TOP-8 promising cryptocurrencies for investment

Disclaimer. For this article, we took information from specialized sources. It is up to you to decide which cryptocurrency to invest in based on your analysis of the asset. 

 

Cryptocurrency is digital money that is developed using blockchain technology and is not controlled by a central authority. Since the advent of Bitcoin, the popularity of cryptocurrencies has increased and many investors prefer to use it not only as a means of payment, but also as an investment tool. 

 

A great example is crypto investor Cooper Tarly, who invested several hundred dollars in Bitcoin and Ethereum in 2017. He became a millionaire in 2021. 

 

In this article, we look at the rating of cryptocurrencies and detail the 8 most promising assets for investment. 

 

Bitcoin (BTC)

Market capitalization: $400.5 billion

 

And opens our list the first and most popular cryptocurrency — Bitcoin. Many businesses are already using bitcoins as a means of payment, such as Visa. And no matter how skeptics treat this coin, it is still the leader among investments and trading. 

 

What makes Bitcoin different from other cryptocurrencies is that it is not part of any large ecosystem or decentralized financial network. Experts view bitcoin as an alternative global currency. 

 

The price of bitcoin is very volatile. The cryptocurrency broke an all-time high on October 20, 2020, when bitcoin was at $67,000. As of this writing (November 2022), bitcoin is at $20,917. This is due to the period of crypto winter, which has been going on since April 2022. 

 

But experienced investors argue that the crypto market is cyclical, and crypto winter is a great period to buy promising assets at a low price.

Ethereum (ETH)

Market capitalization: $200.6 billion

 

The second most popular and capitalized cryptocurrency that is considered an alternative to bitcoin. Ethereum was developed by Vitalik Buterin in order to eliminate the disadvantages of the BTC network. Namely — limited work with smart contracts, low transaction speed and insufficient scalability of the network. 

 

Ethereum originally used the Proof of Work consensus algorithm to confirm transactions, but a major upgrade to Proof of Stake took place on September 15. Ethereum cannot now be mined, and miners have been replaced by validators. They will validate transactions using staking deposits and receive rewards in the form of ETH coins. Ethereum stacking yields are 4-4.5%. 

 

Next up for users is a major network upgrade and a move to a new virtual machine that supports multiple languages for creating smart contracts. 

 

News of the upgrade and the transition itself has had an impact on the cryptocurrency's exchange rate. According to Fortune, ETH prices rose nearly 50% during the last two weeks of July 2022 in anticipation of the upgrade, but they fell in August when the previously announced launch dates passed. By mid-September 2022, ETH began to rise again. ETH now stands at $1643. 

Binance Coin (BNB)

Market capitalization: $56.6 billion

 

The Binance crypto exchange token was originally used to make transactions on the exchange and enable holders to pay lower fees. To increase the price of the token, the crypto exchange burns assets once a quarter, which affects the appreciation rate. 

 

The last burn, which occurred on Oct. 13, 2022, reduced the supply of coins by more than 2 million tokens ($600 million) had no effect on prices in the short term. But in the long term, the token burn has an impact on token prices. 

 

BNB has a total stock of 200 million coins, 80% of which are in circulation. At the beginning of 2021, the cryptocurrency broke an all-time high of $683. The exchange rate now stands at $353.30. 

S-Wallet Protocol (SWP)

Market capitalization: $105.20 million

 

SWP is a native token of the S-Wallet ecosystem created according to the BEP20 standard in the BSC (Binance Smart Chain) blockchain network. The token ensures smooth operation of the entire ecosystem and is supported by the technological innovation products in the S-Wallet ecosystem.

 

The SWP token is a key component and core asset for the development and scaling of all ecosystem products. The S-Wallet team is actively developing the token, so SWP holders can get the most out of the ecosystem. 

 

At the time of Public Sale, the token rate was $0.30, after which it was actively climbing and already in July 2022, the maximum rate was $5.93. Now the rate of SWP is $2.58. 

 

You can buy SWP at crypto exchanges, where token is placed. 

 

- PancakeSwap

- Hotbit

 

Solana (SOL)

Market capitalization: $359.8 million

 

Solana is an Ethereum-like blockchain with its own robust ecosystem of users and developers and a native SOL token. Solana's main advantage over Ethereum is a lower commission structure. The blockchain runs on the PoS consensus algorithm, but it integrates another protocol, PoH (Proof of History), which allows processing thousands of transactions per second. This feature sets Solana apart from other networks. 

 

The Solana token was launched in 2020 and is used for internal blockchain processes as well as exchange trading. In its first year of existence, the token showed a growth of more than 10,000%. The price started at $0.77 and now SOL is at $33.68. 

Tether (USDT)

Market capitalization: $69.35 billion

 

Stablecoin, whose exchange rate is pegged 1:1 to the U.S. dollar. The coin retains a stable value and is used by investors to lock in profits as well as minimize losses. The daily volume of transactions in USDT exceeds $47 billion.

 

Investing in USDT Stablecoin is a great option for those who want to invest in cryptocurrency, but do not want to expose their assets to risks due to the high volatility of the crypto market.

Dogecoin (DOGE)

Market capitalization: $16.8 billion

 

This token was created by Jackson Palmer in 2013, but not for the purpose of making money, but as a joke on the cryptocurrency community. The creator wanted to convey the message that investing money in an unstable direction is stupid. 

The name and look of the coin is also humorous. The creator combined bitcoin and the then-popular “Doge” meme into it. 

 

Not everyone took the new crypto as a joke and started buying it, raising the market value to $400 million. At the beginning of 2021, the value of Dogecoin rose by about 216% to $0.023535. The cryptocurrency became the most discussed after Elon Musk's regular tweets, which played a good role in the development of the token. 

 

The token now stands at $0.1271 and was up +47.04% in the last week between 28.10 and 04.11.2022.

Ripple (XRP)

Market capitalization: $25.12 billion

 

XRP is a limited-issue cryptocurrency of the Ripple network. The developers have only created 100 billion tokens and will not create anymore. One of the features of XRP is a payment bridge. It enables the exchange of assets that cannot be exchanged with each other directly. Cryptocurrency cannot be mined, and the issuance of new tokens is controlled by the developer company. 

 

Another feature of XRP is its very high transaction speed, which is 1,500 per second. By comparison, bitcoin has a transaction rate of 3-6 per second.

 

At the beginning of 2017, the price of XRP was $0.006. As of Nov. 4, 2022, its price reached $0.46, an increase of 7,561%.

Comparison table of popular coins and tokens

Which cryptocurrency to invest in?

When choosing a crypto-asset to invest in, it is important to examine the following factors. 

 

1. How long has the cryptocurrency been around? New cryptocurrencies shouldn't be ruled out, but having historical data to compare will help you see how the company has performed so far.

2. Evaluate the company's past performance and how much growth the cryptocurrency has shown. If you see rate stability or that the cryptocurrency is gaining momentum and becoming more valuable over time, that's a good sign.

3. Evaluate the platform's technology, transaction speed, overall functionality and earning potential. Also pay attention to the implementation of user asset security.

4. Explore the tokenomics of the project and familiarize yourself with technical points such as issuance, token burning.

Key takeaways

Investing in cryptocurrency is continuously associated with risk, not only because of the high volatility of the market, but also because the value of coins is determined by supply and demand. This does not make cryptocurrency an unsuccessful investment option, on the contrary. The main thing is to be careful in choosing a promising cryptocurrency and judiciously evaluate its possibilities.