cryptocurrency

OVERVIEW OF THE MOST POPULAR ALTCOINS IN 2022

Published

11 months ago

05/05/2022

All through the different phases of humanity, diverse innovations have always sprung up, redefining man’s safest home (Earth), altering some already existing processes and furthermore, bringing on new orders. Just recently, Blockchain technology struck man’s safest home as it is gradually redefining its space at an exponential pace bringing about the surge of digital currencies (Cryptocurrency). Currently, the cryptocurrency sector has a market cap of over $1.7 trillion, over 500 exchanges and over 19,000 cryptocurrencies (according to CoinMarketCap), even after the recent correction in early 2022.

With the statistics given above, the need to have an overview of the most popular DeFi Altcoins currently, poses to be very crucial. In lieu of this, there’s still room for growth and potentially, a good investment opportunity for those who buy the dip heading into the 2024 Bitcoin halving, which should raise the price of all altcoins.

What are Altcoins: The New Legal Tender.

The term altcoin is a more simplified way of discussing alternative coins to Bitcoin. In other words, it means with regards to the 19,000+ digital tokens listed on CoinMarketCap, each and every project can be classified as an altcoin – asides BTC. Going further, this means prospects who wish to venture into the Cryptocurrency space do have a significant number of altcoins to consider for their cryptocurrency portfolio. It is important to note that altcoins will vary considerably in terms of the project and roadmap targets, market capitalization, historical performance, and legitimacy.

As a result, knowing which altcoins to buy can be challenging. For instance, while the likes of Shiba Inu and BNB have generated life-changing returns since its launch, many altcoins have nevertheless, lost over 95% in value. To this end, when deciding on which altcoins to buy for 2022, prospects or potential investors/traders will need to do lots of homework. With this in mind, the section below offers a range of altcoins which are doing well for the year. That being said, there’s still a need to DYOR (Do Your Own Research).

Think Tank: Are Altcoins a Good Investment?

As stated earlier, after the launch of BNB in late 2017, a single token was worth just $0.11, subsequently, the project peaked a 52-week highs of $690 and currently reflects a value of $389 at the time of writing. In Perspective, this equates an end-to-end gain in excess of 690,000%. Succinctly, if any newbie or prospect had invested $1,000, at its peak, the gains would have accumulated/worth about $6.9 million after the bull-run.

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The Virtual Relay: Altcoins Outperform Bitcoin

While we take a quick glance through this section, it’s essential to note that it is not only altcoins that have generated life-changing returns since launching. To buttress this further, it is important to recall that after the launch of Bitcoin which was first launched in 2009, it was worth over a small fraction of $0.01 per token. A few years afterwards, it was able to hit its all-time high of over $68,000 which is reflective of an end-to-end gain in the millions of percentage points.

This being said, Bitcoin has since become a multi-trillion-dollar asset class, and more so, the upside potential will be limited from here onwards. Taking a quick glance, the performance of Bitcoin against top-rated altcoins is reflective of the fact that BTC isn’t as attractive as it once was when compared. For example, over the given year’s, the price of Bitcoin has decreased by over 20% while Ethereum has increased by nearly 50%. Over a 5-year period, Bitcoin has increased by 3,600%, while Ethereum has witnessed gains of more than 7,000%. As such, if your main priority is to target high-performing crypto assets, then altcoins might be more suitable for your risk appetite when compared with Bitcoin.

Take The Next Turn: Defile The DeFi Hub

It’s no news that the prices of Bitcoin and Ethereum have considerably scared some potential investors off, being unattractive to them due to the huge amount of money they currently trade at. Among the various reasons why traders may add coins to their portfolio, a major benefit is that the option to diversify is also on the line. This will undoubtedly aid in mitigating risk of loss which may accrue to the built portfolio.

Nonetheless, Bitcoin and Ethereum have since breached highs of approximately $68,000 and $5,000 respectively which is no mean feat. Alternatively, this is reflective of the fact that by investing a modest amount of money, an investor will be able to get just a tiny fraction of one token and this can be discouraging owing to that fact that it’s a default behavior of man to always acquire more and have the most returns from any venture.

The Greatest Tread Line Of All Times

While it can be referred to as the regulator which will be a subject of disparity or bias to a selected few, the cryptocurrencies market often moves in sync with one another, meaning that when Bitcoin does well, altcoins do same. However, it also goes without saying that some altcoins have performed considerably better than others which is reflective in statistics.

Raise The Bar, Unearthing The Upside Potentials

While the Cryptoverse keeps burgeoning, many experienced investors will keep seeking the best altcoins in the market because in many cases, the upside potential can be huge. Let’s take a ride here, for example, let’s say you login to Coinbase or CoinMarketCap, once you skip through the first few hundred projects in terms of market capitalization, the likelihood of coming across thousands of altcoins that carry a valuation of less than $10 million will be 1. And as such, this means that the upside potential on these altcoins is going to be much higher than those that already have a large-cap status.

The Lever Pulley System Is Worn Out: Replace The Wheels

At this point, a lot must have been unraveled. Either way, let’s plunge further, we’re almost on the runway. Another thing to be aware of when buying low-cap altcoins is that those with a considerably small market valuation will be a lot more volatile. This is because of the deep fundamentals of market depth, which means that smaller-cap assets are much easier to move in the market. While the lever pulley system is being replaced, one of the seamless possibilities which altcoins have brought is its interoperable structure even as it applies to facilitate the process of global payments where Bitcoin may not be able to stand in.

A key point to note here is that by investing in an altcoin that offers something different from the status quo, there is every chance that the respective token will perform well and do a whole lot better like 10x, 100x, etc.

Risk Involved With Altcoins

The first point here to make is the nature of its extreme volatility. As noted earlier, all digital currencies carry a high level of volatility, especially when compared to the traditional stock markets. However, when investment is done with altcoins having a small or medium market capitalization, the probable volatility that one may experience can be extremely wild. Moving on, another huge risk to consider before buying altcoins for one’s portfolio is that of scams and rug pulls. The latter term refers to projects that are created with one sole intention, to scam early investors.

Here is a sneak peek of what it looks like. What happens with rug pulls more often than none is that the project collects funds during a presale launch, before pumping the respective altcoin artificially. In turn, this results in new investors jumping on board which further pumps the price northwards.

Where To Buy Altcoins: Navigate Accordingly

There are certain indices to be thoroughly looked at before buying an altcoin into your portfolio. When deciding on where to buy altcoins for your portfolio, here’s a kind suggestion to follow before opening an account with a chosen exchange or broker:

¶ Is the platform regulated by a reputable licensing body such as the SEC?

¶ What altcoins does the platform give you access to?

¶ What fees and commissions will you need to pay to buy your chosen altcoins?

¶ Where does the platform stand in terms of customer service and supported payment methods?

¶ What is the minimum amount of money you will need to risk to buy altcoins at the platform?

While investors will still have to do more research due to the fact that this is not a financial advice, below is a list of a few Altcoins to consider while thinking of new coins to add to the portfolio in no particular order:

1. Fantom – Cheapest Cryptocurrency

Fantom is a highly scalable network protocol and provides a convenient experience for users during transactions. Fantom is a cheap cryptocurrency to buy as the asset trades at $2.8 and is up 0.67%.

One reason why Fantom makes the list of the best cryptocurrency to buy in 2022 is the recent onboarding of Hundred Finance’s B.Protocol. The service allows the efficient and democratic liquidation of multiple assets without the need for complex flashing of on-chain gas wars. The FTM community will be able to contribute funds in return for the rewards of liquidation.

Conclusion

While bitcoin stands as the big boy of the crypto world, many alternative coins or ‘altcoins’ have cropped up in recent years and statistics reflect that the space has kept a steady exponential growth, as it keeps track of the daily projects which keep launching with diverse use cases and ecosystem. Nonetheless, there is a brewing responsibility on not joining the bandwagon of events happening across the metaverse and various Blockchains, coupled with the burgeoning Everest climes of NFTs, but taking time to have a full grasp before leaping.

Altcoins offer the potential to make attractive returns on your cryptocurrency investments especially when considered in terms of the first ship that sailed (Bitcoin) which many missed regardless. As being said by a great host of early investors, it’s still early to jump on this space as the move to global adoption keeps moving with lightning streaks.