London, UK, 5th Jan 2022, ZEXPRWIRE, The cryptocurrency market is one of the most popular alternative investment markets today. Investors like it because cryptocurrencies don’t go through inflation, making them a haven in some ways. It also draws investors in because they can make a lot of money from investing in the right coins at the right time… The first step towards a sound investment is comprehensive research…
In this article, Victoria-Coins broker, David Hunt, reviews the possible cryptocurrency trends for 2022 and tries to identify the best coin to invest in within those parameters.
- Bitcoin (BTC)
The First and Most Popular Cryptocurrency in The Market It should come as no surprise that Bitcoin leads the pack by a long mile. There’s a good reason why Bitcoin is called the first decentralized cryptocurrency, and it’s because of its first-mover advantage. It was the first one to open this market for everyone and now has become synonymous with virtual currencies in general.
However, despite having the biggest market share (although decreasing), several factors are working against it. Its future is uncertain because there are concerns about its scalability problems. The Bitcoin network can only handle up to 7 transactions per second, which pales compared to other payment processors like PayPal and Visa, which have much higher capacities at 193 transactions per second and 24000 transactions per second, respectively.
The problem with the Bitcoin network is that it’s struggling to keep up with the number of transactions being made on its blockchain. People prefer other cryptocurrencies over Bitcoin because of the long transaction times and high fees involved in BTC trading.
The Blockchain of Bitcoin is currently facing many problems, one of them being scalability. The scalability problem was brought up by several developers who were worried that the increasing popularity of the coin was creating congestion in its blockchain. The network can handle up to 7 transactions per second, which pales compared to other competitors like VISA and PayPal, who have much higher capacities at 193 Transactions Per Second (TPS) and 24000 TPS, respectively.
The greater problem with BTC is that it is now facing stiff competition from other cryptocurrencies, especially since these newer coins have improved on the shortfalls of BTC and even offer better features than what Bitcoin can provide.
- Ethereum (ETH)
The 2nd largest cryptocurrency in terms of market capitalization, Ethereum might offer the best opportunity for investment in 2022. Ethereum (ETH) is built using the same blockchain technology as Bitcoin but has several notable upgrades that have allowed it to grow exponentially in 2017. The main reason why ETH became so popular is because of its smart contracts feature, which allows people to create decentralized applications through its blockchain network.
This cryptocurrency also has a few technical improvements over the BTC protocol, including better privacy control and faster speeds.
Another reason why you might want to go with ETH is because it’s gaining more use cases for practical applications in real life. For example, some people are starting to use Ethereum blockchain technology to create their cryptocurrencies through smart contract ICOs used to fund new projects. So, if you want to take a chance and invest in the next big ICO, Ethereum might be your best bet.
- Ripple (XRP)
The main selling point of this coin is that it’s primarily focused on banks and financial institutions rather than individual customers, as BTC and ETH do. This feature makes Ripple (XRP) more valuable because it provides banks with a more efficient, faster, and cheaper settlement of transactions.
However, Ripple (XRP) faces stiff competition in the financial industry from SWIFT who also has its protocol for cross-border payments called GPI. SWIFT’s main selling point is that they currently have over 11000 banks using their network, and they claim that it will be hard for Ripple (XRP) to ever catch up with such many customers.
This cryptocurrency has made its way into the top 5 cryptocurrencies mainly because of its focus on privacy and anonymity when trading digital currencies. Last year, Dash partnered with Confirm, a blockchain compliance platform that will help ensure Dash is compliant with regulations.
This cryptocurrency uses the Proof of Service (PoS) consensus algorithm for its network. The main feature of this protocol is Instant Send which allows transactions to be confirmed in less than 2 seconds. Private Send and self-funded budgets allow you to keep your information anonymous when trading and managing your digital wallet.
The final cryptocurrency in this list is Litecoin (LTC), well-known for its faster speeds than both BTC and ETH. The maximum number of Litecoin’s that can be created is 84 million coins, four times more than the total number of Bitcoins that will ever exist.
This cryptocurrency uses the same Proof of Work consensus algorithm as BTC but generates a block every 2.5 minutes compared to BTC’s 10-minute block time. Litecoin (LTC) also has other technical advantages over BTC, including integration to the lightning network, improving transaction speeds even further.
And there you have it, and now you know the five cryptocurrencies that are likely to still gain value in 2022 and potentially turn some early investors into millionaires. Remember, cryptocurrencies are very volatile, so only invest the money you’re willing to lose.
Disclaimer: Our content is intended to be used for informational purposes only. It is very important to do your own research before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.