Top 10 cryptocurrencies to invest in 2022
Cryptocurrency or “crypto” is digital money that is not managed by a central system such as governments. Instead, these currencies are based on Blockchain technology, with Bitcoin being the most popular. As Cryptocurrency continues to gain momentum on Wall Street, more and more options are available from it. There are currently more than 5,000 cryptocurrencies on the market.
While you can use Cryptocurrency to make purchase,most people treat it as a long-term investment of their money. However, investing in cryptocurrencies can be risky if you don't know where to start. In this article, we will talk about the top 10 cryptocurrencies worth investing in in 2021.
Rating of the best cryptocurrency options:
Do a quick search online and you will find dozens of recommendations on how to invest in cryptocurrencies. When choosing the top 10 currencies, the following factors were taken into account:
1-Longevity:
First you have to ask: How long has this cryptocurrency been around? New cryptocurrencies are not immediately excluded from this article, but having historical data on them for comparison helps you see how the originating company has performed so far.
2-Track Record
How was the company's performance during its years in the business? If you see price stability, that's a good sign. If you notice that the cryptocurrency is gaining momentum and becoming more valuable over time, all the better.
Good to know: Past performance is not indicative of future performance. Things can change at any time, and investment performance may be better or worse than in the past.
3-Technology
How does the platform compare to other platforms in terms of ease of use and security? The first thing you want to look for is how quickly transactions with this cryptocurrency can happen. The network on which this currency is based must be able to handle transaction traffic with ease.
You also want to make sure that your investment is safe. Most cryptocurrencies use Blockchain technology, which makes all transactions transparent and easy to trace. You have to keep in mind that the use of Blockchain technology does not necessarily make it difficult for hackers to steal your cryptocurrency, but rather Blockchain technology makes it easier to track your investment so that it can be recovered rather than lost in the event of a fraud.
4-Adoption Rate
How many people are investing in the cryptocurrency you are considering investing in? When you see a high level of adoption, it means that the cryptocurrency has better liquidity. Trading, selling or spending will be easier in the future. Liquidity indicates how easy it is to convert cryptocurrency into cash quickly - and whether it can be done without affecting the value of the assets.
Top 10 cryptocurrencies to invest in 2021
Cryptocurrency prices as of March 29, 2021, market capitalization:
• Bitcoin: present value (57,566.38) dollars, total value of existing bitcoins: (1.075) trillion dollars.
• Ethereum coin: present value (1,811.82) dollars, total value of Ethereum in existence: (209.464) billion dollars.
• Binance coin: present value (273.38) dollars, total value of existing Binance: (42.304) billion dollars.
• Tether coin: current value ($0.99), total value of tether coin in hand: $40.632 billion.
• Cardano coin: present value (1.19) dollars, total value of Cardano coins in existence: (38.188) billion dollars.
• Polkadot coin: present value (33.74) dollars, total value of Polkadot coin in existence: (31.349) billion dollars.
• Ripple currency: current value (0.56) dollars, total value of existing Ripple currency: (24.598) billion dollars.
• Litecoin: present value (192.88) dollars, total value of litecoins in existence: (13.038) billion dollars.
• Chainlink coin: present value (28.06) dollars, total value of chainlink coin in existence: (11.689) billion dollars.
• Stellar Operation: Present Value (0.41) Dollars, Total Value of Stellar Coins in Hand: (9.23) Billion Dollars.
1-Bitcoin (BTC)
Bitcoin is the first cryptocurrency that existed before any other cryptocurrency. It is easy to see why it is the leading currency, with its price, market value and volume far above any other investment options. Even with thousands of other cryptocurrencies on the market, Bitcoin still accounts for 40% of the cryptocurrency market capitalization.
Many companies accept Bitcoin as payment, which makes this cryptocurrency a smart investment. Visa deals in Bitcoin, and Elon Musk, CEO of Tesla, recently invested $1.5 billion in it. Additionally, major banks have started incorporating bitcoin transactions into their offerings as well
Risks of investing in Bitcoin
The value of Bitcoin tends to fluctuate a lot. You may see the price go up or down thousands of dollars during any month. If such wild fluctuations are making you nervous, you may want to avoid investing in Bitcoin. Other than that, as long as you consider cryptocurrency as a smart long-term investment, these fluctuations should not be too worrying.
Another reason to reconsider investing in Bitcoin is its high price. With just one Bitcoin costing more than $50,000 (the price at the beginning of 2021), most people can’t buy an entire Bitcoin. For investors who want to avoid buying parts of the currency, this is a negative.
2-Ethereum (ETH)
The cryptocurrency Ethereum differs from Bitcoin in that it is not just a cryptocurrency. It is also a network that allows developers to create their own cryptocurrency using the Ethereum network. While Ethereum lags far behind Bitcoin in terms of value, it is also far ahead of other competitors.
Although this coin came out years after some other cryptocurrencies were introduced, by it has surpassed those in the market due to its unique technology.
Risks of investing in Ethereum
While Ethereum uses Blockchain technology, it has only one “lane” for transacting. This can cause transactions to take longer to process when the network load and demands increase.
A hack in 2016 resulted in the loss of more than $60 million in Ethereum due to a flaw in an Ethereum Wallet. Although the company has made great strides in increasing the level of security, software vulnerabilities are always a risk in any cryptocurrency investment.
3-Binance coin (BNB)
Binance is one of the few cryptocurrencies that peaked after 2017. During that year, there was a “bull market” in which all cryptocurrencies went up and peaked before settling and decrease in value.
Unlike other cryptocurrencies, Binance Coin has continued to rise steadily but slowly after 2017. Due to its performance, Binance Coin has proven to be one of the more stable investment options, posing less risk when considering to invest in this cryptocurrency.
Risks of investing in Binance currency
What sets Binance Coin apart from its competitors is that it was created by the giant Binance company rather than a group of tech developers. Although Binance Coin’s commitment to maintaining a strong Blockchain has raised the suspicions of many analysts, some investors remain apprehensive about this cryptocurrency and its potential security issues. On May 7, 2019, Binance revealed that it was the victim of a “large-scale security breach” in which hackers stole 7,000 bitcoins worth about $40 million at the time. The hackers “used a variety of technologies, including phishing, viruses and other attacks”, CEO Changpeng Zhao said, and organized their transactions “in a way that bypassed our current security checks.” ‘Binance’ discontinued (Binance) – at that time – additional withdrawals and deposits, but allowed the completion of trading. Binance has pledged to reimburse clients through its Safe Asset Fund.
4-Tether (USDT)
Tether is the most stable coin among all other cryptocurrencies, because it is pegged to the US dollar. For every one Tether, there is one dollar in the Federal Reserve. This makes Tether a great choice for investors who want to transact with their cryptocurrency.
Risks of investing in Tether
Investors raised questions about the actual buffer stock. There are doubts that there are really US dollars in the reserve bank for each one. If at any time these doubts are substantiated, the value of Tether’s stock could drop rapidly, and thus its price.
5-Cardano (ADA)
Cardano Network has a smaller footprint, which attracts investors to it for several reasons. It takes less energy to complete a transaction with the Cardano network than with a larger network like Bitcoin. This means that transactions there are faster and cheaper.
This cryptocurrency claims to be more adaptable and more secure. Cardano is constantly improving its development to keep it out of the reach of hackers.
Risks of investing in Cardano currency
Even with a better network, Cardano may not be able to compete with the bigger cryptocurrencies. Where fewer adopters mean fewer developers. This therefore does not appeal to most investors who would like to see a high adoption rate. The Cardano platform has big plans, but there are doubts about whether it can live up to this potential.
Trading tip: Don’t be discouraged by the volatility in the market. Your investment in cryptocurrency may lose money one day and make a profit the next. Instead of falling into the trap of daily changes, look at the big picture and trade the long term.
6-Polkadot (DOT)
Polkadot was created by the leaders of Ethereum who defected to form their own cryptocurrency with a better network. Instead of having one ‘lane’ for transactions to be done, ‘Polkadot’ has many lanes.
This cryptocurrency is designed to reward real investors and exclude people who are just trading in the cryptocurrency market to make money fast. Investors involved in the company also help make decisions about things like:
• Network fee.
• Network upgrades.
• Create or remove Parachain, which are the various individual Layer 1 blockchains that run in parallel within the Polkadot platform.
Risks of investing in Polkadot currency
Polkadot founder Gavin Wood first introduced the Polkadot cryptocurrency via a white paper in 2016. At the end of 2020, Polkadot started trading in the Polkadot market Digital currencies (crypto). With such a short history, Polkadot does not have a track record of comparison with other currencies, making it a risky investment for potential buyers.
7-Ripple and its symbol (XRP)
Ripple is the company that unveiled the XRP Token and attracts investors as it differentiates itself from other cryptocurrencies by offering international transactions. When we are talking about dealings with a bank, international money transfers can take up to 10 working days. With Ripple, the same transactions only take seconds.
In addition, Ripple has contracts with major banks around the world. The more contracts you have, the more access to the Ripple cryptocurrency will be for the adopters.
Risks of investing in Ripple currency:
Ripple emerged as a promising currency in 2017 when its value jumped 36000%. However, when you consider the fact that this fictional percentage represents an increase in the market value of this coin of only $2.40, it seems less impressive. While you are researching cryptocurrencies, do not get distracted by the high percentages. Scroll down to the real currency value figures and see what the growth really means.
8-Litecoin and its symbol (LTC)
Litecoin was originally created in 2011 and hit the market at the same time as Bitcoin. However, this currency did not take off in the same way that Bitcoin did. Litecoin boasts of completing transactions four times faster than Bitcoin.
In 2017, it was the first cryptocurrency to complete a transaction on the Lightning Network. The transfer was then completed in less than one second. If the company expands its use of the Lightning Network for faster transactions, the value of Litecoin could increase significantly.
Risks of investing in Litecoin
Since Litecoin and other cryptocurrencies are closely related to Bitcoin, their value will generally fluctuate with Bitcoin. This means that the value will rise and fall just as Bitcoin does, albeit at a lower rate. If you consider Bitcoin volatility to be a negative thing, Litecoin may not be a good investment option.
9-Chainlink and its symbol (LINK)
Chainlink is unique as a cryptocurrency because it has an attractive price tag. While they can be purchased at reasonable prices, they are also high enough to not be considered a small coin. This is attractive to investors because it has proven that value can increase, and there is still plenty of room for growth.
This currency is also available for trading on Coinbase , one of the largest cryptocurrency applications in the world. Ease of access also makes Chainlink attractive to investors.
Risks of investing in Chainlink currency
While it is still higher than thousands of other cryptocurrencies, it has a lower volume and market cap than the more attractive cryptocurrencies. That is why Chainlink coin occupies a very low rank in the top ten coins list.
10-Stellar and its symbol (XLM)
Stellar’s Lumens (XLM) coin was created to meet the needs of the cryptocurrency niche. It is essentially the PayPal of cryptocurrency networks, and acts as a bridge between banks and the blockchain networks.
As a decentralized network, Stellar can convert and trade any currency through channels. This makes these transactions cheaper and faster than they would be with traditional banks.
Risks of investing in Stellar currency:
Since Stellar caters to the niche market, we are likely to find other companies trying to compete against it. If another crypto network builds a better platform and takes traffic from Stellar, it could affect the value of the company’s stock.
Final Offer
Cryptocurrencies are here to stay and there is no doubt about that. The question becomes, where is the best place to invest your money in the market?
When deciding which cryptocurrency is the best investment for you, here are some other things to keep in mind:
• The speed with which transactions are made in this currency.
• Fees associated with transactions in this currency.
• The ability to use cryptocurrency for regular bank transfers and purchases.
If you are strictly looking to invest without making intranet transactions, remember that cryptocurrency is not a get-rich-quick scheme. Instead, you should consider it a long-term investment.
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