Profitable Crypto Coins that Could Be an Option in 2022
Take Bitcoin, which is considered the benchmark. Last year the coin moved aggressively, hitting a level of almost US$65,000 in April, and then free-falling by almost half in May 2021. In mid-November, the price picked up again quickly before reaching an all-time high above US$68,000, before finally slumping again.
Citing the Analitics Insight report on Friday (28/1), here are the eight most profitable crypto assets that could be an option in 2022.
1. Bitcoin
Not surprisingly, Bitcoin (BTC) is still the most popular crypto asset in the world. Its market capitalization stands at US$1.1 trillion. If Bitcoin were a company, it would be bigger than Meta Platform and Tesla.
Bitcoin continues to enjoy the benefits of being the first crypto asset that is more widely accepted than other digital coins, mainly because it has been around for longer. Bitcoin is even seen by some investors as a good hedge against inflation. This is because the number of tokens in circulation will remain at 21 million.
2. Ethereum
The market capitalization of Ethereum (ETH) is about US$500 billion, less than half the size of Bitcoin. But some people believe that Ethereum will be the next Bitcoin.
Ethereum's main advantage is its real-world utility. The blockchain on which it is based supports smart contracts that can be used in a variety of applications. In particular, Ethereum is perfect for creating non-fungible tokens (NFTs). In the future, this crypto asset may overtake Bitcoin's market capitalization. Because, Ethereum's current position is fairly good.
3. Binance Coin
Binance operates the largest crypto asset exchange in the world. Therefore, it makes sense that Binance Coin (BNB) is the third most popular digital coin in the market. It is the native coin on the Binance exchange, and already has a market capitalization of over US$96 billion.
Investors who pay transaction fees with Binance Coin will receive a discount. Every quarter, Binance will reduce the supply of the digital coin based on trading volume. This is intended to increase its value.
4. Tether
Tether (USDT) is ranked next. Its market capitalization is US$73 billion. But among stable coins, Tether takes the top spot. All stable coins tie their value to another asset. For Tether, that asset is the United States dollar.
Tether can also be called a crypto-dollar, as it mimics the US dollar in maintaining its value.
However, there is some controversy as to whether Tether has enough reserves to support all of its digital coins. The US Treasury Department recently asked Congress to take action to address the risks that stable coins like Tether could pose to the economy.
5. Solana
Solana (SOL) completes the list of the five most popular crypto assets. Its current market capitalization is close to US$65 billion. Solana has been the biggest winner of these top cryptocurrencies over the past year with gains of more than 10,000 percent.
Many investors have flocked to Solana as an Ethereum alternative. Both blockchains support smart contracts. However, Solana offers much faster processing speeds and lower transaction fees than Ethereum.
6. Avalanche
Avalanche, along with Solana, is another example of a crypto that has a clear purpose, unlike meme coins like Dogecoin, which have no purpose at all. Avalanche is one of many projects that seek to replace Ethereum as one of the most widely used blockchain platforms.
Blockchain, part of the technology underpinning cryptocurrencies, stores information - such as cryptocurrency transaction history - by ensuring that no individual or group has control over it.
A US$220 million fund has just been launched to fund the development of Avalanche, which offers much faster transactions than Ethereum.
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