Knowing which cryptocurrency to buy can be challenging, with almost 16,000 digital assets in circulation. The goal of people investing in cryptocurrency is to catch the next big thing to generate huge returns.
When you first start in the world of crypto exchange, the sheer number of cryptocurrencies is overwhelming, from Bitcoin and Ethereum to Dogecoin and Tether. So here are a few suggestions of cryptocurrencies to buy in 2022 with have potential.
One of the most popular cryptocurrency investments by market capitalization, Bitcoin is the most time-tested store of value in crypto and the most important to every investor. On January 3rd, the coin surpassed the 13-year mark and reached nearly $900 billion in market capitalization. It represents almost forty percent of the total cryptocurrency market value and is the only digital asset with a US exchange-traded fund that follows its movements. In addition, BTC is the most mature cryptocurrency in its class. And one that major companies like Tesla Inc. (TSLA) and MicroStrategy Inc. (MSTR) are using on their balance sheets; it’s a must-have investment for anyone interested in cryptocurrencies.
While Ethereum is distantly second to Bitcoin by market capitalization, it is likely to surpass it in terms of relevance owing to its twenty percent share of the overall market. Since its Ethereum network claims the distinction of being the most heavily utilized blockchain in the world, it has actual function aside from serving as a store of value. The Ethereum blockchain facilitates intelligent contracts, nonfungible tokens, and even the trade of other cryptocurrencies. Therefore, it makes Ether (ETH) one of the best cryptocurrencies to buy. According to a few criptocurrency app, it is also expected that ETH will become far more energy-efficient than Bitcoin once it moves from the proof-of-work to the proof-of-stake protocol. It will eliminate the requirement to validate transactions on the blockchain through elaborate computational efforts, which is a much more energy-intensive process.
It is expected that Ethereum will soon address some of the energy issues plaguing Bitcoin, but Solana has addressed one of the biggest problems with Ethereum: transaction fees. Solana’s fees are a tiny fraction of Ethereum’s gas fees, which make modest Ethereum transactions financially unfeasible. In addition, like Ethereum, Solana was created to facilitate decentralized finance, which eliminates financial intermediaries, gatekeepers, and institutions like banks, brokers, and centralized exchanges. In 2021, Solana was worth over $160, up from $1.51 at the beginning of the year.
Cardano is one of the largest blockchains using the more energy-efficient proof-of-stake protocol. In addition, Cardano has the goal of fostering an ecosystem for decentralized applications, or dApps. Unlike Ethereum, Cardano has a fixed capitalization on the number of coins that can exist, which tops out at forty-five billion. Fortunately for investors, 33.5 billion, or seventy-four percent, of that supply have already been purchased, reducing dilution to a known and relatively minor level. Over the last year, Cardano has gone from 22 cents to $1.30, making it one of the best cryptocurrencies to buy.