For most of 2022, cryptocurrencies as an asset class have been a kind of high-beta version of the stock market: when stocks go up, cryptocurrencies go up more, and vice versa.
Unfortunately, stocks did not rise: by the end of September, the S&P 500, the Dow Jones Industrial Average, and the Nasdaq had all entered a bear market. At the start of the fourth quarter, the S&P 500 was down 24.8% in 2022, while the tech-heavy Nasdaq was down 32.4%. Crypto had fallen by 56.6% during that time. The good news is that in September, when the stock market lost 9.3%, digital assets showed signs of resilience, losing only 3.1%. The history of cryptocurrency price fluctuations is filled with tremendous volatility and further interest rate hikes are guaranteed.
We decided to talk about the cryptocurrencies in which we will try to invest in 2022. Jérémy Kanté, expert of CasinoEnligneFR, has gathered in one place all the digital currencies that deserve your attention.
The best cryptocurrencies to invest in
Being both the first cryptocurrency and the one with the largest market capitalization, BTC has the strongest track record and the best brand in its asset class. Unlike the other cryptocurrencies on this list, bitcoin is not an integral part of a larger ecosystem or decentralized financial network. It can be thought of as digital gold or a global alternative currency, but there may only be 21 million BTC in existence, of which 19.2 million are already in circulation. Like all money, its value is determined by trust. The growing prevalence of bitcoin, especially as a means of diversifying corporate cash flow, is perhaps the main catalyst for its future.
The only other currency in the bitcoin stratosphere is Ether, the original token of the wildly popular Ethereum blockchain. Appreciated by users and developers alike, the Ethereum ecosystem has quickly established itself as a haven for decentralized finance (DeFi) applications. Unlike the Bitcoin network, Ethereum offers true services outside of payments, with the issuance of smart contracts and immutable tokens that have launched multi-billion dollar industries virtually overnight. In popular culture, one of the main criticisms of crypto in general is its energy inefficiency. Ethereum addressed this issue head on in September when it hosted a highly anticipated event called “Unionwhich changed it from proof-of-work consensus to proof-of-stake consensus, reducing predicted power consumption by more than 99%.
Solana is an Ethereum-like blockchain with its own robust ecosystem of users and developers. Even easier to code than Ethereum, Solana’s main advantage over its big rival is its radically lower fee structure. While Ethereum has a plan to lower transaction fees – also known as Ethereum gas fees – Solana benefits from fees that are already very low compared to Ethereum’s hefty transaction tax. So, until Ethereum significantly reduces fees, which is not expected until at least 2023, Solana will have a favorable handicap to catch up.
AVAX is the native currency of the Avalanche blockchain, which claims to be the fastest smart contract platform in the world. Avalanche’s goal for its platform is to become a sort of AWS of cryptocurrencies. AWS, short for Amazon Web Services, is a division of Amazon.com Inc. (ticker: AMZN) and the world’s largest cloud computing company. Many financial institutions and international organizations use AWS to power their online operations.
Avalanche aims to do the same for blockchains, as it envisions a future where every business entity wants to launch its own blockchain. Avalanche is uniquely positioned to drive such a future through a relatively new feature called “subnetting.”
Binance Coin (BNB)
Excluding stablecoins, Binance Coin is the third largest cryptocurrency by market capitalization – behind Bitcoin and Ether – worth around $48 billion. As the world’s largest cryptocurrency exchange, Binance is uniquely positioned to benefit from the steady rise in popularity of cryptocurrencies over time. Binance’s thriving ecosystem itself uses BNB Coin as the base currency of its blockchain. Unlike the money supply of traditional currencies, which tends to grow continuously over time, BNB actually takes a portion of transaction fees and “burns” them on a quarterly basis, reducing supply and increasing scarcity.
ATOM is the original token of the Cosmos Hub blockchain. As a sign of governance, owning the currency also gives its holders a say in how the project should unfold. Ranked among the top 25 cryptocurrencies by market capitalization, ATOM has a transaction history dating back to 2017 – a strong track record in this new field. As can be seen from this list alone, there are already many different blockchains, which makes the focus of Cosmos even more important. Cosmos aims to make blockchains more developer-friendly, and also hopes to directly enable smoother communication between different blockchain networks.
As we said earlier, this project is very new, but it has managed to gain the trust and respect of users. And this is thanks to his honest and quality work. If you are thinking of starting a startup, it is therefore worth following these criteria, as the creators of ATOM did. Today, Cosmos is a popular currency, in which it is profitable to invest and then use it for various transactions. If you do not want to risk cryptocurrency, but you are a fan of gambling, you should play it for free. Moreover, even without investing money, you can hit the jackpot on many sourceswhich will surely please you.
Last of the best cryptocurrencies to buy is Filecoin, the smallest by market capitalization of all the names on this list. That said, Filecoin is by no means new, with a history dating back to 2017. As with Cosmos, Filecoin is a bit more speculative than the other names on this list, but its unique project ambition makes it worthwhile to be seen. Filecoin is a decentralized storage network with the stated purpose of storing the world’s most important information, and its decentralized nature makes it particularly suitable for data that one might want to isolate from censorship. The system also facilitates data recovery, making it an ideal way to document alleged Russian war crimes in Ukraine in real time, as Stanford’s Starling Lab is currently doing.
7 of the best cryptocurrencies to buy right now:
- Bitcoin (BTC)
- Ether (ETH)
- Solana (SOL)
- Avalanche (AVAX)
- Binance Coin (BNB)
- Cosmos (ATOM)
- Filecoin (FIL)
When we talk about cryptocurrency, the first thing that comes to mind is bitcoin. But in addition to bitcoins, there are about a thousand other types of digital currency. How do they work? It turns out that there are over 1,100 types of digital currency in the cryptocurrency world today. And the total capitalization of this market is 133 billion euros. We have compiled facts about the most popular types of cryptocurrencies and those other than bitcoin that are most often invested in.