For most of 2022, cryptocurrencies as an asset class have been something of a high beta version of the stock market – when stocks go up, cryptocurrencies go up more and vice versa.
Unfortunately, the shares 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 was down by a staggering 56.6% over that period. The good news is that in September, when the stock market lost 9.3%, digital assets showed signs of resilience, losing just 3.1%. The history of cryptocurrency price swings is filled with incredible volatility, and further hikes in interest rates are almost guaranteed.
We decided to talk about cryptocurrencies to try to invest in in 2022. CasinoEnligneFR expert Jérémy Kanté has gathered all the digital currencies that deserve your attention in one place.
The best cryptocurrencies to invest in
As 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 an alternative global currency, but there may be only 21 million BTC, of which 19.2 million are already in circulation. Like all money, its value is determined by faith. The growing proliferation of bitcoin, especially as a tool to diversify corporate cash flows, is perhaps the main catalyst for its future.
The only other currency in the bitcoin stratosphere is Ether, the native token of the hugely popular Ethereum blockchain. Praised by users and developers, the Ethereum ecosystem has quickly established itself as a haven for decentralized financial applications (DeFi). Unlike the Bitcoin network, Ethereum offers real utility outside of payments, with the issuance of smart contracts and non-fungible 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 tackled this issue head-on in September when it organized a highly anticipated event called “The mergerwhich changed it from proof-of-work consensus to proof-of-stake consensus, reducing projected energy consumption by more than 99%.
Solana is an Ethereum-like blockchain with its strong ecosystem of users and developers. Even easier to program than Ethereum, Solana’s main advantage over its big rival is its radically lower fee structure. Although Ethereum has a plan in place to reduce transaction fees, also known as Ethereum gas fees, Solana benefits from already very low fees compared to Ethereum’s hefty transaction tax. So until Ethereum cuts fees significantly, which is expected at least until 2023, Solana will have a favorable handicap to catch up.
AVAX is the native currency of Avalanche’s blockchain, which claims to be the fastest smart contract platform in the world. Avalanche’s goal for its platform is to become something of a cryptocurrency AWS. AWS, short for Amazon Web Services, is a division of Amazon.com Inc. (ticker: AMZN) and the largest cloud computing company in the world. Many financial institutions and international organizations use AWS to power their online operations.
Avalanche aims to do the same for blockchains, as it foresees a future where every business entity wants to launch their own blockchain. Avalanche is in a unique position to promote such a future through a relatively new feature called “subnets”.
Binance Coin (BNB)
Excluding stablecoins, Binance Coin is the third largest cryptocurrency by market capitalization – behind Bitcoin and Ether – with a value of around $ 48 billion. As the largest cryptocurrency exchange in the world, Binance is uniquely positioned to benefit from the steadily growing popularity of cryptocurrency over time. Binance’s burgeoning ecosystem uses BNB Coin as the underlying currency of its blockchain. Unlike the money supply of traditional currencies, which tends to grow continuously over time, BNB actually takes a portion of the transaction fees and “burns” them on a quarterly basis, reducing supply and increasing price scarcity.
ATOM is the native token of the Cosmos Hub blockchain. As a sign of governance, owning the coin also gives its holders a voice as to how the project should play out. Ranked in the top 25 cryptocurrencies by market capitalization, ATOM has a history of transactions dating back to 2017, a solid track record in this young field. As can only be seen from this list, there are already many distinct blockchains, which makes Cosmos’s focus even more relevant. Cosmos aims to make blockchains more suitable for developers and also hopes to directly enable smoother communication between different blockchain networks.
As we said before, this project is very young, but it has managed to win the trust and respect of users. And this, thanks to his honest and quality work. If you are considering launching a startup, then these criteria are worth following, as did the creators of ATOM. Today Cosmos is a popular currency, in which it is profitable to invest and then use it for various transactions. If you don’t want to risk cryptocurrency, but are a gambling fan, you should play it for free. Moreover, even without investing money, you can hit the jackpot on many resourceswhich will surely please you.
The latest of the best cryptocurrencies to buy is Filecoin, the smallest by market cap of all the names on this list. That said, Filecoin is by no means brand new, with a history dating back to 2017. As with Cosmos, Filecoin is a little more speculative than the other names on this list, but its unique project ambition is worth looking at. 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 someone may want to isolate from censorship. The system also facilitates data retrieval, 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 now:
- Bitcoin (BTC)
- Ether (ETH)
- Solana (SOL)
- Avalanche (AVAX)
- Binance Coin (BNB)
- Cosmos (ATOM)
- Filecoin (FIL)
When it comes to cryptocurrency, the first thing that comes to mind is bitcoin. But in addition to bitcoins, there are around 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 gathered facts about the most popular types of cryptocurrencies and the ones other than bitcoin in which they are most commonly invested.