The cryptocurrency market is still in its infancy stage and it is difficult to predict which coins will be the best in 2022. However, there are some coins that have shown potential and have the potential of being a good investment for 2022.
There are many factors that can affect the price of cryptocurrencies. These include but are not limited to: technological advances, changes in legislation, geopolitical events, natural disasters, and more.
Investing in cryptocurrencies is a risky move because they are still relatively new and volatile assets. With that said, it can also be lucrative if you make the right choice as prices can fluctuate wildly over a short period of time.
The Top 5 Cryptocurrencies To Keep Your Eyes
- Binance Coin (BNB)
- Polkadot (DOT)
- XRP (XRP)
How to Invest in Cryptocurrency
A cryptocurrency is a digital form of currency that is used as an alternative to traditional currencies. It is not backed by any government and has a decentralized system that can be accessed by anyone.
The process for investing in cryptocurrency varies depending on the type of cryptocurrency you are interested in.
For example, if you want to invest in Bitcoin, you need to buy it from an exchange or trade it with someone who already owns Bitcoin.
Also Read: How to start bitcoin trading in India
Which Is The Best Time To Invest In Bitcoin?
One of the most important questions that people ask is “when is the best time to invest in bitcoin?” Well, there are many factors that can affect when is the best time to invest in bitcoin.
The first factor is how much risk you are willing to take. If you are not too risk-averse, investing in bitcoin might be a good idea for you.
The second factor is whether or not you believe in the future of bitcoin as a currency and as an investment opportunity.
The third factor is what your goals are with investing in bitcoin. If your goal is to make money from short-term price fluctuations, then it might be better for you to wait until there’s been some volatility before investing.
The Top 5 Coins To Buy
Bitcoin (BTC), the first digital money, was created in 2009 by an anonymous person using the name Satoshi Nakamoto. Bitcoin, like other cryptocurrencies, is powered by a blockchain, or a distributed database of transaction records kept on thousands of computers. Proof-of-work is a cryptographic puzzle-solving mechanism used to verify transactions and ensure the integrity of the Bitcoin network, making it almost impossible for fraudsters to steal or alter Bitcoins.
The popularity of Bitcoin has led to a dramatic increase in its value. About $500 was the going rate for a Bitcoin in May of 2016. The price of a single Bitcoin reached above $44,000 as of March 1, 2022. About a 7,800% increase.
Bitcoin is also a store of value, which means that it can be used as an investment vehicle. Bitcoin has an impressive track record of being able to rise in value during times of economic uncertainty and global instability.
Also Read: 7 next big cryptocurrency
Ethereum is another popular cryptocurrency that was built on top of Bitcoin’s blockchain technology. Ethereum’s main goal was to create a platform where smart contracts could be executed and run without any downtime, fraud, or interference from a third party.
Ethereum is both a cryptocurrency and a blockchain platform, and it has attracted the attention of developers due to the usefulness of its possible applications, such as smart contracts that are triggered when certain conditions are satisfied and non-fungible tokens (NFTs).
Also seeing meteoric expansion is Ethereum. Its price increased by over 27,000%, from about $11 in April 2016 to over $3,000 at the beginning of March 2022.
Binance Coin (BNB)
The Binance Coin is a virtual currency that is used for several purposes. You may use it for trading on the Binance cryptocurrency exchange, which operates in many countries across the globe.
Binance Coin, which debuted in 2017, has now gone beyond the confines of the Binance trading platform. At this time, it may be used for buying and selling, making payments, and even making trip reservations. You may buy, sell, and trade it just like any other cryptocurrency out there, including Bitcoin and Ethereum.
In 2017, one Bitcoin was worth just $0.10. Its value reached $413 at the start of March 2022, representing an increase of about 410,000%.
Also Read: 6 best apps to buy crypto in India
Polkadot (DOT) was created in 2016 and is a one-of-a-kind blockchain interoperability standard. It also makes it possible for parachains, or parallel blockchains, to safely share information and perform transactions with one another. Independent blockchains protected by Polkadot may be developed by programmers.
Polkadot was developed by Ethereum’s primary creator, Gavin Wood. One appealing aspect of DOT is that its overall supply is not limited in any way. As an alternative, fresh tokens are always being issued.
The highest price of a polka dot was $6.30 in May 2020, while the highest price ever was $55.11 in May 2021.
This integration may change how cryptocurrencies are managed and have resulted in impressive growth since Polkadot’s launch.
Also Read: Best Bot for Crypto Trading
XRP is a digital token that can be used to process payments. It was created by Ripple, a company that aims to provide banks with the ability to send money in any currency type to any other currency type in seconds.
Ripple is a digital technology and payment processing firm, and XRP was created by some of the same people. It may be used on the Ripple network to allow trades between various currencies, including fiat currencies and other major cryptocurrencies.
The opening price of XRP in 2017 was $0.006. There has been a 12,600% increase in price to $0.80 as of March 2022.