It’s been more than ten years since the first cryptocurrency was released, and what was once a small niche industry has grown into an absolute behemoth.
The crypto market cap has surpassed the trillion-dollar mark, and the top 100 cryptocurrencies combined are worth over $200 billion dollars. It’s safe to say that this market is still in its infancy, and there are incredible opportunities in store for those who know where to look.
If you’re interested in getting started with cryptocurrency investing, here are 8 of the top cryptocurrencies you should be aware of for 2022 and beyond.
What is Cryptocurrency and How does it work?
Cryptocurrency is a medium of exchange using cryptography to secure transactions and control creation. A defining feature of cryptocurrencies is that they are not issued by any central authority, rendering them theoretically immune to government interference or manipulation.
Bitcoin became one of the first practical implementations of cryptocurrency when it was released as open-source software in 2009. Cryptocurrency does have numerous real-world applications and uses, most notably for online transactions.
If you want to know more about cryptocurrency then start with Bitcoin! It is no longer considered a fringe or outlier technology, but rather a core piece of software within web development.
Blockchain technology has applications in every major industry including healthcare, finance, tech, and others.
Cryptocurrency is digital money governed solely by software code, without the use of any central bank.
The currency was designed to provide people an alternative investment option that could not be shut down by government agencies - something that has become increasingly common throughout history.
1. BTC (Bitcoin)
Bitcoin is a cryptocurrency first released in 2009 under the alias Satoshi Nakamoto. It was the world’s first decentralized digital currency system that allows peer-to-peer transactions.
It has since become the world's largest crypto-currency having grown to over a $100 billion market cap.
Since its inception, Bitcoin has been one of the most popular cryptocurrencies on earth. In fact, if you had invested $100 in BTC back when it first debuted, it would be worth upwards of $76 million today.
However, because Bitcoin is one of the oldest and best-known cryptocurrencies out there, it’s arguably also become one of the most crowded—meaning people have probably already heard about it from others who have made money off cryptocurrency investments. That doesn’t mean you shouldn’t invest with BTC though.
How do I buy Bitcoin?
You can purchase Bitcoins through exchanges like Coinbase. To get started, simply create a free account and select your desired amount of bitcoin.
Once purchased, you can then withdraw it from your Coinbase wallet directly into any exchange or shop where fiat currencies are accepted, including Western Union.
2. ETH (Ethereum)
Ether can be transferred between accounts and used to compensate participant mining nodes for computations performed.
Ethereum provides a decentralized Turing-complete virtual machine, or Ethereum Virtual Machine (EVM), which can execute scripts using an international network of public nodes.
The Ethereum Virtual Machine makes running applications on top of Ethereum easier and more secure than ever before. This means applications like CryptoKitties will not only live on Ethereum but also run on Ethereum's network via these executable distributed code contracts (EDCCs).
This enables trustless trading between individuals without requiring a middleman or centralized authority to facilitate trade.
The Ethereum Project was created in 2013, and since then it has been at the forefront of innovative blockchain technology. This creates transparency and efficiency across all processes.
3. Binance Coin
The Binance cryptocurrency was created through the collaboration between Binance and Bitfinex exchange platforms. In this way, the company has been able to give birth to its own crypto-asset.
This digital currency is based on the Ethereum blockchain network and it can be used to make payments on both exchanges, allowing users to get access to a large number of services.
Founded by Changpeng Zhao, Binance is an exchange with a trading volume of $1.7 billion per day and has helped launch a number of popular cryptocurrencies such as DragonChain (DRGN), Tron (TRX), VeChain (VEN), and ICON (ICX).
After listing its own ICO on its platform, Binance also launched a token for its own native currency—Binance Coin (BNB)—and offers reduced fees when trading it against other currencies on its exchange.
The team behind BNB is led by Zhao himself and helps operate one of the most trusted exchanges in existence today.
4. Cardano
Cardano is a decentralized, open-source cryptocurrency and blockchain project. The platform is developing a smart contract system that seeks to deliver more advanced features than any protocol previously developed.
It is capable of running financial applications currently used every day by individuals, organizations, and governments all around the world. Its token, ADA, is currently ranked as one of the top 20 cryptocurrencies with a market cap of just under $10 billion.
Cardano sets itself apart from other blockchains through its layered architecture and unique Ouroboros proof of stake algorithm that avoids some of Ethereum’s current issues with consensus.
5. ApeCoin
ApeCoin (APECOIN) is a cryptocurrency that uses a Proof-of-Stake consensus algorithm based on block rewards. Apecoin was founded by Dr. Zaki Manian, who has been working on cryptocurrencies since 2014.
Apecoin uses Peer-to-Peer technology and distributed ledger database called Blockchain Technology based on Bitcoin Core Software. APE Coin’s target market is small business owners, freelancers, and workers worldwide.
APE coin aims to solve the problem of double-spending using digital currency; thus making transactions faster, cheaper, and safer.
The Apecoin team believes that their solution can reduce costs significantly for businesses by integrating Blockchain into payment systems.
ApeCoin is an asset-backed cryptocurrency that uses another, more established asset class as its backing.
6. Shiba Inu
The Shiba Inu cryptocurrency is based on Ethereum and offers rewards when users interact with decentralized applications (DApps) or help run DApps.
It's currently worth about $0.15 per token, but as more people start using and developing DApps, it could be worth as much as $2.50 by 2022. As an added bonus, anyone holding Shiba Inu tokens can breed them using something called smart contracts.
Those who own one of each of four types of Shiba Inu tokens can participate in a smart contract that will produce a new type of token—and if you're lucky, maybe even a super-rare black puppy token!
Shiba Inu has a name that translates to “the dog who returns home”. They are known to have a good memory, and loyalty to family and friends, and they can be used for companionship purposes.
Its creator Satoshi Nakamoto first introduced this currency in a paper he wrote titled “Bitcoin: A Peer-to-Peer Electronic Cash System”.
Shiba Inu uses a proof-of-work system for transactions. Proof-of-Work (PoW) basically means miners have to do work to validate transactions.
Shiba Inu is considered to be a digital currency that supports decentralization.
7. Dogecoin
Dogecoin was developed in 2013 by Billy Markus (also known as Shrugs). He had noticed that users of Reddit were complaining about how expensive transactions were becoming.
So he decided to create a cryptocurrency called Dogecoin. It's based on Litecoin code but uses a character from the popular "Doge" meme.
The coin was created by programmer Billy Markus from Portland, Oregon, who hoped to create a fun cryptocurrency that could reach a broader demographic than Bitcoin.
As of November 2017, there are many online merchants that accept Dogecoin as payment. The Dogecoin community is hopeful that it will one day compete with Bitcoin as an accepted currency.
They have also sponsored multiple initiatives such as sponsoring Nascar driver Josh Wise and hosting a fundraising drive for Jamaica's first solar power farm. The value of Dogecoin began rising rapidly near the end of 2013 when it reached a $1 billion market cap.
Today, Dogecoin has a market capitalization of $340 million while its price sits at just 0.01 cents per token.
How does it work?
Dogecoin works similarly to other cryptocurrencies like Bitcoin and Ethereum. Once mined, coins are sent out into the network and can be used for online payments or held in digital wallets.
Transactions take place through its public blockchain ledger with transactions being verified by miners before they are added to the blockchain.
8. Uniswap (UNI)
Uniswap is a decentralized exchange that allows users to swap any ERC-20 token against each other directly from their wallets.
Users can trade tokens between each other without needing to go through centralized exchanges like Binance/Gemini/Bitfinex etc.
The basic concept behind Uniswap is that all the orders are executed off-chain using smart contracts. So the order book never gets stored on the blockchain but rather resides only in memory.
This allows Uniswap to have low fees compared to traditional DEXs.
