Cryptocurrencies have already become an integral part of the new financial world, attracting not only many private investors, but also large corporations. The rules of the game for this burgeoning market are becoming clearer every year, and the processes are becoming more transparent. Now we'll take a look at some of the more robust digital currencies that stand out from bitcoin.
You'll never have enough Bitcoin in your wallet so it's best to keep accumulating it. However, it is highly recommended to diversify your assets so you don't have all your eggs in one basket!
Without further ado, here are the best cryptocurrencies to invest in in 2022!
1) ETH
The king of altcoins is Ethereum, which is the second most capitalized cryptocurrency after Bitcoin. Unlike bitcoin, Ethereum has a serious development team and a formal leader.
The strength of this cryptocurrency is the ability to create smart contracts, which is an electronic algorithm or condition that allows parties to exchange money or other assets. This technology could potentially have widespread applications in finance, management, auditing and logistics.
In addition to this, Ethereum is the most widely used standard today with the ERC-20 token. Many blockchains are looking for compatibility with the EVM, which represents the set of protocols that use the Ethereum engine in some way.
2) Cardano
The driving force behind Cardano is Ouroboros. No, it's not the ancient dragon that bites its tail, but its algorithm! Ouroboros uses a proof-of-bid protocol that is less energy intensive and more democratic.
It's worth noting here that unlike Proof-of-Work (PoW) models, which require miners to solve complex puzzles based on the power of their devices, Proof-of-Auction (PoS) models rely on randomization and user bet sizes.
With its many advantages over other crypto-currencies, Cardano is often referred to as a third-generation crypto-currency. Many experts believe that Cardano could surpass giants like Bitcoin and Ethereum, first and second generation cryptocurrencies respectively.
It's worth noting that Cardano's own coin, ADA, is named after mathematician Ada Lovelace. ADA reached highs in September 2021, when it reached $3 per coin.
3) Polkadot
Polkadot is the original cryptocurrency, which is predestined to provide comparability between other blockchains. Its protocol is specialized to integrate authorized and unauthorized blockchains, as well as oracles, to allow systems to work together under one roof.
The main component of Polkadot is its relay chain, which guarantees the comparability of all kinds of grids. It also allows for "parachutes" or parallel blockchains with their own personal tokens for specific use cases.
What makes Polkadot different from Ethereum is that instead of making a basic decentralized application on Polkadot, creators can make their own personal blockchains and use the security that is already in place in the Polkadot blockchain. With the support of Ethereum, creators have the ability to make fresh blockchains, but they have to make their own personal security measures that are likely to forget about the fresh and smaller plans are exposed to attacks, because the more blockchain there is, the more secure it is. The scientists behind the plan have written over 90 notes on blockchain technology on a range of topics.
This research is considered the breeding ground for Cardano. Thanks to this serious process, Cardano seems to differentiate itself from its peers with proof-of-stake and also from other major crypto-currencies.
4) LTC
Litecoin uses a proof-of-work algorithm. It is very similar to the bitcoin algorithm. The Litecoin algorithm is called Scrypt. The algorithm produces coins four times faster than the bitcoin algorithm, despite the fact that it models its operations on pioneer coin transactions. The Litecoin algorithm has a matching coin transaction processing rate of one coin every 2.5 minutes.
The Litecoin algorithm uses processing power to process transactions, which are performed by "miners" who confirm transactions with their processing power. As a result, miners receive coins in exchange. In addition, Litecoin's Scrypt algorithm is generally considered very efficient because it does not require too much tuning through hardware solutions, such as dedicated integrated circuits (ASICs), and supports high-speed RAM. For this reason, the Litecoin Scrypt algorithm is generally considered easier for regular crypto-currency users, who will be able to mine without too much difficulty, as it allows miners to use their usual processors or GPUs.
5) Bitcoin Cash
Bitcoin Cash is definitely one of the top 10 coins to consider, outside of Bitcoin. In fact, Bitcoin Cash is one of the most popular Bitcoin forks, created in 2017. To solve Bitcoin's scalability problems, problems caused by Bitcoin's own popularity. If you're new to the crypto space, keep in mind that a fork refers to any fundamental change to the blockchain network protocol.
Bitcoin Cash has one very important difference from Bitcoin. Bitcoin Cash introduced 8 times larger blocks, which were scaled up to 32MB.
As we know, larger blocks allow for more transactions to be processed, resulting in lower fees and faster processing times.
In addition, Bitcoin Cash brings together supporters of the original vision of Bitcoin as a digital currency. And as Roger Ver's most popular supporter, Bitcoin Jesus, tweeted, "Bitcoin can replace gold. Bitcoin Cash can replace fiat currency."
6) Chainlink
Chainlink is a decentralized oracle network that bridges the gap between smart contracts, such as Ethereum's, and external data. Blockchains themselves lack the ability to connect to external applications in a credible way. Chainlink's decentralized oracles allow smart contracts to interact with external data, so contracts can be produced on data that Ethereum itself cannot connect to.
Chainlink's blog details a number of uses for its own system. One of the many uses explained would be to monitor water supplies to detect pollution or illegal siphoning that occurs in some cities. Sensors can be used to predict collective use, groundwater value, and regional water body value. Oracle Chainlink is able to track this data and translate it into a smart contract. A smart contract can be put in place to levy fines, send flood alerts in megacities, or bill companies that use very large amounts of urban water, with the support of incoming data from oracle.
Chainlink was developed by Sergey Nazarov in collaboration with Steve Ellis. As of January 2021, Chainlink has a market capitalization of $8.6 billion and 1 Hyperlink is valued at $21.53.
7) Stellar
Stellar is a disclosed blockchain network designed to provide enterprise conclusions through the incorporation of monetary institutions for the purpose of large transactions. Large transactions between banks and investment companies - which typically take several days, involve a number of intermediaries, and cost a lot of money - can now be done virtually instantly, without intermediaries, and cost literally nothing to the person making the transaction.
Although Stellar is positioned as a collective blockchain for institutional transactions, it remains a sincere blockchain that can be used by anyone. The system allows for cross-border transactions between any monetary units. The native currency unit is the Stellar lumen (XLM). The network insists that users hold lumens in order to execute transactions on the network.
Stellar was founded by Jed McCaleb, co-founder of Ripple Labs and developer of the Ripple protocol. He eventually left his own role at Ripple and co-founded the Stellar Formation Fund.
8) Binance Coin
If you're looking for other crypto-currencies as important as bitcoin, consider Binance Coin... Binance Coin is a token from the Binance exchange, one of the largest cryptocurrency exchanges in the world.
Binance Coin allows users to exchange all types of cryptocurrencies quickly and securely. It can also be used to pay transaction fees on the Binance exchange... Interestingly, users who pay the transaction fees with Binance Coin are entitled to a discount after 5 years on the platform.
It should be noted that Binance Coin was launched in 2017. The coins were initially issued as ERC-20 tokens on the Ethereum network, but were moved to the main Binance blockchain network in 2019....
Note that the Binance blockchain uses the Byzantine Tipping Consensus (BFT) framework, which means that BNB cannot be mined.
9) Polygon
On Polygon, transaction fees are very low and multiple decentralized services are emerging for the pleasure of users. Decentralized finance offers users very interesting returns without any transaction fees.
MATIC, Polygon's native token, is an ERC-20 quality token, meaning that it is programmed on the Ethereum blockchain's foundations. Polygon is an overlay of Ethereum, it is what we call a "Layer 2" chain, it is like a reflection of the Ethereum technology on a much more fluid service. The governance token is the main currency of the blockchain, it allows you to pay transaction fees and therefore to carry out operations on the different protocols of this chain. You can therefore take advantage of the entire functionality of the Ethereum network without transaction fees with Polygon.
It is possible that for economic reasons thousands of small savers will turn to Polygon to use the decentralized protocols of the DeFi.
10) Tron
TRON is a blockchain-based operating system that aims to make the technology suitable for very frequent use. While Bitcoin can handle up to six transactions per second, and Ethereum up to 25, TRON claims its network has a capacity of 2,000 TPS.
The project is best described as a decentralized platform focused on content sharing and entertainment - and to that end, one of its biggest acquisitions was file-sharing service BitTorrent in 2018.
Overall, TRON has divided its goals into six phases. These include providing simple distributed file sharing, stimulating content creation through financial rewards, allowing content creators to launch their own personal tokens, and decentralizing the gaming industry.
TRON is also one of the most popular blockchains for creating DApps.
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