monthly or quarterly data.
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