London, UK, 5th Feb 2022, Binary News Network, Cryptocurrency is the new digital currency available only in digital form. Unlike fiat money, which is issued and controlled by the government’s central banks (mostly Federal Reserve System (FRS)), cryptocurrencies are generated through an open-source software that uses cryptography to secure transactions between individuals. FinancialCentre broker, Edward Miller, says cryptography converts legible information into an unbreakable code to be used as a means of validating the transactions. The entire process is decentralized, which gives individuals full control over their digital currency and direct access to various cryptocurrencies’ transaction history.
The cryptocurrency market is on an economic rollercoaster that’s gaining momentum at a rapid speed. Bitcoin rose from $1,000 at the start of 2017 to $38,000 in February 2020. Ethereum (ETH), Ripple (XRP), and Litecoin (LTC) jumped by 2289%, 2867%, and 6494%, respectively, during the same period. But of course, not every cryptocurrency appears on New Year’s Eve lists across the world, only to fade away into obscurity by January 2018. There are several promising cryptocurrencies you can invest in today for great returns in 2022.
For the sake of avoiding confusion, the list is not presented in any order. All prices mentioned below are in US dollars (USD). The list also contains information about the pros and cons of each cryptocurrency, along with their expected growth by 2022.
Although Tron (TRX) sold 30% of its supply at a discounted rate, the project is backed by notable public figures like Justin Sun and Alibaba’s Jack Ma. They are bullish on Tron’s potential to disrupt the entertainment industry.
The project has recently faced criticism for plagiarizing code from other cryptocurrencies like Filecoin and Ethereum. The team behind Tron has since submitted a formal apology. At the same time, Justin Sun (the Foundation’s CEO) went on record saying that “Tron will create some legendary code with its top-notch global developers.”
EOS is a decentralized, open-source cryptocurrency and an infrastructure that facilitates the development of DApps (decentralized applications). Like Tron, EOS runs on a P2P network and enables users to create their own “smart contracts” by transferring “tokens”. However, the most appealing feature of EOS is its “Parallel Processing” technology that offers a higher transaction speed than most other cryptocurrencies.
EOS has seen some criticism for being centralized in nature. The project’s network can accommodate up to 100 nodes at any given time, managed by the top 21 “block producers” (BP’s). This gives the top BP’s a lot of control over the network, which makes EOS vulnerable to attacks from hackers and other malicious entities.
The Ripple network is designed specifically for financial institutions, corporations, and large investors interested in making fast international transactions. P2P payments can be sent to any individual or business connected to the Ripple network at a negligible fee. These transactions are processed immediately and without hassle, while Ripple’s “Consensus Algorithm” rewards participants for validating information on its blockchain.
Ripple is currently working with over 100 banks, but it has received criticism from some individuals who believe that the project is not in the best interest of decentralization. Ripple CEO Brad Garlinghouse, however, believes that his company’s products “can increase decentralization”.
An open-source P2P cryptocurrency focusing on speed and scalability, Litecoin was one of the first-ever successful forks of the Bitcoin (BTC) network. It is currently the 6th most valuable cryptocurrency in terms of market capitalization, with a valuation of over $3 billion at the time of writing. Litecoin’s blockchain can process 2.5 minutes’ worth of transactions per block, which results in faster confirmation times than Bitcoin (10 minutes).
Litecoin has faced criticism for having a deflationary supply model, wherein new Litecoins are mined at regular intervals. Critics argue that this may cause the value of LTC to plummet sharply, especially if miners suddenly decide to stop mining new coins altogether.
Like Ripple and Tron, Ethereum is an open-source ecosystem designed to offer smart contract functionality and P2P transactions. The project’s cryptocurrency, Ether (ETH), is the second-largest market capitalization. Ethereum also has a vibrant developer community involved in supporting projects built on top of its blockchain network.
Ethereum faces scalability issues because of its decentralized nature, resulting in each node verifying every transaction. This becomes more cumbersome as the network grows, which is why Ethereum has moved to implement updates like “Plasma” and the “Sharding” protocol.
The cryptocurrency market is still very young, and the industry’s leaders have yet to be determined. While a few coins have risen quickly to the top, it will take years before we can properly identify which of these projects offer actual value. Several coins seem to offer genuine innovation, while others have been criticized for having over-hyped marketing campaigns.
Disclaimer: Our content is intended to be used for informational purposes only. It is very important to do your own research before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.