The cryptocurrency market is growing faster than ever. Anyone willing to invest their money is heading to the Crypto market, seeing it as a land of opportunity. Besides being a great option to diversify one’s investments, Crypto shows excellent potential with the increasing value and estimated market growth of certain coins.
But along with being an excellent investment arena, the crypto market offers a variety of cryptocurrencies for investors that range widely in stability and volatility. With so many choices comes confusion.
Every investor is trying to understand which cryptocurrency could make it to the top and prove to be a lucrative investment. If you are also considering making some investments, then this article is for you.
How to determine the top cryptocurrencies?
As they do in all markets, experts like to make predictions about the crypto market. But as is true of all markets, nothing is certain–just look at what happened in 2020!
With that being said, some factors still play a vital role in projecting the probable performance of a cryptocurrency. Some of these factors are listed below:
- The stability and growth of the currency as compared to its competitors.
- How widely adopted the currency is across various trading platforms and countries.
- The cryptocurrency’s plans for scaling and technological strategies for the future.
- How most investors assess the currency.
- The problems the currency solves for the financial markets and businesses.
Based on records and estimates, here are some cryptocurrencies that might be the top investments for 2022:
BTC or Bitcoin is the first and most prominent cryptocurrency. Creator Satoshi Nakamoto created it in 2009.
Bitcoin trading provides a world of opportunity to investors who want to liquidate and rotate their investments consistently.
Why should investors consider Bitcoin?
The first apparent reason for considering Bitcoin is how easy to trade it is. All crypto trading platforms allow trading with Bitcoin, which is a significant advantage to investors.
Crypto Dispensers says that Bitcoin is a fast-growing cryptocurrency with the most comprehensive adoption and is trading at USD 67,500 per coin at the time of writing. It is more acceptable across the globe, and business avenues are encouraging Bitcoin use for monetary exchange. Trading platforms like Coinbase, Binance, Kraken, and other Coinbase alternatives provide a user-friendly interface to promote the trading of Bitcoin.
What are the prospects for Bitcoin?
Billionaire Tim Draper has predicted the value of Bitcoin to rise to USD 250,000 by the first half of 2022. Having the backing of industry leaders, big investment firms, and funds, the future of Bitcoin looks promising.
Countries that have allowed the use of Bitcoin with some regulatory conditions include the US, Canada, countries in the European Union, and El Salvador. However, El Salvador is the only country that has taken a step ahead and recognizes Bitcoin as a legal tender.
Ethereum is an established name in the market on account of its smart contracts. This cryptocurrency also functions on the blockchain network. It is currently among the top options for investment in the cryptocurrency market.
The smart contracts offered by Ethereum are similar to regular paper contracts and contain conditions to be met. But unlike the contracts that are bound to centralized government currencies, with Ethereum smart contracts, there are no banks or middlemen to play the intermediary role.
Many developers utilize the Ethereum network to create offerings like security tokens, decentralized exchanges, and NFTs, also known as Non-Fungible Tokens. These Non-Fungible Tokens represent valuable and unique items like digital artwork, and the security tokens are used to represent financial assets like paper stock certificates.
Why should the investors consider Ethereum?
Considering decentralized applications, Etherium stands out to be the only option with the largest blockchain network. It has the second largest market cap and can be used for a variety of purposes.
Ethereum is among the very few digital coins that have outperformed Bitcoin. It is the first choice for the development of advanced digital currencies. Ethereum has been a popular cryptocurrency since 2015. It has proven its potential with its growth chart and keeps coming up with better versions. Each upgrade of Ethereum adds to its speed and efficiency.
What are the prospects for Ethereum?
Market experts are predicting that Ethereum might overtake Bitcoin’s market cap by 2026. By the onset of 2023, there is a high probability that Ethereum might become the top player in cryptocurrency transactions.
As for 2021, the value of Ethereum is expected to cross USD 5000 by the end of the year. This would generate a return of around 56% on the current value of USD 3411.32.
Binance Coin, also known as BNB, is the best choice for trading on the Binance exchange and avoiding fees on the platform. Binance is among the most trusted and celebrated trading platforms for cryptocurrency. Binance coin serves as the most convenient option for trading other major cryptocurrencies like Ethereum or Bitcoin.
Why should the investors consider Binance Coin?
The range of applications offered by Binance coin is a prominent reason why it is becoming a viable digital asset. It has a market cap of USD 81 Billion.
Binance coin was launched in 2017, and ever since, it has acquired the fourth position in the ranking for crypto coins according to their market cap.
When an investor purchases Binance coin, they invest in Binance – the largest cryptocurrency exchange in the world. It has its own Binance smart chain, which facilitates numerous uses in terms of payments and transactions.
There are a series of projects that are related to the Binance coin. These projects are planned for the future and will increase the demand for this cryptocurrency and its value. The market cap of Binance is expected to increase significantly in the next few months, which makes Binance coin an excellent option for investment.
What are the prospects for Binance Coin?
Binance coin is expected to reach a value of USD 500 by the end of 2021 or sooner. By the mid of 2025, the value of this cryptocurrency is likely to double according to all current trends.
According to most cryptocurrency news sources, it is expected to climb upwards of USD 800, USD 1200, and USD 1800 in 2022, 2025, and 2028.
A few other cryptocurrencies to consider, like Bitcoin Cash, Cardano, Solana, Dogecoin, Matic, and Shiba Inu, are popular among crypto enthusiasts and investors.
Cryptocurrency is a great market for investment but having a thorough knowledge of the avenue before initiating the investment. Cryptocurrencies come with a potential risk factor, and the investor must assess their portfolio and risk tolerance in advance. The Crypto market has a lot to offer, but it is crucial to strategize, evaluate, and initiate your moves to utilize the platform to the fullest.
The prospects of cryptocurrency are marvelous in the coming years, but no predictions are accurate or guaranteed. It remains an excellent decision to stay updated with the market and explore the investment opportunities that add more value to your portfolio.