Cryptocurrency is an electronic currency that isn’t controlled by a centralized government authority. It is instead based on blockchain technology, with Bitcoin being the well-known variant. Although bitcoin can be used for transactions, most people view it as a long-term venture.
Here are the top cryptocurrencies ranked by market capitalization, which measures the combined worth of all crypto coins, to assist you.
Why Do We Have So Many Cryptocurrencies These Days?
With over 19,000 active crypto projects and low entry barriers, cryptocurrency is a growing paradigm. Particularly last year, the crypto sector experienced a boom with the addition of thousands of new crypto ventures.
While some cryptos serve as currency, others are employed in infrastructure development. For instance, developers are creating additional cryptocurrencies on top of platform currencies like Ethereum, which opens up more possibilities.
Best Cryptocurrencies in 2022
Google, Apple, Samsung, Tesla, PayPal, Facebook, and other well-known companies, have recently included crypto investment in their long-term business goals. Let’s learn which cryptocurrency options we can invest in:
The inaugural cryptocurrency was Bitcoin (BTC), which Satoshi Nakamoto designed in 2009. BTC uses blockchain technology. Blockchain records transactions in the form of a ledger. Bitcoin is shared over various computer networks, like most cryptocurrencies.
Bitcoin is a safe and protected coin that remains from fraudsters because updates to the distributed ledgers must be validated by a procedure known as “proof of work”. One Bitcoin was trading at $500 back in 2016. As of December 2022, one Bitcoin carries a value of around $17,906. This is a massive growth of 3,000%.
In contrast to other types of cryptocurrencies, Tether is as good as a stablecoin, which means fiat currencies back it, like euros and USD. The tether carries a value equivalent to fiat currency denominations.
Moreover, Tether is appreciated by those cautious investors who fear excessive cryptocurrency volatility, in theory, it carries a value that is intended to be stable compared to other cryptocurrencies.
It is easy to build Ethereum cryptocurrency for the developers. The developers can use it to employ smart contracts. Also, there is no significant rival to Ethereum, even though its value is significantly behind Bitcoin.
Ethereum has found tremendous growth in relatively quick times. Its price rose by 12,073% between April 2016 and the end of December 2022, from around $11 to about $1,339.
4- Binance Coin
You may trade and make payments through Binance, which is among the renowned crypto exchanges worldwide, using the cryptocurrency known as Binance Coin (BNB). Since its inception in 2017, BNB has become more than a means of executing deals on Binance’s marketplace. It can now be employed for trade, payment processing, or even trip planning.
BNB was trading under $0.10 back in 2017. Its price has increased by 279,900% to over $280 by December 2022.
Investors prefer Cardano’s regional footprint due to multiple reasons. Keeping giant cryptocurrencies like Bitcoin, Cardano demands less energy for carrying out crypto transactions. You get your Transactions done at less cost with a quick time frame.
AdaSwap is Cardano’s framework that helps developers to develop transactions for designing decentralized finance-based applications. Cardano is now an enhanced Web3 network due to the creation of AdaSwap. It increases the value of Cardano as a coin.
A devoted community and innovative memes helped Dogecoin, infamously launched as a joke in 2013, grow into a well-known cryptocurrency. The currency is vulnerable to devaluation as supply rises because, unlike many other cryptocurrencies, Dogecoin has no cap on how many coins can be issued.
In 2017, the price of Dogecoin was $0.0002. Its price increased by 44,900% to $0.09 in December 2022.
You must conduct your research to select the appropriate cryptocurrency and receive the highest ROI. You must consider several factors, such as market size, the top cryptocurrency exchanges (commission costs), market value, historical performance, volatility, and even taxation. However, you cannot do some of these manually.
Crypto owners have used different bitcoin trading software, where they can buy or sell their favorite cryptocurrency based on an informed decision.
Cryptocurrencies are here to stay. Then where should you put your money to get the best returns? Keep in mind that bitcoin or any other cryptocurrency is not a get-rich-quick gimmick if you only want to invest and do no other network transactions. Instead, think of it as a long-term investment.