The market for cryptocurrency has seen huge growth over the last decade and is poised to grow to new heights in 2022. The range of cryptocurrencies is vast, from Bitcoin as well as Ethereum up to Dogecoin and Tether There is a wide range of different cryptocurrencies, which can make it difficult to comprehend when beginning to explore the world of cryptocurrency.
In this article, we’ll look at the top five cryptocurrencies to invest in for short-term investments, based on their capitalization, or the number of coins in circulation.
What is a Cryptocurrency?
The term “cryptocurrency” refers to a type of digital currency that can be used to trade without the central authority of a government or bank. It’s a different form of payment that is created by encryption algorithms. At present, there are over twenty thousand cryptocurrency projects which make up the total $1.07 trillion market for crypto.
Best Cryptocurrencies to Buy In 2022
1. Bitcoin (BTC)
Bitcoin was introduced in 2009, and now, as we move until 2022, it’s the most popular cryptocurrency by a distance, and its price fluctuation still has a major impact on the market. Bitcoin is based on a blockchain or an account of transactions that are distributed over a vast network of computers.
It’s no surprise that this is among the most popular cryptocurrency and it’s set to reach new heights in the coming year.
The price of Bitcoin has increased dramatically since it has become a household word. In May of 2016, the cost of one Bitcoin was around $500. At the time of August. 1, 2022 the single Bitcoin price was $23,046. This is a rise of over 4,500 percent.
Bitcoin is a great way to purchase products and services, however, there aren’t many stores that accept Bitcoin as of yet, as well, and certain countries even banned Bitcoin completely.
2. Ethereum (ETH)
Ethereum is a different well-known cryptocurrency. As currently, it’s the second largest digital currency by market value.
As a cryptocurrency and Blockchain platform Ethereum can be the preferred choice of programmers due to its many potential applications, including so-called smart contracts that execute automatically when certain conditions are met, as well as non-fungible coins ( NFTs).
The introduction of Ethereum 2.0 will fix the main issue Ethereum currently has to face which is the speed at which transactions are completed.
Ethereum has also seen massive growth. From April 2016 until the end of August 2022 its value was ranging from $11 to about $1,640, a rise of around 14800%.
3. Tether (USDT)
In contrast to other types of cryptocurrency, the Tether (USDT) has the distinction of being a stablecoin, which means it’s backed by fiat currencies such as U.S. dollars and the Euro and, in theory, has the same value as the denomination of one. Tether is part of iFinex a Hong Kong-registered corporation that also owns the cryptocurrency exchange BitFinex.
Tether was initially launched under the name RealCoin at the end of July 2014, and was rebranded to Tether on November 14, 2014. The first trading began in February of 2015. 2 3 Initially, it was built upon Tether’s Bitcoin blockchain, Tether now supports Bitcoin’s Omni and Liquid protocols, in addition to its Ethereum, TRON, EOS, Algorand, Solana, OMG Network, and Bitcoin Cash (SLP) blockchains. In contrast to other cryptocurrency types, Tether (USDT) is believed to be more stable in its value, which makes it a preferred investment for those who are wary of high volatility.
In May 2022 Tether was the third largest cryptocurrency in the world, following Bitcoin ( BTC) and Ethereum ( ETH) as well as the most valuable stablecoin with a market cap of close to $83 billion. In April of 2022 Tether’s USDT account for two-thirds of the exchanges of Bitcoin in value.
As of July 2018, the USDT price hit an all-time high in the amount of $1.32. The record-breaking low of $0.57 was recorded in March of 2015. The price fluctuations occur as the demand for the token shifts.
4. Binance Coin (BNB)
The Binance Coin (BNB) can be described as an alternative cryptocurrency that allows you to make transactions and pay fees through Binance one of the biggest cryptocurrency exchanges worldwide. Since its debut in 2017, Binance Coin has expanded beyond just facilitating trades through the exchange platform of Binance. Today, it is utilized for payment processing, trading and even booking travel arrangements. It is also able to be exchanged or traded with other forms of cryptocurrency like Ethereum and Bitcoin.
It is now the main currency that is part of the Binance chain and is expected to rise to new heights by the end of 2022. The price of BNB in 2017 was $0.10. In early August 2022 BNB’s price was about $284, which is a gain of around 283,900 percent.
5. Dogecoin (DOGE)
Dogecoin was initially launched as an idea for a joke in 2013. However, it quickly became a renowned cryptocurrency due to its dedicated community and a variety of creative memes. In contrast to other cryptocurrencies that are regulated, there is no limit to the number of Dogecoins which can be made makes the cryptocurrency vulnerable to devaluation when supply grows.
Dogecoin has proven itself to be one of the most popular cryptocurrencies in the world, with a loyal following. As of the year 2017, the DOGE price was $0.0002. On Aug. 1, 2022, the price was $0.067 which was up 33,400%.