Top 5 cryptocurrencies to watch in 2022
The crypto market welcomes the new year of 2022 with a significant drop of Bitcoin to the $42,000 support line. That leads to a correction of the entire cryptocurrency market. Some investors are fearing for their invested funds. Others consider it as an investment opportunity. Let’s take a glance at the top 5 cryptocurrencies worth investing in 2022 according to their market capitalization! Let’s find out with Tokenize Xchange.
Bitcoin is a decentralized digital currency that eliminates the need for intermediaries such as banks and governments, instead of relying on a peer-to-peer computer network to confirm transactions directly between users. The value of a BTC has risen dramatically from $1 in April 2011 to its ATH of $68,789 in November 2021, equivalent to approximately 6,900,000% ROI!
>>>Read more: The recent correction can be good for Bitcoin
Despite being on the edge of falling towards the $42,000 support line, Bitcoin’s appeal has not waned. The falling price is an opportunity for more investors to stock more coins.
>>>Buy BTC in Singapore
Recently, the president of El Salvador announced that this country has bought 150 more Bitcoins in the dip, bringing the total number of Bitcoins that the country holds into the hundreds. So of course, Bitcoin will still be one of the top 5 cryptocurrencies to invest in 2022.
With a market cap of over $370 billion by the beginning of 2022, Ethereum is the 2nd largest cryptocurrency, following Bitcoin. Ethereum is just one of the dozens of cryptocurrencies that have sprung up in recent years.
This project is managed and tracked using a decentralized computer network, or distributed ledger, known as a blockchain, which simply means a continuous record of all cryptocurrency transactions. The transactions are verified and the data’s integrity is ensured by computers in the network.
>>>Buy ETH in Singapore
Similar to other coins in the early stage of cryptocurrency, Etherum achieved significant price growth due to the widespread adoption of its technology and the foundation for many other projects. In particular, the conversion of the consensus algorithm from Proof of Work (PoW) to Proof of Stake (PoS) has made mining more energy efficient. Although the price is not as high as Bitcoin, most miners still prefer Etherum. Therefore, it is clear that Etherum is the currency that investors should add to their portfolios in 2022.
Solana is a decentralized blockchain with competitive features compared to Ethereum. However, one plus point of the Solana that overpowers Etherum is that it can process transactions way faster, with low costs and flexible centralized programming.
Solana’s blockchain is capable of handling up to 50,000 transactions per second, more than the total number of Bitcoin and Etherum transactions, with a significantly low cost. Developers can also code and launch applications in various programming languages on Solana’s blockchain.
>>>Buy SOL in Singapore
It can be believed that Solana is one of the most successful projects in 2021. The outstanding development of this project can be attributed to the anticipation of the NFT (Non-Fungible Token) trend, which is compatible with Solana’s blockchain.
In fact, NFT trading volume in 2021 is 30 times higher than it was in 2020, that’s why blockchains like Solana become the target of most investors. Therefore, Solana is the next token that can not miss its rank in the 5 best cryptocurrencies for investors.
Avalanche is a blockchain designed with high scalability, fast transaction processing, without compromising the level of decentralization. This blockchain consists of 3 main blockchains, naming X-Chain, C-Chain, and P-Chain.
>>>Read more: 5 things to know about AVAX
The Avalanche consensus protocol has nodes that work in parallel to randomly check validators’ transaction confirmations. After enough random sampling, a transaction is determined to be true or false. This helps the transaction speed to process up to 6500 TPS with processing time under 1 second.
>>>Buy AVAX in Singapore
The Avalanche project has got certain successes in 2021. AVAX price hit its new ATH of $146 in November 2021 and it still remained uptrend at some moments when the whole market underwent considerable drops. That is the reason why AVAX will be our next advice to diversify your portfolio in 2022.
Polkadot is a protocol designed to allow separated blockchains to communicate in safety with each other. Value and data can be transferred between blockchains without any other intermediaries. The Polkadot development team believes that transactions can be remained safe and accurate just by utilizing standard computing resources.
However, users still benefit by customizing multiple parachains for various purposes. Polkadot network processes transactions more privately and efficiently, creating blockchains that do not reveal user data or process large numbers of transactions.
>>>Buy DOT in Singapore
In general, DOT price headed up in 2021 as a result of parachain auction, which locks DOT of participants as its mechanism. These crypto coins are only refunded when the project closes and the auction is over or won but the access to parachains has expired. This leads to the reduction of the circulating supply of DOT, increases buying demand, and weakens the selling force, so it is very beneficial for the DOT price.
Hence, 2022 will be the year to launch those projects that won parachain auction. So that DOT is the last potential name on our list for this year.
All mentioned names are just a summarize of the remarkable top 5 cryptocurrencies that investors should consider for their portfolios. It is NOT investment advice! The cryptocurrency market in 2022 is still very potential for investors who know how to take the opportunities. Good luck!
Cryptocurrencies are subjected to high market risk and volatility despite high growth potential. Users are strongly advised to do their research and invest at their own risk.