Bitcoin is so well known that novice investors sometimes think of Cryptocurrencies as a synonym to Bitcoin. It is the first choice of almost any first-time crypto investor. And for obvious reasons, it is and has always been the topmost cryptocurrency that has garnered immense recognition.
But while it is one of the best cryptocurrency out there; the world of cryptocurrencies have more than 5000 cryptos. Though Bitcoin is the best we have seen yet, other cryptocurrencies (Altcoins) are no less.
Altcoins are an excellent way to widen your investment portfolio and diversify your investments in multiple projects.
5 Best Altcoins to Invest in 2022
List of 5 best Altcoins of 2022.
- Ethereum (ETH)
- Stellar Lumens (XLM)
- Tron (TRX)
- Chainlink (LINK)
- Binance Coin (BNB)
Ethereum is a decentralised open-source blockchain protocol that enables the use of Smart Contracts to build DApps. Meaning, Ethereum is a programmable protocol that allows developers to create and run individual projects on the network.
Fun fact: Out of 212 DeFi projects, around 200 of them are built on Ethereum.
Additionally, Ethereum also hosts numerous cryptocurrencies referred to as ‘tokens’ on its network.
With such massive adoption and expansion, you would say scalability issues are bound to happen. Ethereum did face some scalability issues recently, but it was effectively tackled with the launch of Ethereum 2.0 in Dec 2020. And because there is no hard cap on Ethereum, scalability issues is never a big problem on the network.
It is one of the finest cryptocurrencies with a dedicated team.
ETH is the native token of the platform that is used to run applications on the network and as a digital currency.
2. Stellar Lumens (XLM)
Stellar Lumens is an open-source payments network. It essentially helps in faster, cheaper and secure cross-asset transactions by digitally representing all forms of money and assets.
You would find it quite similar to Ripple because it is the modified fork of the Ripple Protocol.
Initially, Stellar Lumens had the objective of boosting financial inclusion by reaching the unbanked and underbanked. But they have now shifted their focus to connecting financial firms to one another and bridging the gap between the decentralised financial ecosystem and the traditional financial ecosystem.
The network is planning to introduce USDC on the network by Q1 of 2021. Stellar has also entered into a partnership with the Ukrainian Government to digitise their national fiat currency.
XLM is the native cryptocurrency of the network that is primarily vital to maintaining the minimum balance requirement on the platform.
3. Tron (TRX)
Tron is a decentralised content sharing and entertainment platform. From the very beginning, it has laid out its entire road map in six phases.
It has started off with being a content sharing infrastructure and has plans to eventually evolve into a fully content-driven platform with creators having the possibility of creating their respective tokens and fully decentralising the gaming industry. All of this will happen over the course of six phases.
It is currently in the first phase of its development and is probably undervalued because it has a vision that perfectly aligns with the era we live in today; The Content Era.
The goal here is to link audiences and creators directly.
TRX is the native token of the protocol the connects the TRON ecosystem and is also one of the most promising cryptocurrencies.
Convert TRON to INR seamlessly on the CoinSwitch website.
Chainlink is a decentralised oracle network.
Blockchains operate remotely and thus can’t access data outside their network, but for smart contracts to effectively perform tasks, real-word insights are important. Chainlink is highly effective in bridging this gap; the protocol connects smart contracts on any blockchain with real-world data using oracles.
An oracle network bridges this gap and is responsible for feeding reliable and tamper-proof inputs to smart contracts.
Chainlink is the most widely used oracle solution among leading DeFi projects like Aave, YFI etc. and even Google uses Chainlink.
LINK is the native token of the protocol used to pay to node operators.
5. Binance Coin (BNB)
The Binance Coin is the native token of the Binance exchange.
It has a hard cap of 200 million coins, half of which will steadily be brought back by the exchange itself over time under their repurchase plan. Under this plan, 20% of the exchange’s profits will be used to buy back and destroy BNB tokens in circulation.
With the growth of the exchange, the coin has also amassed immense demand from investors.
Initially, the token was only used to pay for multiple fees on the exchange. However, now with its strategic partnerships, it has broadened its usages and can now be used on other platforms.
Currently, BNB is the seventh-largest cryptocurrency by market capitalisation.
The Bottom Line
Each of the above cryptocurrencies has a promising element in them, be it in terms of the brains behind the idea, the concept, the developments or the backings they have.
Though in no way, one can claim these to be sure shot successes; hence please don’t take this as financial advice. These are just some intriguing and potential cryptocurrencies to look at so please make sure you do your research before making a financial decision.
But, do let us know which is your favourite Altcoin:‑)
Disclaimer : Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered as investment/financial advice from CoinSwitch. Any action taken upon the information shall be at user's own risk.
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