Cryptocurrency is a digital or virtual currency designed to work as a medium of exchange. It uses cryptography for security, making it extremely difficult to counterfeit or otherwise manipulate. Cryptocurrency has been around since 2009 and is growing in popularity.
Cryptocurrencies allow for faster transactions, lower fees, and greater control over your money than traditional banks do. You can use cryptocurrency to transfer funds globally quickly and almost free of charge with no intermediary involved (like a bank). This means that you are in full control of your funds at all times, without relying on any third-party company like PayPal or Visa to process the transaction for you.
Don’t bother yourself with questions like how to purchase cryptocurrency, buy crypto with a credit card, and convert cryptocurrency (fiat), etc. at this point. At first, it’s better to know which cryptos are ideal for beginners. If you’re planning to buy a cryptocurrency and wondering which crypto to buy in 2022, here’s a guide.
Bitcoin
Bitcoin is the most popular and well-known cryptocurrency, which means you can use it to buy things with your friends who have Bitcoin. It’s also the most liquid cryptocurrency — meaning that if you want to sell your coins, you’ll find a buyer relatively easily. And securely storable on a hardware wallet like Trezor or Ledger Nano S. In terms of decentralization, Bitcoin is not just better than other cryptocurrencies (like Ethereum) but also better than all land-based currencies (like dollars). If we’re talking about stability, bitcoin has been very stable as well in recent years.
Litecoin (LTC)
Litecoin is a peer-to-peer cryptocurrency that offers much of the same functionality as Bitcoin. It was created in 2011 by MIT graduate Charlie Lee as an alternative to Bitcoin, with faster transaction speeds and lower fees.
In terms of market cap and popularity, Litecoin is currently the sixth most valuable cryptocurrency, behind Ethereum (ETH) and Bitcoin Cash (BCH). Like Bitcoin, it uses blockchain to store data about transactions on its network. This ensures that all records are accurate and safe from manipulation by any one party or group of individuals.
Cardano (ADA)
Cardano is a third-generation blockchain that allows for the creation of decentralized applications (DApps). Cardano has its programming language, which makes it a smart contract platform. The unique thing about Cardano is that it was developed by a group of scientists who used science and research to design the coin. Their goal was to create a secure and scalable system that could be used in the real world.
Cardano uses an open-source ledger that’s designed to be interoperable with other cryptocurrencies like Bitcoin or Ethereum. Cardano’s native token is ADA, which can be used as a means of payment on their platform as well as traded on exchanges.
Polkadot (DOT)
Polkadot is a multi-chain network that allows for different blockchains to connect. It’s a platform that connects blockchains, allowing them to communicate and share data across the network. Polkadot is an Ethereum-based project, but it’s not actually on the Ethereum blockchain itself; instead, it operates as its separate entity using a protocol called Parachain.
A para chain is an individual blockchain that sits within the Polkadot ecosystem (or “network”) and can be accessed by other chains within this system. So if you’re looking at some information about an individual chain like Bitcoin or Ethereum on your smartphone screen, those are all para chain blocks—they are still part of the larger Polkadot network but they have their unique characteristics and features that make them distinct from one another.
Chainlink (LINK)
Chainlink (LINK) is a blockchain-based platform that acts as a bridge between smart contracts and off-chain resources like data feeds, various web APIs, and traditional bank account payments. Chainlink allows users to securely access real-world data from different sources in a decentralized manner. The LINK token is used to pay for services on the network.
Chainlink plans to provide an oracle service that can be used by anyone to securely connect their smart contract with any external API endpoint (e.g., data feed, web API), even if they don’t have access to the Internet or their API keys. This greatly increases the usability of Ethereum applications and unlocks new use cases for decentralized apps (DApps).
XRP (XRP)
XRP (XRP) is the native asset of the XRP Ledger, a decentralized ledger for payments and transfers. XRP can be used to send money globally in seconds, settle cross-border payments in real-time, and lower costs of commerce.
Ripple is a global settlement network that offers instant, certain, and low-cost international payments. It enables banks to communicate directly with each other via RippleNet to transfer money from one country to another without any intermediary. This means that you don’t have to rely on SWIFT anymore for your international transactions but instead use blockchain technology which allows you to cut down transaction costs significantly as well as speed up transfers significantly by 30 minutes or less.
Stellar Lumens (XLM)
Stellar Lumens (XLM) is a cryptocurrency that aims to facilitate cross-border transactions. To do this, it uses the Stellar Consensus Protocol (SCP) with its token called stellar lumens. The protocol has been designed so that it can be used for all types of assets including fiat money, commodities, and other cryptocurrencies. It also supports smart contracts and decentralized applications (dApps).
The native token XLM was among the first cryptocurrencies that were created on top of the open-source network known as RippleNet. Its value increased significantly when IBM partnered with Stellar in October 2018 to launch World Wire — an international payments system that allows banks to transact directly on a scalable global network based on blockchain technology.
Cosmos (ATOM)
Cosmos is a decentralized network of independent parallel blockchains that communicate with each other. It is a scalable and interoperable ecosystem for the next generation of financial and social systems.
Cosmos is a sidechain to Ethereum and it uses the Tendermint consensus engine. It means that it can be used as an inter-blockchain bridge between different chains in the Cosmos ecosystem. The mainnet was launched on May 10th, 2019 after being in development since 2017 by Tendermint Inc., which was formerly known as Tendermint Core before rebranding itself as Cosmos in January 2019.
Conclusion
The best cryptocurrency to buy in 2022 is anyone you think has the most growth potential. However, if you want to maximize your investment return, it’s probably worth waiting until 2020 before buying any cryptocurrency. The best investment strategy for long-term gains is to diversify your portfolio by buying a variety of coins and holding them over time. It’s also a good idea to not ignore market cycles and try not to get too caught up in the hype surrounding any particular coin when they are at its peak (or bottom).
