How to Find the Next Big Cryptocurrency?
On Mar 25, 2022
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When cryptocurrency first emerged, it was a bit of a wild west, with Bitcoin being the only trustworthy cryptocurrency in which people were ready to invest. But, in 2022, everything has changed.
Although Bitcoin is the market leader, the market remains turbulent. It has ranged from a low of 28,893.62 dollars to an all-time high of 68,789.63 dollars in the previous 12 months.
What cryptocurrency will be the next big thing in 2022?
Countless individuals all around the world are attempting to predict which cryptocurrency will be the next to burst, whether they are currently investing in cryptocurrencies or are seeking to make their first investments in the new world. There are several competitors for the next major cryptocurrency, and we’ve highlighted those that may have a greater ceiling than others.
Binance Coin (BNB)
When it comes to trade volumes, Binance is the most successful exchange. It, too, has a strict limit on the amount of tokens in circulation – 200 million. This cap contributed to the price skyrocketing in 2021. Binance features two blockchains, which reduces the possibility of bottlenecks that keep others behind, such as Ethereum.
Decentraland is a virtual reality game that runs on the Ethereum blockchain and accepts MANA tokens as in-game cash. It is used to purchase goods and services, and its current price of 2.30 dollars is a 1,543 percent gain from its 52-week low of roughly 15 cents.
Those who had the vision (or fortune) to invest in bitcoin in its early days and then hold on to the cryptocurrency as it soared in value over the last year are now incredibly affluent. The world’s largest digital currency by market capitalization has fared exceptionally well in recent years, and as a result, many casual investors who timed it correctly and kept onto their BTC have become billionaires.
Following the price boom of bitcoin, and as other digital currencies enter the market, investors are seeking for the next digital currency to profit from. How does one go about identifying a cryptocurrency that will take off in the future?
The Cost Is Critical
The cost of the token is an important consideration while looking for the next superstar. Low-cost currencies may give the biggest bang for your buck for the regular investor who does not have a lot of money to put into the cryptocurrency industry.
Consider a $5,000 investment: at today’s values, that money might purchase less than half a bitcoin, more than 25 litecoins, or hundreds of coins from one or more currencies valued under $1 apiece. The opportunity to diversify with low-cost coins should not be underestimated.
Ripple had significant growth as the year progressed. While XRP has fallen somewhat since the beginning of the year, it still has a high potential for adoption outside of the cryptocurrency speculating sector. This is due to the settlement mechanism that Ripple’s underlying technology guarantees to central banks and other financial institutions.
If you can identify a cryptocurrency that has an advantage over others (and hence is more likely to be widely embraced), this may be a worthwhile investment.
Supply is a consideration.
Most cryptocurrencies have a set maximum supply. When that limit is reached, usually through mining, no more tokens will be created. If interest remains constant while supply remains constant, the price may rise. Before investing in any cryptocurrency, be sure to analyze the entire supply as well as the current circulation.
Price and Volume Current information on bitcoin trading is freely accessible online. Those digital currencies with rising prices and number of trades are expected to gain traction in the future. Of course, there is no guarantee that this momentum will continue, but it is a great approach to identify which digital currencies are generating the most investor interest at the present.
Investing in cryptocurrencies and other Initial Coin Offerings (“ICOs”) is very dangerous and speculative, and this article is not a suggestion by Investopedia or the author to do so. Because every person’s circumstance is different, a knowledgeable expert should always be contacted before making any financial decisions.
The first few months of 2022 have undoubtedly been exciting. First, equities had their worst month since March 2020, pushing cryptocurrencies down with them. Then Russia launched an aggressive invasion of Ukraine, driving financial markets into additional upheaval as Western nations hope any similarities to Germany’s invasion of Poland in 1939 are exaggerated. In the midst of this upheaval, market experts, as usual, hold diametrically opposed opinions on cryptocurrencies. Is it nothing more than a covert money-laundering instrument that Russia will use expertly to avoid punishing sanctions? Is it a life-saving means for everyone in the world to fund Ukraine’s sovereignty defense? In reality, any broad explanation of cryptocurrency’s purpose is devoid of critical detail, and even war cannot wipe out this $2 trillion asset class. Here are the top seven cryptocurrencies to buy right now.