2022 is known to be THE year for cryptocurrencies and investment. Many people are known to have made resolutions that revolve around beginning to invest in the market and making their money grow. It is also deemed as the latest fad among millennial and Gen-Z investors. The high tolerance for risk and an appetite for high returns has made them more prone to taking this step towards their future. These days, the growing up generation is fast and smart. They are very aware of the tasks that they are required to do and therefore, put in a lot of effort and research into it. They are looking for options that can yield high rewards.
What better way to get a monetary reward than investing in crypto and watching your money grow? One would look at the best cryptocurrency to invest in the economic scenario of today’s market. This arena can also be a good asset for long-term growth and returns. Holding a part of one’s salary for investing in this market is a tactic that financial advisors suggest to their clients. Experts have created a list of the top 5 cryptos to look forward to this year that shows high potential and promise.
- Bitcoin: This crypto is usually the main reason for people entering the arena for investing in cryptocurrencies. It is dominant over all the other currencies with a market capitalization of more than 641 billion dollars. Since its inception, it has witnessed a huge surge in the value and trading volume. It has been around for longer than any other crypto, contributing to its place as the leader in the market. Despite there being 1000+ cryptocurrencies in circulation, BTC accounts for 40% of the market share. Additionally, several organizations and institutions are moving towards the acceptance of this crypto as a method of payment. The value of bitcoin has skyrocketed and has increased by 6300% in five years. With backing from industrial titans like Elon Musk, this coin is only set for further growth.
- Ethereum: With a market cap of over 307 billion dollars, Ethereum is the second-most dominant cryptocurrency. It is starkly different as compared to Bitcoin as Ethereum is not just a cryptocurrency. The technology also supports smart contracts and enables some other cryptos to be built on the network. It is a potentially good investment for the coming year as it is significantly higher up with regard to the other Altcoins in the market. The coin has witnessed a supreme amount of growth – almost five years ago ETH was valued at around 700 INR and today, its value has spiked by over 22,000% and is currently valued at approximately 1,72,000INR.
- Tron: This crypto is considered the cheapest cryptocurrency in India in today’s day and age. It is a decentralized platform largely used for content sharing and it also allows its users to be creative and share content just as they would on any social media platform. Of course, being decentralized, this platform would not be governed by any centralized authority. The vision for Tron is to become independent as a content hub without being at the mercy of the other renowned names in this arena like Google, Facebook, etc. This crypto has seen a growth of almost 144% in a year. 1TRX can be bought for approximately 4 INR. Popular content platforms like BitTorrent have expressed their interest and have acquired Tron.
- Tether: This coin is a particularly desirable one for those who are not interested in risk-taking and have a lower tolerance for loss. Tether is considered to be a stablecoin. This means that its value is dictated by a fiat currency (for example – dollars or euros). Hypothetically, the coin is supposed to maintain a value equivalent to the value of USD. It is not generally affected by the rapid volatility of the crypto market owing to this feature. Even though the value for Tether has not witnessed a dramatic rise, it is still considered a good investment with low risks because of its stable nature.
- Dogecoin: The reason why most people are considering investing in DOGE is due to its popularity and the method by which it gained its name. These days, everything is about a presence on social media. Because of its very strong presence on social media platforms like Twitter and the rampant interest of Elon Musk in DOGE, the prices have soared and it has become a hot topic in the crypto market. Additionally, Dogecoin has no cap on its supply limit. This means that potentially, the world will not run out of DOGE coins to invest in. Skeptics might think of this as a cause to devalue the coin, however, it can also surprise the users and could turn this aspect into an advantage.
The experts have given their choices, and these are just 5 of the thousands of cryptocurrencies that really exist in today’s market. It is up to the users to calculate their tolerance for risk and gain an insight into their goals with regard to investment and decide the cryptos they would like to put their money in. One can either choose to go for short-term profits by investing in fast-growing but fizzling cryptos or can opt for a steady long-term investment by choosing the currencies accordingly.