Whether you’re new to investing in cryptocurrency or new to investing overall, you already know cryptocurrency prices can be volatile and unpredictable. However, if you’re ready to invest in the crypto waters but are unsure of the top tokens to trade in 2022, you have come to the right place.
While cryptocurrencies may have grown to many tokens today, a few tokens have been trending for a while now. However, success in trading primarily depends on the time of the day and the token you invest in.
Let’s take a look at the best cryptocurrency tokens to trade this year.
Bitcoin, the first and largest cryptocurrency by market cap, was created by Satoshi Nakamoto in 2009. It’s also the oldest cryptocurrency on this list: Bitcoin’s price has increased from $0 to nearly $20,000 in its lifetime. Since its launch, Bitcoin has been subject to multiple hard forks (BTC and BCH), but these offshoots have failed to gain traction with investors or users because they do not offer significant improvements over BTC itself.
Bitcoin is currently used as a store of value rather than a medium of exchange or payment method; however, it could one day become widely accepted by merchants as payment for goods and services if it were able to provide better privacy measures than traditional credit cards while also maintaining low transaction fees that make it affordable for consumers.
Ethereum is an open-source, public, blockchain-based distributed computing platform. It uses the decentralized Ethereum Virtual Machine (EVM) to execute scripts on an international network of public nodes.
Ethereum also provides a digital token called ‘ether’, which you can swap between accounts to compensate participant nodes for computations performed.
Ethereum also use an internal transaction pricing mechanism called Gas to avoid spam and allocate resources on the network.
Vitalik Buterin, the co-founder of Ethereum, selected the name after going through Wikipedia articles about elements and science fiction when he came across “ethereum”. He quoted, “I immediately realized that I liked it better than all of the other alternatives that I had seen.” He described it as a reference to the Egyptian god of designing and building things, as well as futuristic ideas with roots in cyberpunk literature.
Dogecoin has a funny origin. Believe it or not, Dogecoin is a cryptocurrency that was created as a joke. Its name is a reference to the popular ‘doge’ Internet meme, which features pictures of Shiba Inus as its mascot.
In many ways, Dogecoin shares many features with Litecoin (LTC). Both cryptocurrencies were released in late 2013 and are based on Bitcoin. However, unlike Litecoin, there is no hard cap on the number of DOGE coins that can be produced; this means that over time more and more are being mined without any regard for their value or scarcity.
Tether is a cryptocurrency that’s designed to be stable, trading at $1. Tether was created in 2014 by a company called Tether Limited and is managed by the same company. The name ‘Tether’ refers to the fact that you can convert your fiat currency into USDT to keep it from losing value since USDT is pegged 1:1 with the US dollar. So if you have $100 worth of USDT in your account, it means you have $100 worth of US dollars sitting around somewhere (you just don’t know where yet).
USDT’s value fluctuates based on market demand and supply; however, holding USDT doesn’t necessarily mean exchanging it for actual dollars or vice versa—it’s just like holding any other cryptocurrency except with much less risk of losing money due to volatility
Polkadot is a scalable, multi-chain network that allows developers to build a variety of decentralized applications on top of it.
The project was created by Gavin Wood, who helped create Ethereum. He’s joined by former executives from Parity Technologies and Web3 Foundation, along with many others. Polkadot’s native token is called DOT.
A Few Other Top Performing Cryptocurrencies in 2022
- Litecoin (LTC)
- Dash (DASH)
- USD Coin
- Binance Coin (BNB)
Now that you know the trusted cryptocurrency tokens and the top-performing assets to invest in, step into the world of cryptocurrency markets. Make sure you take all the measures and adopt the right strategy. As long as you have these things in mind, you can make a great amount of money and go a long way ahead.