Investing in crypto has undoubtedly become popular lately, but it is even more attractive for many novice investors to know which cryptocurrency will rise in the coming time. Of course, it is obvious to point directly to the best-known digital currency, bitcoin.
However, this coin is not the only one of importance in the cryptocurrency world. On the whole, there is growing confidence in the phenomenon we know as the digital currency. By delving into the possibilities of crypto and the various crypto coins, you will get many opportunities for an excellent return.
What are cryptocurrencies?
Cryptos are digital assets that are managed with cryptographic algorithms. Crypto, therefore, does not have a physical form like a euro coin but is an encrypted code such as a password. There are different types of cryptos. Bitcoin is probably the most well-known crypto, but hundreds of others have emerged. For example, ether, litecoin and Ripple. There are also stablecoins. These are cryptos whose value is linked to another value of, for example, a regular currency or gold. Tether and the crypto libra launched by Facebook are examples of this. The purpose of stablecoins is to make cryptos suitable as everyday means of payment.
Cryptos have pros and cons. The most significant advantage is accessibility. With cryptos, you can pay or get paid without the intervention of third parties such as banks. A disadvantage is that most cryptos have a volatile value. As a result, cryptos can quickly lose value. It is therefore unsuitable as a means of payment. You could pay with a stablecoin. But then risks in the field of money laundering, tax evasion, privacy violation and consumer protection must be counteracted by the provider of the stablecoin. These are risks because the cryptos lend themselves to illegal use due to their accessibility and anonymity.
Central banks issue money notes. For example, the European Central Bank (ECB) does this for the euro and the Federal Reserve for the US dollar. Most money nowadays is digital, like the money in your bank account. That money comes from commercial banks. But central banks are watching by supervising these banks. The only other way to be sure of credit is to hold cash. But many people find this inconvenient these days. In addition, money is used much less. Because of this, some people find cryptos interesting.
The value of cryptos is not guaranteed in any way. Cryptos are independent of a commercial or central bank. As a result, you run a greater risk with cryptos. Because if crypto loses value and you lose a lot of money, you will not be helped by the central bank. A central bank digital currency (CBDC) or central bank money can be a good solution because it is in the hands of a central bank. There is just no such CBDC yet. The ECB and DNB are investigating whether such a digital currency from various central banks is possible.
What are the top 10 cryptocurrencies to invest?
Bitcoin – Largest cryptocurrencies
The reason why innovative and now institutional investors want to buy bitcoin as cheaply as possible has to do with the following insight: bitcoins are the new digital gold of our digital information age. Bitcoin is a new innovative technological breakthrough in financial technology for the 21st century. Bitcoin dematerializes, decentralizes and perfects the workings of gold based on mathematics, cryptography and computer science. The bitcoins can be regarded as a superior iteration of non-counterfeit gold that functions as digitally divisible and easily exchangeable hard money.
It is decentralized digital solid cash. It operates independently without banks outside the current centralized monetary system of banks. Bitcoin is the money of the free market. In a free market, people store their wealth in solid money that is the most difficult to counterfeit and manipulate. In the past, that was gold. However, gold was centralized and usurped by the banking system and taken out of circulation by governments. This gave the banking system under the leadership of the central bank a monopoly over unlimited money creation. Money is no longer backed by gold (property). It is unsecured fiat money (debt).
Bitcoin competes with this central bank fiat monopoly money. Bitcoin dis-intermediates the money market in the hands of the banking system over which the central banks have a monopoly. This monopoly was abused, causing the value of all unsecured money (fiat currency) to be eroded further and further through financial repression. The purchasing power of each currency decreases every year; the accumulated wealth of citizens is falling, and saving has become meaningless. Bitcoin is a solution to this problem.
Bitcoin separates the state/bank/human being and the corrupting power over the workings of money. This global Internet and information age is an objective non-falsifiable, uncensorable, nor corruptible decentralized monetary base. It is the most significant economic invention since precious metal was introduced as an intermediate scarce financial commodity that can serve as an objective, apolitical monetary base for international trade.
Bitcoin is scarce. A maximum of 21 million bitcoins can be put into circulation. They are the absolute scarce and largest monetary units of the Bitcoin network. Bitcoin is divisible. There is enough bitcoin for everyone. 1 Bitcoin consists of 100 million Satoshis (SATs). This is the minor digital monetary asset and fundamental unit of account of the Bitcoin network. When you buy bitcoin on an exchange or use it in transactions, calculations are made in this smallest unit of account of bitcoin. The bitcoins can also be used as digital cash with a Bitcoin app from the
smartphone within an indestructible decentralized computer network. This network is based on a public protocol similar to the internet protocol stack.
In the same way that the Internet operates on a protocol for exchanging information, Bitcoin exchanges monetary value. Hence the English nickname for Bitcoin:” the Internet of money”. Bitcoin can be considered the newest layer and addition within the internet protocol. It is also known as “Money over IP (MOIP)”; however, “Gold over IP (GOIP)” is more appropriate.
The transactions are securely encrypted and recorded in a distributed digital cash book (the blockchain), a cash book that is co-protected by a globally distributed Bitcoin mining sector. This sector converts cheap surplus energy into bitcoins as well as unbreakable network security. Bitcoins cannot be cracked, confiscated, censored or printed.
The Bitcoin value proposition as a new superior iteration of gold without rulers, as a digital form of hard essential money on the Internet, is often misunderstood. However, with more and more investors, the penny drops. Still, it will take time for Bitcoin to gain a larger market cap towards gold. As a result, Bitcoin will increasingly act as a stable store of value in the future. For this, Bitcoin must first match the market capitalization of gold and obtain a rate of $500,000 per Bitcoin. The market cap of Bitcoins is tiny compared to all other money markets. After all, the market capitalization of gold is about $10 trillion, and it will take time for Bitcoin to partially or perhaps completely replace the role of gold within the current monetary banking system.
Ethereum – Crypto to buy now
Ethereum is the most popular blockchain platform with the most adoption and users. It works as a distributed supercomputer for programming distributed applications and organizations using smart contracts. To use the network and to be able to program, ETH is required to pay the transaction costs. Ethereum should be considered an experiment. It is a risky investment as the current version of Ethereum 1.0 is not scalable and does not suffice in code and protocol to provide a secure foundation for global adoption of the current DeFi movement. The network scalability and capacity issues will be resolved with the Ethereum 2.0 release.
Many investors buy Ethereum because they believe in the future of the project. They invest with venture capital that they are willing to lose. They hold Ethereum for the long haul, like passively earning a reward in ETH by staking it on Ethereum 2.0. Quitting Ethereum is a way to make a return on the initial investment automatically. Should the implementation of Ethereum 2.0 succeed, it will be a much better experiment with good prospects to effect a decisive technology turnaround in today’s world of finance.
Cardano – Best crypto to buy now
In the first place, you have to take into account that there is no Cardano cryptocurrency. Cardano is a modular blockchain development platform with a separate payment network for
the ADA’s internal cryptocurrency. ADA is Cardano’s cryptocurrency. Cardano is a development project under the direction of Charles Hoskinson based on proven scientific principles. His team, company, and community are working to realize a new (third) generation blockchain technology.
It is important to underline that the project has suffered many delays and is not yet fully ready for use and operation. This makes buying ADA a speculative investment, although the project is potentially very promising. The most successful blockchain project that is fully operational at the moment is Ethereum. Should the Ethereum community fail to make Ethereum scalable through the Ethereum 2.0 upgrade, the Cardano project will benefit.
Recently, Cardano has successfully implemented the important Shelly update that now allows ADA holders to stake ADA and start and manage a stake pool themselves for a reward. Perhaps the patient investor will eventually be rewarded.
Ripple – Best cryptocurrency to buy now
More and more investors are buying Ripple or instead Ripple’s internal cryptocurrency, the XRP. Investors are increasingly buying the XRP as more and more banks and financial institutions use the Ripple software and Ripple’s globally distributed payment network (RippleNet). Banks can significantly reduce transaction processing costs, optimize cross-border payments and increase competitiveness by leveraging Ripple’s blockchain and cryptocurrency technology. RippleNet competes with the outdated and controversial SWIFT network. Ripple could potentially play an important role in modernizing international payments. Ripple has also built significant partnerships and relationships with banks and financial institutions around the world.
Hence, many investors have a very positive outlook for the Ripple company and therefore buy the XRP cryptocurrency as a speculative investment. However, there are risks associated with buying XRP as a speculative investment. Ripple is a fintech company, and XRP is not comparable to Bitcoin’s value proposition from a monetary perspective.
Polkadot – Best crypto to invest in
Polkadot is an ambitious project led by Gavin Wood. Operated by Web3 Foundation, the project enables the development of scalable p2p applications, organizations, businesses, economies – entire digital societies – without central institutions that we are forced to put our trust in. Polkadot’s architecture and design offer many different advantages over legacy blockchain networks.
Aside from the technological prospects and a bright outlook for Polkadot, the DOT cryptocurrency is simply essential to the network:
The Polkadot protocol features a Nominated Proof of Stake consensus algorithm for updating and securing the Polkadot Relay Chain. DOT tokens are needed to secure the network. Staking allows DOT holders to earn compensation using staking pools within a unique nominator– validator staking model.
Furthermore, DOT must be used to build and maintain the Polkadot park chains linked to the Polkadot Relay Chain. This is called bonding.
DOT is also needed to be able to perform transactions on the network. Finally, DOT plays an important role in Polkadot’s governance model.
Hence, DOT is an essential component for the proper functioning of the Polkadot network. The more developers and companies join the network, the greater the network effect and the greater the demand for DOT. Should Polkadot succeed and become a huge success, the price of DOT could rise significantly in the future.
There is about 1 billion DOT available with an annual inflation rate of 10%. Just as Bitcoin is divisible up to 100 million sats, DOT is further divisible to 10 basis points after the decimal point. The smallest unit of a DOT is called a Planck. 1 DOT consists of 1 billion Planck. Do you want to stop DOT and earn extra automatically? You will have to buy DOT first.
Polkadot is a new technology, and buying DOT is a speculative investment. The price is volatile, and trading cryptocurrencies is risky. Always start with a good understanding of Bitcoin first. Always begin with bitcoin before you start speculating in other more risky cryptocurrencies such as DOT.
Uniswap – Best crypto to invest in 2022
In total, 1 billion UNI tokens will be distributed over four years, of which 60% will be given to the community of users for free. 21.51% of all UNI tokens will go to the development team and new employees, 17.80% of the UNI tokens will go to the investors, and 0.069% of the UNI tokens will go to the project advisors. Uniswap users who have provided liquidity to Uniswap in the past are entitled to free UNI tokens based on a snapshot on September 1, 2020. 15% of all UNI tokens were provided to loyal liquidity providers. After four years, the onward distribution of new UNI tokens will be continuous with an inflation rate of 2% per year. The UNI tokens are based on Ethereum’s ERC-20 token standard
Litecoin – Best cryptocurrency to invest in
The first Litecoin LTC ETP has been launched on the Nordic Growth Market (NMG), a subsidiary of Borse Stuttgart. This LTC ETP has been developed in collaboration with XBT Provider. The LTC ETPs will be readily available to clients who have an investment account with Nordnet or Avanza.
An LTC ETP is an open-ended investment listed and traded on the stock exchange and is settled as a stock. It is a passive investment where Litecoin returns are replicated by tracking an underlying Litecoin price index. In this way, investors with a traditional investment account can speculate with the Litecoin price without buying the underlying Litecoins on a crypto trading exchange.
Chainlink – Top crypto
ChainLink is a promising DeFi project that aims to build a good oracle network involving many collaboration partners. LINK is the internal token of the ChainLink oracle network under construction. More and more investors are buying LINK as a speculative investment on the success of a new DeFi sector where the ChainLink Project as an Oracle Network will play an important role. The DeFi sector needs Chainlink, and there are few alternatives. Chainlink has more than 200 collaborations, and 30 projects are already using the technology.
The 1 billion LINK tokens were put into circulation after the ICO of ChainLink in 2017. In total, 350 million of the 1 billion LINK tokens have been distributed to investors. Three hundred million of the LINK tokens will be held in the treasury of the company SmartContract ChainLink, Ltd. (“SCCL”) reserved for development costs, and 350 million LINK tokens will be distributed to the Node operators launching oracle APIs on the ChainLink network. The LINK token is used within ChainLink to compensate developers of oracles. When a smart contract uses a predictor for external data input, this will have to be paid for in LINK. As the network grows, the demand for LINK tokens will increase. A disadvantage is that it is not clear whether the LINK tokens have a hard cap. In principle, SmartContract ChainLink, Ltd. (“SCCL”) to issue new LINK tokens. The LINK token is built based on Ethereum’s ERC-20 token protocol. The Chainlink organization directly or indirectly manages most LINK tokens to develop the network and the payment of the nodes.
The Chainlink nodes within the network must be paid in LINK. Furthermore, LINK is needed for staking, collateral and guarantees in a smart contract. Nodes hold LINK as a stake making them more critical. The nodes don’t just sell LINK. Furthermore, nodes will have to buy additional LINK if the value of their stake is less than $100. As a result, the network of Chainlink nodes mainly holds the LINK and may only sell the LINK they obtain as a transaction fee for the service provided. As long as the Chainlink network thrives, is put into use, and the organization does not dump LINK on the market, there is a scarcity effect that encourages a price increase. Especially during a bull market in the valuation of DeFi tokens. However, the extent to which the nodes and the organization will hold LINK during bad times and a bear market. During a bear market, many DeFi projects will have to sell their LINK tokens. It is expected that the LINK holders will diversify their portfolio across bitcoin, ethereum and USD stablecoins. Keep this in mind. Don’t forget to take profit in time with speculative investment in LINK.
Conclusion – What crypto to buy 2022?
Investing in crypto coins such as bitcoin, ether, and other altcoins are becoming increasingly popular. This is a favourable development, but it also raises the barrier to entry. If you are a novice investor or investor, do not be led by a sudden rise in prices, but first, study the possibilities and possible pitfalls.
It is difficult to say which cryptocurrency will rise because several factors often determine the final price. By the way, don’t let them use of technical terms such as smart contracts and leverage stop you from investing. Investing in bitcoin or altcoins can be very lucrative, but it is not for everyone.
