Cryptocurrency is a decentralized digital currency. It is not managed by anyone, unlike fiat currencies. Digital currencies use blockchain technology, which has advantages over commercial banks, such as decentralization and security. The merits of the system have made it gain huge traction globally, and for that reason, new virtual currencies are being launched almost every month.
Digital currencies are used for purchase just like other official currencies. Also, people see them as a form of investment to make money. However, the risk of investing remains a factor to consider for any trader before buying any of this virtual money.
If you have been current in the crypto market, you’d have noticed the recent bullish trend in almost all digital currencies, including Bitcoin — the most expensive coin. And you’d have agreed that it is unwise to invest in any cryptocurrency without adequate research. With that being said, in this article, we’ll talk about some digital currencies that could be worth investing in this year.
Some Cryptocurrencies You Can Consider Buying in 2022
Below are some coins you can put your money into this year. Before reading them, note that this article isn’t financial advice; just like any other crypto tip, you should do your research before making any investment.
Bitcoin
Bitcoin is the first digital currency to be launched. The coin was launched in 2009 and since then has pioneered blockchain technology. Currently, Bitcoin tops all digital currencies in terms of price and market capitalization, and it’s not a surprise to see it at the forefront of blockchain technology.
Today, many businesses accept Bitcoin as payment, which makes it a great investment. Financial organizations and credit card providers are also beginning to embrace it as a form of payment. However, just like all coins, there are risks in investing in Bitcoin.
For starters, the price of Bitcoin isn’t stable. In a month, the value can fluctuate many times, leaving traders on the bullish or bearish side of the market. If price instability doesn’t sit well with you, you should steer clear of this virtual asset. However, the coin could serve as a great investment in the long run. Another thing to note is that it costs over 30k dollars, so most people can’t afford to buy one, and if you buy a small fraction of the coin, you might lose all your money during a bullish trend.
Ethereum
Ethereum comes after Bitcoin in terms of price and market capitalization, making it a great investment.
This crypto has been gaining ground in the business world in recent years, but it still trails Bitcoin significantly. That could be because of some security issues the currency experienced in 2016. However, an upgrade has been scheduled to take place on the currency network, and it can make it gain more public interest.
Some drawbacks of investing in Ethereum is that transactions are slow when the network is crowded, and fees for transactions (gas fee) are too high.
Binance Coin
Binance Coin (BNB) is a native token of Binance, a centralized cryptocurrency exchange platform. The token launched in 2021 and experienced a big increase before the middle of the year.
BNB is another coin with a high market cap and price. It has a low gas fee compared to Ethereum. And even though it’s maintained by a company — unlike other cryptocurrencies maintained by developers, it would be a great investment.
The risks of investing in BNB are its volatility and the fact that a huge amount of the coin is owned by Binance — going against the notion that crypto is decentralized.
Cardano (ADA)
Cardano is a decentralized currency maintained by professionals. It is appealing to businesses because of its transaction speed. Unlike Ethereum, ADA gas fees are cheaper. So far, ADA has the lowest value on this list. That might change soon, as the network has enabled smart contracts and is working on other upgrades.
One drawback of investing in Cardano is that it doesn’t have many adopters, making it unable to compete with big digital currencies. So any investment in the coin would be edged on its long-term success.
Polygon (MATIC)
Polygon was created on the Ethereum blockchain, and it improved on the slow transaction and verification flaw that Ethereum has.
MATIC, the polygon’s token, has a wide acceptance. A state government uses it in India to issue caste certificates to help low-income citizens. Also, the network currently hosts around 19,000 decentralized applications.
However, recently, a loophole was discovered in the Polygon network, and it put a huge amount of coins at risk. This has put the network’s security to question and is a huge concern to investors.
Final Thoughts
Cryptocurrency is the future, and there’s no sign that it’s going away anytime soon. The most important decision would be choosing which coin to invest in. Before choosing, you should do your research instead of taking the words from any “crypto guru” as financial advice.
