In 2022, cryptocurrency has caught everyone’s eye. The soaring prices of bitcoin and the emergence of dogecoin are making everyone invest in cryptocurrency. Most people have already made their accounts on exchange forums to buy crypto, whereas others are still trying to understand blockchain.
Cryptocurrency is built on a decentralized ledger blockchain that fosters transactions. It creates a block whenever someone trades in crypto, maintaining records and ensuring optimal security. Hence, people can think far past the concern of crypto not being safe enough. The only thing investors have to be careful of is volatility. As any centralized authority doesn’t regulate crypto, it gets exposed to market and economic changes.
Truthfully, this high volatility increases the chances of massive gains and losses. Therefore, investors must beware of market dynamics before putting their money in the crypto markets. And for that, you have to buy the right coins. Today, there are more than 2000+ crypto coins, but people are only interacting with Bitcoin and Ethereum. So, why not widen your horizons? Here we have listed 11 popular cryptocurrencies that investors should know about.
1. Bitcoin (BTC)
Unsurprisingly, Bitcoin is one of the most traded cryptocurrencies. In a very short time, it has become immensely popular. Firstly due to its usability, almost every vendor, physical store, and eCommerce platform accepts payments through Bitcoin. Secondly, Bitcoin has received immense media attention. It became a news item in late 2021, breaking all previous price records. Lastly, Bitcoin is publicly purchased by celebrities like Kanye West, making it more accepted.
2. Dai
In 2022, crypto experts suggest that investors buy dai since it is an Ethereum-based coin. The coin’s value is directly linked to the value of the US dollar, making it less volatile to market trends. Likewise, the price trend also follows the same pattern as the US dollar – easier to predict spikes and losses. Besides this, dai is enabling crypto-collateralized lending. That means you can use crypto as collateral when seeking a loan from a financial intermediary.
3. Tether (USDT)
Belonging to the group of stablecoins, Tether aims to peg its market value to a currency. Hence, they have smooth price fluctuations, which attract risk-averse investors. The system powering Tether allows users to transfer Tether from other cryptocurrencies back to USD. As of July 2022, it has a market cap of $70 billion and an immensely high token value. If you are looking for a less volatile, high-yielding coin, investing in Tether could be the best choice.
4. Binance Coin (BNB)
Unlike conventional cryptocurrencies, the Binance coin is more of a utility cryptocurrency. It operates as payment for fees associated with the trading forum. Investors tend to use this coin as a means of payment for exchange since it offers a trade discount. One thing that sets it apart from other coins is the PoS consensus model. It processes transactions using a consensus mechanism and creates new blocks in the blockchain cycle.
5. Ethereum (ETH)
Besides a cryptocurrency, Ethereum is also a blockchain platform. It has different applications, such as smart contracts that execute automatically. In addition, it also facilitates non-fungible coins (NFTs), making it a more diverse currency than bitcoin. The goal behind the invention of this cryptocurrency was to create a decentralized suite of financial products usable for everyone. As a result, it has experienced tremendous growth, with price levels increasing from $1,000 to $9,500.
6. Cardano (ADA)
Engineers created Cardano with a research-based incentive. They disagreed with Ethereum’s direction in the crypto world and developed their currency – Cardano. Researchers wrote more than 120 papers on blockchain technology to strengthen this currency’s foundation. And due to this rigorous process, Cardano has an edge among its PoS peers and other prominent cryptocurrencies. Experts believe this coin overtakes Ethereum because its blockchain model is capable of much more.
7. Dogecoin (DOGE)
Originally, people referred to this cryptocurrency as a ‘meme coin’ until it became popular in 2021. After all, two software engineers created this coin as a joke. Dogecoin has an image of Shiba Inu – an Avatar, and now it is accepted by almost every company in the United States of America. Even though the coin’s price is soaring already, it will increase even further in the coming years.
8. Polkadot (DOT)
Polkadot aims to deliver interoperability between different blockchains. It is built on a design that connects permissioned and permissionless blockchains, allowing them to work under one roof. Hence, one could say Polkadot’s core component is its relay chain since it fosters cross-collaboration. Above all, it also provides para-chains, allowing parallel blockchains to connect and create their native tokens.
9. Litecoin (LTC)
Initially, Litecoin was an alternative to Bitcoin, but its momentum has skyrocketed. Litecoin has become an acceptable medium of change across different regions. Likewise, its ultra-fast transaction processing speed and reduced transaction cost are two other catchy features. Above all, the integration of PayPal has made it possible for investors to buy Litecoin. Improved accessibility and ease of transaction features Litecoin as one of the well-liked cryptocurrencies in the US.
10. Solana (SOL)
Solana is a blockchain platform designed to facilitate decentralized applications. Like Ethereum, it can utilize smart contracts essential for cutting-edge applications such as decentralized finance and NFTs. One of the few things that differentiate Solana from Ethereum is that it can perform many more transactions per second. The currency has a market cap of $12.8 billion, but the prices are rising tremendously.
11. ApeCoin (APE)
Apecoin is one of the newest coins in the crypto world. It has an attractive price action as it exploded the market when every other coin underwent a devastating contraction. Simultaneously, it becomes famous for NFT projects, making ApeCoins more popular among crypto investors. As the coin is new, it has a lot of untapped potential; hence, it offers a promising future. Moving forward, this ApeCoin will likely fuel a value spike for the Ape token, making it one of the most favorable buys today.
Final Thoughts
Today’s crypto markets are dynamic. Every day new cryptocurrencies are emerging in the industry, unfolding new opportunities for investors. However, before you call the shots, learn about different cryptocurrencies. You have to determine your risk appetite before buying the crypto to mitigate the risk of losses. Likewise, build a diverse portfolio to save yourself from market volatilities.
