As we prepare for 2022, here is a list of 5 coins you should invest in.
1. Ethereum – Star of the show
The Ethereum blockchain prides itself on being “the world’s programmable blockchain” capable of hosting many applications. He uses cryptocurrency to mean more than money by applying it to decentralization and disruption of various industries. Although it has followed Bitcoin’s path, it has differentiated itself by being the source of most financial services, games, and applications in the crypto space. It can maintain a secure network due to the decentralized nature of the blockchain.
The blockchain is powered by Ethereum (ETH)– its original currency. It is struck with each block and distributed to the miners. There is no limit to the amount of Ether that can be minted, and the supply is expected to increase by 4.5% each year. Two ETHs are struck on each block. Every protocol or application on the network spends ether. The more the blockchain is used, the higher the demand for ether and the higher its value. ETH is currently worth $ 4,056.72 on any stock exchange and can be purchased on any stock exchange known to man. It is second behind BTC with a market cap of $ 482.2 billion.
2. Bitcoin – expected to reach 100+
Since its launch in 2009, Bitcoin has peaked more than five times, reaching an all-time high of $ 69,045 on November 10, 2021; approximately $ 31,000 under $ 100,000. Bitcoin (BTC) is expected to reach $ 100,000 in 2022, but that milestone will depend on many factors. Bitcoin is currently trading at $ 50,186 which means if you buy now there is the possibility of making X2. One of the factors that determine the price of Bitcoin is the market demand for other assets. This implies that the higher the demand for Bitcoin, the higher the price. And with a limited supply, the closer Bitcoin gets to its limit, the more its price will rise. Besides market demand, the marginal cost of production can also affect its price. Each year, Bitcoin experiences an average growth of 200%. This has driven governments and institutions to understand all about cryptocurrency and blockchain technology. However, this resulted in more regulations that could drive the price up or down. With the current state of the global economy, Bitcoin has presented itself as the savior. Institutions, investors and governments now store value using Bitcoin. Even if the global economy stabilizes and everything returns to normal, confidence in Bitcoin will still be maintained. With the current increase in Bitcoin adoption for payment and store of value, the price will increase in the long run as demand increases. A very good example is El Salvador which used Bitcoin as a store of value.
Likewise, the increased use of Bitcoin in speculation and derivatives will affect the price. Bitcoin is now present in futures trading, making it more than a utility. All of these factors will contribute to the evolution of the price of Bitcoin in 2022. But don’t be oblivious when the price crosses $ 100,000. It is very possible. Bitcoin has a market cap of $ 948.5 billion. It is for sale on all exchange platforms.
3. BNB – the continued growth of BSC
Binance Coin (BNB) is the native token of the Binance exchange platform. It powers the Binance ecosystem. It was launched in 2017 and issued during an initial coin offering (ICO) between late June and early July 2017 for 11 cents. Fifty percent of the total offering was sold to the ICO, 10% was donated to angel investors, and the remaining 40% was allocated to the founding team. The offer is limited to 200 million BNB in circulation. It continually depreciates due to timely burn events. While engraving coins, Binance uses 20% of its income to redeem and burn BNB. This should continue until 50% of the quantity in circulation has been destroyed. This limits supply, creates a shortage and drives up prices. With the continued growth of BSC (Binance Smart Chain), demand and adoption of BNB will increase as well as its price. However, it should be noted that BNB is non-inflationary. It is currently ranked third behind Ethereum and Bitcoin, with a market cap of $ 91.3 billion. It trades at $ 543.57 on Binance, gate.io, Coinsbit, and CoinTiger.
4. Solana – Ecosystem Growing, main long-term Ethereum challenger
Solana is an open source computer network aimed at increasing the speed of transactions while ensuring decentralization. It was developed in 2017 by Anatoly Yakovenko. The Solana network can validate more than 50,000 transactions per second for less than a cent per transaction. It uses the proof of stake mining model to validate transactions, create new coins, and monitor the amount in circulation. This model allows holders to stake their tokens and become validators. As validators, they earn rewards and share transaction costs.
Due to its ability to perform the same functions as the Ethereum blockchain, many believe it can take over from Ethereum. Like Ethereum, it is able to interact with smart contracts. For this reason, it has many use cases ranging from apps and games investing to DeFi, DEX, social media, and more. An NFT project, Degenerate Ape Academy, has been launched on it. It replaces the Ethereum blockchain with the number of transactions per second, speed, transaction fees, and mining model. Unless the Ethereum blockchain takes proactive steps, these factors will help it be a worthy challenger to the Ethereum blockchain. The platform uses Solana (SOL) like its native token. This token is used to pay transaction fees and staking.
Also, it can be used to participate in the governance of the platform. Owners can vote on future updates, fixes, and proposals submitted to the community. Of the 489 million planned for circulation, 260 million SOL are already on the market. It is currently ranked 5th with a market cap of $ 61.3 billion. A SOL costs $ 198.4. It is listed on Binance, MEXC Global, Huobi Global, KuCoin, and Coinbase Exchange.
5. Terra – Fan favorite, strong use cases, finally recognized by the general public
Simply put, Terra is a blockchain where stable coins can be created. It is an open source Layer 1 protocol that enables the creation of stable coins linked to currencies or physical assets. These stable coins can be traded, spent, saved and traded on the platform.
The Terra blockchain is already gaining traction worldwide as a DeFi service provider and stablecoin payment platform. However, it continues to evolve and expand. The Terra platform uses LUNA as a native token and to maintain the stability of stable coins. LUNA’s total supply is less than one billion.
LUNA performs a variety of functions, including paying transaction fees, absorbing volatility, and staking. It is also used to participate in the governance of the platform. Holders can create and vote on proposals in the community. Terra (LUNA) costs $ 98.8, and it’s ranked 9th with a market cap of $ 36 billion. It can be found on OKEx, MEXC Global, Binance, and Osmosis.
Keep in mind that the crypto space is very risky and volatile aside from funds that you can lose. Invest wisely.