The upcoming year should see a great deal of interesting investment opportunities. While many investors will look to venture capital and startups, others seek future gains in cryptocurrencies. Have you made up your mind to start crypto trading in 2022? Then you are on the right track for some massive gains! 2021 was the golden year for cryptocurrency traders as Bitcoin made a lot of millionaires by hitting its all-time high of $66,000+. As a result, cryptocurrencies in 2022 have an enormous potential to outperform the market of 2021. Though the market is notorious for its volatility, careful study and observation can undoubtedly help generate profit shortly.
Why is 2022 full of opportunities for crypto traders?
- Cryptocurrencies grow in popularity and usefulness every day. Numerous organizations have already acknowledged established cryptocurrencies such as Bitcoin and Ethereum as payment alternatives. Acceptance will continue to grow in the following year. As a result, the market capitalizations and prices of cryptocurrencies will rise in lockstep.
- A large number of new crypto tokens are set to be released each year. Eventually, some of them get overhyped, and their prices skyrocket. 2022 will be no exception. Therefore, you only need to purchase the appropriate token at the right moment and price.
- Finally, each year, more traders enter this incredible market. The more traders, the greater the volatility. And more volatility implies a greater possibility of profit. Thus, crypto traders in 2022 should be pretty lucrative. So, You must make the best possible use of this opportunity.
The 5 Hottest Cryptocurrencies in 2022
The cryptocurrency market is turbulent as always. However, after extensive analysis and research, we came up with five names that are almost certainly headed for a price explosion:
Polkadot (DOT)
Polkadot was launched by one of the co-founders of the Ethereum blockchain. Therefore, it is maintained by experienced hands. This is the first factor that attracts investors. Furthermore, It supports the interoperability of data across several blockchains. One of the primary drawbacks of cryptocurrencies has been their inability to exchange information or currency amongst themselves. Polkadot comprises a central network: the relay chain and associated parachains. These parachains are connected to other blockchains such as Ethereum through bridges. According to the forecast of wallet investors, Polkadot is about to grow 100% in the upcoming year. In fact, the rise already started in late November’21. Polkadot is increasing at a similar rate as the major cryptocurrencies. So, if you are looking to double your investment, consider Polkadot.
Decentraland (MANA)
Decentraland (MANA) is a blockchain-based VR platform that allows users to make, use, and monetize content and applications. In this virtual world, users buy LAND pieces to travel, develop, and monetize. Decentraland stands apart from other cryptocurrencies because of its innovative approach. From the outset, Metaverse enthusiasts have poured money into MANA. It will continue to expand as the Metaverse concept becomes more accessible to the general public. By the end of 2021, MANA is predicted to have grown by a factor of two. However, given the rapid growth of virtual reality sectors, it seems that it will pump much more than expected.
Ethereum (ETH)
No introduction is needed for this giant! After Bitcoin, it is the world’s second most valuable cryptocurrency by market capitalization. It was launched in 2015, and it has been in use since then. However, Ethereum has a long way to go. 2022 might be its turning year because Ethereum is about to deliver a significant update this year. Ethereum2 will address the pressing issue of transaction speed. Ethereum can only currently perform around 30 transactions per second. However, with the improvement, it may be able to handle up to 100,000. Pro traders are keeping their money aside and keenly looking at the upgrade. By the end of 2022, Ethereum is expected to reach $7000+, which is almost 190% of the current price.
Algorand (ALGO)
Algorand was created in 2017 by Italian computer scientist Silvio Micali, a professor at MIT. It is the king of transaction speed. This blockchain has already proved that it is capable of processing over 1,000 transactions per second – and confirming them in less than five seconds. However, they are working to make the transaction process more speedy. Nobody likes to wait for blockchain confirmation in this fast and furious world. Therefore, instant transactions will become a very significant feature in the upcoming days. This efficiency of Algorands can be very attractive for investors. Based on current patterns, ALGO is predicted to increase by 165% by the end of 2022.
Cardano (ADA)
Cardano is a decentralized proof-of-stake blockchain that supports smart contracts. It introduced its smart contract in 2021. It has been famous for its roadmaps to solve different problems of other cryptocurrencies like Bitcoin and Ethereum. It aspires to be quicker than Bitcoin, more decentralized, and more affordable than Ethereum in terms of transaction and electrical expenses. Many environmentally concerned governments are now banning cryptocurrencies due to extensive power usage. This is the part where Cardano outperforms all. It uses 99% less electricity than most other blockchains. In 2022, many Govt. will consider legalizing/banning crypto. If they somehow refuse the major cryptos due to high power usage, Cardano can be a smart alternative in that case. Therefore, investments in Cardano are gradually rising. It is expected to pump 240% by the end of 2022.
Conclusion
Nothing in the cryptocurrency market is certain. However, the above cryptocurrencies have the highest possibility to grow. Minimal and negligent events can bring a substantial positive/negative impact on the crypto market. For securing a profit, you must be in touch with all the updates and relevant news and adjust your investment accordingly. Remember, patience and concentration is the key to smart trading.
