Which cryptocurrency will be the king in 2022?
The growth of interest in digital currencies such as Bitcoin and Ethereum has been nothing short of meteoric, with returns for those invested unprecedented. This is why it's no surprise to see retail participation growing across the board - not just among investors but everyday people looking into how they can get involved by buying tokens or coins on exchanges. The recent volatility we have seen over these past few months will only spur more curiosity about cryptocurrencies from both experienced traders already flocking towards other opportunities.
Bitcoin
Bitcoin has undergone many changes since its launch in 2008. The cryptocurrency was initially created as an alternative to government-backed money inflationary because of the printing press effect. Still, now it's more commonly used for investment purposes with a 60% return compared to the Nifty 50 stock index from India, which gives 20%. Bitcoin continues to be a driving force in the crypto world and will likely lead prices for years yet. It's become an excellent store-of-value, drawing Institutionally sponsored demand from all over as well--including recently!
Ethereum
Ethereum is the second oldest virtual token in existence. It's a decentralized blockchain for peer-to-peer networks that execute smart contracts. This has been one of the two most crucial crypto assets throughout evolution space; Ethereum also provides developers with a chance to build on top of its infrastructure, which will be essential during 2022 as more people join this movement.
Protocol Tokens
Cryptocurrencies that will still be hot in space for this year are protocol tokens. Experts say two key themes are emerging this year - Layer 1 protocols and metaverse concepts, with coins such as Solana, Cardano, etc., being among some of our favorites from these spaces. Metaverse is still evolving though it has seen tremendous success recently, with Decentraland doing tremendously alongside many other projects which have taken off either due to their ingenuity or thanks mainly to its rise; Axie Infinity seems like a great addition too!
The key to investment success is diversification. Invest your money in a basket of coins rather than being picky with one or two. It will likely be more beneficial for the long-term future of that portfolio because there's less risk involved when investing heavily into many different assets at once!
DeFi
The future of finance is now being built on the blockchain, and decentralized applications like DeFi are at its heart. As such, they will continue to be essential players in this space for years ahead as you see more innovations crop up around them: crypto lending tokens such as COMP or even exchange-based ones such SUSHI!
NFT
With its potential to disrupt so many industries, NFTs are sure to make a significant impact on the market in 2022. Top tokens like MANA or SAND will continue gaining traction this year and have been projected by many experts as likely candidates for continued growth next year!