The interest of the investors and the performance of cryptocurrency are making it highly popular in the market. As it has the power to prevent fraudulent activities and governmental control which made it prominent in the industry very soon. Many tech giants like Apple, Samsung, Google, PayPal, Meta, Deutsche Bank, and many more companies have already included cryptocurrency in their plans.
As 2022 is about to start its journey, let us look for the top 7 cryptocurrencies you can choose for the coming year.
The most popular cryptocurrency that is gaining acceptance with each passing day is bitcoin. As bitcoin is the oldest of the coins, it has its fan base. Bitcoin is even the national currency of El Salvador. If you are considering a long-term investment, bitcoin can be a good choice for the year 2022.
- Binance Coin (BNB)
Binance is a cryptocurrency with a successful trading volume. Binance involves various trading like strategy, advanced, classic, P2P, fan tokens, margin, swap framing, etc. It is also famous for its transactions, new token farming opportunities, binance visa card, token sales, binance loan, and other services. These facilities make it one of the best coins to look for in 2022. By doing binance test 2022 you can further verify the authenticity of the platform..
Ethereum transactions are considered to be faster than bitcoin. They are the second-largest popular cryptocurrency in the world. Ethereum has an open-source blockchain system and is decentralized too. This cryptocurrency also works for other popular cryptocurrencies and is also executed for decentralized smart contracts.
- Tether (USDT)
Tether is less volatile and a highly stable coin. They are considered to be alternate stablecoins to bitcoins as it is connected to another asset. It also shares a 1 to 1 ratio with the US dollar. Tether saves you from complex digital currency transactions and allows you to do in traditional currencies. Therefore, the tether is also a good option to choose in 2022.
- Solana (SOL)
Solana showed its highest value in December 2021. Solana has been the platform for about 48 million transactions. The proof of history and the operation of the smart contract makes solana a good choice to consider. It is considered faster than Ethereum as it does not charge any transaction fees.
- Monero (XMR)
Monero makes use of stealth addresses and ring signatures to keep the anonymity of its users. The sender, as well as the receiver, remains anonymous in the transaction. This feature is available only for famous crypto investors who do not want to disclose their identities. This helped monero to elevate its value in 2021.
- Cardano (ADA)
Cardano uses ADA as its currency and is an open-source project that is created to build a public blockchain system that will help smart contracts. Cardano has displayed rapid growth in recent years which makes it a good choice to consider for 2022. Another attractive feature of cardano is that it is a non-profit digital currency.
Several experts consider cryptocurrency to be more profitable than traditional investment methods. If you are a beginner investor, you should not put a large part of your earnings in the trading all at once. It is better to start slowly as there are risks involved.
Trading Bitcoin is hard: – 10 things every beginner trader must know
The most popular cryptocurrency that is being traded around the world is bitcoin. Ever since it was launched in 2009, bitcoin has had a drastic growth. Many people commented that bitcoin would face its decline very soon, but the cryptocurrency has not had a look back since the day of its launch. It remains the favorite of many investors.
However, beginners have to approach bitcoins with some caution. Cryptocurrency is a decentralized market and is speculative too. Along with the volatility of the market, many security issues have also aroused during the years. Therefore, risk management is very important while trading bitcoins. Due to the ever-increasing popularity of the cryptocurrency sector, there are a plethora of crypto exchanges to pick from these days. These exchanges allow users to purchase, trade, and swap cryptos from the comfort of their own homes. It’s critical to pick one that fits your specific needs and investing objectives. You can also start trading on any of these best crypto exchange UK for a better profit.
Here are 10 tips that can help beginners to trade smoothly avoiding risks and heavy losses.
- Begin with small investments
It is always advised to start your trading with small investments. Even though there are many success stories of traders who have earned substantial profits in a short time, trading bitcoin is not easy. As the market involves huge risks, it is better to approach the market with small investments so that you can avoid huge losses.
- Find a reliable wallet
Your bitcoin wallet will be the place where you store all your assets. Therefore, the wallet you choose has to be easily accessible as well as safe. Beginners can choose a reliable and popular broker like Coinbase to trade and use the wallet they offer.
- Study the market
Before entering the market, make sure that you have proper research on the market. Read the charts and identify the trading patterns to decide your strategy. You can also take advice from expert traders.
- Choose a strategy
Decide on the type of bitcoin trader you want to be before you open a position. This depends on certain factors like the time you will dedicate to trading, market trends, and the period you expect for profits.
- Do not compromise on your stop-loss orders and profit targets
As bitcoin trading is highly volatile, it is always recommended to have a plan and make sure you do not compromise on it. Decide the profit you expect before you open a position and choose the stop-loss orders at the beginning itself. If you stick to your plans you can avoid risks.
- Be cautious while using leverage
You can hold a higher stake in trading than you would with the actual capital you have in your account. Even though leverage may seem attractive, it involves huge risks. Therefore, beginners have to be cautious while using them.
- Diversify your portfolio
Diversify your portfolio with different cryptocurrencies to avoid risks. If you trade other cryptocurrencies too along with bitcoin, you can protect your investment. But make sure you do not do this excessively.
- The buy and hold method
The buy and hold method is a passive trading strategy that encourages you to hold your assets for a long period. Thus you can avoid short-term volatility and earn decent profits.
- Control your emotions
Beginner traders have to beware of emotional aspects like FOMO (fear of missing out). Do not make decisions out of emotions. Use your intelligence in trading.
- Beware of scammers
The Bitcoin market is a favorite place of scammers too. There are many fake exchanges and scam wallets in the market along with many malware. Therefore, think twice before you choose an exchange or a wallet.