When a colleague or a neighbour or a cab driver you last rode with talks about cryptocurrency being the future currency, do you feel like a latecomer? Well, you should and you shouldn’t. Among the most sought-after digital assets, cryptos have been around for years. They are loved, criticised and have the power to make the new age investors excited. The fact that they are stretching their limits globally, also becoming a part of forex trading, should motivate you to invest in them.
You might be late, but not much. After flaunting a new level of volatility last year, cryptocurrency continues to be the talk of the digital investment space in 2022. Why? One of the top reasons is its decentralised processing! It means that there is no central force (read bank) that can control or manage its movement. It further means that it tends to remain stable in value, even if one or more economies around the world faces trouble. Also, its increasing adoption as a payment method makes it a popular option over the traditional ones.
Must read: The Importance of Regulation In Cryptocurrency
As a probably new crypto investor, you might be willing to know more about how to choose and how to buy the right cryptocurrency. But before that, let’s stick to the title of this post and find out which of these currencies are expected to create the right buzz in the ongoing year.
Cryptocurrencies to Watch Out in 2022
With almost 17,000 cryptocurrencies registering their presence in the market, it can indeed be tough for a newbie to choose the best one. Still, there are a few among them that show greater potential in terms of profits and greater competitiveness to lure crypto investors. Bitcoin, the oldest in the lot, is going strong, though, it recorded a slump in its price the last year. Let’s focus on some of the other preferred ones in the list below:
- Binance Coin: Coming from the well-known crypto trading platform Binance, Binance Coin (BNB) is active since 2017 and is popular for supporting quick transactions (up to 1.4 million each second). It can be traded with 150 other cryptos and offers a 50% discount on the trading fee. In addition, BNB is accepted by the top players in the industries ranging from hospitality to travel.
- Ethereum: Positioned at number two in terms of market cap, Ethereum or Ether (ETH) is known for offering the best liquidity. With a network easily comparable with that of Bitcoin, ETH is easy to be exchanged with cash as well as gold and other entities. Also, it is among only a few cryptocurrencies that forex trading brokers accept. And with the much-awaited upgrade to Ethereum 2.0, the network is anticipated to gain better security, scalability and sustainability.
- Cardano: Introduced as a direct competition to Ethereum, Cardano is considered to have better scalability and is more decentralised. Interestingly, it is a creation of one of Ethereum’s co-founders and is gaining attention for supporting faster transactions as well as lower gas fees. Moreover, it is designed to consume significantly lesser electricity in comparison to not just Ethereum, but Bitcoin as well.
- Decentraland: With a unique combination of blockchain and virtual reality technologies, Decentraland grabbed eyeballs when one of the virtual estates developed on the platform earned $913,000 in mid-2021. MANA, the native crypto from the platform, is counted among the most undervalued assets with a great potential of growing exponentially by 2022-end. A good option if you wish to explore the DeFi (decentralised finance) applications.
- Tether: Though it is a long way for it to match Bitcoin and Ethereum in the race, Tether still manages to be at the third rank among the world’s cryptos in terms of market cap. Denoted as USDT, the cryptocurrency is a kind of stablecoin attached to the U.S. Dollar. It means that its prices are most likely to stay stable due to 1:1 linkage with the dollar. One of its other likeable aspects is that it facilitates buying other cryptos with ease.
Now that you have an idea about some of the top cryptos, it is time to learn some aspects of investing in them.
Read more: Which Forex Broker To Choose? Our 5 Tips
Factors to Consider
Selecting the right cryptocurrency may depend on several parameters and factors. Here are some of them:
- Market Cap: Needless to say, market capitalisation is the first parameter to compare different options before choosing one for investment. In simple language, it is the crypto’s total size calculated based on the value of its share in the market.
- Circulation and Supply: Check out supply which means the maximum number of coins of crypto that can enter a market as well as circulation which means the number of coins of that crypto currently in the market.
- Bull or Bear: Watch closely whether the crypto market is bullish (experiencing growth) or bearish (experiencing a decline).
- Technology: If you are not tech-savvy, consult an expert who knows and understands the underlying technologies for each crypto. It is important to go with the latest and the trending and the one with fewer chances of getting replaced shortly.
- Team: Who are the people behind the crypto you are invested in? Is the organisation experienced, trustworthy and strong? Look at their history as well as the present credentials.
- Investors and Community: Who are the investors investing in crypto? A successful investor indicates that he/she is with the best option. Also, look at the social engagement of the crypto by reviewing its community presence on various social channels.
Easy Steps to Invest
Step 1: Pick up the best crypto trading platform/exchange or broker.
Step2: Create an account and follow the verification steps
Step 3: Add funds to your account
Step 4: You are good to go to place your first crypto order
Read more: How To Buy Crypto Using Fiat Currency
Don’t be hesitant in seeking help to know about crypto wallets and other aspects to keep your investments safe. Before you begin, set your investment goals and stay up-to-date with the market trends to secure the top returns.
