Top 10 promising altcoins in 2022
The number of digital assets is constantly increasing. It is becoming more and more difficult to determine the best projects for profitable investment.
In today’s article, we will analyze promising altcoins in 2022 with great potential and excellent foundation, and talk about upcoming events that may affect their price. We will also pay attention to the forecasts in the top altcoins 2022, possible investment risks and reliable exchanges, where it is safest to buy altcoins for both a novice and an experienced trader.
What are altcoins?
Virtual currencies are distributed all over the world. Their legal status is not defined in most countries of the world, but is gradually being adjusted – there is an active search for their place among the objects of civil rights. In 2022, altcoins are promising investment instruments that have accelerated the digitalization of business and the economy in all areas.
This concept is widely accepted as almost every cryptocurrency is an altcoin. According to the concept of the Investopedia publication, any cryptocurrency that meets all of the following conditions is considered an altcoin:
it’s not Bitcoin;
based on its own blockchain;
has its own network and at least a few users.
Despite the fact that many sources provide different information, the true origin of altcoins is in 2011 (that is, shortly after the creation of Bitcoin). It was then that the little-known today second cryptocurrency, NameCoin, was developed. It began to be called an alternative coin. Most of them can be traded freely, although the low liquidity of lesser-known coins hinders efficient day trading. That is why it is better to buy promising altcoins in 2022.
For a successful purchase, you need to remember that according to their structure, application and purpose, there are four main types of altcoins:
one
stablecoins. Created to prevent excessive price fluctuations in the cryptocurrency industry. Are backed by real values (for example, gold or fiat currencies) to guarantee the safety and stability of quotes;
2
They can be used for ICO, as well as to manage a cryptocurrency project, to reward employees or for loyalty programs;
3
security tokens. Closely related to business. They act like securities in that they offer holders returns on potential earnings or dividend payments;
four
mining altcoins. These include all cryptocurrencies (except Bitcoins) that are based on a mining process. This is the largest group of virtual coins.
It is logical that the top altcoins of 2022 include digital currencies of all the above groups.
Opportunities in the cryptocurrency market in 2022
The beginning of 2022 cannot be called successful for the cryptocurrency market. In fact, in the case of each of the promising altcoins in terms of capitalization and popularity, there was a collapse, the level of which exceeds 40% of the November highs of 2022. Of course, we can talk about a bearish trend reversal, but this is also a time of new opportunities. While leading cryptocurrencies such as Bitcoin or Ethereum have passed key resistance zones, many altcoins have fallen significantly in 2022, which could be a good moment to expand your investment portfolio in the long term.
Experts warn that at the end of last year, the market entered a period of “crypto winter”, which is a wave of declining quotes. This is due to the latest events in the world, as well as the current state of the economy. Record inflation, an increase in the interest rate announced by the US Federal Reserve, the ongoing COVID-19 pandemic, the military escalation of the Russian-Ukrainian conflict – all this has affected promising altcoins in 2022.
In turn, the largest investors with large capital during the bear market change their strategy and choose developing assets that provide a lower probability of profit, but at the same time – free from major collapses. A price drop could be a great opportunity to buy promising altcoins in 2022 for much less money than in 2022.
Top promising altcoins in 2022
The past year has been amazing in many ways. We have documented the growing adoption of Bitcoin as a store of value, the increasing importance of stablecoins, and the massive development of NFTs. There has been a measurable increase in the use of virtual currencies as investments by both individuals and banking institutions, and even countries. In this regard, promising altcoins have not gone unnoticed, which differ in:
decentralized (in most cases);
manufacturability;
unlimited areas of application in the financial sector;
speed and low cost of transactions.
We recommend that you study in detail the top altcoins of 2022 for investment, so as not to experience the lost profit syndrome or FOMO, as was the case with Bitcoin and a dozen other crypto projects after it.
Ethereum
Ethereum is the most promising altcoin, an open source platform that allows the development of a range of decentralized applications. De facto, they can be anything from voting programs to payment tools in stores. As with Bitcoin, all ETH transactions are recorded on the blockchain. However, the innovation was the ability to register changes in the network through the smart contract algorithm. By the way, NFTs owe their existence to this technology.
The functionality of Ethereum allows you to reduce transaction costs, reduce the obstacles that arise due to bureaucracy, and also ensures maximum security of transactions. Everything indicates that ETH has prospects for further growth, because its usefulness is undeniable: