Best Cheap Future Cryptocurrencies for 2022 – Beginners Guide and Analysis
Cryptocurrencies are still on everyone’s lips in 2022. This year, due to the falls that these digital currencies are accumulating. But what does that mean? What is a bad time to invest in crypto? Many people think that the 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, investing in cryptocurrencies: assets that have experienced a great revaluation since their creation. In this article we explain what a cryptocurrency is, how it works, how to invest, which cryptocurrencies to invest in and which are the best in 2022.
At Finect we have also created a section where you can see information from different platforms where you can buy Bitcoin or other cryptocurrencies , compare and then decide which one is best suited to you.
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 bills or coins like there are euros, dollars or pounds . Cryptocurrencies are digital and, although they can be stored in physical devices (the so-called wallets or physical purses such as hard drives or USB sticks), they do not have a 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 depend on any government or country: there is no body or central government in charge of creating new currencies and putting more money in the market. As an example, Bitcoin uses blockchain technology to regulate the creation of new units . Also, 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 used for many different purposes. From using a cryptocurrency as a means of payment, as is the case with Bitcoin, to the smart contracts of the ethereum network . There are also currencies that use completely different formulas.
In this video you will see how ethereum works , the second most important crypto:
Although when it comes to investing, it is necessary to have sufficient financial knowledge and know exactly what products we are depositing our money in 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!
cryptocurrency list
How many cryptocurrencies are there? The data is constantly changing and is not entirely accurate, but it is estimated that currently, at the beginning of 2022, there are more than 10,000. Every week some 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 (in terms of market capitalization) are:
3. Shiba Inus
4. STEPN
5. PancakeSwap
6. Earth
7.Polygon
8. Sunshine
9.USD Coin
10. Polkastarter
Top 10 list according to Coinmarketcap (July 6, 2022).
The number of existing virtual currencies is much larger and continues to grow every day. To consult the legal cryptocurrencies you can do it through more than 800 digital currencies and their corresponding price such as : World Coin Index and CoinMarketCap.
In both places you will be able to 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 commitment!
new cryptocurrencies
The world of virtual currencies never stops and new proposals arise almost daily, 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 company IPOs, cryptocurrencies also have their coming-out. They are called ICO or Initial Coin Offering and that the investor in the stock market will remind the IPO or Initial Public Offering that collect the exits to the market and are called OPV in Spanish.
ICOs are used to finance projects. With the ICO, the company puts new digital currencies into circulation in exchange for money.
Earning 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 trading with cryptocurrencies to mining digital currencies. Choosing the asset and the form of exploitation well 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 of the past year? Which ones have a higher market capitalization (current price x outstanding supply)? You can see the complete lists on pages like Coinmarketcap. These figures can help us get an idea of what could be some of the best cryptocurrencies of 2022 , although, due to their volatility, we will update only time will tell.
It is necessary to 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 aspect, the Ethereum network and its competitors such as Cardano and Solana are proposals to watch closely. On the topic of the Metaverse Decentraland and its platform where you can acquire “digital land” is giving a lot to talk about as well as The Sandbox. And Axie Infinity at the head of the revolution in the world of video games.
Of course, we must not forget the top 10 cryptocurrencies by market capitalization. This always indicates those cryptocurrencies that are having the most relevance at all times and you can follow them through the CoinmarketCap website.
- Bitcoin: $385,420,950.07
- Ethereum: $139,180,318,281
- Shiba: $5,732,417,360
- STEPN: $560,509,052
- PancakeSwap: $448,169,277
In this video we talk to Alex Reyes, a cryptocurrency expert, about the upcoming cryptocurrency trends in 2022.
From Finect we have prepared this showcase with the best funds that invest in technology companies at the moment:
Most profitable cryptocurrencies
As the stock market saying goes, “past returns do not guarantee future returns”. And we have realized with the huge drop that we have had at the beginning of this year, from which, it seems, the market is recovering. In this Finect Live we reviewed with great experts these falls and what is expected in the future.
In this video we talk to Alex Reyes, a cryptocurrency expert, about the upcoming cryptocurrency trends in 2022.
From Finect we have prepared this showcase with the best funds that invest in technology companies at the moment:
Most profitable cryptocurrencies
As the stock market saying goes, “past returns do not guarantee future returns”. And we have realized with the huge drop that we have had at the beginning of this year, from which, it seems, the market is recovering. In this Finect Live we reviewed with great experts these falls and what is expected in the future.
4. SUNSHINE
It is another Smart Contracts project that competes closely with Ethereum by raising the possibility of handling up to 50,000 transactions per second. This would increase the speed with which transactions could be made in the world of decentralized finance. With a brutal growth of 10,942% Solana (SOL) achieved a record year and aims to be a cryptocurrency to keep an eye on due to the great projection of its projects.
5. DOGECOIN
The “puppy” has done it! Dodgecoin (DOGE) achieved a growth of 3,000% driven, among others, by Elon Musk. Although its value has plummeted from the last semester of 2021, its explosion during the first half of the year was such that it managed to stay in the top 10. The “Meme Coins” or “Meme Coins” do not have great projects behind them, in many cases they do not have any, but they are very attractive to small investors looking to speculate in the cryptocurrency market due to their low value. So beware of this type of cryptos in 2022.
There have been other cryptocurrencies and tokens with higher growth, as is the case of The Sandbox (SAND) that has grown more than 15,000%. This token went unnoticed during the first half of the year and barely moved reflecting a completely flat trend. However, being a project linked to the metaverse, it began to burst in the market as a result of announcements, such as Facebook now Meta, to begin to enter this new world yet to be explored.
In 2022 we may have new protagonists of whom we know little, but they have begun to make waves at the end of the year that we have just left behind. Protagonists of other ambitious projects linked to the metaverse and other new applications of DeFi (Decentralized Finance) such as Polkadot, Decentraland, Polygon or Avalanche. These crypto assets that have experienced strong growth and have large projects behind them can give a lot to talk about in 2022.
Many of the crypto assets mentioned are a firm competition to Ethereum and propose ideas based on smart contracts. With what we could have position movements among the largest when seeing their position threatened. Let us not overlook the fact that, as we have mentioned, while Ethereum has grown over 500%, Bitcoin has barely touched 70% growth. We will see what returns 2022 offers us.
How to buy cryptocurrencies
There are mainly two ways to invest in cryptocurrencies: buy cryptocurrencies or mine them. The first option is the most common and also the most accessible.
Buying a digital currency is not that different from investing in commodities, for example. What changes is the platform through which it is done. And it is that to invest in cryptocurrencies in 2022 there are specialized platforms, called exchanges . On these platforms you can buy cryptos in a super simple way, and even save them. But, hey! Because this is not the same as having a cryptocurrency wallet.
Wallets for cryptocurrencies
There are several types of cryptocurrency wallets, depending on their performance and security:
- Hot wallet : 100% online wallets, which can be applications or can even be installed as browser extensions.
- Cold wallet: physical wallets (hardware) whose common premise is that they work without an internet connection and are physical devices, which makes them the safest option.
Here you can see the best cryptocurrency wallets.
Where to invest in cryptocurrencies
Which exchange to choose? On which platforms can I buy cryptocurrencies? It will depend first of all on the digital currency you want to buy, since not all exchange platforms accept all the cryptocurrencies on the market. Taking that into account, this is a list of the most popular exchanges.
mine cryptocurrencies
Investing in cryptocurrencies using exchanges and wallets is a way to earn money with cryptocurrencies. The second way is cryptocurrency mining. How to mine cryptocurrencies? Basically, mining cryptocurrencies consists of solving complex mathematical problems, in exchange for receiving a reward. And this is essential for the Blockchain and the crypto ecosystem to work.
The most repeated question at this point is how to mine cryptocurrencies, what does it take to become a Bitcoin miner or any other cryptocurrency. To start you will need a mining machine or a computer. In theory, any computer will do, but in reality, if you want your activity to be profitable, you must have a specialized machine, assume a high energy cost and a fairly powerful computer.
If you still have doubts about how cryptocurrencies work, here is an explanatory video where you can understand it better:
