So, now that you’re ready to start buying cryptocurrencies, the question is: which cryptocurrency will provide you the best return? Although Bitcoin may appear to be the obvious pick, it may not be the greatest option in 2022. A smaller coin that hasn’t previously been inflated up by institutional investors, like Bitcoin, may have a better chance of paying off large.
Here are five cryptocurrencies that have a significant market capitalization.
- Ether (also known as Ethereum) (ETH)
Ethereum, also known as Ether, is the second-largest cryptocurrency in the world, trailing only Bitcoin in terms of market capitalization. Early this year, it implemented a significant update, which included capping the amount of Ether in circulation, which is presently at 118.82 billion coins. The upgrade also increases the scalability of the Ethereum network and lowers transaction fees by allowing it to handle more transactions per second, which reduces transaction fees.
- Binance Coin (also known as BNB)
When it comes to market capitalization, Binance is the third largest cryptocurrency exchange, and it is one of the most successful when it comes to trading volumes. Similarly to Bitcoin, the amount of Binance Coin tokens in circulation is strictly limited — in this case, the total number of tokens in circulation as of December 2021 is 166,801,148. This contributed to the exponential rise in the price of the token in 2021. Furthermore, each quarter, Binance invests around a fifth of its income in the “burning” of BNB tokens, which increases the value of the remaining tokens in circulation.
- Tether (USDT)
A type of “stablecoin,” Tether is tied to another asset, making it a less volatile alternative to Bitcoin. In the instance of Tether, the asset is the United States dollar. In terms of pricing, Tether has a one-to-one link with the dollar, making it less speculative than cryptocurrencies such as Bitcoin and Ethereum, which are more volatile. The key advantage of using Tether is that it allows you to transact in conventional currencies rather than having to deal with sophisticated digital currencies as is the case with Bitcoin.
- Decentraland (MANA)
Decentraland is a virtual reality game built on the Ethereum blockchain that makes use of the MANA token as its in-game currency. Users have the ability to buy and sell goods and services, as well as acquire land and visit the properties of other players. They have the ability to create and monetize their own content. MANA is currently trading at $3.29, representing a gain of 4,600 percent from its 52-week low of approximately 7 cents in the previous year.
- Algorand (ALGO)
ALGO, a cryptocurrency developed by renowned computer scientist Silvio Micali, has positioned itself as a direct competitor to Ethereum in the cryptocurrency market. Earlier this year, El Salvador stated that it would be utilising Algorand to create its blockchain infrastructure. It was recently reported by Blockworks that the venture capital firm Borderless Capital formed a $500 million fund to invest in digital currencies that power decentralised applications on Algorand, with the money coming from existing funds. One of the most significant advantages of ALGO is its “proof-of-stake” mechanism, which consumes less electricity than Bitcoin and other platforms. When it comes to cryptocurrency’s high energy consumption, this attribute will only become more crucial as it comes under more scrutiny — and maybe regulation. For more information, have a look at the new cryptocurrency trends.