The financial markets across communities have been evolving since the introduction of cryptocurrency in 2009. Today, investments do not remain as traditional as they used to be.
Unknown to many in the beginning, cryptocurrency has come a long way and overcome many challenges. Bitcoin (BTC) is now the world’s largest cryptocurrency by market capitalization, thanks to its positive adoption and profitability.
In addition, cryptocurrency offers a lot more to its users. Crypto experts believe that over 10,000 cryptocurrencies are circulating in the crypto market which can make it difficult for you to decide the right type of crypto you want to add to your profile.
Let us find out which cryptocurrencies you should buy in 2022 to make handsome money.
What is Cryptocurrency?
When you are investing, the first thing you need to do as an investor is to understand the asset comprehensively. This practice is more important with cryptocurrency because it is a relatively new type of currency which needs to be explored.
Cryptocurrency can be defined as a digital or virtual currency that exists on blockchain technology. For the maximum safety of its customers, blockchain is protected by cryptography which consists of complex mathematical problems that are hard to break.
You can also take cryptocurrencies as a peer-to-peer payment method system that is free from the influence of any third party like a bank or any government. No one can interfere with your crypto wealth because cryptocurrencies are unregulated currencies that operate freely.
You can buy cryptocurrency through a crypto exchange platform. In addition, there are multiple ways to enter the crypto business such as buying crypto shares or becoming part of crypto holdings.
To store your crypto wealth, you get a crypto wallet that is online on the crypto exchange or you can store your cryptocurrency in an offline wallet.
Carl Runefelt, alias, The Moon, is a global crypto leader who has invested in more than 350 crypto startups.
He says, “Obviously, gold is also extremely safe. But I would say that Bitcoin is safer because of course, it’s online no one can just steal it or hack it. Gold, it is actually a little bit risky to keep it because it is so easy for someone to just break in and steal it. Bitcoin is harder, so in times of uncertainty, I think Bitcoin is going to prove to be very strong.”
Best Cryptocurrencies to Buy
Cryptocurrency has become extremely popular in the past few years and many investors are investing in it.
But the available large number of cryptocurrencies can be challenging for you.
Here are some of the best cryptocurrencies you can buy this year.
Bitcoin, the most popular cryptocurrency in the market, is the first-generation digital currency with the largest market cap. The value of BTC has increased manifold over the years, thanks to its positive adoption and profitability.
Bitcoin has been the trendsetter in the crypto market, inspiring other currencies to grow and follow its path. BTC comes with a finite supply because its protocols are designed in a way that only a limited number of Bitcoin can be traded to ensure an inflation hedge.
The current price of Bitcoin is $16,458 (as of November 2022).
The first alternative to Bitcoin that you can buy this year is Ethereum or ETH. Ethereum has always been the second most popular choice for crypto investors because of its remarkable performance.
Carl, on his YouTube channel, The Moon, says, “I had gotten some nice profits from my Ethereum holdings for a long time. I have been holding Ethereum for multiple years.”
Ethereum is a decentralized software platform that is a favorite for smart contracts and decentralized applications. Launched in 2015, ETH is the second-largest cryptocurrency after Bitcoin.
You can buy Ethereum at $1,185 (as of November 2022).
When it comes to versatility, cryptocurrency offers a remarkable opportunity to investors. To ensure enhanced safety, the value of some cryptocurrencies is tied to fiat or traditional currency and they are called stablecoins.
Tether is a stablecoin and it is backed by fiat currencies like the U.S. dollars and the Euro. In theory, this implies that the value of USDT is more consistent as compared to other cryptocurrencies.
This also makes Tether one of the favorite cryptocurrencies for investors worldwide.
The current value of Tether is $1.
The crypto market has grown immensely, and investors are not leaving any opportunity to invest in cryptocurrency.
The availability of thousands of cryptocurrencies allows you to become part of the crypto business quite easily.
You can buy any of the above-mentioned cryptocurrencies this year to start your crypto profile comprehensively.
Hello, my name is Adil Memon and I am a blogger. I enjoy writing about technology and fashion topics. When I’m not blogging, I can be found playing cricket or spending time with my family.