Get Into Cryptocurrency Trading Today

Cryptocurrency refers to a digital currency that is not regulated by any central administration or authority, as with national currencies. Instead, digital currency operates based on blockchain technology.

Bitcoin is currently the most popular crypto in the market. The popularity of digital assets has increased on Wall Street in the last five years, which has led to hundreds of options springing up.

By the time of writing this guide, it's estimated that there are close to 8,900 crypto assets already in the market. Although investors can use these assets to buy goods online, most people consider them long-term investments.

Top 7 Cryptocurrency List For 2022

Crypto assets dominated the investment markets in 2021. While it's possible to turn a profit with them, investors need to know how cryptocurrency works, what volatility is, and the different terms used to describe their runs, e.g., bears and bulls.

For those looking for the best crypto assets to trade this year, consider the following:

1. Best Cryptocurrency to Invest in 2022: Bitcoin (BTC)

Market Cap: Over $882 billion

Bitcoin came into the limelight in 2009, making it the longest known digital asset. Satoshi Nakamoto founded the crypto, which runs on blockchain. Its market cap and prices are higher than anything else in the market today, making it one of the best cryptocurrencies to invest in today.

Another factor that makes it a wise investment for the year is that most businesses worldwide already accept it. Examples of global companies that accept Bitcoin include:

• Visa: It supports and transacts with BTC
• Tesla: the electric carmaker reportedly invested over 1.5 billion in BTC in 2021
• Large banks: Some international banks have included it as part of their operations

What Are the Risks of Investing in Bitcoin?

Just because it's considered an intelligent investment by crypto and financial analysts doesn't mean it's without risk. For example, its value tends to fluctuate, with the prices rising or reducing by thousands of dollars in a matter of weeks.

Investors who don't like such wild fluctuations should consider avoiding this crypto altogether. But then again, remember that it can turn out to be an excellent long-term investment. Its current prices may also make you want to reconsider investing in Bitcoin.

2. Next Cryptocurrency to Explode in 2022: Ethereum (ETH)

Market Cap: Over $447 billion

Ethereum operates as a blockchain platform and as a crypto asset. Its potential applications have made it a favourite of most program developers. An example of these is smart contracts that execute themselves when certain conditions are fulfilled.

Most analysts believe that ETH is the next cryptocurrency to explode in 2022 due to its tremendous growth. Its prices increased by over 33,500% between April 2016 and January 2022.

Its trading prices and market cap have made it the second-largest crypto in the market.

Risks that May Come with Investing in Ethereum

Although it uses blockchain technology, the platform only has a single lane for completing its transactions. A network overload can cause transactions to become slower, with most taking more than a few minutes to complete.

Other risks include:

• High transaction fees which reached their peak of $71.72 in May last year
• It suffered a hack in 2016 that saw investors lose up to $50 million worth of ETH

3. Best Cryptocurrency to Invest in Today: Binance Coin (BNB)

Market Cap: Over $86 billion

Binance Coin started by recording relative prices before starting a bull run at the start of 2021. The run saw its prices jump from a low of $38 in January 2021 to begin trading at a previously unrecorded high of $683 in May.

Since it came into the market, its performance has shown that it's among the most stable crypto assets around today. According to CoinMarketCap, Binance is the largest crypto exchange today, but the coin remains a volatile investment.

Potential Risks of Investing in Binance Coin

Unlike the other assets mentioned here, this asset was created by a company instead of a collection of tech developers. Its risks include:

• Its creator heavily centralizes it
• Several regulators around the world have attempted to take Binance Coin down
• It has suffered several hacks and remains a major target of cybercriminals

4. Fastest Growing Cryptocurrency in 2022: Cardano (ADA)

Market cap: Over $44 billion

It has one of the smallest footprints on this list, making it an attractive option to crypto investors. Cardano transactions are cheaper and faster than larger coins such as Bitcoin.

The asset released a hard fork last year, which helped boost its functionality. Its creators have claimed that it's more secure and adaptable than other assets. The fact that it's routinely improving its development means it's not an easy target.

Potential Risks of Investing in Cardano

Although ADA is a front-runner for the fastest growing cryptocurrency in 2022, it has remained incapable of competing with the larger assets. Its low number of adopters translates to fewer developers, which puts off investors interested in assets with a considerable adoption rate.

5. Best Long-Term Crypto Investments in 2022: XRP (XRP)

It's impossible to prepare a Top 7 cryptocurrency list without mentioning XRP. The platform operates as a crypto PayPal and was launched by the brains behind Ripple. It helps in completing crypto exchanges between fiat and digital assets.

Potential Risks that May Come with Buying XRP

The Securities and Exchange Commission (SEC) filed a suit against Ripple and its executives for violating registration provisions. According to the lawsuit, the executives failed to abide by the conditions included in the Securities Act of 1933.

It's believed that the two executives mentioned in the lawsuit had raised more than $1 billion via an unregistered digital asset security offering. Furthermore, if XRP is proven to be security instead of a currency, the ruling would have more profound implications for the entire community.

6. Digital Asset to Follow Closely 2022: Solana (SOL)

Market cap: Over $52 billion

Solana was launched to assist in powering decentralized finance (DeFi). It runs on a one-of-a-kind proof of stake system and uses smart contracts and decentralized apps (DApps). Its proof of stake mechanisms enables it to process transactions securely and quickly.

Developed in 2020, it started 2021 with a market share of around 0.01%. By the beginning of September, it had increased its market share, allowing it to compete with the likes of Ethereum. Its primary appeal lies in its scalability and network speed.

Potential Risks of Investing in Solana

It grew its market share by over 4,000% in 2021, and there's fear that its prices could drop at the same rate they grew in. Another issue to remember is that it experienced a twenty-four-hour outage last year due to resource exhaustion, which means reliability could become an issue.

7. Avalanche (AVAX) Cryptocurrency – The Layer One Blockchain

Binance describes Avalanche as a blockchain that assists in improving the underlying base protocol to ensure that the system remains scalable. It was created by computer scientists at Cornell University in collaboration with Ava Labs.

Its founders intended for it to operate as a competitor to ETH. The nodes in ETH are all required to validate a transaction, while the validation here occurs in its three separate blockchains. It enables it to handle larger transactions easily, making it more scalable.

It began trading in 2020 after a twenty-four-hour ICO. Its prices remain volatile and currently trades at around $80.57.

What Are the Risks of Investing in the Avalanche Cryptocurrency?

The public first learned about this crypto after its introduction by Sirer through a whitepaper released in 2018. Its official launch occurred in 2020, which means that it doesn't have a long history.

Its short history means it's a risky investment for investors who want to compare its long-term trades before investing in it. The price falls experienced last year, from $134.53 to $6.49, indicating that it's pretty volatile.

This Top 7 cryptocurrency list includes all the digital assets that have shown potential growth over the last few months. Each comes with its advantages and disadvantages. Make sure to follow Interactivecrypto to learn everything about finance, cryptos, and forex signals.

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