Last year, cryptocurrency was on a tear. Cryptocurrencies such as Bitcoin, Ethereum and other digital assets surged. However, as prices drop in January, some enthusiasts may approach the virtual currency with a new strategy. Followers should focus on these seven best cryptocurrencies to track in January 2022.
The Cryptocurrencies To Track In January 2022
Cryptocurrency can reap big rewards if you get in at the right time and make the right decision. But it’s not without risk.
As a result, crypto enthusiasts must carefully consider their options before deciding. Honestly, it’s a lot of work.
In January 2022, which cryptocurrency should you follow? In this month’s article, we will explore why each coin is unique and introduce you to seven options to consider.
This article is not meant to provide financial or investing advice. Make any financial or investing decision at your own risk.
Last year, cryptocurrency investing in the United States went berserk. Despite the ongoing COVID-19 pandemic and Wall Street and institutional investment flowing into crypto-assets, the economy did not suffer as was often predicted.
Crypto Knowledge is Power
Many investors and traders invest in cryptocurrencies to turn a profit. They also use it to store wealth outside of bank accounts or other traditional methods.
But when it comes to these digital currencies, knowledge is power. The more you know, the better decisions you can make. Be aware that trading in crypto is more of a gamble than traditional investing. And yet, not all of us are well versed in crypto. Many people don’t know the difference between the various coins. They also don’t know how to manage those investments over the long term.
Knowledge is, what keeps you ahead of the curve. Stay aware of changes in the marketplace. Spot opportunities before others. Knowledge gives you an edge. It also enables you to make better business decisions.
Curious about the best cryptocurrencies to track in January 2022? Perhaps the next crypto bubble? Check out these seven picks!
1. Bitcoin
Interested investors are typically advised to buy Bitcoin. Bitcoin remains a significant part of the total value of all coins.
It has been over a decade since Bitcoin launched. The cryptocurrency is still the top choice for existing and new investors. It has a total value of over $815 billion.
Among the notable events for the digital asset, in November Bitcoin hit it’s all-time high of $69,000. This followed a drop in the value of the currency shortly after. Many believe this had to due with the Omicron variant of COVID-19. However, Bitcoin is still rising in esteem for long-term investors, and is still leading as one of the cryptocurrencies to track in January 2022. This includes financial institutions. Crypto enthusiasts should view severe pullbacks as buying opportunities.
2. Ethereum (ETH)
Cryptocurrencies such as Ethereum remain among the best investments today. With Ethereum dominating at over 21%, the coin has become more prominent recently.
Ethereum is the most popular blockchain technology globally. It is the network of choice for the burgeoning field of decentralized finance (DeFi). It is also a popular platform for hosting nonfungible tokens (NFTs).
Ethereum currently operates on a proof of work model. It is in the process of shifting to a proof of stake model. This will help reduce it’s energy consumption, an issue that many environmentalists argue makes cryptocurrencies unsustainable.
3. Solana (SOL)
2021 has been an eventful year for digital assets. The sudden increase in Solana’s value was one of the most remarkable developments.
Solana has a developer-friendly network with low transaction fees, especially compared to Ethereum. Solana’s low costs, mature ecosystem, and bright future make it an attractive choice among cryptocurrency investments.
4. Binance Coin (BNB)
BNB is currently the third-largest token according to its total value. It only represents 4.1% of the cryptocurrency market, leaving ample room for the coin to grow.
BNB is a native coin in the Binance Smart Chain, one of the most popular blockchains. It surpassed Coinbase Global Inc. as the world’s largest crypto exchanges. This cryptocurrency was launched in 2017, with a maximum supply of 200 million coins. In 2021, Binance Coin rose from a market share of 0.7% to 4.1%.
5. Polygon (MATIC)
Binance and Coinbase contributed to funds for the Polygon platform. The platform aims to transform Ethereum into a multi-chain system. The aim is to create a scalable and versatile cryptocurrency that will be more widely available and easily adopted.
MATIC has risen from less than 2 cents at the start of the year to about $2 in early December. This has it ranking among the top 15 cryptocurrencies by market capitalization. One of the best cryptocurrencies to follow in for December and beyond is MATIC, thanks to its resilience in challenging times.
6. Avalanche Token (AVAX)
Cornell based computer science researches founded Avalanche token. Avalanche launched in 2020 as an initial coin offering backed by the prestigious venture capital firm Andreessen Horowitz.
As its network has rapidly gained market share, AVAX coin has risen from $3.17 at the beginning of the year to over $80 today. It is no secret that Avalanche intends to surpass Ethereum as the world’s most popular blockchain for smart contracts. What Avalanche lacks in short-term resilience – AVAX underperformed when the markets pulled back in recent months – it makes up for rising popularity.
Additionally, Avalanche is becoming increasingly compatible with prominent Ethereum projects, such as SushiSwap. The coin is growing its relevance through “bridges,” which allow users to transfer cryptocurrency between blockchains.
7. Cardano (ADA)
Cardano is a third-generation cryptocurrency designed to address the scaling problems of Bitcoin and the scalability issues of Ethereum. It operates on a proof of stake process, allowing it to be more sustainable than many other digital currencies.
Cardano’s arrival was not greeted with universal enthusiasm as it initially lacked some of the anticipated features, such as its smart contracts. As traders buy ADA in anticipation of 2022, it may finally be the year we’ve been waiting for. Other Cardano features, such as token creation, are combined with now available smart contracts.
In 2021, Cardano had an extraordinary performance. The coin gained more than 720% at the beginning of the year. At one point, it was briefly ranked third among the top cryptocurrencies by market cap.
Conclusion
Cryptocurrencies are fun to track and hold potential. Their future is a controversial topic, some investors think they hold great promise, while others consider them a Ponzi scheme. Educate yourself fully before making any financial purchase. Research the laws and regulations of the jurisdiction you live in.
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