Who among us has not heard or met the hype of digital money and financial markets, or heard about them from his friends or from the news on social networks. Learn about the best digital currencies for investing, as everyone is always talking about them and wants to share their profits.
We will review: The best cryptocurrencies to invest in 2022 such as Bitcoin, LiteCoin, Ethereum, Ripple and others.
Digital money is a type of "digital wallet" or "cryptocurrency". It does not exist in physical form (as is the case with traditional currencies such as the dollar and the euro). Financial institutions or banks do not regulate or control digital currencies in the same way as traditional currencies, but they regulate themselves, using different cryptosystems. Also, these services are organized on the Internet, where the users of the network involved monitor and approve the actions of these transactions.
The beginning of what we now call digital money (or cryptocurrencies) began in 2009, and everything started with the release of Bitcoin, the first digital currency. Bitcoin is intended to be an electronic payment system based on cryptographic proof.
Cryptographic proof comes from the emerging technology of blockchain - a type of digital signature list that provides mathematical symbols that describe the complete transaction history of each bitcoin. This public domain chain allows for peer-to-peer transactions, without the need to transfer payment processing to third parties. The lack of third-party oversight means Bitcoin is a decentralized digital currency. In 2009, some market commentators called this new digital currency a fad, a transitional response to the subprime mortgage crisis that set the global economy back in 2008.
But as Bitcoin has grown in value and credibility over the years, interest in this new type of digital currency – and the technological framework upon which it is based – has blossomed. As more investors have adopted Bitcoin over the years, its value has increased, leading to increased interest in this asset class as a whole. This has led to a significant increase in their value and changes in their prices. For all these reasons, a large number of altcoins have entered the scene (and in some cases are going fast), based on blockchain innovations or similar concepts. At the beginning of 2016, the total market value of cryptocurrencies was around $8 billion; By March 2017, the number had increased to $25 billion, and five years later, in 2022, the number had doubled, bringing the value of the global digital currency market to $2 trillion .
One of the best digital currencies to invest in 2023
This article includes 10 of the best digital currencies to invest in 2022, which can be an option for your investment portfolio or circulation over the CFD.
However, before trading or investing, you should keep in mind that digital currencies are high fluctuations, and therefore, before making a decision, we recommend that you consult with your financial advisor to confirm that these are the options appropriate for you. We cannot know exactly the best digital currency to invest in 2022, but we have selected a group that can perform well or be stable in 2022.
This selection is based on the way digital currencies have grown in recent years, the current market capitalization, the direction of the sector and the investment arguments offered by each of the selected digital currencies. Stablecoins such as Tether or Binance are not considered, since their identity will be tied to the origin of the US dollar.
Each of the analyzed cryptocurrencies includes a brief description of it, some factors that may lead to its growth in 2022 and a daily chart of the past six months that includes two technical indicators.
Indicator Strength Index (RSI).
Exponential Moving Average (EMA): 20-minute (blue), 50-minute (red) and 100-minute (green)
Also, individual details include how each cryptocurrency has evolved over the past five years. #1 Bitcoin (BTC)
It is the most popular cryptocurrency by trading volume, apart from stablecoins. Despite the strong increase in competition, Bitcoin is still the absolute leader in the cryptocurrency market according to its market capitalization. The growth of Bitcoin in price is shocking, and the average growth in the last six years is an average of more than 300% and only in 2021 the digital currency grew by almost 80% .
Events, such as the acceptance in El Salvador of Bitcoin as a FIAT currency, have led to an increase in the expansion and acceptance of this property that some call "digital gold". Also, there are many factors that could lead to an increase in the growth of Bitcoin in the coming years. For example, almost 90% of bitcoins have already entered, so if the demand continues to increase and decrease, what will happen to bitcoin? Will it be one of the top ten digital currencies to invest in 2022?
Technically, you can see the price of Bitcoin (in USD) changing in the last few months. #2 Ethereum (ETH)
The second cryptocurrency in our list of the best cryptocurrencies to invest in 2022 is Ethereum, which is also the second by market capitalization in 2022 ($355.5 billion at the time of writing).
What is Ethereum? Ethereum (also called Ethereum and ETH) is a blockchain-based computer platform that is more than just money. This situation repeats itself every year for more than 5 years, Ethereum always goes ahead of Bitcoin.
However, these differences have narrowed significantly in 2021, with Ethereum growing five times more than BTC. There are many reasons why Ethereum is one of the top 10 currencies to invest in in 2022, including
Source: MetaTrader 5, ETHUSD, lo - Daily chart - Data range: May 10, 2021 to November 26, 2021, held on November 26, 2021 at 7:00 pm CET. Please note: past performance is not a reliable indicator of future results. #3 Litecoin (LTC)
Litecoin started in 2011, when it was created by Charles Lee, while still a Google employee. Litecoin is, for some time, the second largest cryptocurrency, earning a reputation as Bitcoin's silver lining. In recent years, it has been overshadowed by new digital currencies, although Litecoin's focus is to provide an alternative to fiat currencies for payments.
Although Litecoin is technically similar to Bitcoin, it offers fast transaction times and low fees, which means it is suitable for small businesses. However, the Litecoin hack is a big shout from its Bitcoin competition. Will 2022 be the year when this situation changes?
In the graph you can see the evolution of the price of Litecoin (against the US dollar) in the last six months.
Source: M
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