What cryptocurrencies to invest in 2022
People have been enthralled with cryptocurrencies ever since Bitcoin gained popularity, and millions of people started paying attention to it when cryptocurrencies started gaining popularity a few years ago. Although Bitcoin is still the leader in terms of market capitalization and user base, there are many other mainstream cryptocurrencies that are growing in popularity every day.
In this article, we will discuss stable currencies that are less susceptible to price fluctuations and provide better security than others, so they can be considered as a stable cryptocurrency investment in 2022.
1. Ethereum (ETH)
Ethereum is one of the most popular and stable cryptocurrencies, founded by blockchain enthusiasts Joe Lubin and Vitalik Buterin (Ethereum's current CEO). It is a decentralized platform that enables smart contracts and distributed applications (dapps) without downtime, fraud, control or third-party intervention.
Ethereum is a comprehensive financial value that can be accessed by anyone from any part of the world. In some countries with weak state infrastructure, Ethereum acts as a stable asset as citizens can access bank accounts, loans, insurance and other financial services.
The crypto token used to use Ethereum is called Ether (ETH) and all Ethereum applications are supported by it. Launched in July 2015, ether is the second largest cryptocurrency in terms of market capitalization, right after Bitcoin.
Many developers who want to develop applications on the Ethereum platform need Ether to run them. Ether is also used by many investors to buy other digital money.
According to Statista portal, Ethereum's market capitalization increased by more than $250 billion in April 2021.
2. Tether (USDT)
Tether is one of the first stablecoins that has gained a lot of popularity due to its value, which is always $1. Stablecoins are cryptocurrencies whose market price is tied to a currency or other external benchmark to reduce unpredictability.
Cryptocurrencies are often known for their dramatically volatile behavior that leads to huge gains or losses for investors. This leads to instability and fear of investing. Stable coins such as Tether attempt to reduce all of these fluctuations. Tether was developed with the goal of always being worth $1,
Tether describes itself as "a blockchain-enabled platform designed to facilitate the use of fiat currencies digitally." This cryptocurrency in effect allows users to use the blockchain network and related technologies to trade in traditional currencies, while avoiding the volatility and complexity that is sometimes associated with digital currencies.
In terms of market capitalization, Tether is the third largest cryptocurrency. According to Yahoo Finance, the current market value of 1Tether is $1 and its market capitalization exceeds 320 billion.
3. Cardano (ADA)
Cardano is one of the affordable cryptocurrencies that was created in 2015 as an experimental by engineers, mathematicians, and cryptographers. It quickly gained popularity in the market due to its "Ouroboros proof-of-stake" approach, which essentially allowed it to use two blockchains instead of one.
The basic idea of having two blockchains is that one manages regular transactions and the other takes care of smart contracts. This makes Cardano scalable and fast. Cardano is also called the "Ethereum killer" because it implements a proof-of-stake algorithm, and its blockchain is able to do much more than Ethereum.
According to CpoinMartetCap, the current market capitalization is around 230 billion, making it the fifth largest cryptocurrency on the market.
4. Litecoin (LTC)
Litecoin often referred to as "Bitcoin's silver to gold" was created in 2011 and was one of the first cryptocurrencies to follow in Bitcoin's footsteps. Litecoin is built on an open source global payment network that is not centralized and uses script as a proof of work that can be decoded using consumer-grade processors.
Litecoin uses a faster block generation rate than Bitcoin, which makes transactions faster and easier. It is easier for miners to mine as the average mining time for Litecoin is 2 minutes.
5. Polkadot (DOT)
Polkadot was created by Gavin Wood in 2017. It is a unique proof-of-stake coin that aims to be compatible with other blockchains. Its core component is a relay chain that allows communication between different networks. It also allows the creation of "parachains" or alternative blockchains with their own native coins for specialized applications.
Polkadot differs from Ethereum in that instead of developing decentralized applications on Polkadot, developers can design their own blockchain while taking advantage of the security currently provided by the Polkadot network.
6. Chainlink (LINK)
Chainlink is a decentralized communication network that connects smart contracts, such as those in Ethereum, to data outside the blockchain. Blockchains do not have the ability to securely connect to external applications. Chainlink's decentralized supervisors allow smart contracts to connect to external data, enabling contracts to execute on data that Ethereum cannot access.
It was developed by Sergey Nazarov with Steve Ellis in 2014, but was released after 2017. The various use cases for Chainlink technology are described in detail on the company's blog.
One of the many use cases described is monitoring water sources for contamination or unauthorized habitation in some cities. Sensors can be installed to monitor corporate use, water and local water bodies.
This data can be tracked by Chainlink and sent directly to the smart contract. With the data coming in from Oracle, a smart contract can be set up to enforce fines, flood warnings for cities, or charge companies that use too much water in a city.
There are already more than 8,000 cryptocurrencies on the market and new currencies are being created every day. Cryptocurrencies are one of the most popular ways to trade and invest, regardless of their volatility.
Cryptocurrencies come with many advantages and disadvantages, so it is important to be very cautious before investing your hard earned money in anything. In this article, we have discussed some popular cryptocurrencies that have shown stability in recent times and can be considered as a reasonably stable cryptocurrency investment in 2022.
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