As cryptocurrencies have gained popularity, cryptocurrency exchanges have risen significantly around the world.
When compared to “conventional” asset classes like equities and bonds, the cryptocurrency market is still in its infancy. As a result, innovative projects are constantly emerging and competing for market share against established cryptocurrencies like Bitcoin and Ethereum.
Cryptocurrency trading is taking a financial stance on the movement of specific cryptocurrencies’ prices either in relation to the dollar (in crypto/dollar pairs) or in relation to another cryptocurrency, via cryptocurrency to cryptocurrency pairs. Due to its increased flexibility, use of leverage, and ability to take both long and short positions, CFDs (contracts for difference) are a particularly well-liked method of trading cryptocurrencies.
In this article, we’ll examine some of the best new cryptocurrencies for 2022, including what they are, their price potential, and ways to invest in them.
When compared to one‘s peak prices in late 2021, Bitcoin and Ethereum are now down more than 50%. Despite some minor gains in recent weeks, the cryptocurrency market as a whole is mainly stagnant. Although no one can be certain, several experts believe that before a sustainable rebound, cryptocurrency values may fall considerably further.
Multiple new all-time high prices for bitcoin were reached in 2021, followed by significant declines, and more institutional investment from significant firms. The second-largest cryptocurrency, Ethereum, also reached a new record-high in late 2018 before falling to below $900 in June, its lowest point since the beginning of 2021. The Biden administration and U.S. government representatives have shown an increasing interest in new cryptocurrency legislation.
All the while, people’s interest in crypto remains high: it’s a hot topic not only among investors but in popular culture too.
But the industry is only in its infancy and constantly evolving. That’s a big part of why every new cryptocurrencies high can be easily followed by big drops.
You might wonder which cryptocurrency will bring the biggest potential return. Although bitcoin might be the obvious choice, it’s not necessarily the best one in 2022. Your chances of having a big payoff might be better with a smaller coin that hasn’t already been pumped up by institutional investors the way bitcoin has.
Being the most valuable cryptocurrency by market valuation and having the rest of the market tend to follow its patterns, Bitcoin is a good predictor of the crypto industry as a whole.
After a tumultuous ride in 2021, the price of bitcoin reached a new record high in November when it surpassed $68,000. But in 2022, it all came tumbling down.
In the midst of continued macroeconomic uncertainty brought on by rising inflation, a weak stock market, rising interest rates, and worries about a recession, Bitcoin and the larger crypto market have been declining this year.
After falling from its most recent all-time high in November, the price of Bitcoin was simple to anticipate at $100,000 late last year. The prediction game has become much more difficult since Bitcoin’s significant decline.
The most ardent cryptocurrency naysayers anticipate that Bitcoin will crash to as low as $10,000 in 2022. However, a more reasonable position could be to believe that Bitcoin can still rise to $100,000 as many experts predicted late last year, however on a slower timescale.
2. Bitcoin Cash:
One of the cryptocurrencies that many people have heard of but are unsure of what it is it’s Bitcoin Cash. BCH is still frequently seen as nothing more than a subpar version of Bitcoin and is only mentioned when forking Bitcoin is being discussed. It is now one of the 30 largest cryptocurrencies in the world, but it has shown a lot of promise.
It is difficult to predict whether Bitcoin Cash will be a good investment or not, just like with any other cryptocurrency. However, if the market crashes, its enormous market cap, strong technical base, and excellent prospective use may assist it maintain its price.
Also referred to as ether, Ethereum is the second-largest cryptocurrency in the world after bitcoin and occasionally outperforms it. The ether supply was decreased as part of Ethereum’s major upgrade from the previous year; as of August 2, there were 121.8 million coins available. The upgrade also increases the number of transactions the Ethereum network can process per second, increases the platform’s scalability, and lowers transaction costs.
Ethereum is less scarce than bitcoin, whose quantity is limited to 21 million coins, and is not as well-liked by businesses and governments. Ethereum, in contrast to bitcoin, is more than just a store of money. It serves as a foundation for the development of apps. Ethereum is the base of decentralized finance and is used to issue other cryptocurrencies.
Dash is a coin that has made a name for itself in the cryptocurrency industry. It has been around for a long time and has undergone several distinct uses and modifications. Because it has so much promise and potential to be a successful digital currency, Dash coin has grown to be well-known and frequently sought for by investors. However, a significant portion of the coin’s interest is based on the expected Dash price.
Dash is a coin that could have a highly promising future because it has been largely focused on resolving some of the more significant difficulties in the cryptocurrency industry that investors have felt thus far, such as scaling, speed and cost of transactions, and ease of usage.
By market capitalization, Litecoin has long held the third-place position among cryptocurrencies. This cryptocurrency has been in circulation for almost nine years and has managed to remain profitable for the majority of that time. It continues to be one of the top 30 cryptocurrencies as of right now, according to market cap.
Many people have been discussing how Litecoin has “dropped off” recently. These days, all in-demand tokens are either associated with a powerful brand, offer a lot in addition to serving as a store of value, or are simply unique enough to catch the attention of millionaires. Litecoin lacks all of those features, while having a strong technical base.
The price and market capitalization of Litecoin are highly likely to increase again in the future, though, as this cryptocurrency is still growing strong.
The XRP Ledger’s native cryptocurrency is called Ripple (XRPL)Ripple, a blockchain-based payment system, introduced the public open-source blockchain known as XRPL in 2011. On the native network, XRP is employed as a transaction fee as well as a possible form of payment and investment. It might be time for another bear market and accumulation phase after such a strong increase from $1 to $12. Ripple would need to establish support once again at a price of $1 or higher.
In spite of our predictions about the potential value of cryptocurrencies, the fact remains that they are a very new and speculative investment with no historical data. Nobody knows, regardless of what a particular expert believes or asserts. For long-term wealth creation, it is crucial to only invest what you are willing to lose and to stay with more traditional investments.
This material is considered a marketing communication and does not contain, and should not be construed as containing, investment advice or an investment recommendation or, an offer of or solicitation for any transactions in financial instruments. Past performance is not a guarantee of or prediction of future performance. Trust Capital TC Ltd does not take into account your personal investment objectives or financial situation. Trust Capital TC Ltd makes no representation and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast, or other information supplied by an employee of Trust Capital TC Ltd, a third party or otherwise.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83.33% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Trust Capital TC does not offer Contracts for Difference to residents of certain jurisdictions including the USA, Iran, and North Korea. Please consider our “Risk Disclosure“.