Cryptocurrency trading is not just about buying and selling. It is also about what crypto coin you want to buy and which crypto exchange you want to use. The best cryptocurrency exchange will depend on your needs, such as whether you are looking for a low trading fee or higher liquidity.
What is cryptocurrency?
Cryptocurrencies are digital assets that can be traded for goods or services. They are also a form of currency, but one that uses cryptography to secure its transactions.
Cryptocurrency is a type of money that can be digitally created and stored. It is used as an alternative way of having transactions without the need for any central authority to control it.
How to Choose Which Cryptocurrency is Right for You?
There are over 800 cryptocurrencies in circulation at the moment, but only a handful have significant value. The cryptocurrency market is still nascent and volatile, so there’s no guarantee which cryptocurrency will turn out to be the next Bitcoin or Ethereum.
There are several points you should consider for choosing the best cryptocurrency for you. For example, what is your personal level of risk? Some cryptocurrencies are more volatile than others. And do you want to invest in a well-established currency such as Bitcoin, or take a chance on a newer coin?
Be sure to do your research, and check the white paper of any cryptocurrency you are interested in. All cryptocurrencies have a white paper that details key facts.
Additionally, here are some of my personal criteria for choosing a coin:
- The total market capitalization of the cryptocurrency should be at least $1 billion.
- The cryptocurrency should have a competitive mining algorithm.
- The cryptocurrency should have experienced a significant price increase over the past year.
Cryptocurrencies to follow in 2022
Cryptocurrencies are becoming more and more popular. In 2022, there will be a big shift in the cryptocurrency market. Here are the top 5 cryptocurrencies that you should consider investing in:
Bitcoin (BTC)
Bitcoin is one of the first digital currencies to be created. It is also one of the most valuable cryptocurrencies on the market today, with each token worth over $19,000 at time of writing. Bitcoin has been around since 2009 and was designed to have a fixed supply of coins which would eventually reach its final number of 21 million bitcoins.
Ethereum (ETH)
Ethereum is a blockchain-based distributed computing platform that enables smart contracts and Distributed Applications (DApps) to be built and run without any downtime, fraud, control or interference from a third party. It has the second-highest market capitalisation of all cryptocurrencies in 2022.
Litecoin (LTC)
Litecoin is the first fork of Bitcoin and can be claimed to be the silver to Bitcoin’s gold. It was created in 2011 and has since become a very popular cryptocurrency. Additionally, it has a large market capitalisation of all cryptocurrencies with a total value over $3.4 billion at time of writing.
Tether (USDT)
Tether is a digital currency that’s pegged to the value of the US dollar and is used as a means of store-of-value, with a circulating supply of 65 billion. It is currently ranked 3rd in terms of overall market cap.
Ethereum Classic (ETC)
Ethereum Classic is a cryptocurrency that was created due to a disagreement with the way original Ethereum conducted business.