Next Big Cryptocurrency To Explode

Big Cryptocurrency may have started out as a Wild West of investing dominated by misfits, but it is now firmly in the financial mainstream. Institutional investors and major banks see it as a serious asset, despite recent volatility and regulatory crackdown in China and elsewhere.

If you need proof of how volatile, consider this: On April 11, bitcoin’s value ranged from a low of $28,893.62 to a record high of $68,789.63 in the past year.

Despite that volatility, many cryptocurrency investors continue to look for the next big payout. Keep reading to find out which cryptocurrencies could explode soon.

Which cryptocurrency is set to Explode?

If you’re looking to start buying cryptocurrency, you might be wondering, which one will bring the greatest potential returns? While bitcoin is the obvious choice, it won’t necessarily be the best in 2022. Your chances of a big payout may be better with a smaller coin that hasn’t been pumped up by institutional investors like bitcoin has.

Here are six cryptos that still have a high Selling.

1. Ethereum (ETH)

Ethereum, commonly known as ether, is the world’s second largest cryptocurrency behind bitcoin, recently outperforming bitcoin in terms of price gains, CoinTelegraph reported. Last year, Ethereum made a major upgrade, which included reducing the supply of ether, currently at 120.33 billion coins. The upgrade will also enable the Ethereum network to process more transactions per second, improve platform scalability and reduce transaction costs.

Compared to bitcoin, ethereum has no scarcity — bitcoin’s supply is limited to 21 million coins — and wide adoption by businesses and governments. Unlike bitcoin, however, ethereum is not just a store of value. It is also an infrastructure on which apps can be built. Other cryptocurrencies are issued on Ethereum and it serves as the foundation for decentralized finance.

2. Binance Coin (BNB)

Binance is the most successful cryptocurrency exchange in terms of trading volumes. Like bitcoin, binance coin maintains a hard limit on the number of tokens in circulation – 165,116,760 tokens in his case. This helped the token price rise exponentially in 2021. In addition, every quarter, Binance puts about a fifth of its profits into permanently deleting or “burning” BNB tokens, which increases the value of the remaining tokens.

Binance has two blockchains, which reduce the kind of bottlenecks that Ethereum is vulnerable to. It’s also fast and scalable, and Binance is working to make the platform more regulator-friendly, according to Seeking Alpha — a feature that could be critical to its longevity and widespread adoption. In addition, Binance is launching Bifinity, a fiat-to-cryptocurrency payment platform that will help merchants prepare to accept digital assets as payments, CoinMarketCap reported. The payment processing platform supports more than 50 cryptocurrencies.

3. Tether (USDT)

Tether is a type of ‘stablecoin’ designed to provide a less volatile alternative to bitcoin as it is pegged to another asset. In the case of Tether, that asset is the US dollar. In valuation, tether has a 1-to-1 ratio to the dollar, meaning it is less speculative than cryptos like bitcoin and ether. With a market cap of $82.57 billion, it is the largest stablecoin and the third largest coin overall.

The main advantage of tether is that you can transact in traditional currencies instead of having to dive into complex digital currencies. You can also lend it to cryptocurrency platforms in exchange for double-digit (annualized) interest rates, without worrying about volatility wiping out your earnings.

4. Decentralized Land (MANA)

Decentraland is a virtual reality game on the Ethereum blockchain that uses the MANA token as an in-game currency. Users can buy goods and services, buy land and visit other players, and create and monetize their own content. MANA’s current price of $2.12 represents an increase of about 385% from its 52-week low of 43.68 cents.

MANA is the largest gaming cryptocurrency in terms of market cap. While it has competition from companies like The Sandbox and ApeCoin, and in-game assets are quite expensive – land plots listed on Blockee show prices ranging from several thousand dollars to over $22 million – it has some advantages that the token has to offer. could push forward. For example, users retain ownership of the digital assets they create in Decentraland and can convert them to cryptocurrencies other than MANA.

5. Algorand (ALGO)

ALGO, founded by noted computer scientist Silvio Micali, has positioned itself as a competitor to the Ethereum blockchain. Hundreds of companies are using it, according to Securities.io, and it got a huge boost last year when El Salvador said it would set up its blockchain infrastructure using Algorand. More recently, venture capital firm Borderless Capital launched a $500 million fund to invest in digital assets that power decentralized applications on Algorand, Blockworks reported. The digital currency of the central bank of the Marshall Islands, Sovereign (SOV), also uses Algorand.

One of ALGO’s biggest advantages is its proof-of-stake algorithm, which offers a high degree of security, scalability and requires less electricity than Bitcoin and other platforms. This feature will only gain in importance as cryptocurrencies face more criticism — and possible regulation — for their massive power consumption.

6. Render Token (RNDR)

Render Token is a graphics rendering network that allows miners with excess graphics processing unit bandwidth to hand it out to artists and creative studios in need of extra computing power. RNDR is the native token that creators and miners use in their transactions on the RenderToken network.

RNDR launched in a public sale in 2017, but recently got its listing on the Coinbase exchange. While highly speculative, RNDR could benefit from the increased exposure it is gaining on Coinbase, as well as the extraordinary rise of non-replaceable digital art tokens.

How to Spot the Next Big Cryptocurrency?

Before figuring out which cryptocurrency could be the next big winner, it helps to understand why so many investors are leaning towards cryptocurrency in the first place. Much of it has to do with a fundamental shift in the perception of digital assets, said Jeff Dorman, chief investment officer at Arcaa financial services company specializing in digital assets.

“I believe we are in the early stages of a multi-decade secular shift to digital assets as the evolution from an analog to digital world has been forever transformed as a result of COVID-19,” Dorman said in an email. to GOBankingRates.

He says this asset class has “now evolved much further than cryptocurrencies” into decentralized finance, NFTs and other investment vehicles.

Profits and profits from crypto

When identifying the next major cryptocurrency, two things to keep an eye on are similar to what a stock investor would keep an eye on: market cap and price.

Market capitalization shows how much has been invested in a specific network. As a general rule, the larger the market cap, the more stable the asset, but it also means the currency has less room to grow. It is also important to keep an eye on the price to determine whether investors are bullish or bearish about the cryptocurrency.

Other Important Statistics

Here are a few other stats that can help you evaluate a cryptocurrency:

volatility: The less volatile the price, the better the value of the crypto remains stable.
24-hour volume: The total dollar value of all trades over the past 24 hours can help you determine a coin’s liquidity.
To deliver: As Bitcoin’s meteoric rise confirms, scarcity can drive up demand and prices. Increasing or infinite supply can have a dampening effect.

How do I buy cryptocurrencies?

Buying cryptocurrency is relatively easy. Here’s how to do it:

1. Open an account with a cryptocurrency exchange or broker

You need to open a trading account just like you would for stock trades. You can go through a cryptocurrency exchange like Coinbase, Binance.US, and Gemini, which matches buyers with sellers, or choose a broker like Robinhood and SoFi, which executes the trades for you. Exchanges typically have a low cost, but they have complicated interfaces. Brokers have much simpler interfaces but may charge higher fees and offer a limited selection of coins.

2. Deposit money into your account

Before you can trade crypto, you need a way to pay for your purchases, such as a linked bank account, wire transfer, or debit or credit card payment.

3. Place your cryptocurrency order

Select the cryptocurrency you want to buy and indicate how many coins you want to buy. To buy fractional shares of cryptocurrency, specify a dollar amount instead of the number of coins.

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One Comment

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