Top 7 Cryptocurrencies To Invest For Huge Profits In 2022

Top 7 Cryptocurrencies To Invest For Huge Profits In 2022

Cryptocurrency is digital money that isn’t managed by a central system like a government. Instead, it’s based on blockchain technology, with Bitcoin being the most popular one. As of 2021, there are over 5,000 cryptocurrencies on the market.

While you can use cryptocurrency to make purchases, most people treat it as a long-term investment. However, volatility makes investing in cryptocurrency risky, so it’s important to know what you’re getting into before you buy in. The top cryptocurrencies are attracting investors looking to diversify their portfolios.

Hello there and welcome to HotNaija, your one-stop destination for latest entertainment news, celebrity gossips and stories, lifestyle content and cryptocurrency news. In recent times, many growing companies are now starting to accept cryptocurrencies as a legitimate means of payment, so now is a good time to invest in cryptocurrencies based on your budget. Here's a guide to help you figure out which coins are the best to invest in 2022 to make a fortune by 2022. These are some of the inexpensive coins that appear to be decent investments in 2021, as there are a lot of choices for the cheapest Altcoins with potential.

Although Bitcoin remains the most popular cryptocurrency, there are many others on the rise that smaller investors should consider. So without any further ado, let's get started.

Disclaimer: None of these is meant to be construed as investment or financial advice. They're just opinions and we urge everyone to do more deep personal research before investing their money anywhere.

(1). Bitcoin (BTC)

Market Cap – $1.04 T

Bitcoin is a decentralized cryptocurrency/digital currency originally described in a 2008 white paper. It follows the ideas set out in a white paper by the mysterious and pseudonymous Satoshi Nakamoto. The identity of the person or persons who created the technology is still a mystery till date. It was launched soon after, in January 2009.

Bitcoin offers the promise of lower transaction fees than traditional online payment mechanisms do, and unlike government-issued currencies, it is operated by a decentralized authority. It is a peer-to-peer online currency, meaning that all transactions happen directly between equal, independent network participants, without the need for any intermediary to permit or facilitate them. Bitcoin was created, according to Nakamoto’s own words, to allow “online payments to be sent directly from one party to another without going through a financial institution.”

Bitcoin is known as a type of cryptocurrency because it uses cryptography to keep it secure. There are no physical bitcoins, only balances kept on a public ledger that everyone has transparent access to (although each record is encrypted). 

Some concepts for a similar type of a decentralized electronic currency precede BTC, but Bitcoin holds the distinction of being the first-ever cryptocurrency to come into actual use.

All Bitcoin transactions are verified by a massive amount of computing power via a process known as "mining." Bitcoin is not issued or backed by any banks or governments, nor is an individual bitcoin valuable as a commodity. Despite it not being legal tender in most parts of the world, Bitcoin is very popular and has triggered the launch of hundreds of other cryptocurrencies, collectively referred to as altcoins. Bitcoin is commonly abbreviated as BTC when traded.

(2). Ethereum (ETH)

• Market Cap – $488.17 Bn

Ethereum is a decentralized open-source blockchain system that features its own cryptocurrency – Ether. ETH works as a platform for numerous other cryptocurrencies, as well as for the execution of decentralized smart contracts.

It is a permissionless, non-hierarchical network of computers (nodes) which build and come to consensus on an ever-growing series of "blocks", or batches of transactions, known as the blockchain. Each block contains an identifier of the chain that must precede it if the block is to be considered valid.

Note: Whenever a node adds a block to its chain, it executes the transactions therein in their order, thereby altering the ETH balances and other storage values of Ethereum accounts. These balances and values, collectively known as the state, are maintained on the node's computer separately from the blockchain in a Merkle tree.

Ethereum was first described in a 2013 whitepaper by Vitalik Buterin. Buterin, along with other co-founders, secured funding for the project in an online public crowd sale in the summer of 2014. The project team managed to raise $18.3 million in Bitcoin, and Ethereum’s price in the Initial Coin Offering (ICO) was $0.311, with over 60 million Ether sold. Taking Ethereum’s price now, this puts the return on investment (ROI) at an annualized rate of over 270%, essentially almost quadrupling your investment every year since the summer of 2014.

The Ethereum Foundation officially launched the blockchain on July 30, 2015, under the prototype codenamed “Frontier.” Since then, there has been several network updates — “Constantinople” on Feb. 28, 2019, “Istanbul” on Dec. 8, 2019, “Muir Glacier” on Jan. 2, 2020, “Berlin” on April 14, 2021, and most recently on Aug. 5, 2021, the “London” hard fork.

Ethereum’s own purported goal is to become a global platform for decentralized applications, allowing users from all over the world to write and run software that is resistant to censorship, downtime and fraud.

Keep in mind:

Ethereum, like Bitcoin, is an open source project that is not owned or operated by a single individual. Anyone with an internet connection can run an Ethereum node or interact with the network. Popular Ethereum-based innovations include stablecoins (which are pegged to the dollar by smart contract), decentralized finance apps (collectively known as DeFi), and other decentralized apps (or dapps).

(3). Binance Coin (BNB)

• Market Cap – $101.43 Bn

Binance Coin (BNB) is the native crypto asset of the Binance ecosystem. Binance is a unique ecosystem of decentralized, blockchain-based networks. The company has grown to be the leading crypto exchange in a number of countries, and their side organizations are attracting significant interest as well.

One of the biggest competitive advantages Binance has is its drive for development. While the company started only as a crypto exchange back in 2017, today, Binance has spread its services among numerous different spheres. According to the company website, its mission is to become the infrastructure services provider for the entire blockchain ecosystem.

Since launching the Binance Coin, the exchange has also benefited from increased investor interest in the token. BNB went through a significant price increase at the beginning of 2021, which has put it on the map of enterprise investors.

BNB is the main asset for Binance’s platform, serving a number of roles, including as a method of fee reduction on the exchange and as a currency in which to pay fees for activities on Binance Coin’s main blockchain, Binance Chain (BC), and its sister chain, Binance Smart Chain (BSC).

(4). Solana (SOL)

• Market Cap – $59.27 Bn

Built by a team of networking engineers, Solana is an high throughput blockchain, based on the Proof of History (PoH) and Proof of Stake (PoS) consensus, with an aim to become the blockchain infrastucture for modern internet applications.

Solana is a general purpose blockchain similar to Ethereum. It has a different technical underlying such that developers write applications using Rust instead of Solidity or Vyper. End user applications as of now include decentralized finance (DeFi), non-fungible tokens (NFT), marketplaces, games, and more.

Solana's native currency SOL is used to pay for transaction fees and staking in order to support the network. SOL coin can be bought on exchanges such as FTX, Coinbase, Kraken, and more.

Solana crypto price has experienced a hyperbolic growth in 2021. In 2020, SOL was trading below $2. With the advent of multichain and increased adoption of DeFi and NFT, Solana managed to capture a large market share. Developers were attracted by the technical underlying and started building dapps such as Star Atlas, Mercurial, Orca, Saber, and more.

On September 9th, 2021, Solana was trading at an all time high of $213 recording a near +10,000% gain since 2020.

On 14 September 2021, the Solana blockchain went offline after a surge of transactions caused the network to fork, and different validators had different views on the state of the network. The network was successfully brought back online early on 15 September. 

Solana can purportedly handle 50,000 transactions per second, which is faster than the Ethereum blockchain, but still less than the 400,000 transactions seen during the spike.

(5). Cardano (ADA)

• Market Cap – $59.23 Bn

Cardano is a proof-of-stake blockchain platform that says its goal is to allow “changemakers, innovators and visionaries” to bring about positive global change.

The open-source project also aims to “redistribute power from unaccountable structures to the margins to individuals” — helping to create a society that is more secure, transparent and fair.

Cardano was founded back in 2017, and named after the 16th century Italian polymath Gerolamo Cardano. The native ADA token takes its name from the 19th century mathematician Ada Lovelace, widely regarded as the world’s first computer programmer. The ADA token is designed to ensure that owners can participate in the operation of the network. Because of this, those who hold the cryptocurrency have the right to vote on any proposed changes to the software.

The team behind the layered blockchain say that there have already been some compelling use cases for its technology, which aims to allow decentralized apps and smart contracts to be developed with modularity. It is the largest cryptocurrency to use a proof-of-stake blockchain, which is seen as a greener alternative to proof-of-work protocols.

Atypically, Cardano does not have a white paper. Instead, it uses design principles intended to overcome issues faced by other cryptocurrencies such as scalability, interoperability, and regulatory compliance.

Note: Cryptocurrencies can be a crucial part of your investment portfolio if managed right. Buying multiple cryptocurrency coins can even assist with augmenting your investments as enhancing protects you from losing all your hard-earned money. Crypto trading is one of the most popular methods to make money, but there is a lot of volatility that makes it highly risky.

In the grand scheme of things, this would be a scary thought for any hard-working person, but when there is a high risk, there is a pretty good chance of scoring even a higher reward. There are other effective strategies to make profits with cryptocurrency.

(6). XRP (XRP)

• Market Cap – $44.69 Bn

To begin with, it’s important to understand the difference between XRP, Ripple and RippleNet. XRP is the native cryptocurrency of Ripple (a blockchain-based payments network designed to facilitate faster and cheaper cross-border payments between financial institutions), which is on top of a distributed ledger database called XRP Ledger. While RippleNet is run by a company called Ripple, the XRP Ledger is open-source and is not based on blockchain, but rather the previously mentioned distributed ledger database.

Ripple crated XRP to be a speedy, less costly and more scalable alternative to both other digital assets and existing monetary payment platforms like SWIFT.

Sending payments overseas using the legacy financial system typically takes one to four business days and can be expensive. If a person uses XRP as a bridging currency, it’s possible to settle cross-border transactions in less than five seconds on the open-source XRP Ledger blockchain at a fraction of the cost of the more traditional methods.

(7). Polkadot (DOT)

• Market Cap – $35.00 Bn

Founded by the Web3 Foundation (a Swiss Foundation established to facilitate a fully functional and user-friendly decentralized web, as an open-source project), Polkadot is an open-source sharding multichain protocol that facilitates the cross-chain transfer of any data or asset types, not just tokens, thereby making a wide range of blockchains interoperable with each other.

• Economic & transactional scalability

Polkadot provides unprecedented economic scalability by enabling a common set of validators to secure multiple blockchains. Polkadot provides transactional scalability by spreading transactions across multiple parallel blockchains.

• Easy blockchain innovation

Create a custom blockchain in minutes using the Substrate framework. Connect your chain to Polkadot and get interoperability and security from day one. This ease of development helps Polkadot's network grow.

• Forkless and future-proof

Polkadot can upgrade without hard forks to integrate new features or fix bugs. This capability enables Polkadot to easily adapt to changes and upgrade itself as better technologies become available.

• Security for everyone

Polkadot's novel data availability and validity scheme allows chains to interact with each other in a meaningful way. Chains remain independent in their governance, but united in their security.

• User-driven network governance

Polkadot has a sophisticated governance system where all stakeholders have a voice. Upgrades to the network are coordinated on-chain and enacted autonomously, ensuring that Polkadot’s development reflects the values of the community and avoids stagnation.

EndNote: This isn't a financial advice! DO NOT make any buying or selling decisions based on this article. It is your due responsibility to verify all information yourself, as this piece was only written for entertainment purposes only.

Well, there you have it. Make sure you check out our other blog posts for more information about the crypto market and trending entertainment headlines. Thanks for reading!