Over the years, cryptocurrency has occupied a considerable share of a destined concept, especially this year, and many businesses around the world have accepted cryptocurrency as a payment method and invested heavily in it, which has led to a forever- The demand for these digital currencies continues to increase. Over time, the degree to which the Bitcoin industry has gained respect cannot be expressed in words. As economics will accept it as a true currency and asset class, it can only rise. Learn how to invest in cryptocurrencies in 2022 and beyond. Many analysts predict that the crypto market will never recover from the 2018 decline. But this is not the case this year. Although “investing in cryptocurrency” is a good suggestion, at the same time, it is also unwise to invest in every token you encounter.
For example, Bitcoin flourished at the beginning of 2021 and reached a record high of approximately $65,000. Then suddenly there was a crash, the value of Bitcoin plummeted by nearly half, and it happened miserably.
How could the list not include Bitcoin? The fact that most trading platforms and cryptocurrency exchanges accept it is a powerful sign of its popularity and supremacy. With market dominance that has boomed since its debut, it can be safely assumed that this trend will continue in the future. Bitcoin was the first cryptocurrency and is now the most widely discussed cryptocurrency. Some news media refer to all cryptocurrencies as “bitcoins.” Although there is nothing to say about tokens, the public still knows very little about how they work-partly because the principles and operations of cryptocurrencies are difficult to grasp. Nevertheless, Bitcoin remains the undisputed master of cryptocurrency, regardless of whether it is understood or not and is not affected by market fluctuations due to its widespread acceptance. This is one of the main reasons why it has become the most popular cryptocurrency for SoV (Store of Value).
There are several advantages to investing in Bitcoin. First, these crypto transactions are cheap and fast, especially when compared to other possibilities. A new block is created every ten minutes, and the maximum throughput is about 7 TPS (transactions per second). In addition, unlike fiat currencies, BTC transactions do not require users to provide personal identity or financial information, because BTC is currently the second fastest-growing digital currency and the most well-known cryptocurrency in the world. Its value reached a peak of around $64,000 in April 2021. According to data from the Blockchain Center, more than 488,000 Bitcoin addresses were created in the first half of 2021.
Ethereum is the largest decentralized application blockchain network, and its market value is second only to Bitcoin. Due to its smart contract function, Ethereum is a strong contender in the top list. Smart contracts are similar to paper contracts in that they will be executed after all standards are met, but there is no need to use intermediaries such as banks or other intermediaries. Developers use the Ethereum network to build decentralized exchanges (DEX), securities tokens (which can replace paper stock certificates and other financial products), and non-fungible tokens (NFTs) that can be used to replace artworks and other valuable items ) And the new ERC-20 token standard of Ethereum for the use of cryptocurrency. With the upgrade of ETH2.0, Ethereum is transitioning from a proof-of-work (PoW) to a proof-of-stake (PoS) consensus mechanism. Mortgagers can now use their ETH as a collateral investment to passively earn more money.
Due to decentralized applications and the ERC-20 token standard, Ethereum has a wide range of applications, and it is the most popular new coin production platform. All DApps, smart contracts, security tokens, NFTs, and other products require ETH to run on the blockchain, and it is expected that ETH will become the only token that will soon surpass Bitcoin.
Since 2015, it has been a popular choice and proved to be reliable, but as ETH 2.0 continues to upgrade, it switches to a more efficient and faster PoS consensus method and sharding system, and it becomes more The better. For individuals who own ETH, staking provides an additional source of income of approximately 8% each year. But starting from EIP 1559, ETH began to be burned, leading to deflation, and the price of ETH rose faster. At the current natural gas price of 61 GWEI, it is expected that the ETH supply will peak at 118.7 million ETH in early February 2022, and then decline.
Polkadot is such an invention that completely changed the decentralization of the Internet. The speed and security of this cryptocurrency are its two most powerful attributes. These two reasons alone prove how trustworthy this digital currency is, and why it is worthwhile to invest in the cryptocurrency industry, there is no doubt about it. This digital currency has opened up a space for itself. Polkadot makes cryptocurrency investors excited about its parachains, which are expected to be ready by the end of 2021.
Polkadot is one of the most anticipated initiatives in the industry, and user enthusiasm is growing rapidly. However, the undisputed winner in the Crypto field is DOT, which has run wild this year and climbed to the top of the Crypto list. By 2025, PricePrediction predicts that the average price will be as high as $136.96.
When deciding which cryptocurrency to buy in 2022, don’t forget privacy coins. Privacy is more important than ever, CBDC is everywhere, and the government requires regulation. Monero is one of the most mature and well-known privacy coins. This is because it will not be backed up by any company or organization, and all privacy settings are turned on by default. The price of Monero did not rise by thousands in 2021, but it has risen by 81% so far. Therefore, due to its privacy function, listing on an exchange becomes more difficult; therefore, speculation has less impact on its price.
Solana is another big explosion in 2021. It has all the conditions to become one of the most worth buying cryptocurrencies in 2022. Solana hosts decentralized applications and smart contracts, just like Ethereum and Binance Smart Chain, but with lower fees and faster speeds. If you think the previous currency growth was impressive, wait until how much SOL has increased in 2021-it is 13,662%! Yes! this is correct. It will take a miracle to reappear such pumping in 2022, but it is realistic to expect this increase to continue. On October 25th, SOL, like
Solana’s current market value is approximately 51.8 billion U.S. dollars, ranking seventh in this category. Currently, Ethereum and Cardano (CRYPTO: ADA) are competing for the best smart contract platform. Not long ago, Solana and Degenerate Apes made a big foray into NFT. Degenerate Apes is a digital collection of apes, with different qualities and varying degrees of rarity from glasses to sandwiches. More than 400 proposals have been submitted, several of which are DeFi projects, eliminating the status of banks as mediators. It is considered the ETH replacement that programmers are looking for; it will not kill ETH and its popularity, but it may bankrupt it. SOL has developed a network wormhole bridge, which is a very desirable attribute because the network rarely cooperates. Therefore, according to SOL, the next stage will be to connect Terra (LUNA) with Binance Smart Chain. Solana promises to execute more than 50,000 transactions per second (TPS), each for less than $0.01.