The future of crypto may be uncertain but cryptocurrency in 2022 can be extremely profitable with research and investing as early as possible.
With the current state of cryptocurrency, it is still a gamble to invest in it. However, if one does want to invest in cryptocurrency for the long term, they should be looking at investing in bitcoin and Ethereum because these will remain valuable.
Cryptocurrency cannot be considered a safe investment and should only be invested by those who can afford to lose their money.
The future is unpredictable so we can't really clearly foresee what's cooking in the world of crypto in the years to come. There can be highly profitable ones and there are also some other cryptos which could make investments pointless.
Cryptocurrency investing is still a gigantic and promising venture in 2022. Positively, it can be predicted that it's just going to become even more profitable, as there are many coins that have yet to be mined and released. Plus, the coins with the most demand will be worth the most.
The crypto market has been growing steadily and consistently for consecutive years, and with settled regulations, we can see to it that it will likely be a profitable way of investing your money in 2022.
Cryptocurrency is also known as virtual currency, a digital currency that is designed to work as a medium of exchange. Cryptography is being used in order to maintain its security and independence from central authorities. Cryptocurrency is expected to be a viable substitute for traditional currencies in the future.
Currently, there are hundreds of different types of cryptocurrencies, with new ones being introduced each day. The most popular one is Bitcoin, which was introduced in 2009 and has been accepted by many retailers and other businesses.
Growth of Cryptocurrency Despite Market Crashes
Cryptocurrency is having a boom of growth and success. It is predicted that in the next few years it will be worth billions. The consistent growth of the crypto universe has been quite impressive and there are many different reasons for the increase.
Cryptocurrencies are decentralized, digital currencies that are not issued by any government or authority. They can be used to buy or sell anything on the internet. Cryptocurrencies also gives another option for investment that has rocketed steadily despite market crashes.
Despite the volatility of cryptocurrencies, there is still an opportunity for investors to grow their money.
Many financial analysts and investors big or small believe that the initial coin offerings are one of the main reasons behind the recent boom in cryptocurrency prices.
Bitcoin is a type of cryptocurrency that can be used in peer-to-peer transactions over the internet. It is decentralized, which means it's not controlled by any government or central authority. Bitcoin was created to serve as an alternative to the traditional banking system.
The term “cryptocurrency” pertains to digital currencies, and these are encrypted with cryptography so they cannot be duplicated or forged – making them impossible for your wallet to be hacked.
Cryptocurrencies are volatile because they are valued at their exchange rate with other cryptocurrencies. It was earlier hinted that bitcoin will consequently become a mainstream currency, but this remains unclear due to its unpredictable nature and lack of regulation.
Cryptos to Watch Out in 2022 Besides Bitcoin
Cryptocurrency functions as a medium of exchange. For easier understanding, it's money but only in the digital form. Cryptocurrencies use cryptography to secure and verify transactions as well as to control the creation of new coins.
Blockchain technology is the foundation for most cryptocurrencies and provides a transparent, decentralized record for all transactions on the network. This makes cryptocurrencies significantly more difficult for would-be thieves to counterfeit than traditional currencies. Cryptocurrencies use decentralized control instead of centralized electronic money and central banking systems.
Some of the cryptos that are seen to have possible significant impact in 2022 are Ethereum, Litecoin, ADA, Dash, and Matic.
Ethereum is a blockchain-based distributed computing platform that features functionality in smart contracts, and it is open-source and public. It can be used to create smart contracts which are applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third-party interference. It is a decentralized platform so it does not rely on a central server for operation.
Ethereum provides programmers with an easy-to-use system for creating, publishing and monetizing software. The basic idea of the Ethereum project was to create a platform where people could trade goods and services in exchange for cryptocurrency.
Litecoin is based on open-source software and it's a peer-to-peer cryptocurrency which was created with the vision to provide a faster and cheaper alternative to Bitcoin.
In 2011, Charlie Lee started the consistently running Litecoin. It was originally designed to be a faster and cheaper alternative to Bitcoin, which meant that Litecoin could produce blocks 4x faster than Bitcoin and use a different proof of work algorithm. The price of Litecoin has been decreasing from the beginning of this year from $360 in January, to the current value of $115 as at May 15th 2018.
The main reason to invest in Litecoin is the scalability of the system. Litecoin transactions are confirmed quicker than Bitcoin transactions, which means that merchants get the money faster and it's more likely they will receive their order at all.
Investing in Litecoin also means investing in its future growth.
It's set to increase value with time as it becomes more adopted by people who want to make cheaper purchases. It is also connected with online payment systems which allows people to use it for things like rent payments or utility bills.
ADA has been around since 2015 and is one of the most popular cryptocurrencies in the market. It is backed by a smart contract platform that allows for easy scalability.
Investing in ADA is promising to think that it has a lot of upside potential. The only downside is that its price moves very quickly and unpredictably.
The cryptocurrency ADA has a strong team of developers and an active community which has been consistently driving up the price. This Cardano blockchain is built with multiple layers which are capable of running smart contracts, dapps, and ICOs. Layers are deemed as separate blockchains, connecting to the parent layer through side chains.
Investing in Dash is a great way to increase your wealth. Dash is one of the few cryptocurrencies that can be used as a day-to-day currency. This means that it can be used for acquiring goods and services from various vendors and stores around the world. In addition, there are a large number of ATMs where you can convert your Dash into cash or another cryptocurrency if you want to spend them elsewhere.
Investing in Dash is also a great advantage given its swift transaction speed and low transaction fees which make it far more suitable for retail use than Bitcoin or other cryptocurrencies out there.
MATIC is a crypto-currency and a trading platform for digital assets and derivatives.
Matic is a blockchain platform that offers scalability, security, and decentralization. This company has been working on its development since 2017. The team behind it includes people who have previously worked on projects such as the Ethereum Foundation, Google, and Slack.
The main goal of Matic Network is to continually create a scalable public blockchain with decentralized applications in an easy-to-use format for developers. But Matic also focuses on solving issues like transaction speed, security, and decentralization which are not found in other cryptocurrencies.
Matic Network aims to use blockchain to offer a robust and secure platform for exchanging data, and it uses IPFS peer-to-peer (P2P) network architecture to store the data, which has the benefits of decentralization, high availability, and high performance. Matic is also free for anyone to view its code on GitHub because it is an open-source project.
Matic Network’s also strives to build a decentralized architecture that will allow companies like Amazon Web Services (AWS) to deploy blockchain technologies like smart contracts or decentralized applications (Dapps).
Skeptics believe that the cryptocurrency bubble will pop any day now and those who invested will lose their money. However, those who think otherwise, believe that by investing now you can make a lot of money.
Read the Entire Cryptocurrency Series
- Blockchain Technology Uses and Growth
- Buying a $65,000 Porsche with $6,028
- How to Avoid Crypto Scams: Important Things to Remember
- BlockFi Review: Investing in Cryptocurrency the Right Way
- Cryptocurrency Risks: The Do’s and Don’ts in Cryptocurrency Investing
About the Author
Joseph Hogue is a financial expert and investment analyst. After serving in the Marine Corps, he started his career investing in real estate before becoming an investment analyst for some of the largest private investors. He's appeared on Bloomberg and on CNBC as an investment expert and has published ten books in personal finance. Now he helps investors reach their financial goals and invest in the stock market with some of the same advice he used when working for the rich.