No doubt that with time, the interest and popularity of investing in cryptocurrency are becoming a hot topic to debate on. Crypto is a complex term that enables the development and vast processing of different digital currencies.
Google, Apple, Tesla, Facebook, Samsung, PayPal, and Deutsche Bank are a few famous companies that have recently introduced cryptocurrencies for their long-term strategic plans.
But the question is, which cryptocurrency is the most popular one to invest in 2022?
Right through this article, we will explain to you how to invest in cryptocurrency and what tips you should consider for choosing the best cryptocurrency. But first of all, we have shared a list of the top 10 next cryptocurrencies to explode in 2022. Let's dive into the discussion below:
List of Top 10 Best Cryptos to Buy Now in 2022
1. Bitcoin- BTC Bitcoin
First, we have Bitcoin on our list, which has always remained one of the most favorite cryptocurrencies in the investment market. Bitcoin was introduced in 2008 by a group of people named Satoshi Nakamoto.
Bitcoin is a decentralized digital currency that can be directly transferred from one user to another through a peer-to-peer bitcoin network. And it does not involve the use of any intermediaries. In addition, it does not include any single administrator or central bank involvement.
Network nodes use cryptography to verify the transactions, which are later on registered in a public distributed ledger known as the blockchain.
Even if the price falls or rises, still Bitcoin will stay constant to dominate the sector of cryptocurrency! Therefore, traders can benefit from the high liquidity regardless of the market stability until it exists.
Nevertheless, Bitcoin is quite an unpredictable cryptocurrency that is based on a steady upward trend. Having a high market capitalization of $1.01 trillion, BTC has made itself the most demanding cryptocurrency. Its main purpose is to facilitate decentralized transactions and to store value.
2. Ethereum
Ethereum is the 2nd most popular cryptocurrency, which can be explored in 2022 for investment purposes. It is nicknamed ETH.
This cryptocurrency works as a decentralized software platform. It allows Smart Contracts and Decentralised Applications (DApps) to be run and designed without any need for theft, intervention, control, or third-party downtime.
Ethereum is a permissionless and non-hierarchical network of basic computers (nodes) generating consensus on a series of blocks related to transactions. This whole process is referred to as the blockchain.
Considering the market capitalization, ETH is the second bigger cryptocurrency in the market after Bitcoin. Vitalik Buterin, a famous programmer, introduced Ethereum in 2013. In 2015, the network went live with the initial supply of more than 72 million coins.
Ethereum is a cryptocurrency that is greatly used for decentralized finance. Decentralized finance is the exchange and production of certain non-fungible tokens (NFTs).
In 2021, the coin market capitalization of Ethereum will be at $195.54 billion.
3. Tether
Third, we have USDT Tether, which was previously known as Realcoin. This cryptocurrency was introduced back in 2014 and was the first to get pegged to the US dollar.
Tether is one such blockchain-based cryptocurrency in which crypto coins are all backed by an equal sum of some conventional fiat currencies, which are kept in a specific bank account. This can be euro, dollar, or Japanese Yen.
Tether is one of those stable coins that aim to hold the prices of cryptocurrency and keep it stable. When researching Ethereum and Bitcoin, you might have witnessed a huge fluctuation happening in their prices. This is not the case with Tether!
In 2021, Tether was named to be the 3rd largest cryptocurrency based on market capitalization. It has a total market capitalization of around $24.4 billion, along with a per-token value of $1.00.
4. Cardano
ADA Cardano is a well-known cryptocurrency network and an open-source project. This project is designed just to create a platform of public blockchain for smart contracts.
Ada is known to be the internal cryptocurrency of Cardano. Charles Hoskinson developed this platform in 2015 and was released in 2017.
ADA, being the non-profit digital currency, was previously trading at $1.19. Plus, it has a market cap of $40.4 billion.
5. Polkadot (DOT)
On the 5th spot, we have Polkadot, a unique proof-of-stake cryptocurrency for providing vast blockchain interoperability.
Gavin Wood is the main creator behind Polkadot, along with Thiel Fellow Robert Habermeier and Peter Czaban. Gavin was also the co-founder of the Ethereum project. In March 2021, Polkadot recorded a market capitalization of $30.3 billion and has one DOT trade for around $32.83.
In addition, Polkadot even grants internet access in which independent blockchain can easily share their transaction details or information without any fear. It aims to create and connect decentralized apps, utilities, and organizations on seamless terms.
6. Ripple
Ripple is another most popular cryptocurrency which is about to explode in 2022. It works as a digital payment network for financial transactions, released in 2012. Ripple Labs has created XRP as a payment token that can be used on the decentralized payment system.
XRP makes the use of networks based on validation nodes and not blockchain ones. According to the latest April 2021 reports, XRP has a market capitalization of $26 8 billion, in which oneXRP trades for around $0.5926.
7. Uniswap
On the 7th spot, we have Uniswap, which is a reliable cryptocurrency exchange protocol for operating in a decentralized manner.
Through the involvement of smart contracts, their protocol permits automated transactions between the cryptocurrency tokens on the Ethereum blockchain. According to the latest April 2021 reports, Uniswap has a market capitalization of $15 2 billion in which UNI trades for around $29.21.
8. Dogecoin
Next comes the DOGE Dogecoin, which is a popular cryptocurrency that will explode in 2022. This cryptocurrency was introduced by the famous software programmers Billy Markus and Jackson Palmer.
In 2021, SpaceX announced the first Dogecoin-funded rideshare journey on the Moon, making it the first cryptocurrency-funded trip in space.
9. Binance Coin
Binance Coin is a well-known Ethereum-based ERC20 token launched by Binance to be the most prominent cryptocurrency exchange. By using this coin, you can pay a small commission for transactions over this exchange.
Binance utilizes 20% of the profits each quarter just to buy back and burn the BNB until 50% of its total BNB supply is burnt.
10. Bitcoin Cash
Bitcoin Cash was introduced back in 20217 as one of the most demanding cryptocurrencies in the market. The main purpose of this currency creation was to permit a larger block size as compared to Bitcoin. Hence, it allows greater transactions to get stored in one block.
Despite some major differences, Bitcoin and Bitcoin Cash share a few basic technical similarities as well. For example, they have a similar consensus mechanism and a supply limit of more than 21 million coins.
According to the latest April 2021 reports, Bitcoin Cash has a market capitalization of $10.8 billion, in which one trades for around $0.5926.BCH trades for almost $575.17.
How you can buy exploding cryptos on eToro- Step by Step Guide
Have you selected your favorite cryptocurrency with the huge potential of generating above-average returns? If yes, your next step has to complete the investment process through a regulated broker, eToro. Let's share the step by step tutorial guide for you below:
Step 1: Opening your account for crypto-investment
To start the crypto investment, you need to first open accounts with eToro. It probably takes a few minutes, and you are all done with it. Next, fill in your personal and contact information in the online registration form.
You also have to bypass the automated KYC process, which is about "Know your Customer." In just a few minutes, the process of the bypass will end. For the KYC process, you have to upload your passport or driver's license copy along with proof of address, i.e., bank statement or utility bill.
Step 2: Depositing funds
eToro supports the deposit process through bank transfers, credit/debit cards, or e-wallets like PayPal. The minimum deposit requirement is $200 for most of the countries and $50 for US clients.
Step 3: Look for the crypto
The next step is looking for the crypto which you want to purchase. Enter the crypto name in the search box and buy it straight away.
For inspiration, you can straight-click on the "Trade Markets" option at the left side of the eToro page. This will also display the list of all those digital currencies which are supported by eToro.
Step 4: Purchasing crypto
Click on the "trade" button, after which an order box pop-up. In the box, you have to enter the amount which you want to invest. The amount should be in US dollars, and only specific cryptocurrency tokens can be purchased.
To compile the investment, click the option "open trade." This will add all your digital tokens into your eToro web wallet.
Important tips to follow for identifying exploding cryptos
When more than 10,000 digital currencies are available in the market, it might become complex for you to decide which one of the currencies is best to invest in. To pick exploding cryptos, you need to follow a few major points, which we are discussing right below for you:
1. Market Cap
The first thing you need to be careful about is checking the market capitalization of cryptocurrency, also known as market cap. This is because cryptocurrencies with smaller valuations are generating much greater above-average gains.
For instance, Bitcoin has just recently surpassed the market capitalization of around $1 trillion. The same can be calculated for the rest of the cryptocurrencies.
In the same way, token XYO is holding a maximum valuation of $75 million at the time of writing. But if it surpasses the mark of $1 billion, it will require the upside of almost 1,200%.
2. Previous performance
It's a fact that when you are investing in a new project, you should always consider it by exploring the past performance of that asset. To evaluate the best choice of cryptocurrency to invest in2021, you need to first perform a little bit of performance analysis.
In addition, it is equally important to assess and explore the market sentiments towards that project. It is better to choose the cryptocurrency having a steady upward swing towards the wider market to acquire successful, profitable results.
3. Reddit
Another important element to consider when exploring the next big cryptocurrency coin is to spend enough time on the Reddit forum. This will also help you meet millions of cryptocurrency investors, speculators, traders, or all-around proponents.
In addition, Reddit even informs you about the consensus on upcoming digital tokens and lets you know which one is positive to invest in.
4. ICOs & IEO
Before you invest in any cryptocurrency, you need to first see when it was first launched. Then, to make it happen, you should consider investing in IEO (Initial Exchange Offering) or ICO (Initial Coin Offering).
Both of these terms hold paramount importance in a conventional stock market. With both ICOs and IEOs, you can purchase a cryptocurrency during the start of your blockchain journey.
ICOs and IEOs equally allow you to start investing in any token at a favorable price. For instance, in 2017, Binance started its ICO at the price of $0.15 per token.
Which are the best trading platforms to invest in cryptocurrencies?
Once you have selected the excellent cryptocurrency to invest in, the next step is to choose a reliable and trusted broker to end your purchase. Below we have a few commendable options for you regarding the best trading platforms for investing in cryptocurrencies:
1. eToro
The eToro has always remained the most demanding broker platform in the market for cryptocurrencies. As a result, this platform has a massive client base of more than 20 million investors.
The eToro is a perfect platform to buy your favorite cryptocurrencies with higher upside potential. The broker can only operate at a "spread only" pricing model in which you just need to cover the major difference between the sell and buy price of your digital currency.
For US citizens, the requirement for the minimum deposit is $50, and for the rest of the locations, it is around $200.
All you have to do is pick the digital token you want to invest, enter the stake, and confirm your order.
eToro is known to be a convenient mobile wallet suitable for users of iOS and Android.
2. Capital.com
Next on our list, we have capital.com, another most recommended trading platform to invest in. With this broker, investors can speculate about the future value of up-and-coming cryptocurrencies without any worry of storage.
Capital.com supports CFDs with which an investor can trade in a low-cost manner. You can sell and buy digital coins through this broker platform at a suitable commission rate of 0%. However, they do have spreads that are a bit tight.
3. Binance
How can we miss mentioning Binance, which is another top leading platform to choose up-and-coming cryptocurrency! This platform is the home to a wide range of digital currencies in which you can also look for some small-cap tokens.
In addition, Binance is also one of the largest exchange platforms based on its trading volume, i.e., from high levels of liquidity.
Apart from that, Binance also charges a trading commission of 0.10% per slide. But you can reduce it even more if you already have Binance Coin tokens in your trade wallet.
Frequently Asked Questions-FAQs
1. How much amount do you need to start investing in Cryptocurrencies?
This varies from one platform to another one. And for us, the best suggestion is to choose eToro. This platform has a minimum investment requirement of $25 per crypto trade. Therefore, it is better to speculate on the selected digital currency in a completely sensible manner so you won't risk too much of your money.
2. Which cryptocurrency is the best to invest in right now?
Bitcoin is still the most demanding cryptocurrency to invest in any year. This is because this coin acts as both a store of value and as a medium exchange. In short, Bitcoin has been perceived by maximum market commentators as the top demanding digital currency of their choice.
3. Which is the cheapest crypto to explode in 2022?
When we talk about the cheapest crypto to explode in 2022, we always have the name of the BitTorrent token on the top ranking. This is because, on just a single token, you will be paid only $0.003. So in this way, with an investment of $25, you will be availing of 33,000 BitTorrent tokens – which is massive!
Bottom line
All the top leading cryptocurrencies, which we mentioned in our list above, will explode in 2022 as the best investment option. But before you choose any of the above, it is always better to do a bit of research on how to invest safely.
We have also shared a small guide about investing and the best platforms to choose for crypto investment for your support. Pick the best crypto right now and have an immense profit
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