Best Cryptocurrency To Invest In
The crypto markets is getting hot again, with Bitcoin touching $46,000 and claiming $43,000 as support from its low of $35,000 last month. Because of that, a lot of people are looking to invest in the crypto world again.
However, for those who are not familiar with cryptocurrencies and decentralized finance, it might be tough to get started. Not knowing which digital currency to invest in or what cryptocurrency exchange are some of the most common obstacles that prevent investors from entering this space.
Well, worry not! In this article, we will cover the best cryptocurrencies to invest in 2022 as well as how you can select what to invest in yourself by following our guides.
Which Cryptocurrency is Best to Invest in Now?
The best cryptocurrency to invest in now is Ethereum (ETH). Ethereum is smart contract blockchain and is currently number two on the market cap rank. The current price is around $3,100.00 and is down from it’s highs of $4,878.00.
Which Cryptocurrency is Best for Beginners?
The best crypto for beginners is Bitcoin. Bitcoin was the first cryptocurrency created and is the least volatile of all cryptocurrency. With that being said it is normal for bitcoin to have 10% to 20% moves in price a day so you have to be prepared for wild swings in your portfolio. By only putting in what you can afford to loose can help you weather the wild swings.
What are the Different Types of Cryptocurrency?
While both coins and tokens are both considered types of cryptocurrency, they are vastly different and are used for different purpose. Coins are generated and built on their own blockchain technology and they are used as a form of fiat currencies, meaning you can use coins to pay for goods and services, like Ethereum (ETH) or Bitcoin (BTC), for example.
Short for “Alternative to Bitcoin”, these types of cryptocurrency are built using the same basic principle that was used to create Bitcoin. Though they are built similarly and may share the same characteristics as Bitcoin, the way they can be mined or transaction processes can be very different.
Tokens, or crypto tokens, are handed out through an Initial Coin Offering, or ICO. Tokens can carry multiple forms and can be issued by a company, similar to stock. Some companies that have issued their own tokens are: Ask.fm, Telegram, and Kodak. Some of the forms that tokens may carry are:
- Value tokens: can be use as a form of cryptocurrency similar to Bitcoin or Ethereum. Other cryptocurrencies include: Dogecoin, Terra, and Binance coin.
- Security tokens: represent an ownership of a company and can be traded as securities like how stocks, bonds, and options are traded on the stock market. As such, they are subjected to more regulations from the SEC (Securities and exchange commission).
- Utility tokens: these are the least liquid type of tokens since they have very specific uses. Often type, these tokens allow the owners to purchase certain items or complete certain actions within an ecosystem/network. A utility token is unique to its ecosystem which means that it can only be used there.
Which is the Best Cryptocurrency to Buy in 2022?
The best cryptocurrencies to invest depend on your investment style. If you are a long term investor, it is usually advised that you invest in the big 2, Bitcoin and Ethereum since these are considered the most stable coins that are backed by the largest institutions. However, since they are very expensive, most people can only by a fraction of the coin and the growth can be slower and steadier than other options.
If you are a high risk investor, investing in alt coins like Dogecoin, Shiba Inu coin, or Helium could be a good idea since there are way more upside potential. However, keep in mind to do proper due diligence before buying any alt coin since the downside is also huge and you risk losing it all.
What is XRP Worth?
XRP is currently worth $0.771 as of January 7, 2022. A better way to judge price differences between cryptos is to look at market cap and the market cap ranking. The price of different cryptos can vary widely and don’t tell the full story.
Which is the Cheapest Cryptocurrency?
It’s hard to find the cheapest cryptocurrency since there are too many out there. That being said, some of the cheapest cryptocurrency are Dogecoin ($0.15), Shiba Inu coin ($0.00003127), or Bezoge($0.000000005316).
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How Do I Choose a Good Cryptocurrency?
A good cryptocurrency needs to satisfy certain conditions:
Look at how strong and loyal the community that support the cryptocurrency is. Are they easily swayed by FUDS (Fear, Uncertainty, Doubt)? Are they in it for the long run or are they just looking to make quick money? Do the communities have members that are well educated in blockchain technology and digital assets?
One of the most important aspect of a cryptocurrency are the people behind it. Here’s a few questions you can ask yourself: Do you trust the team? Do any of them have a track record in developing a blockchain project? How experienced are they? How well funded are they?
Another crucial aspect of crypto assets, the technology is what separate a cryptocurrency network from its competitor. An example of a cryptocurrency that has excellent technology is Ethereum. It is the second most popular cryptocurrency for several reasons:
- Smart contracts: simply put, they are programs inside a blockchain network that win run when certain conditions are met. They allow safe transactions between all participants without the need for a middle man.
- Ethereum network are easy to implement and integrate. In fact, many cryptocurrencies are built using Ethereum technology.
- EVM, or Ethereum Virtual Machine which allows developers to create new applications with ease.
Which Cryptocurrency to Buy Today for Long Term?
Ethereum and Bitcoin are good long term investments since they have the biggest communities and are backed by powerful financial institution. That being said, they might not have as much upside potential as some other cryptocurrencies that are cheaper.
Is It Good to Invest in Tron Coin?
Tron is not necessarily a good investment at this time because the founder of Tron recently stepped down from his leadership role to becoming an ambassador of the Grenada government to the World Trade Organization (WTO). In his open letter, Sun said that the Tron Foundation will dissolve by next year and three super nodes associated with him have retired from Tron’s technical grid this week. The 27 super representatives on the Tron blockchain will be elected by the Tron community.
What is the Highest Cryptocurrency?
The highest cryptocurrency at the moment is Bitcoin at almost 44,000 per coin which also has the highest market capitalization at $830,424,793,820.
Which is the Safest Cryptocurrency?
All cryptocurrency investments are risky. However, the more steady and long term coins are Bitcoin and Ethereum. They are the most popular coins that are backed by many financial institutions. They also have the most uses and huge communities that support and believe in them. Ethereum network is also the foundation for many alt coins which means that some coins can only be purchased using Ethereum at the moment.
What is the Fastest Growing Cryptocurrency?
The three fastest growing cryptocurrency ecosystems at the moment are Solana, Terra, and NEAR.
Final Thoughts on the Best Cryptocurrency to Invest in
Hopefully we were able to answer most of your questions. At the end of the day, the best cryptocurrency to invest in is not the one every tells you to buy but the one you personally believe in. As new regulations come out, the future of cryptocurrency is still uncertain and what is considered the best today might not be so 5-10 years down the line and vice versa.
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