5 Cryptocurrencies to Invest in 2022

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In case you missed the memo, cryptocurrency is kind of a big deal at the moment.

It’s a digital form of currency that is created and held electronically. Unlike normal money, it doesn’t have any physical form (like coins or bills). Cryptocurrency is useful because it allows for fast and secure transactions all over the world. You don’t need to get permission from anyone to use it as you do with traditional banks. Anyone can sign up for free! It’s completely unregulated, which means its value fluctuates wildly every day.

Cryptocurrency isn’t just a flash in the pan. Bitcoin (BTC) was the first cryptocurrency ever developed and continues to be the most valuable by market cap—as well as one of the most popular cryptocurrencies today—but Ethereum (ETH) has risen quickly in recent years as another hot commodity among investors worldwide who are looking to diversify their portfolios or bet on future growth potentials. 

While both tokens have enjoyed great success since their respective debuts back in 2009 and 2013, respectively, there’s no reason why we shouldn’t also consider other cryptos as worthy investments for 2022

Solana (SOL)

 

Do you want to be a cryptocurrency millionaire? Well, if so, you should definitely consider knowing what SOL is and why you should invest in Solana (SOL). It is an innovative, decentralized platform that fixes the scalability issues that plague today’s most popular blockchains.

 

Solana was introduced in 2020 as an open-source project and released its mainnet in late 2021. The goal of the project is to create a scalable alternative for distributed ledger technology, meaning that it seeks to solve the problems of increased throughput and speed for blockchains. 

 

No one owns or controls Solana; it’s truly decentralized and open source. Additionally, it has a fast block time of around 30 seconds. Altogether, Solana boasts fast transaction times as well as being secure—making it an excellent choice for investors looking for long-term growth in their cryptocurrency portfolio.

Cardano (ADA)

 

Cardano’s goal is to bring the best of both worlds: the security of Bitcoin combined with some of the advanced features implemented in Ethereum. The Cardano platform is fully open-source, and it’s operated by a non-profit organization that has its own cryptocurrency (ADA). 

 

Hoskinson’s background as one of Ethereum’s founders has led to some insightful design choices. For example, Cardano uses a new proof to validate transactions, called Ouroboros. This protocol takes into account economic incentives to make sure that only honest nodes participate in the process, thereby avoiding centralization and collusion attacks. 

 

Polkadot (DOT)

 

It’s hard to believe that cryptocurrencies have been around for more than a decade now—and don’t seem to be slowing down anytime soon. While Bitcoin is the most popular and valuable cryptocurrency, it faces challenges in practicality due to its network structure. For example, transactions on the Bitcoin blockchain are taking hours or days, and fees are too high for small purchases. 

 

Polkadot (DOT) uses an alternative method called sharding, which splits up the network into subnetworks called shards. This allows many transactions to be processed at once instead of on just one blockchain, and it reduces backlogs of unprocessed payments by increasing throughput.

 

XRP (XRP)

 

So you’ve heard of the next big thing in cryptocurrency, but you still have no idea what it’s called and or what it does.

 

No worries! It’s called XRP (short for Ripple), and its purpose is to facilitate international payments between banks that use the Ripple network, like American Express and Santander. This way, anyone who wants to send money from one country to another can do so for free and in a matter of seconds rather than days.

 

In fact, XRP is currently used by several big-name companies throughout the world to connect with Ripple (the company behind XRP), including American Express, Citi Bank, Standard Chartered Bank, and more. In fact, if you’re curious enough about how this works—and want to know more—we recommend checking out our post on how banks use XRP.

 

By the way… just because it’s called “XRP” doesn’t mean it’s the only currency that uses Ripples. There are now over 100 other currencies using Ripples as their backbone (Ripple is open-source; anyone can contribute ideas). You’ll find many of them being traded on exchanges like Bittrex and Poloniex for just pennies per coin or less!

 

Tether (USDT)

 

Tether is a cryptocurrency that allows its users to “tokenize” their fiat currency into digital versions of it. To do this, Tether creates a token (called USDT) that is supposed to be backed 1-to-1 by U.S. dollars on deposit at the Federal Reserve Bank. Any time one deposits these tokens back into their wallet, they’re said to be minted anew to provide a consistent value based on how many U.S. dollars are in existence throughout the world today.

 

So if you are thinking about investing in cryptocurrency in 2022, these are some of the best options. Cryptocurrencies are digital, open-source currencies that use cryptography and the blockchain to keep transactions secure. These cryptocurrencies are popular because they do not rely on regulatory agencies such as a central bank or government to issue them. 

 

Instead, cryptocurrencies get distributed by anyone who participates in the network. Cryptocurrencies have become increasingly popular, with a growing number of people using them as investment options and as an alternative to national currencies.

 

Overall, it’s important to remember that cryptocurrencies are complicated assets. They’re new, speculative, and highly volatile—and investors must be prepared for the ups and downs that come along with investing in these new technologies. That said, if you’re thinking about investing in cryptos over the long term (and don’t mind taking risk), they could end up being worth many times more than initially invested once these technologies mature and mainstream adoption takes off. 

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