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In this article, We’ll go over the seven best cryptocurrencies to invest in 2022. These are more stable currencies that are less susceptible to market changes and offer greater security than others. Technology has influenced practically every aspect of our everyday lives, including finance.
People no longer rely on cash and instead choose to use digital payment methods. This has resulted in a variety of contactless payment methods, one of which is bitcoin. Since bitcoin’s rise to prominence, people have been gushing about cryptocurrencies, and millions of people have rushed to the sector as cryptocurrencies have become popular.
Although bitcoin remains the most popular cryptocurrency in terms of market capitalization and user base, numerous other mainstream cryptocurrencies are gaining popularity every day.
1. Binance coin
Binance coins are used as a payment method for the amount spent on the Binance exchange. Binance Exchange is one of the most rapidly developing cryptocurrency exchanges, and traders must use binance coins as a token to purchase other cryptocurrencies.
Binance coins are becoming more popular and powerful as a result of ongoing trades. It was originally an erc20 token that was utilized on the Ethereum blockchain, and it was created by Chengpen Zhao. Binance eventually launched its own major launch, raising 32 million dollars in 2018 for a stable coin project.
In terms of market capitalization, Binance is the Third largest cryptocurrency. The price of one BNB during writing this article is roughly 564 dollars, with a market cap of over 94 billion dollars, according to the coin market cap.
Cardano is a low-cost cryptocurrency that was developed in 2015 as an experiment by a group of engineers, mathematicians, and cryptographers. It quickly gained traction in the market thanks to its ouroboros proof-of-stake approach, which effectively allowed it to use two blockchains rather than one.
The primary concept behind having two blockchains is that one would handle regular transactions and the other will handle smart contracts. Cardano will be scalable and speedy as a result of this. Cardano is known as the “ethereum killer” because it uses the proof-of-stake method and has a blockchain that can accomplish more than ethereum.
According to yahoo finance, Cardano is currently worth 1.79 USD and has a market size of roughly 59 billion USD, making it the world’s sixth-largest cryptocurrency.
Litecoin was one of the first cryptocurrencies to follow in the footsteps of bitcoin and is sometimes referred to as the silver to bitcoin’s gold. It was formed in 2011 and was one of the first cryptocurrencies to follow in the footsteps of bitcoin.
Litecoin is based on an open-source, decentralized global payment network that uses the script as a proof of work that can be decoded with a consumer-grade CPU. Because litecoin has a faster block generation rate, transactions are quicker and easier.
Miners will find it easier to mine because the average time to mine litecoin is two minutes.
According to yahoo finance, one litecoin costs 210 USD dollars and has a market capitalization of nearly $14 billion dollars. On the basis of market capitalization, this is the 15th largest cryptocurrency.
4. Bitcoin Cash
One of the first hard forks of the original bitcoin currency was bitcoin cash. A hard fork is a major change to a network’s functionality that allows previously invalid blocks and transactions to become valid or vice versa, and it occurs as a result of disagreements between developers and miners.
As a result of the digital currency split in 2017, bitcoin cash was created. Different organizations can’t agree on a certain update to the token, hence digital currencies are separated. The original chain retains its original code following the split, but the new chain’s code is altered.
The debate that led to the creation of Bitcoin Cash was about its long-term sustainability. The bitcoin network has a limit on the size of its blocks, which are each one megabyte in size. The block size is increased from one megabyte to eight megabytes by bch, with the premise that larger blocks can store more transactions and hence improve process performance.
According to coinmarketcap.com, bch is ranked 21th among cryptocurrencies with a market capitalization of more than $10 billion USD. 1 bitcoin Cash is currently worth 567 dollars on the open market.
Gavin Wood created polka dot in the year 2017. It’s a one-of-a-kind proof-of-stake coin that’s designed to work with other blockchains. A relay chain is a key component that allows different networks to connect with one another.
For certain application situations, it also allows the creation of parachains or alternative blockchains with their own native currency. Polka dot differs from Ethereum in that instead of constructing decentralized apps on the platform, developers can create their own blockchain while still benefiting from the security provided by the polka dots chain.
Polkadot is one of the most affordable cryptocurrencies, with a market cap worth 38 billion dollars and a price of one Polkadot is over 39 USD dollars. According to market capitalization, it is the eighth most valuable cryptocurrency.
6. Chain Link
Chain Link is a decentralized communication network that connects ethereum smart contracts to data outside the blockchain. Because blockchains lack the ability to securely link external apps, Chainlink’s decentralized overseers enable smart contracts to interact with external data, allowing contracts to be performed based on data that Ethereum does not have access to.
It was created in 2014 by Sergey Nakarov and Steven Ellis, although it wasn’t released until 2017. On the company’s blog, a number of use cases for chain links technology are described, including monitoring water supplies for contamination or unauthorized hiving in certain towns. Sensors could be fitted to keep track of corporate water tables and local water levels.
A chain-link oracle may track this information and send it directly to a smart contract. The smart contract may be set up to execute penalties, send flood warnings to cities, or punish corporations that use too much of a city’s water using the data from the oracle.
According to coin gecko, one Chain link costs over 26 USD dollars and has a market capitalization of almost 12 billion dollars.
Disclaimer: Nothing in this post should be construed as a recommendation to buy cryptocurrencies or invest in any way. This is only an amateur’s viewpoint, not that of a professional financial advisor. Before investing in cryptocurrencies, I recommend discussing with your financial advisor and performing your own study.