The concept of cryptocurrency is not new. The first crypto made its appearance in 2009 with Bitcoin entering the global market. Since then, the concept of crypto has gained widespread acceptance. This has also allowed investors from across the globe to mark their entry into this industry. As of today, the total market capitalization of cryptocurrency is at $2 trillion. India and US rank as top contributors in this industry.
Building your investments in cryptocurrency using Ethereum trading tips can be a great start for this year. This will allow you to develop an alternate income option. Another advantage is how you diversify your investments. You can continue to hold your investments in the stock market. And cryptos can be an addition to provide you with greater returns on investment.
So how do we proceed on this? With the growing craze for cryptos, there are also many tokens and crypto tokens that have made their presence in the market. As of today, there are more than 14000 crypto tokens available in the market. Backed with blockchain technology and a decentralized finance model it is imperative to plan your investments.
Let us take a look at the promising 5 cryptocurrency that is worth your investment in 2022.
Lucky Block
Lucky Block provides blockchain technology and a decentralized finance model. This crypto is typically used in the gaming industry. Traditional lottery games are governed by country-specific regulations. However, using Lucky Block currency you can participate in lottery games available globally. A player can virtually participate from anywhere in the world. As the game is backed by a decentralized finance model there are no middlemen involved in transactions. The win money is directly debited to the winner’s account. Another advantage is the ability to verify the transactions and genuinely of the game. Smart contracts govern the gaming network thereby making every transaction safe and secured.
Dogecoin
This is one of the cheapest coins currently available for your investment. The present price of Dogecoin is $0.20. The launch price of Dogecoin was at $0.005 and touched an all-time high at $0.75 in July 2021. Tesla has announced their acceptance of this coin recently. You can purchase any Tesla merchandise using Dogecoin. With growing acceptance, it is estimated that the total market capitalization of Dogecoin will increase in 2022.
Cosmos
This is another cryptocurrency for you to invest in 2022. Cosmos deploys the interoperability blockchain services. The basic feature of interoperability allows for more than one blockchain to collect data and share the same. As of today, Cosmos can interoperate more than 25+ coins. In simple terms, Ethereum as crypto can be shared with another crypto Shiba Inu. All these integrations can happen on a real-time basis.
XRP
This is a native coin of Ripple. XRP works effectively to bridge the liquidity gap between multiple currencies. This type of currency is generally used by large financial institutions for fund transfer. But in the traditional transaction model, it takes up to 3 days to undertake this fund transfer. In the case of XRP, the transactions are completed under ten seconds and have minimal transaction fees.
Cardano
This is a popular name in the crypto industry. The current market capitalization of Cardano is at $35 billion. This cryptocurrency deploys the proof of stake technology to undertake transactions. This particular technology deploys decentralized finance and smart contracts to execute transactions.
How to buy cryptocurrency?
Cryptocurrencies are easily available for purchase in the marketplace. You can buy the same using fiat currencies or in exchange for another crypto coin. To buy any of the above-listed cryptos, you need to first create a wallet. The wallet can be created using an online exchange. There are many popular exchanges currently in the market. You may choose between eToro or Coinswitch for your investment purpose. Once the online exchange is downloaded and a digital wallet is created, you can buy crypto of your personal choice.
Whatever crypto you choose to buy ensure that you choose the best in the market. It is important to understand market fluctuations and price volatility. This will allow you to better manage your investments. Also, do not invest all your funds in one crypto. Diversify your investments so that even if one crypto falls the other investment balances your funds effectively.
