It’s no secret that cryptocurrency has captured the financial world. Within the decade since Bitcoin was first minted, the number of cryptocurrencies has expanded to a whopping 6,000. From crypto giants like Bitcoin to tongue-in-cheek options like Dogecoin and city-specific options like MiamiCoin, there seem to be countless cryptocurrency options available today.
One of the most important things about investing is picking the right investments. In a market that moves as quickly as crypto, quick decision-making is especially necessary. To help with that, we’ve put together a list of some of the most important cryptocurrencies to follow in 2022, and why they matter.
If you’re at all interested in cryptocurrency, then you need to keep up with Bitcoin. Bitcoin is undoubtedly the leader of the pack. Given that Bitcoin makes up 2/3 of the cryptocurrency market, what happens to Bitcoin can affect countless other currencies.
From predictions about value to adoption by more countries and institutions, Bitcoin will probably still be at the center of the crypto news cycle in 2022.
Ethereum is a close second to Bitcoin in terms of name recognition and popularity. It’s actually in many ways more technologically advanced than Bitcoin — transfers are faster and take only seconds to clear, making it particularly attractive for real-time use.
Although Bitcoin is still ahead in terms of adoption and price, predictions for 2022 show that Ethereum is growing stronger, and could be a strong contender for the top spot.
Tether is described in one article examining the top cryptocurrencies as a stablecoin. Stablecoins’ values are tied to the U.S. dollar, and are especially popular for investors who want a piece of the cryptocurrency pie without the volatility and risk of other coins.
Tether is the most popular stablecoin linked to the U.S. dollar, and has a pretty big influence on the financial market. Investors may want to pay more attention to this one, especially for possible effects on other coins in the market.
XRP has had its fair share of troubles over the past couple of years, with the most notable being an ongoing case with the Securities and Exchange Commission. Despite legal troubles, however, experts predict a price boost that may see great returns for investors over the next year or so.
Unlike other cryptocurrencies, XRP is a centralized currency that’s administered by Ripple Labs, instead of a larger community like other currencies. However, this centralization means that XRP can transact with large banks quickly and securely, which is definitely attractive to investors.
Stellar is a low-cost alternative to XRP, and has had a pretty successful couple of years. It’s most recently set up a partnership with money transfer giant MoneyGram. This means it’s easier for Stellar users to do cross-border transfers without the red tape. Many industry experts believe Stellar could continue to climb in the next year, so be sure to keep an eye out for it.
Cardano is one of the younger cryptocurrencies, but it’s potential is proving to be exponential. Part of its quick rise is due to a growing interest in NFTs. The Cardano network is an alternative to Ethereum, which is especially interesting for investors who are looking for more diverse projects. While nothing is set in stone, many experts are predicting Cardano may be the next big thing in crypto.