In the world of crypto, there are thousands of cryptocurrencies. In this article, we will discuss which crypto is best to invest in today.
Crypto crash 2022 in the stock market is driven by interest rates and inflation.
What Is A Crypto?
Crypto is a virtual currency/money not governed by the government. Cryptocurrency is based on blockchain. Crypto is considered a long-term investment that is used to make purchases. Most cryptocurrencies are intangible.
Best Cryptocurrencies Worthy Of Investment:
Currently, twenty thousand cryptocurrencies are there in the stock market. Bitcoin is the most significant cryptocurrency of all.
All the cryptocurrencies modelled after Bitcoins as an improved version are referred to as altcoins. We have enlisted the best crypto crash today based on market capitalization.
Bitcoin is the most prominent and the largest cryptocurrency so far. It was created by Satoshi Nakamoto, Bitcoin, in 2009.
According to crypto news, now an emerging trend of exchange-traded funds following the asset has taken the place of the Bitcoin trend. Thus, it is true that Bitcoin can scarcely disappear.
Ethereum is the second largest crypto after Bitcoin in the crypto market. Ethereum is popular among program developers as it is a decentralized software platform.
It comprises robust decentralized applications (dApps) like automated smart contracts, which can be executed automatically when conditions are met and non-fungible tokens (NFTs).
They can run seamlessly without downtime, fraud, or control from a third party. Ethereum aims to develop a decentralized suite of financial products so that anybody from across the globe can access without any discrimination.
That is the fee required to carry out the Ethereum transaction. The price of Ethereum has also increased manifolds; it experienced tremendous growth of over 27,000% from 2016 to 2022.
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Risks: With Ethereum, some risks are involved, such as high transaction fees, longer transactions, and security issues. But the most recent upgrade, ‘The Merge,’ is expected to make it more secure.
Binance Coin (BNB)
Binance was launched in 2017. It is considered one of the largest crypto exchanges over the globe. This non-stablecoin can be used for booking travel arrangements, trading, and paying fees on Binance.
After Bitcoin and Ethereum, it is the third largest non-stablecoin. Binance blockchain has a native coin, i.e., BNB Coin. It is considered the most stable investment today.
Other cryptocurrencies, such as Ethereum or Bitcoin, can be exchanged with BNB.
BNB is more deflationary as compared to Bitcoin. Currently, its circulation is more than 80% of its maximum supply of 200 million coins. From 2017 to 2022, its price increased by 410,000%.
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Risks: BNB has some regulatory issues.
Tether was launched in 2014 and is a blockchain-based platform. Tether, being one of the first stablecoin, is not volatile rather, it is more consistent as compared to other cryptocurrencies.
It is the third largest crypto by market capitalization. It is backed by fiat currencies like the Euro and US dollar. Most investors favour Tether as, unlike other coins, it is consistent.
Additionally, it allows users to transfer from other cryptocurrencies back to US dollars.
XRP was developed by Ripple in 2012 as a payment system. It is a native token for the XRP ledger.
XRP facilitates exchanges of cryptocurrencies such as fiat and other major currencies.
The price of XRP has increased by more than 12,600% from 2017 to 2022.
Terra is a platform for stablecoins; it is based on blockchain. Terra maintains a balance between two type of cryptocurrencies. The coins backed by Terra, e.g., TerraUSD, are associated with the value of tangible currencies.
Terra platform is powered by Luna; both, in connection with each other, mint more Terra stablecoins.
Both perform according to supply and demand strategy; with the increased price of a stablecoin above its base currency’s value, the users tend to burn Luna to generate more Terra stablecoins.
When the price of stablecoin falls compared to its tied currency value, the users mint more Luna and burn their stablecoins. The price of Luna from 2021 to 2022 has increased by 14,200%.
Terra faced a crypto crash 2022 in early May, after this crash, Terra was rebranded as Terra Classic (LUNC) and launched Terra 2.0 (LUNA); it is a new blockchain without algorithmic stablecoin.
The new Terra can help stabilize the Terra ecosystem and the investors in retrieving their investments lost in the crypto crash of 2022.
Risks: Terra 2.0 raised many concerns, e.g., various projects are launched on the new network.
Cardano is popular because of its proof-of-stake validation. Proof-of-stake validation, besides expediting transaction time, is used to mitigate energy consumption and environmental impact.
Its goal is to be the world’s financial operating system; it can be achieved by establishing DeFi products like Ethereum.
Cordano is the eighth largest crypto based on the crypto market capitalization. From 2017 to 2022, modest growth of 4,850% in Cordano’s ADA token is witnessed.
Risks: Even though Cordano has better performance and network, but it still lags in competition with large cryptocurrencies. There are few adopters that result in few developers, which investors do not like.
Solana was launched in 2020; it is based on hybrid proof-of-stake and proof-of-history mechanisms.
These mechanisms expedite transaction time and also make it secure. Solana is designed to power decentralized apps (DApps), smart contracts, and decentralized finance (DeFi) uses.
Solana is backed by its native token, SOL. SOL is among the top 10 cryptocurrencies due to its low fees, fast network, and perfect ecosystem of decentralized applications or dApps.
Solana offers more transactions per second than Ethereum; also, the transaction fee is lower than Ethereum.
By market cap, Solana is considered the ninth largest cryptocurrency. Since its launch in 2020, a gain of 13,000% in price is reported till 2022.
A boost can be seen in SOL’s share of the crypto market due to its non-fungible tokens (NFTs) and its availability in gaming.
It was launched in 2016 and created by Gavin Wood, the core founder of Ethereum. Polkadot is a blockchain-based platform.
This interoperability protocol is developed for connecting different chains.
Secure data exchange and transaction processes for parallel blockchains or parachains are allowed by Polkadots.
DOT security can be used by developers to develop their own blockchains.
A salient feature of Polkadot is that a new token is constantly in circulation, and it has no hard limit on its total supply. Its price reached its peak in May 2021 at $55.11.
Litecoin was created by Charlie Lee, a former crypto exchange coinbase software engineer who launched it in 2011. This is the 21st largest cryptocurrency worldwide.
It is similar to Bitcoin; for instance, the code of Litecoin is imitated from Bitcoin’s code.
But unlike Bitcoin, it is designed for faster transaction confirmation time. Litecoin is used for paying people across the globe without any mediator.
Eighty-four million tokens is an approximate round-off supply of Litecoin.
In 2021 it reached its highest value of $413.47, but it experienced a crypto crash and dropped by over 50%. The per token value of Litecoin is $106.
Here is the price per token and market of the above-mentioned cryptocurrencies.
Final Verdict: Best Crypto
The price and market cap are higher than other cryptocurrencies, and Bitcoin is the leader.
In terms of economic value and usage, Bitcoin still retains its dominant position in the crypto market.
It is accepted as payment in many businesses; for instance, Visa transacts with Bitcoin. There is a risk involved in investing in Bitcoin that its value fluctuates a lot.
The other limitation is its higher price, which is $20,000, and many people cannot afford it.