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Top 5 Cryptocurrencies to Watch in 2022

Top 5 Cryptocurrencies to Watch in 2022  Top 5 Cryptocurrencies to Watch in 2022 Top 5 Cryptocurrencies to Watch in 2022
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Last Updated on February 6, 2022 by Shounak

Cryptocurrencies are a fad. But if you peek behind the hype, there are actually some solid investment opportunities. Almost every social media channel, finance-related YouTube channel is probably talking about cryptocurrencies.

For most people, there’s too much complication around cryptocurrencies. Hard-core investors, on the other hand, are familiar with what cryptocurrency is what gives them their value.

It doesn’t matter if you’re a first-time investor or a veteran of the industry, you need to keep an eye out for emerging digital currencies.

To help you out in your search for ideal investment opportunities, we’ve created a guide for cryptocurrencies to watch.

Although, before you invest, keep in mind that the cryptocurrency market is susceptible to volatility like most investment opportunities.

Initially, there was only crypto that everyone looked forward to investing. Cryptocurrencies have been around for a long time, but it was after the rise of Bitcoin that investors all over the globe started taking an interest.

What is Cryptocurrency?

In a layman’s term, cryptocurrency is a digital currency that you can use to buy selected goods and services or exchange for conventional money.

Unlike any of the conventional currency like Dollars, Pound, or Rupees, it doesn’t have a central bank or entity to verify transactions.

Cryptocurrencies rely on a peer-to-peer system that can allow anyone to send and receive payments, regardless of their geographical location.

Instead of sending physical money to someone across the world, cryptocurrency payments happen completely virtually.

These transactions are recorded on a digital ledger (database) that can’t be changed once they’re added. This online database is known as a blockchain.

Whenever you transfer money, the transactions are recorded on a blockchain. The name cryptocurrency came into existence because the currency uses encryption to authenticate transactions.

Top Cryptocurrencies to watch out this year

Ethereum

Ethereum (ETH)

Price
$ 1,701.24

Ethereum is the second favourite cryptocurrency in the market. The first one is obviously Bitcoin. Bitcoin and Ethereum are the two uncrowned kings of the crypto industry and they’re both the most valuable ones.

If you’re on the lookout for the best cryptocurrencies to invest in, then Ethereum is expected to grow more in the coming times.

Launched in 2015, Ethereum is an open-source digital currency with one of the most secured blockchains. When compared to Bitcoin, Ethereum is faster, more secure and safer.

NFTs (Non-Fungible Tokens) are a new trend that runs on the Ethereum blockchain and are supposed to increase the currency’s value.

Ethereum has more practical usage than you realize in the future.  It was designed to be a Bitcoin killer and was meant to be used for POS digital payments, overseas payment options, legal tender, smart contracts mainly. Now it has become more like a coin to govern its ecosystem.

The major issue that it is facing is the high transaction fee at the moment. The transaction fee of ETH is more than the transaction fee of Bitcoin at the moment.

For all the benefits it offers, we believe this is the right time to invest in Ethereum as the value is expected to go up. 

If you are not interested in investing in ETH then you should add it in your list of cryptocurrencies to watch out for in 2022.

Solana

Solana (SOL)

Price
$ 36.73

Solana is a decentralised and scalable blockchain platform for decentralised apps. The Solana Foundation in Geneva currently manages the open-source project, with Solana Labs in San Francisco developing the blockchain.

In comparison to other blockchains like Ethereum, Solana is substantially quicker in terms of transaction processing and has significantly cheaper transaction costs.

Solana and Ethereum both include smart contract functionalities, which are necessary for running cutting-edge applications like decentralised finance (DeFi) and nonfungible tokens (NFTs).

There are, however, a few important differences between the two.

One of the main differences is that Ethereum still uses proof of work {POW) consensus whereas Solana uses the proof of history {POH} concept. You can read more about POH here

Solana generated a lot of hype in 2021 because of its clear edge over Ethereum in terms of transaction processing speed and transaction prices.

Solana can handle up to 50,000 transactions per second (tps), with an average transaction cost of approximately $0.00025.

Ethereum, on the other hand, can only process about 15 transactions per second, with transaction costs reaching as high as $70 in 2021.

We expect the hype to continue in 2022 too as more projects are now being built on the Solana blockchain resulting in its ecosystem to grow.

This is a must cryptocurrency to watch out for but remember to DYOR.

Matic

Polygon (MATIC)

Price
$ 0.786180

Ethereum gas has been high for a couple of years now because of its immense popularity which causes its scalability issue.

To address this problem, Polygon (MATIC) allows users to access Ethereum DApps without paying high gas fees or waiting a long time.

It began as Matic Network in 2019 and is essentially a Layer 2 scaling solution for Ethereum. Polygon not only lowers transaction costs on the Ethereum network but also significantly speeds up transactions.

The Alpha and Beta versions of Matic’s Mainnet have already been released. All Ethereum-based assets, such as ERC721-ERC20, ERC20-ERC20, and ERC721-ERC721, are supported for deposits and withdrawals.

They also provide API and SDK tools for developing an easy-to-use platform, simple, and secure dapps infrastructure.

With the goal of being the most reliable and secure staking service. Matic has also made a giant leap in staking services.

If you are someone who can hold long term and are interested in projects that provide critical solutions to blockchain then Matic is the cryptocurrency to watch for this year.

We anticipate the price of Matic to reach double figures in the coming years therefore it was added to our list of cryptocurrencies to watch in 2022.

Dogecoin

Dogecoin (DOGE)

Price
$ 0.069446

The hype and success behind Dogecoin are credited to Elon Musk. The currency saw a tremendous rise in 2021, while it has been around since 2013.

Dogecoin isn’t your average cryptocurrency, it’s basically an internet meme coin based on the picture of a Japanese dog breed “Shiba Inu”.

It was first promoted by a teen on TikTok by the caption ‘Let’s All Get Rich’ in 2020 which helped it to gain a lot of support from the dogecoins community and also new investors.

After the TikTok viral promotion, the dogecoin crypto meme was shared by Elon Musk on his Twitter handle which resulted in the price pump. In 2021 dogecoin was also accepted as an alternate payment option to buy a Tesla car.

While the popularity of this coin is being constantly fueled by Elon Musk we expect this coin to again rule 2022. Therefore it has been added to our list of best cryptocurrencies to watch in 2022.

Shiba Inu

Shiba Inu (SHIB)

Price
$ 0.000013

Another Meme coin that rode the same train as Dogecoin in 2021 is the Shiba Inu coin. Shiba Inu was launched in 2020 as a satire of Dogecoin.

Shiba Inu is a cryptocurrency meme token created by Ryoshi, an unknown entrepreneur. Shiba Inu is described as a community-based cryptocurrency initiative in its woofpaper (white paper).

This effectively implies that the “ShibArmy,” a decentralised Shiba Inu community, is in charge of the cryptocurrency’s growth.

While Shiba Inu was first touted as a Dogecoin killer, it is not the same as Dogecoin. Shiba Inu is an Ethereum Blockchain-based smart contract platform. Dogecoin, on the other hand, lacks this feature, severely restricting its usefulness.

ShibaSwap, a decentralised crypto exchange (DEX), was created by the Shiba Inu team in July 2021. DEXs are cryptocurrency exchanges that are not governed by any central authority.

Users can also stake (deposit) their cryptocurrency in the exchange’s liquidity pools, allowing it to be used by the exchange. Users earn crypto incentives on their staked tokens in the exchange.

ShibaSwap also has a non-fungible token marketplace (NFTs). Its NFTs are known as Shiboshis, and they are pixelated cartoons of Shiba Inu dogs, each with their own distinct personality.

Furthermore, the Shiba Inu team is working on a Shiboshi game using these characters. As more development is planned for this coin. We expect the hype of this coin still to continue in 2022.

We don’t recommend this project but we added this cryptocurrency because of its market cap and community involvement. We would recommend it as another cryptocurrency to watch out for in our list. Please do remember to DYOR.

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I have been a crypto enthusiast from 2015 to date. I have written all articles published on this website. I hope you guys enjoy reading them.

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