The crypto industry has experienced an eventful 2021. We witnessed the adoption of bitcoin as legal tender in El Salvador, the ban on the use of cryptocurrency in China, the launch of the first cryptocurrency ETF. Today, we’re about to find out what to expect from cryptocurrencies in 2022 and investments in which coins can bring more profit. Let’s get started!
Is It Worth Investing in Cryptocurrency in 2022?
If you have learned enough about what a digital currency is and how it works, then the answer is yes! It is important to note that cryptocurrencies remain assets with an increased risk. Thus, having solid experience in crypto investments is crucial. Make sure to invest in the digital currency that meets your needs best. Of course, it also should be a cryptocurrency whose prospects are beyond any doubt.
First of all, cryptocurrencies should be pretty simple and understandable, and the mechanisms for exchanging and withdrawing funds, in turn, should not take much time. Thus, the project chosen should be promising and provide unique technologies and innovative solutions. Here are the most popular cryptocurrencies that investors should pay attention to in 2022!
2021 has been a pretty good year for bitcoin. Currently, the total market cap of the very first cryptocurrency is about $900 billion. BTC accounts for about 40% of the value of the cryptocurrency market. The digital coin has increased by almost 70% since the beginning of 2021.
Over the course of the year, bitcoin has experienced shocking ups and downs: at the end of January, it was worth about $33,000, in mid-April — $63,000, then decreased back to $30,000 in July, and in November set an all-time high of $68K.
Kraken CEO Jesse Powell said that people need to think of bitcoin as a five-year investment:
It’s up and down day to day, week to week. You don’t want to be trading this on a short time frame. It’s more of a buy-and-hold investment.
Goldman Sachs, in turn, predicts that the price of bitcoin will reach just over $100,000 when its market share increases to 50%.
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The price of Ethereum skyrocketed along with Bitcoin last year, peaking at $4K during the crypto boom in May and then climbing to a new record of nearly $5K in late October and early November. Ethereum is currently worth $3,179.
Despite being second only to Bitcoin in terms of market cap, Ethereum accounts for about 20% of the total market and could outperform Bitcoin. In particular, Ethereum has every chance to become much more energy-efficient than Bitcoin due to the switch from Proof-of-Work to Proof-of-Stake. Thus, it will be possible to eliminate the energy-intensive need to verify transactions on the blockchain through solving complex mathematical puzzles.
The Solana cryptocurrency has solved one of the biggest issues associated with Ethereum — minimizing transaction fees and costs for operations. Like Ethereum, Solana was created as a first-class platform for DeFi, excluding financial intermediaries such as banks, brokers, and centralized exchanges.
Launched in 2020, Solana accounts for a small part of the market but constantly grows. The coin price has increased from $1.51 at the beginning of 2021 to over $160. In addition, Solana is capable of processing 60K transactions per second thanks to the use of Proof-of-History (PoH) consensus.
The next promising crypto on our list is Cardano (ADA), with a market cap of $40.6 billion. ADA has shown a sharp rise in price in 2021. The token began trading below $0.20, and by early September, its price increased to $3, making ADA the third-largest cryptocurrency in the world.
Founded in 2017 by Ethereum co-creator Charles Hoskinson, Cardano is one of the largest blockchains, successfully launching a more energy-efficient Proof-of-Stake protocol. Cardano aims to create a developer-friendly ecosystem for decentralized apps. Unlike Ethereum, the number of coins of this cryptocurrency is limited to 45 billion. Luckily for investors, about 74% of the ADA supply is currently in circulation.
Contrary to its name, the Avalanche has been hot this year. At the beginning of 2021, AVAX was trading below $3 and reached an all-time high of $146 by the end of November. AVAX is now worth $89 and has a market cap of over $22 billion.
As part of the partnership, consulting giant Deloitte will deploy Avalanche to support its work with the US Federal Emergency Management Agency (FEMA). As the deal with Deloitte boosts Avalanche’s credibility, the token could reach new heights in 2022.
Today, we have considered the most promising coins for 2022, which have every chance of reaching new all-time highs in the near future. Which coins to choose is up to you!
Which crypto do you consider the most promising for investing? Feel free to share your thoughts in the comments below!
This information is provided for informational purposes only. Such information is not intended as and may not be relied upon as trading advice. Before deciding to trade cryptocurrencies, you should carefully consider your objectives, level of experience, and risk appetite. Please do your own research and due diligence on the services provided by online cryptocurrency trading platforms.