Following Bitcoin’s inception over a decade ago, the field of cryptocurrencies has grown rapidly, and the next big digital token could be issued overnight. Much of the fascination with cryptocurrencies stems from the desire to trade for profit, with speculators driving prices high at times. Here are three of the most popular cryptocurrencies you could invest in this year, according to most traders.
Bitcoin continues to dominate all digital assets, with a market cap of $8111 billion as of January 17. This pioneering cryptocurrency saw ups and downs, reaching lows of $40,000 in September and highs of $65,000 in October 2021. Despite this, crypto enthusiasts and investors continued to believe in this cryptocurrency, which was even lauded as digital gold and an inflation hedge by big banking institutions.
On the list of the most popular cryptocurrencies, Ethereum is a close second to Bitcoin. Its market capitalization is roughly $500 billion. However, other people believe it will be the next Bitcoin. Ethereum’s main advantage is its real-world application. Its blockchain allows for the creation of smart contracts, which can be employed in a wide range of applications. Ethereum is particularly well-suited to the creation of non-fungible tokens (NFTs).
Cardano aspires to be the worldwide economic operating system by producing DeFi products akin to Ethereum’s and delivering remedies for chain interoperability, voter fraud, and legal contract tracing, among other things. Cardano has a market capitalization of $37 billion as of January 2022, and one ADA currently trades for roughly $1.15. The cryptocurrency is based on the Proof-of-Stake (PoS) concept, which reduces transaction times while also reducing environmental effects through the staking process.
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