Cryptocurrency is a blockchain based digital currency, which has risen sharply recently. Cryptocurrency has become the first choice for global investors and traders to invest their hard earned money. Therefore, some novice investors asked how to invest in digital currency? What cryptocurrencies are worth investing in 2022? Then, let's follow Xiao Bian to have a look.
How to invest in digital currency?
1. Doing your research Before investing in any cryptocurrency, it is important to conduct your own due diligence. This means studying the various cryptocurrencies available and their respective technologies. It is also important to read about the exchanges where you will be trading.
2. Developing a strategy Setting goals before investing in cryptocurrencies is critical. This will help you determine what money to invest, how much to invest, and when to trade.
3. When starting small, try not to invest too much in any coin. If the currency price drops suddenly, it will also help minimize losses. On the contrary, start from a small amount and gradually increase investment with experience accumulation.
Five cryptocurrencies worth investing in 2022
1. Bitcoin (BTC)
Bitcoin is a point-to-point digital currency, which was released in 2009. Since then, it has enjoyed the status of the largest rated cryptocurrency in terms of value, growth and revenue. For most crypto users, Bitcoin is the symbol of cryptocurrency, because it is popular among the public. The first P2P bitcoin transaction was implemented by its pseudonym founder Satoshi Nakamoto, who pushed 10 bitcoins to computer scientist Hal Finney. With a market value of 443 billion, Bitcoin has a large market share in encryption.
Future forecast
According to a survey of 1000 people conducted by Genesis Mining, 50.1% believe that by 2030, the price of 1 Bitcoin will be less than 20000 dollars, while 49.9% believe that it will exceed 20000 dollars.
2. Ether
Commonly known as Ethereum, ETH is the currency of the blockchain Ethereum blockchain.
It was conceptualized in 2013 and released by Vitalik Buterin and Gavin Wood in 2015.
The market value of Ethereum is 215 billion US dollars (17%), which is the second largest and hottest cryptocurrency in the world. With the circulation of more than 120 million ether coins, there is no limit on the number of major coins to be excavated. Compared with competitors such as Bitcoin, its transaction cost is recognized as high.
Future forecast
According to the data of Coinpedia, ETH is estimated to be around 6500 dollars and 7500 dollars. However, it is predicted that after the launch of Ethereum 2.0, the price of Ethereum may exceed 12900.
3. Solana
Founded by SolanaLab, headquartered in San Francisco, Solana is a blockchain designed to host decentralized applications and markets. SOL is Solana's native token. It is known for its low transaction costs compared to competitors. The market value of Solana exceeds $14 billion. In terms of market share, Solana is still the fifth largest cryptocurrency.
Future forecast
The analysis of its historical data shows that the average price of SOL in 2023 will also be 52.96 dollars, 62.94 dollars in 2014 and 183.16 dollars in 2030.
4. Avalanche (AVAX)
It is a blockchain platform based on proof of interest (PoS) system and smart contacts, which is used to operate decentralized applications and cryptocurrencies. It guarantees expansibility, reliability and permeability.
Avalanche was established in May 2018 by Rocket, a pseudonym software developer team. It is operated by the AVA laboratory led by Emin G ΓΌ n Sirer. AVAX is the original loan currency of Avalanche blockchain. He lags behind in processing transactions because he is known to resolve 4500 transactions per second. At present, 284.48 million currencies are in circulation. The maximum number of AVAX tokens that can be generated is 720 million. It uses a proof of equity system to execute transactions. Its market share is US $8.08 billion.
Future forecast
According to WalletInvestor's data, AVAX estimates that it will achieve 1294.26% growth in the next five years. By the end of 2027, it may touch the price of $237.764. On the other hand, the data coin price shows that AVAX may reach $28 by 2023 and $36 by the end of 2025.
5. BNB
Coin security currency (BNB) is the currency of Coin security crypto exchange and blockchain network. It is available in the United States, but with some limitations. Coin security was founded by Zhao Changpeng in 2017. In terms of trading volume, it is the largest cryptocurrency exchange in the world.
Future forecast
According to data from CoinPedia, BNB is expected to regain the price of USD 409.3 by the end of 2022, and hit the level of USD 662.8 in 2023. However, by 2024, it will hover between $510.9 and $736.4, and may touch the historical high of $1696.2.
Speaking of this, I believe you have a certain understanding of how to invest in digital currency and what cryptocurrencies are worth investing in 2022. In general, I remind all investors here that although investing in cryptocurrencies is favored by many investors, after all, any investment is accompanied by certain risks. You must do your homework and risk analysis before investing, and do not invest blindly.
