Investing in cryptocurrencies and other Initial Coin Offerings (“ICOs”) is very dangerous and speculative, and this article is not a suggestion by Investopedia or the author to do so. Of course, there is no guarantee that this momentum will continue, but it is a great approach to identify which digital currencies are generating the most investor interest at the present. Those digital currencies with rising prices and number of trades are expected to gain traction in the future. Price and Volume Current information on bitcoin trading is freely accessible online. Before investing in any cryptocurrency, be sure to analyze the entire supply as well as the current circulation. If interest remains constant while supply remains constant, the price may rise. When that limit is reached, usually through mining, no more tokens will be created. Most cryptocurrencies have a set maximum supply. If you can identify a cryptocurrency that has an advantage over others (and hence is more likely to be widely embraced), this may be a worthwhile investment. This is due to the settlement mechanism that Ripple’s underlying technology guarantees to central banks and other financial institutions. While XRP has fallen somewhat since the beginning of the year, it still has a high potential for adoption outside of the cryptocurrency speculating sector. Ripple had significant growth as the year progressed. The opportunity to diversify with low-cost coins should not be underestimated. Low-cost currencies may give the biggest bang for your buck for the regular investor who does not have a lot of money to put into the cryptocurrency industry.Ĭonsider a $5,000 investment: at today’s values, that money might purchase less than half a bitcoin, more than 25 litecoins, or hundreds of coins from one or more currencies valued under $1 apiece. The cost of the token is an important consideration while looking for the next superstar. How does one go about identifying a cryptocurrency that will take off in the future? The Cost Is Critical The world’s largest digital currency by market capitalization has fared exceptionally well in recent years, and as a result, many casual investors who timed it correctly and kept onto their BTC have become billionaires.įollowing the price boom of bitcoin, and as other digital currencies enter the market, investors are seeking for the next digital currency to profit from. Those who had the vision (or fortune) to invest in bitcoin in its early days and then hold on to the cryptocurrency as it soared in value over the last year are now incredibly affluent. It is used to purchase goods and services, and its current price of 2.30 dollars is a 1,543 percent gain from its 52-week low of roughly 15 cents. Decentralization (MANA)ĭecentraland is a virtual reality game that runs on the Ethereum blockchain and accepts MANA tokens as in-game cash. Binance features two blockchains, which reduces the possibility of bottlenecks that keep others behind, such as Ethereum. This cap contributed to the price skyrocketing in 2021. It, too, has a strict limit on the amount of tokens in circulation – 200 million. When it comes to trade volumes, Binance is the most successful exchange. There are several competitors for the next major cryptocurrency, and we’ve highlighted those that may have a greater ceiling than others. What cryptocurrency will be the next big thing in 2022?Ĭountless individuals all around the world are attempting to predict which cryptocurrency will be the next to burst, whether they are currently investing in cryptocurrencies or are seeking to make their first investments in the new world. It has ranged from a low of 28,893.62 dollars to an all-time high of 68,789.63 dollars in the previous 12 months. But, in 2022, everything has changed.Īlthough Bitcoin is the market leader, the market remains turbulent. When cryptocurrency first emerged, it was a bit of a wild west, with Bitcoin being the only trustworthy cryptocurrency in which people were ready to invest. What cryptocurrency will be the next big thing in 2022?.
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