Cryptocurrency trading has really taken over the world lately and one mind-boggling thing is that many individuals venturing into it.
There are a lot of cryptocurrencies around and in this article, we will be taking a look at some of them. One thing you must know is that the cryptocurrencies in this article are the most talked about in the crypto space so presumably they can be said to be some of the best.
About Cryptocurrency
A cryptocurrency is a digital currency that is designed to function as a medium of exchange over a computer network and is not supported or maintained by any central authority, such as a government or bank.
It is a decentralized system for ensuring that the parties to a transaction have the money they claim to have, thereby eliminating the need for traditional intermediaries such as banks when funds are transferred between two entities.
Best Cryptocurrency To Invest in 2022
This section of the article will help you decide on the best cryptocurrency that you can invest in 2022. These cryptocurrencies are;
Bitcoin
Bitcoin is a digital currency that can be transferred between peers using the bitcoin network. Bitcoin transactions are cryptographically verified by network nodes and recorded in a blockchain, which is a publicly distributed ledger.
An unknown individual or group of individuals using the alias Satoshi Nakamoto created the cryptocurrency in 2008.
The currency was first used in 2009 after its implementation became open-source software. The legality of Bitcoin varies by region. Nine countries have explicitly prohibited the use of bitcoin, while another fifteen have impliedly prohibited it.
Several governments have used bitcoin in some way. El Salvador has legalized Bitcoin, but merchant adoption is still low.
Ethereum
Ethereum is a decentralized, open-source blockchain platform that allows for smart contracts.
The platform’s native cryptocurrency is Ether. Ether is only second to bitcoin in terms of market capitalization.
On Ethereum, anyone can create permanent and immutable decentralized applications with which users can interact.
Decentralized finance applications allow cryptocurrency users to borrow against their holdings or lend them out for interest without relying on traditional financial intermediaries like brokerages, exchanges, or banks.
Users can also create and exchange non-fungible tokens (NFTs), which are one-of-a-kind tokens that represent ownership of an associated asset or privilege recognized by a variety of institutions.
Tether
Tether is an asset-backed cryptocurrency stablecoin. Tether Limited Inc. pioneered it in 2014.
Tether Limited is a subsidiary of iFinex Inc., a Hong Kong-based firm that also operates the Bitfinex cryptocurrency exchange.
Tether is known as a stablecoin because it was designed to be worth USD $1.00 at the outset, with Tether Limited holding USD $1.00 in asset reserves for each USDT issued.
Cardano
Cardano is a blockchain platform that is open to the public. It is open-source and decentralized, with proof of stake used to achieve consensus. With its internal cryptocurrency, ADA, it can facilitate peer-to-peer transactions.
The Cardano Foundation, based in Zug, Switzerland, oversees and supervises the project’s development.
It is the largest cryptocurrency to use a proof-of-stake blockchain, which is regarded as a more environmentally friendly alternative to the proof-of-work protocol.