Next Big Cryptocurrency to explode: There are currently more than 5,000 cryptocurrencies available. But less than 1,000 are actively traded on the exchange, and even fewer have potential economic potential.
Cryptocurrency markets are extremely volatile and as an investor, you must have the stomach to withstand dramatic price fluctuations.
If we learn anything from the crypto market in 2017 and 2018, what goes up usually comes down – and a lot of coins don’t come back.
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How to identify the Next Big Cryptocurrency
The best way to understand cryptocurrency is to acknowledge that it is more of a technology than a currency. Think about how much the Internet has changed since the 1990s.
Web 1.0 technology was the first rendering of the Internet, including static web pages. When it became more interactive with users adding content.
Especially through social media, it was Web 2.0 technology. Blockchain and cryptocurrency are Web 3.0 technologies.
Use this analogy: How to consider Bitcoin on your first PC. Innovative, but now a little slower and more complicated than your new laptop or mobile phone.
Bitcoin is your PC, Ethereum is your laptop, and altcoins can be compared to mobile phones and tablets.
You’re probably not going to get rid of your desktop computer or your laptop even though you have a cellphone right now, just like you shouldn’t sell bitcoin or ether.
It is difficult to know which new smartphone or tablet will be available because every year new smartphones come and technology is changing so fast. You can choose the one that suits your needs and even try to own a mobile phone and tablet
There is no “next bitcoin” because bitcoin was the first cryptocurrency and will always be the first cryptocurrency.
However, there are new and different cryptocurrencies with new and different features, because they are based on completely new technologies. There will be applications and uses of this new technology that we can’t even dream of now!
The best Next Big Cryptocurrency to invest in 2022
Bitcoin, Bitcoin Cash, Ripple, Ethereum, and Litecoin are among the top 5 cryptos. The current market capitalization of all cryptocurrencies is about 237 billion; About two-thirds of this is represented by bitcoin and Ethereum.
Next Big Cryptocurrency: Bitcoin
Bitcoin is the oldest and most widely accepted cryptocurrency and is still one of the best investments you can make in crypto.
Bitcoin is available on almost all cryptocurrency exchange platforms and is the most widely accepted cryptocurrency for payments. In addition, since Bitcoin is so well known, its price is significantly more stable than some new coins in the market.
Yet, the age of Bitcoin is also working against it. The technology behind Bitcoin is older and more inefficient than the new cryptocurrency on the market, and it is regularly criticized for the negative environmental impact surrounding mining and the use of Bitcoin.
Next Big Cryptocurrency: Etherium
Ethereum was developed in 2015 by Russian technologist Vitalik Buterin and has a current market capitalization of about $ 40.6 billion.
Ethereum was created to create the “smart compact”, which is the ‘if / then’ command. It could be something like, “If Sally never gets late for work, she’s given $ xx” or if you input some data you’ll get a soft drink.
When you combine multiple smart contracts you get something called a dApp, a decentralized application. dApps are tamper-proof because they connect users and providers directly, thus cutting off the middleman that stores and controls information (think Gmail).
Most cryptocurrencies are actually apps that run on the Ethereum blockchain. Since April 2021, Ethereum has begun to mainstream TSX with its presence in several new ETFs, giving Canadians another way to buy this cryptocurrency.
Next Big Cryptocurrency: Dash
Dash has a simple and straightforward mission: to get your digital cash. Coinage was created in 2014 and plans to compete with credit cards and PayPal as a payment method wherever you shop.
Coinage prides itself on the convenience of instant, low-fee transactions. Dash has a promising future as an online retailer and is expanding the acceptance of cryptocurrency as a form of payment.
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Next Big Cryptocurrency: Litecoin
Litecoin was launched in 2011 and was co-founded by a former Google engineer. It allows fast, low-cost global payments through its decentralized network.
It is considered a faster version of Bitcoin with a larger supply of coins, which is why it is often compared to “silver to bitcoin gold”. Although a very popular choice next to Bitcoin and Ethereum in 2017, it did not affect the same recovery in 2020 as that coin.
Nevertheless, its technical advantages and reliability make it a potential long-term competitor in the crypto world.
Next Big Cryptocurrency: Ripple
Ripple was launched in 2012 and is located in San Francisco with offices in 27 countries. Ripple focuses on multi-currency transactions that are cheaper and faster than Bitcoin.
By the end of 2017, the company has already signed up more than 100 international banks on its platform, RippleNet.
From 2020 to the present, the currency has risen almost 300%. Ripple’s market capitalization is estimated at $ 332 billion. Its token is called XRP.
Next Big Cryptocurrency: Dogecoin
Dogecoin (DOGE) is one of the most popular and volatile cryptocurrencies of the year. Its price increase is a surprise because it has never been taken seriously. Dogecoin is a meme currency.
It makes fun of internet culture and cryptocurrency, but it also makes many investors seriously rich. Dogecoin will never become a legitimate cryptocurrency for wealth saving or transactions, but its volatility and character mean it can last for a while, just for fun.
Next Big Cryptocurrency: Binance Coin (BNB)
Binance Coin (BNB) was launched by Binance Decentralized Exchange, or DEX, in mid-2017. You can buy and sell thousands of different cryptocurrencies at DEX.
But users get a discount when they pay a fee through Binance. Since DEX is the world’s largest cryptocurrency exchange, it encourages users to trade Binance, ensuring its longevity and growth.
Next Big Cryptocurrency: Cardano
Cardano sees himself as a “third-wave” cryptocurrency technology, coming after Bitcoin and Ether. The Cardano blockchain runs alongside its own currency.
The ADA, and is in direct competition with Ethereum. Like Ethereum, Cardano also runs apps with smart contracts, but the goal is to be more scalable and efficient.
How to find the Next Big Cryptocurrency to invest long and short terms
Before figuring out which crypto could be the next big winner, it helps to understand why so many investors are leaning towards cryptocurrency.
Jeff Dorman, chief investment officer at Arca, a financial services company specializing in digital assets, says much of this is involved in a fundamental change in how digital assets are perceived.
Dorman told GOBankingRates in an email: “I believe we are in the early stages of a multi-decade secular transition to digital resources, as the evolution of the digital world from analog has changed forever.”
He said the asset class “now surpasses cryptocurrency” in decentralized money, non-fungible tokens, and other investment vehicles.
The final thought
When it comes to investing in Next Big Cryptocurrency, there is a lot of risk and volatility involved. Since the peak of crypto in 2017 and its subsequent crash in 2018, some coins have shown that they could be here.
If you invest in cryptocurrency, make sure it matches your overall investment strategy. Just as you should not invest all your money in one stock, you should not keep all your money in one currency.
Diversify your investments in cryptocurrencies, and be sure to invest in traditional stock markets while doing so. Lastly, you need to make sure that you are aware of the latest crypto trading tips and best practices before buying and selling.
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