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8 Best Cryptocurrencies To Invest In The Next Months
Bitcoin, Ethereum, Ripple, Litecoin, EOS, Cardano, Stellar Lumens and IOTA are the best cryptocurrencies to invest in the next months with high potential.
The Bitcoin⚡️ Energy Standard
November 10, 2022
Table Of Content
Content
Conclusion
FAQ
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Cryptocurrency, or virtual currency, is a kind of electronic currency that is neither issued nor regulated by any central bank or government. Instead, it uses the same blockchain technology that Bitcoin uses to power its network. More and more opportunities arise as digital currency gains popularity on Wall Street. Today, you may buy or sell more than 21,000 different cryptocurrencies.
While bitcoin may be used to make purchases, it is more often seen as an investment. The freefall across cryptocurrencies this year, even stablecoins tethered to the U.S. dollar, demonstrates, however, that volatility makes investment in cryptocurrencies perilous. Before investing, it's wise to do some research and find out the specifics.
Given this, the following are the eight best cryptocurrencies to consider investing in for 2022.
1. Bitcoin (BTC)
Bitcoin is the first and longest-running cryptocurrency. Its price and market size are far larger than those of any other cryptocurrency investment choice, making it obvious why it is the market leader.
Bitcoin is a promising cryptocurrency investment since it is accepted by a growing number of merchants. Bitcoin transactions are possible using services like Visa. Stripe, in conjunction with OpenNode, now enables business owners to settle transactions and convert payments to bitcoin after a four-year absence from the cryptocurrency market. Major financial institutions have also started to support bitcoin transactions.
Bitcoin was temporarily accepted by Tesla, but if its mining became more sustainable, the company may do so again. CNBC reported on April 8 that Blockstream and Block, previously known as Square, were planning to construct a bitcoin mine in Texas that would be powered entirely by Tesla's solar array and Megapack battery.
In May, the Luna Foundation Guard bolstered bitcoin by announcing it would lend $1.5 billion in bitcoin and terra USD to strengthen the latter currency, as reported by Fortune. In addition, VanEck hopes to launch a bitcoin ETF. The company's first application was rejected by the Securities and Exchange Commission, and the SEC has postponed making a judgment on the company's most recent application until October 11. No word on the result has been made public as of yet.
Risks of Investing in Bitcoin
Bitcoin's value is notoriously volatile. In any one month, the cost might fluctuate by several thousand dollars in either direction. Thus far in 2018, this has been the case, as CNBC reported that bitcoin prices have connected with the Nasdaq, disproving the hypothesis that bitcoin would act as a hedge against inflation.
You may want to steer clear of bitcoin if you get worried easily due to market volatility. Otherwise, these changes shouldn't be too troubling, so long as you remember that bitcoin might be a prudent long-term investment.
The high cost of Bitcoin is another factor to think twice about. Because of the high price of bitcoin (now over $20,000), most individuals can't afford to acquire them in their entirety. This is bad news for traders who would rather not have to acquire a fraction of a bitcoin.
2. Ethereum (ETH)
Ethereum is a platform for deploying smart contracts and decentralized applications, such as digital currencies. Ethereum's value is somewhat lower than Bitcoin's, but it is significantly higher than any of its rivals.
Despite its late entry into the market, Bitcoin has surpassed all others in popularity because of its groundbreaking technology. As of this writing, it is the most widely used blockchain and the second-biggest cryptocurrency (behind bitcoin).
Now that an enhancement codenamed "The Merge" has finished rolling out, it hopes to gain much more momentum. With the September update, Ethereum switched to a proof-of-stake consensus, reducing the total number of currencies in circulation and rendering mining obsolete.
Since the merger, Ethereum has been able to significantly lower its energy use. According to Fortune, ETH prices spiked by about 50% in the final two weeks of July as investors anticipated the update, but then fell in August as the upgrade's expected release dates passed. When September hit its midpoint, ETH prices started to rise again.
While ether hasn't caught on quite as much as bitcoin has, established businesses are beginning to use it. According to The Wall Street Journal, financial services firm Fidelity is increasing its headcount in the technology sector in order to set up the systems essential for providing Ethereum custody and trading services to its clients.
Ethereum Investment Risks
While the merger significantly reduced Ethereum's power consumption, it did little to address the network's sluggish transaction times or prohibitively expensive gas prices. There is presently just one "channel" for making purchases on the site. If the network is busy at the time of the transaction, it may take longer to complete. The costs associated with making a transaction are likewise quite substantial. Ethereum users will have to wait for "sharding," which, as explained by CoinDesk, is like adding lanes to a freeway, to be implemented before any progress can be made in this area.
Some people are becoming restless while waiting. Such a move is being made by the cryptocurrency derivatives market Dydx, which will operate on its own blockchain.
3. Binance Coin (BNB)
Binance Coin's price went from about $38 on January 1, 2021, to a record high of $683 in May of that year, after being reasonably stable for many years, at least in the context of other cryptocurrencies.
When compared to other investment options, Binance Coin has proven to be highly consistent due to its performance over time.Binance, the biggest cryptocurrency exchange in the world according to CoinMarketCap, and Binance.US, the version U.S. citizens must use, both utilize this token as its native currency. But despite its vast functionality and the currency’s success in Binance sub-projects, Binance Coin is still a very risky investment.
BNB has an advantage over other cryptocurrencies due to the fact that every three months, Binance destroys all of its coins by burning them. The latest burn on October 13 that eliminated over 2 million tokens, or roughly $600 million in value, had little immediate impact on prices, but controlling the quantity of tokens may have a beneficial effect in the long run by increasing scarcity. There is a maximum of 200,000,000 BNB coins in circulation, with only 80% actually in use at any one time.
Risks of Investing in Binance Coin
Although being the native cryptocurrency on the biggest exchange in the world may "legitimize" Binance Coin, it also leaves it particularly exposed to regulatory difficulties. According to Fortune, BNB dropped 7.3% in value in June when news came of a Securities and Exchange Commission inquiry into whether Binance followed the correct processes in its 2017 initial coin offering.
4. Cardano (ADA)
One reason why investors like the Cardano network is its smaller footprint. Cardano transactions use less power than those on Bitcoin's bigger network. As a result, transactions may be completed quickly and at reduced cost.
Cardano "hard forked" last year, which is an update that adds new features and, in this instance, makes smart contracts possible. According to Mint, on September 22nd, a new hard fork dubbed "Vasil" was released with the intention of making the Cardano network more scalable.
AdaSwap, a platform for creating decentralized financial applications, was recently released as a test version by Cardano. With AdaSwap, Cardano may be recognized as a Web3 network, which would boost its value. Forbes ranks Cardano's non-fungible-token protocol as the third biggest in the world, despite the fact that the currency itself is ranked ninth in terms of market value.
Cardano Investment Risks
Cardano may not be able to compete with bigger cryptocurrencies despite having a superior network and the improved functionality provided by smart contracts. When there are fewer users, there are also fewer people working on improving the platform. Most investors would rather see widespread use before putting money into anything.
While the platform's goals are lofty—for example, it aims to build an incubator to help Africa become a significant economic power—whether or not it can really accomplish these goals remains to be seen.
5. Polygon (MATIC)
Polygon was developed by programmers who made important changes to the Ethereum network. According to CoinMarketCap, Polygon was created with the goal of improving Ethereum's scalability and supporting infrastructure. Expanding Ethereum into a multi-chain system, this "layer two" method boosts the speed of transactions and verifications.
Binance and Coinbase, two major cryptocurrency exchanges, support Polygon. The MATIC token may be exchanged for its services as well as utilized to pay transaction fees and settle financial transactions.
Polygon zkEVM, "the first Ethereum-equivalent scaling solution that works smoothly with all current smart contracts, developer tools, and wallets," was released on July 20 with the use of zero-knowledge proofs, a kind of encryption that reduces transaction costs and increases throughput.
Based on a message from the official Polygon Twitter account, the number of decentralized apps hosted by Polygon has increased by more than 400% since the beginning of the year and now includes offerings from firms like Meta and Stripe. Polygon also endorses the tether stablecoin, which may help the network expand in the future. Its efforts to become carbon neutral have also contributed to price increases.
Risks of Investing in Polygon
CoinDesk reported late last year that Polygon has corrected a vulnerability that had exposed nearly $20 million worth of its currencies to potential loss. When the hacker reported it, Polygon responded quickly and implemented a solution within two days. Unfortunately, more than 800,000 tokens had already been stolen by malicious hackers, leaving Polygon with a bill of nearly $1.4 million.
6. Terra 2.0 (LUNA)
According to CoinMarketCap, worldwide payment systems on the Terra Classic blockchain were powered by stablecoins, or coins tied to fiat currencies like the U.S. dollar, the South Korean won, and the Special Drawing Rights currencies of the International Monetary Fund. The price of stablecoins on the blockchain was anchored by their original currency, currently denoted by the sign LUNC.
However, Terra's good year came to an end in early May, when the cryptocurrency collapsed and burned due to stablecoin volatility and general skittishness in cryptocurrency markets. This caused various crypto businesses to go bankrupt.
In the wake of the meltdown, Terra renamed the previous network as Terra Classic (LUNC) and released Terra 2.0 (LUNA), a new blockchain without an algorithmic stablecoin, in an attempt to stabilize the Terra ecosystem and enable investors who lost money to regain part of their investment. Trading of LUNC currencies is done independently of the LUNA coins that come with Terra 2.0.
Terra 2.0 Investment Risks
The introduction of Terra 2.0 was met with skepticism, and experts are still debating whether or not it has a bright future. However, if you have a high risk tolerance, the network's native currency may be worth keeping an eye on since numerous new projects have already started on it.
However, LUNC wasn't CEO of Terraform Labs Do Kwon's first stablecoin to fail. According to CoinDesk, his 2020 Ethereum-based cryptocurrency, "basis cash," never achieved parity with the U.S. dollar. On November 1st, the price was $0.0049.
7. Avalanche (AVAX)
Binance describes Avalanche as a "layer one" blockchain, which means it enhances the system's foundational protocol to make it more scalable. According to CoinMarketCap, it was developed by Ava Labs and computer experts from Cornell University, including former professor Emin Gün Sirer, a seasoned researcher in the field of cryptography.
The three blockchains that make up Avalanche can independently verify transactions. This makes Avalanche very scalable, with the capacity to process up to 6,500 transactions per second. Therefore, it is becoming more and more common in Ethereum projects, especially in the United States. In the news as reported
Moreover, Bloomberg reported on April 7 that avalanche has surpassed ether as Terra's reserve currency for its own UST stablecoin. The terra-supporting NGO Luna Foundation Guard planned to spend $100 million on avalanche equipment as part of the effort.
In 2020, AVAX started trading after an ICO that lasted for only 24 hours. During the previous 12 months, its price ranged from $13.79 to $146.22. The price of the coin as of November 1st was $18.85.
Risks of Investing in an Avalanche
In 2018, Sirer published a white paper introducing cryptocurrency. The year 2020 saw its debut. Avalanche is a riskier investment than similar technologies since it has a shorter track record against which to measure its success.
8. Chainlink (LINK)
According to CoinMarketCap, Chainlink is a decentralized oracle network that aims to make it easier for blockchains to interact securely with external data feeds, events, and payment methods. This, in turn, is expected to pave the way for smart contracts to replace traditional digital currency as the preferred method of digital payment.
According to Benzinga, Chainlink has a leg up on the competition because of its strategic agreement with Google, which sees the latter employ Chainlink's protocol to link customers to its cloud services.
Truflation, a decentralized financial startup, has developed a new inflation index to compete with the Consumer Price Index, and they've decided to use Chainlink to do it. According to CoinDesk, Truflation's index mixes pricing data with the CPI's computation approach to calculate inflation instead of survey data. The objective of developing the truflation index was to create a replacement for the CPI that would be more precise, open, and able to withstand censorship.
Former Google CEO Eric Schmidt, DocuSign creator Tom Gonser, and former LinkedIn CEO Jeff Weiner are all on the advisory board for Chainlink Labs.
Risks of Investing in Chainlink
Chainlink has the same volatility as other cryptocurrencies, despite its usefulness and the backing of large entities. It was over $20 on January 1st, but had dropped to around $7.75 by November 1st.
Advice
Don't stop learning about the market once bitcoin is an option; otherwise, you can end up making a bad investing decision. It would not be hard for a new cryptocurrency network to surpass existing ones and take the top spot. The best thing you can do as an investor is to keep up with market news.
Rating the Top Cryptocurrency Choices
Anybody interested in investing in cryptocurrencies needs only do a short web search to get hundreds of suggestions. We took into account the following criteria while selecting our top eight choices:
Longevity
Can you tell me how long the cryptocurrency has been in existence? While it's impossible to completely rule out the introduction of brand new cryptocurrencies, looking into the company's performance in the past will give you a better idea of what to expect in the future.
Prior Performance
How would you rate the company's success during its many years in operation? Consistency in pricing is a positive indicator of the economy's health. In addition, it would be great if you could see that the cryptocurrency was gaining popularity and increasing in value over time.
Good to know
Results from the past may not guarantee a similar outcome in the future. An investment's future performance may be better or worse than its historical average depending on a variety of factors.
Technology
In terms of ease of use and safety, how does this platform stack up against the competition? The speed at which financial dealings may be made should be your top priority. Ideally, the network would have no trouble processing all the traffic associated with financial transactions.
You should also make sure your money is safe. As blockchain technology is used by the vast majority of cryptocurrencies, all transactions can be easily seen and verified. There is no guarantee that using blockchain would make it more difficult for hackers to steal your bitcoin. If you fall victim to fraud, you may easily trace your investment and get your money back.
Probability of Adoption
How many other individuals are putting money into the cryptocurrency you're considering? More users using a cryptocurrency indicates that it is more widely used and, hence, more liquid. Making a profit by trading, selling, or spending will become easier.
Conclusion
Without a shadow of a doubt, virtual currencies will remain a fixture in the financial system. Where exactly in the market would you recommend putting your money?
Keep in mind that bitcoin isn't a get-rich-quick scheme if you're just interested in investing and not using the network for transactions. Take the long view and think of it as an investment.
FAQ
Which cryptocurrency has the highest return on investment now?
Keep in mind that any cryptocurrency you're considering is a speculative investment, and that each cryptocurrency has its own set of advantages and disadvantages that might make it a great match for one investor while making it a bad fit for another. But among the eight best, GOBankingRates recommends Bitcoin as one of the "safer" cryptocurrency investments due to its extensive usage and also recommends chainlink due to its low cost and support from some of the IT industry's most prestigious brands.
In 2022, what is the most promising cryptocurrency market?
Ethereum is a good investment option for those with a high tolerance for risk. The initial excitement over a network update has subsided, but the launch might lead to enhancements that help Ethereum reclaim its competitive edge among blockchains. In the meanwhile, you may rest easy knowing that Ethereum is the second-biggest cryptocurrency in the world in terms of market value.
What is the most promising cryptocurrency?
Cryptocurrencies are very volatile and susceptible to numerous variables, such as economic circumstances, the general market, legislation, and new innovations; as a result, it is hard to predict what will happen with a specific cryptocurrency in the future. A long-term increase in value is possible for all of the currencies included here. For instance, the Polygon blockchain is able to function as a host for more than 37,000 applications despite being a very young blockchain. This demonstrates its usefulness and shows how it is able to overcome some of Ethereum's constraints. Consequently, its token has a fair chance of succeeding in the long run.
That's all for today, see ya tomorrow! If you want more, be sure to follow our Twitter (@croxroadnews)
DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.
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