Cryptocurrency is a digital currency created with encryption algorithms. To use them, you’ll need a crypto wallet, which are the tools that store your encryption keys, confirming your identity and linking to your currency. Before investing in any cryptocurrency, it’s essential to understand how it works, where you can use them, and how to exchange them. It will also take research to choose the best wallet for your needs. For beginners, here are the best cryptocurrencies to start with:
1. Solana
Launched in 2020 by two former Qualcomm employees, Solana was designed with speed and cost in mind. The token was created with a proof-of-stake mechanism that allows owners to lock their holdings to validate new transactions for security. Think of it like the current Ethereum system following its merge. Since the coin’s launch, it has produced a return of over 14,000%, making it a highly valuable financial asset for its age. With a market cap of $5 billion USD, it ranks in the top 20 most valuable currencies worldwide. These positive developments could lead to a higher price in the future.
2. Polkadot
Polkadot has gained much interest from crypto investors because it has more interactivity compared to other coins. Developers can link blockchains to the system and even create new ones; when investors see developer interest, it catches their eye. Some see this token as the inevitable way forward for cryptocurrency, improving the blockchain technology with a scalable business model. As a bonus, it currently trades around $6 USD, making it a more accessible alternative to Bitcoin and Ethereum, where investors typically have to buy in fractions as they can afford it.
3. Terra
Many cryptocurrency experts believe that Terra (LUNA) is an attractive crypto investment; it has great potential as a medium of payment and exchange, as proven by LUNA ranking in the top 10 leading tokens by market cap. WalletInvestor predicts that LUNA’s value could gradually decline in 2023, but the same source forecasts a peak of $170 USD. While the predictions from other sources believe that the coin could surprise its average 2022 level, the minimum projected value could be $131 USD by the end of the year.
4. Cardano
Cardano (ADA) is another cryptocurrency coin that has proven active in the digital world this year. In other words, ADA is another under-the-radar investment that could be worth your while. Several experts predict this token’s value will increase through 2022; in fact, as improvements continue within the ecosystem and the overall crypto market, it’s possible that ADA can reach an all-new high in a short period. Currently, experts estimate ADA could reach over $10 USD by the end of the year, but remember that it is a highly volatile asset, so you should always do individual research before making a commitment.
5. XRP
Ripple (XRP) is a crypto token that migrates transactions into an open infrastructure while substantially cutting costs. These transactions are trustless and cheap, which puts them in an advantageous position for cross-border movement. The token’s blockchain infrastructure is a low-cost alternative to the traditional international payments system that most banks use. However, it’s no exception to the rule that cryptocurrencies are volatile; it’s not as safe as investing in stocks, but the potential gains are considerably higher, too. So if you think Ripple’s growth will continue, it’s worth investing in this under-the-radar coin today.
