What Is The Next Cryptocurrency To Explode 2022
There are tons of coins and tokens that may spontaneously explode in 2022, but popular cryptocurrencies like Bitcoin or Ethereum will probably be the safest bet when it comes to investment potential.
Disclaimer: Please note that the contents of this article are not financial or investing advice. The information provided in this article is the authors opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
Risks Of Investing In Bitcoin
The value of Bitcoin tends to fluctuate a lot. You may see the price go up or down thousands of dollars during any month. If wild fluctuations like these make you nervous, you may want to avoid Bitcoin. Otherwise, as long as you keep in mind that cryptocurrency could be a smart long-term investment, these fluctuations shouldnt be too concerning.
Another reason to reconsider investing in Bitcoin is its price. With a single Bitcoin costing more than $48,000, most people cant afford to buy whole Bitcoins. For investors who want to avoid buying a fraction of a Bitcoin, this is a negative.
Why Crypto Is So Volatile
Crypto is worth what people are willing to pay for it.
This means that the price of crypto-assets can fluctuate at extreme levels based solely on market speculation. Factors that can influence the price of crypto include:
- media focus
- public announcements
- the actions of individuals who hold large amounts of a crypto or who influence the price through social media
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The Golden Age Of Investing In Digital Currencies Has Just Begun
- Ethereum runs the blockchain of choice for decentralized applications.
- Cardano is rapidly gaining traction as a fast and efficient smart contract network.
- Binance Coin commands decentralized finance projects worth nearly $50 billion.
Rarely has there been a more clear-cut case of free-market economics than in the blockchain cyberspace. For example, the decentralized finance industry has grown to $80 billion in total value locked during 2021 from next to nothing a few years ago, due in part to the absence of regulations. Moreover, that number is projected to increase to as much as $800 billion in 2022.
So without further ado, let’s look at how three high-flying cryptocurrencies can add wealth to your portfolio. These altcoins — meaning crypto other than Bitcoin — are Ethereum , Cardano , and Binance Coin , respectively. In the past four years, ETH — the biggest of the three — has gained more than 1,000%, Cardano has returned almost 9,000%, and finally, Binance Coin takes the podium with a mouth-watering return of more than 32,000%.
Identify A Platform For Trading
As the basis for placing any trades, it is important to identify the best trading platform for your needs. There are a few options when it comes to cryptocurrencies with some of the top platforms including Coinbase, Kraken, Bitstamp, Gemini, Binance, and Bitfinex. All of these exchanges offer Ethereum.
One of the biggest considerations for choosing a cryptocurrency trading platform is the type of exchange. Cryptocurrency trading platforms can be either fiat exchanges or cryptocurrency to cryptocurrency exchanges . As one of the two largest cryptocurrencies in the world, investors can trade Ethereum easily on fiat exchanges. Some investors who want to trade multiple currencies or have the option to convert other currencies easily into Ethereum may want to consider the C2C exchanges more closely. A lot of investors also have multiple accounts with both a fiat exchange and a C2C exchange.
Keep in mind that cryptocurrencies are highly unregulated with rapid innovation. This can create a great market opportunity but also increase the risks of fraud so its important to be sure you are confident in the credibility of the trading platform exchange that you choose. A few key questions to ask when considering an exchange include: Where is the headquarters?, Do they have a license? How secure is their website? How secure are your funds?, and Who are the managing executives?
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Should I Invest In Cryptocurrency
Plain and simpleinvesting in cryptocurrency is not a good way to build wealth for your future. If you really want a solid investment, dont mess around with adding some crypto coins to your digital wallet. Heres the better plan: If youre out of debt, have an emergency fund that will cover three to six months of expenses, and youre ready to invest, then focus on investing 15% of your income in growth stock mutual fundswhich are way more secure than crypto.
Dont give in to stupid just because theres a lot of hype. Weve talked to people who have taken out a mortgage or cashed out their entire 401 early to invest in cryptocurrencyheck no! Dont put it all on the line and risk your financial future, your retirement dreams and your familys well-being. If you cant afford to lose the money, dont invest it in something as unstable as crypto.
Is There A Less Risky Way Of Investing In Crypto
Stablecoins could be a less risky way of investing in cryptocurrency, according to Gavin Brown, associate professor in financial technology at the University of Liverpool.
Brown points to tether, the largest stablecoin, backed by one dollar per coin. It topped the $50 billion mark on 26 April 2021 but he warns that potential investors shouldnt necessarily see tether as the next big thing.
In theory it wont ever be worth more than a dollar. But its potentially an interesting option for any varied portfolio and it could be a slice of stability if things start to suffer.
The stablecoin has not been without controversy either being fined by the New York Attorney General and banned from the state the year.
You could also buy shares the companies associated with bitcoin.
There are also some funds and investment trusts that have exposure to cryptocurrencies, which is a less risky way of investing than buying the currencies themselves.
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The 11 Best Cryptocurrencies To Buy
Going forward, I will describe each coin, its purpose, team, liquidity, price volatility, and other metrics.
In the end, you will have a solid understanding, so that you can decide for yourself which is the best crypto to buy in 2021.
I will start with popular, well-known cryptocurrencies. Ideal for beginners.
Then, I will move on to some more advanced coins.
These coins may generate more profits, but they require you to know a bit more about them.
Plus, they are likely more volatile than the first coins on my list.
If youve already invested in top cryptocurrencies offered on platforms like Coinbase and want to expand your portfolio, then the coins at the bottom of my list might be the best crypto to invest in.
What Is An Initial Coin Offering
An initial coin offering is the cryptocurrency industrys equivalent to an initial public offering . A company looking to raise money to create a new coin, app, or service launches an ICO as a way to raise funds.
Interested investors can buy into the offering and receive a new cryptocurrency token issued by the company. This token may have some utility in using the product or service the company is offering, or it may just represent a stake in the company or project.
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Can You Lose All Your Money In Bitcoin
Yes you certainly can. Crypto is very risky and not like conventional investing in the stock market.
Bitcoins value is based purely on speculation. This is different to company stocks where the share price will move depending on how the business is performing.
Important: Cryptocurrencies are unregulated by the UK watchdog, the Financial Conduct Authority.
There are three main ways to lose all you money with bitcoin:
- The value plummetsand you sell: crypto is volatile with its price determined by sentiment. Though technically you only lose money if you sell an investment for less than you bought it for. This is known as crystallising your losses.
- Your memory: experts estimate 20 per cent of all cryptocurrency has either been forgotten about or lost with a current value of around $140billion, according to Crypto data firm Chainalysis
- Cyber crime: hackers and scammers are thought to steal around $10million worth of cryptocurrency every day, according to Atlas VPN
Some people choose to take their holdings offline and store it in a physical device called a cold wallet, otherwise known as a hardware wallet or cold storage similar to a USB stick. While this protects from online attacks you risk losing your holdings.
As with any investment, do your due diligence and dont pin all your hopes on one company or one cryptocurrency.
Spread your money around so you spread the risk and only invest what you can afford to lose.
Bytecoin One Of The Cheapest Altcoins With The Potential To Explode
Bitcoin, Ethereum, Litecoin, along with other top Cryptocoins, provides better anonymity than transactions in comparison to Fiat currency
But transactions on these networks are not completely anonymous i.e transaction address and amount of the cryptocurrency used in the transaction can be tracked.
On the blockchain, the address of sender and receiver is stored. So does the amount of cryptocurrency used in the transaction.
Unlike the Bitcoin network, Bytecoin uses Cryptonote technology.
Cryptonote protocol uses ring signature technology in their transactions. Which unable to precisely pinpoint the members involved in a transaction.
As ring signatures are shared by multiple users. You can distinguish which group of users made a transaction but cant pinpoint the specific user who made the transaction in that group.
Bytecoin network takes 2 minutes to confirm a block whereas Bitcoin network takes 10 minutes. Hence Bytecoin transactions are faster than Bitcoin transactions.
Bitcoin uses the SHA-256 algorithm in its mining process. Which allows people with the most expensive piece of hardware to get higher rewards.
BCN is the native cryptocurrency of the Bytecoin network with a maximum supply of 184,470,000,000 coins.
As you can see in the above image Bytecoin price has dropped recently. So the price of Bytecoin is surely going to increase in near future
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Are You Looking For More Great Cryptocurrencies To Buy
You made it to the end of my list! I hope you enjoyed my top 11 cryptocurrencies to buy for 2021, and that you found the information I provided useful.
If youre looking for more great crypto to invest in, or to find out which coin is going to be the next most promising cryptocurrency, here is what you can do:
Initial Coin Offering Vs Initial Public Offering
For traditional companies, there are a few ways of going about raising the funds necessary for development and expansion. A company can start small and grow as its profits allow, remaining beholden only to company owners. However, this also means they may have to wait a long time for funds to build up. Alternately, companies can look to outside investors for early support, providing them a quick influx of cashbut typically coming with the trade-off of giving away a portion of ownership stake. Another method is to go public, earning funds from individual investors by selling shares through an IPO.
While IPOs deal purely with investors, ICOs may deal with supporters that are keen to invest in a new project, much like a crowdfunding event. But ICOs differ from crowdfunding in that the backers of ICOs are motivated by a prospective return on their investments while the funds raised in crowdfunding campaigns are basically donations. For these reasons, ICOs are referred to as crowdsales.
ICOs also retain at least two important structural differences from IPOs. First, ICOs are largely unregulated, meaning that government organizations like the Securities and Exchange Commission do not oversee them. Secondly, due to their decentralization and lack of regulation, ICOs are much freer in terms of structure than IPOs.
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Bitcoin Investors: From Buying A Bentley To Losing It All
Bitcoin has soared to trade at an eye-watering $48,000 , following the news that Tesla has bought $1.5bn of the crypto-currency.
Enthusiasts will tell you it’s the future of money – but investing in the notoriously volatile virtual currency can be a rollercoaster, and it’s not without risk. The hunt for new coins, using powerful computers, is also causing a surge in energy demand – which is not so good for the environment.
Here are some of your Bitcoin adventures.
Tether Market Cap Of Usd$74078967352
Tether is a secure and transparent stable coin pegged to the value of the US Dollar. Known as money built for the internet, Tether was specifically designed to form a bridge between fiat currencies and cryptocurrencies and offer stability and minimal transaction charges to users.
Controlled by one of the biggest Bitcoin exchanges by volume in the world Bitfinex, Tether faced some legal challenges in February 2021, when the New York Attorney Generals office said Bitfinex used funds from Tether to cover up to USD$850 million in alleged losses.
Since settling this inquiry, Tether has exploded in growth. Despite now being banned in the state of New York, Tether has almost doubled in market cap and expanded into a range of new blockchains including the likes of Avalanche.
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How Investors Should Deal With Volatility
Cryptocurrency volatility is nothing new, and you should be comfortable with this if you decide to invest.
Volatility can be attributed to an immature market, says Ollie Leech, learn editor at Coindesk, a cryptocurrency news outlet. Anything from a celebrity tweet to new federal regulation can send prices spiraling.
If Elon Musk puts hashtag Bitcoin in his Twitter bio, it sends Bitcoin up 10%, says Leech.
This unpredictability is part of the reason why investing experts warn against investing huge amounts of your portfolio into a risky asset like crypto. Many recommend keeping your crypto holdings to less than 5% of your total portfolio.
For new investors, day-to-day swings can seem frightening. But if youve invested with a buy-and-hold strategy, dips are nothing to panic about, says Humphrey Yang the personal finance expert behind Humphrey Talks. Yang recommends a simple solution: dont look at your investment.
Dont check on it. Thats the best thing you can do. If you let your emotions get too much into it then you might sell at the wrong time, make the wrong decision, says Yang.
This is the traditional set it and forget it advice that many traditional long-term investors follow. If you cant get on board, and the extreme dips continue to cause you worry, then you might have too much riding on your cryptocurrency investments.
Bitshares One Of The Best Penny Cryptocurrency To Buy Now
Bitshares token is second on the list of Best penny cryptocurrencies to buy now with high potential in 2021.
Bitshares is a decentralized exchange launched in 2014 earlier known as proto shares.
It is an open-source financial platform or trading platform that works on Blockchain technology.
The main benefit is you can stick with your traditional tradingparadigms along with the advantages of decentralization and security through the Consensus mechanism of Blockchain Technology.
Unlike Bitcoin, BitShares main goal is not to be a peer-to-peer currency.
But Bitshares is a smart contract network where tokens may be exchanged for BTS which can intern be exchanged for bitAssets, smart coin related to real-life assets like Bit-USD, Bit-GOLD, silver, shares, etc.
Hence, businesses can create shares of their company via the BTS blockchain. If a company makes a profit then these tokenized shares can be delivered as dividends to the holders.
Bitshares also overcome the slow transaction speed of Bitcoin currency with no extra transaction fee.
The network is capable of handling 100,000 transactions per second which are higher than the Visa and MasterCard networks put together.
BTS is also pegged to US dollars the same as in the case of Tether.
Hence, if you hold Bitshares BitUSD, your money is pegged.
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How Many Cryptocurrencies Are There What Are They Worth
More than 15,000 different cryptocurrencies are traded publicly, according to CoinMarketCap.com, a market research website. And cryptocurrencies continue to proliferate. The total value of all cryptocurrencies on Dec. 17 2021, was about $2.1 trillion, having fallen off an all-time high above $2.9 trillion weeks earlier. The total value of all bitcoins, the most popular digital currency, was pegged at about $868.7 billion.
Top 10 Metaverse Crypto Coins To Invest In 2021
In this article, we will list the top 10 metaverse tokens that have the potential to give you massive profits in 2021. Lets get started!
If you thought Axie Infinity was a great crypto game, wait till you see the actual metaverse come into play. Facebooks rebranding to Meta has put the spotlight on one of the most underserved sectors in crypto, i.e., gaming. The concept of metaverse or virtual worlds is not something new, but the seventh-largest company putting such emphasis has completely changed the narrative surrounding metaverse games, especially the ones built on blockchain.
This is currently having a ripple effect in the crypto industry, where several gaming startups are raising boatloads of money from some of the biggest venture capital firms. Many investors feel that gaming in crypto has a lot of potentials, and we havent even scratched the surface yet. Recently, Solana Ventures and FTX joined hands with Lightspeed Venture Partners to invest $100 million in companies focussed on building a gaming metaverse. We also saw Andreessen Horowitz, a venture capital firm in Silicon Valley, lead a funding round of $150 million for Mythical Games, a plat-to-earn game, putting it at a $1.25 billion valuation.