The crypto market is growing at an unprecedented rate, and so is crypto adoption. More and more people are jumping on the crypto bandwagon to take advantage of the opportunities provided by virtual currencies. There are over 19,000 cryptocurrencies in the market. The recent downfall of stablecoins has demonstrated that cryptocurrencies are highly volatile. And thus, it is crucial to understand which cryptocurrencies are worthy investment tools and which aren’t. For most people, cryptocurrency is a vehicle of investment. Beginners often struggle to understand and decide which cryptocurrencies to invest in when starting out. We all have been there where we don’t know where to invest. This guide will help you understand the best cryptocurrencies you can invest in right now. This guide will give you an overview of the most prominent cryptocurrencies and their growth potential.
One of the top cryptocurrencies to buy today is Ethereum (ETH). After Bitcoin, it is the second-largest virtual currency by market capitalization. Ethereum is a good investment because of its robust decentralized applications (Dapps) ecosystem. It has dominated the market ever since it was established as the first-ever Dapps blockchain in 2015. Most of the advances in the crypto world, including Dapps, Decentralized Finance (DeFi), or non-fungible tokens (NFTs), operate on the Ethereum blockchain. The value of Ethereum will go up as more utilities are discovered. The Ethereum network is working on the Ethereum 2.0 upgrade, which changes its consensus mechanism from Proof-of-Work (PoW) to Proof-of-Stake (PoS). The upgrade will drastically cut the energy consumption required for Ethereum mining. The upgrade will also address scalability and security issues, making Ethereum more robust than ever. Many institutional investors are bullish about Ethereum’s growth potential.
Bitcoin is the most popular cryptocurrency in the market. It has almost become a household name. With the largest market capitalization, Bitcoin is the undisputed leader in the crypto world. Many businesses and stores already accept payments in the form of Bitcoin. Even banks consider Bitcoin a “legitimate asset class” with plans to include Bitcoin transactions within their offerings. Big players like JPMorgan and Goldman Sachs are actively exploring this possibility. Last year, Tesla started accepting Bitcoin as a form of payment for its electric cars; however, it was soon taken by Elon Musk due to concerns about Bitcoin’s energy consumption. Tesla has hinted that it will accept Bitcoin again when it becomes environmentally friendly. Tesla is even powering a solar array battery for a Bitcoin mine in Texas.
Additionally, many countries are making progressive steps to legitimize Bitcoin. For instance, last year, El Salvador made Bitcoin a legal tender in the country. Such progressive mainstream adoption makes Bitcoin a smart investment. However, this does not mean that the value of Bitcoin does not fluctuate. So, it might not be a wise option for those looking for a short-term investment, but it is an excellent choice for long-term investment due to its increasing adoption and legitimacy worldwide.
Binance Coin (BNB)
Binance Coin is the native cryptocurrency of Binance, the world’s largest cryptocurrency exchange by volume. It is primarily used for paying fees on the exchange. Binance offers discounted fees to its users who use the Binance Coin to pay its fees. BNB is one of the cryptocurrencies with the highest utilities in the crypto market because of the enormous Binance ecosystem, including Binance Smart Chain. The value of the Binance Coin skyrocketed when it reached $683 in May 2021 from $38 in January 2021. Due to its high utility and relatively stable performance, some experts suggest that its value may hit $1000 in 2022. However, this does not mean that the coin is free of volatility. It is still a highly volatile investment.
Cardano is also one of the top cryptocurrencies you can invest in. Cardano is a blockchain network – one of the biggest competitors of Ethereum. Cardano’s security features make it a unique investment. Cardano’s Ouroboros Proof-of-Stake consensus mechanism has proven more scalable, secure, and decentralized. While the Cardano network developers are still working to improve many of its features, ADA is one of the most popular cryptocurrencies to buy. It introduced Smart Contracts in 2021, providing a healthy ecosystem to the Dapps. Many experts and advocates predict that its adoption will grow in the near future. ADA’s value will grow as its utility within the Cardano ecosystem increases.
Shiba Inu (SHIB)
Shiba Coin, or “dogecoin killer” (named by its fans), became the top memecoin in 2021 when its value increased by over 48,000,000%. However, it has dropped down after that peak. But it has the potential to explore again in 2022. The hype around Shiba Inu was triggered by its rival memecoin called Dogecoin. Since then, it has formed a dedicated fan base and decentralized network of supporters committed to the coin’s growth. Last year, the Shiba Inu team (popularly called the Shiba army) launched a decentralized crypto exchange for trading Shiba Inu and other cryptos. This year, the team made a bold move by introducing the Shiba Inu metaverse. Given so many lucrative advancements and a proactive team, the coin will significantly grow in the near future.
Avalanche is a decentralized applications (Dapps) platform that received a lot of attention due to the launch of several Dapps and NFTs. In 2020, Avalanche gained a lot of popularity as one of Ethereum’s top competitors. Its scalability and low costs provide the platform with a cutting edge. It can handle around 4500 transactions in one second at meager costs. Avalanche has demonstrated tremendous potential for growth. In 2020, its price was just $2.79, while in 2021, it reached an all-time high of $146.22. Avalanche’s strength lies in its network stability, making it a popular choice for investors. Experts suggest that Avalanche will remain one of the top-performing cryptocurrencies this year as well.
There are many other cryptocurrencies growing in size and popularity. We recommend doing extensive research before investing anything. If you are interested in knowing more about cryptocurrency investing, check out our blog!