Cryptocurrencies are still on everyone’s lips in this 2022. In fact, we started this year with big drops in virtually every major cryptocurrency. But what does that mean? What’s a bad time to invest in crypto? Many people think that falls are the best time to continue buying, that depends on the strategy of each one.
If you have come this far, you are most likely looking for new investment alternatives and one of the most interesting is, precisely, to invest in cryptocurrencies: assets that since their creation have experienced a great revaluation. In this article we explain what a cryptocurrency is, how it works, how to invest, in which cryptocurrencies to invest and which are the best in this 2022.
In Finect we have also created a section where you can see information from different platforms where you can acquire Bitcoin or other cryptocurrencies, compare and then decide which one best suits you.
COMPARE, FIND OUT AND START INVESTING IN CRYPTOCURRENCIES HERE
[Do you have questions about cryptocurrencies? This is your site]What are cryptocurrencies
The most widespread definition of cryptocurrency is that it is a digital currency, not a physical one, that uses cryptography to secure and manage transactions, as well as to create new currencies within the blockchain network.
This explanation of what a cryptocurrency is includes the two most important features of these digital currencies. The first is that there are no banknotes or coins as there are euros, dollars or pounds. Cryptocurrencies are digital and, although they can be stored on physical devices, (the so-called wallets or physical wallets such as hard drives or USB sticks) do not have physical representation as such.
The second is that cryptography is used to create new units. P2P technology is the one that, for practical purposes, makes it not dependent on any government or country: there is no central agency or government in charge of creating new currencies and putting more money into the market. As an example, Bitcoin uses blockchain technology to regulate the creation of new units. In addition, in this case, the number of available coins is limited, something that is not always repeated with other cryptocurrencies. Types of cryptocurrencies
Ethereum, Cardano, Polkadot… there are many virtual currencies beyond the famous Bitcoin. In fact, today the number of digital currencies stands at around 10,000 worldwide.
What differentiates the types of cryptocurrencies are the projects behind them. The Blockchain technology that cryptocurrencies use can be employed for many different purposes. From using a cryptocurrency as a means of payment, as is the case of Bitcoin, to the smart contracts of the Etehereum network There are also currencies that use totally different formulas.
In this video you will see how Ethereum works, the second most important crypto:
Although when investing it is necessary to have sufficient financial knowledge and know exactly what are the products in which we are depositing our money and what risks we are assuming. We tell you which are the best cryptocurrencies to invest and what you should take into account to choose them! List of cryptocurrencies
How many cryptocurrencies are there? The data vary constantly and are not entirely accurate, but it is estimated that currently, at the beginning of 2022, there are more than 10,000. Every week a new digital currency is created in a process called ICO and that we will summarize later.
The cryptocurrencies that, despite the falls, maintain a strong position in the top 10 are:
List of the top 10 according to Coinmarketcap updated to April 2022.
The number of existing virtual currencies is much wider and continues to grow every day. To consult the legal cryptocurrencies you can do it through more than 800 digital currencies and their corresponding quote such as: World Coin Index and CoinMarketCap.
In both places you can consult a list with the most important cryptos and also see the price of these digital currencies.
On the other hand, if you are considering investing but do not want to complicate yourself with management, a good option is roboadvisors. Automated managers allow you to take your first steps easily and safely.
Find here the best promotions, compare and request information without obligation! New cryptocurrencies
The world of virtual currencies never stops and almost daily new proposals arise, known as altcoins or alternative coins in reference to the fact that they are alternatives to bitcoins. In the previous point we have already reviewed some of the most important ones and now we are going to see how to invest in new cryptocurrencies.
Just as there are IPOs of companies, cryptocurrencies also have their start. They are the so-called ICO or Initial Coin Offering and that the stock market investor will remind the IPO or Initial Public Offering that collect the exits to the market and are called IPO in Spanish.
ICOs are used to finance projects. With the ICO the company puts into circulation new digital currencies in exchange for money.
Making money with cryptocurrencies is possible, but you have to know which one to bet on and how to do it. In this sense there are different ways to invest in cryptocurrencies from cryptocurrency trading to digital currency mining. Choosing the right asset and the way of exploitation is key, especially when they are so volatile and have so much risk. Best cryptocurrencies to invest in 2022
What were the most profitable cryptocurrencies last year? Which ones have a higher market capitalization (current price x outstanding offer)? You can see the full lists on pages like Coinmarketcap. These figures can help us get an idea of what some of the best cryptocurrencies of 2022 could be, although, due to their volatility, we will be updating this data and only time will tell.
We must take into account the presence of new technologies and markets where cryptocurrencies can take center stage, as is the case of the Metaverse, video games and digital finance. In this respect, the Etehreum network and its competitors such as Cardano and Solana are proposed to monitor closely. For the theme of the Metaverse Decentraland and its platform in which you can acquire “digital land” is giving a lot to talk about like The Sandbox. And Axie Infinity at the head of the revolution in the world of video games.
Profitability throughout 2021
Returns during the year 2021, source: CoinMarketcap
Of course we must not forget the top 10 cryptocurrencies by market capitalization. This always indicates those cryptocurrencies that are having greater relevance at all times and you can follow them through the CoinmarketCap website.
Source: CoinmarketCap. Market capitalization as of April 13, 2022.
In this video we talk with Alex Reyes, expert in cryptocurrencies, about the next trends of cryptocurrencies during this 2022.
From Finect we have prepared this showcase with the best funds that invest in technology companies at the moment: Most profitable cryptocurrencies