The cryptocurrency market should be in the spotlight and become an attraction point for everyone from the past few years. The Crypto market is growing very fastly compared to any other market. According to the expert’s prediction, by the end of 2025, the number of Bitcoin wallets will reach one billion wallets which is a considerable number.
We are not saying only Bitcoin is performing well, and other cryptocurrencies are also rapidly increasing their market cap as well as attracting people such as Ethereum, Bitcoin, Shiba Coin, Dogecoin. And others. As per the past performance, this Distributed Finance market is growing impressively.
This market is attracting more users in 2021. Now the year 2021 is in its final months. People are looking for 2022 investments and searching for the best cryptocurrencies to invest in 2022.
For new traders who are not familiar with the crypto market and interested in investing in cryptocurrency, read this article till the end for collecting complete details about cryptocurrency trading and Check here a list of cryptocurrencies to invest in 2022. But before that, you need to understand what cryptocurrency is and how it works.
What Is Cryptocurrency?
Cryptocurrencies are digital currencies that you can buy and sell over the crypto market for earning profits. It is a decentralised currency that is not operated by any banking authorities and central government. However, cryptocurrency functions anonymously and does not depend upon the traditional banking structure.
All transactions are available online, and anybody can access those transactions. Anybody can trade cryptocurrency through mobile phones and other devices which have an internet connection. Decentralisation factors allow you to generate limitless profit. Check here the list of Best Cryptocurrencies to invest in 2022.
If we compare the performance of the cryptocurrency market, we see significant growth from 2016 till 2021, and experts are forecasting the growth will continue like this for at least 2030. If the crypto market continues growing like this, the number of users will reach 1 billion or more than that by 2026.
Key points for selecting the Best cryptocurrencies to invest in 2022.
Selecting cryptocurrencies for investments is not an easy task. You need to do a lot of research work before investing in any cryptocurrency. Several questions came into your mind while investing in crypto.
The major factor that stops people from investing in the cryptocurrency market is decentralisation, but many people from different nations are investing in the crypto market without any worries; as per this quote, “huge risks lead to efficient profit”.
Here we mentioned some factors that you need to consider while selecting the Best cryptocurrencies to invest in 2022.
- Must check adoption rate
- Selected cryptocurrencies have an excellent market cap.
- Check whether cryptocurrency has a market competitor.
- Check the past performance of selected cryptocurrencies.
- Either cryptocurrency is working actively or not.
List of Best Cryptocurrencies To invest in 2022
Ethereum (ETH)
Ethereum is a cryptocurrency that is a blockchain-based network. It is denoted by ETH. Ethereum is one of the top contenders on the best cryptocurrencies list for 2022 investment. This cryptocurrency is making its place in the list due to its efficient contract functionality.
Efficient contracts are similar to paper contracts that take place while all conditions are satisfied without the involvement of third parties like the bank or central government.
Coders use the Ethereum network to generate multiple offerings such as Security Tokens, Decentralized Exchange, non-fungible tokens used to change art, and several other valuable items.
Ethereum developers are looking to create a new cryptocurrency as the ethereum second version with Ethereum’s ERC-20 token standard.
Recently, ethereum switched its working mechanism to a PoS (a Proof of Stake) from its old PoW mechanism along with the ETH 2.0 upgraded version. As we mentioned in our ethereum price prediction, this cryptocurrency is performing well in the upcoming future.
Factor which supports Ethereum (ETH) in becoming a top investment
- Ethereum has the second-largest market cap after bitcoin.
- It consists of the largest blockchain network for decentralised applications.
- Ethereum is the only coin that should be considered after Bitcoin as the best cryptocurrency.
- Several products such as Smart contracts, NFTs, security tokens need ETH to run on the blockchain.
- Still, Bitcoin needs to improve its lightning network for running smart contracts. Even if Bitcoin upgraded its core roots, it would only be able to offer simple contract functionalities. All these factors make Ethereum more efficient to create its place in the list of Best cryptocurrencies to invest in 2022.