The Best CryptoCurrency to Invest in 2022
Curious about the best cryptocurrency to invest in over the next 5 years? You’re not alone! Cryptocurrency trading has become increasingly popular, and as more and more people start investing in crypto, it can be difficult to separate the wheat from the chaff so to speak. Here we’ll explain why some currencies will perform better than others over the next 5 years, and give you three of our favorite crypto investments that are likely to do well.
What is cryptocurrency?
A cryptocurrency is a decentralized form of digital money that relies on cryptography for chaining together digital signatures of token transfers. This allows a ledger of transactions to be distributed across a network of participants rather than residing on one centralized server. Because there is no central authority, the failure of one entity will not bring down the entire system. Some forms of cryptocurrencies are more private than others; some function like cash while others can only be used to purchase digital goods and services. The first application and most well-known use case is a peer-to-peer payment system such as Bitcoin or Etherium.
How do cryptocurrencies work?
Before we explore which cryptocurrency might be best for you, let’s take a moment to understand how they work. A cryptocurrency like Bitcoin is based on mathematics and cryptography. That’s right cryptocurrencies are computer codes (strings of numbers and letters) that are verified and secured through blockchain technology. These codes ensure that only people with unique keys can transact with each other and create new units of currency. This process makes it nearly impossible for anyone to copy or counterfeit your money because there is no centralized database where transactions can occur. It also means that if someone were to hack your account, they wouldn’t have access to all of your money since it isn’t stored under one single password or code. Cryptocurrencies rely on so-called miners who use their computers or special machines (called rigs) specifically designed for mining purposes, crunching complex mathematical equations via specialized software as quickly as possible.
What are the best cryptocurrencies to invest in?
Unfortunately, it’s impossible to predict what cryptocurrency will be hot next year even if you do have a crystal ball. But there are some key things you can keep an eye on that can give you clues as to where crypto is headed. Cryptocurrency and blockchain are still relatively new (the first bitcoin transaction was sent just nine years ago), so certain trends could rise or fall over time. And although decentralization has been at their core from day one, now more than ever we’re seeing currency tied to specific companies like Facebook’s Libra coin or Apple Card. For these reasons and others, following what big names like Amazon are doing with their own stable coins can shed light on how others might look when they debut.