Cryptocurrencies are generally a type of money similar to others we have – the dollar and the euro, for example – except being entirely digital. That is, rather than being exchanged in person, cryptocurrency payments exist solely online, specifically on the blockchain.
The coin’s name comes from the fact that it uses cryptography to confirm transactions. It means that advanced encryption is used to store and transmit cryptocurrency data between wallets. For more information, check reviews on coinlive.
Is investing in cryptocurrencies secure?
Yes, it is secure. Cryptocurrencies are powered by blockchain, a decentralized network. It is controlled not by intermediaries but by all of its users anonymously.
Blockchain is an “account book” that records, verifies, and authenticates all cryptocurrency transactions via a decentralized exchange.
Furthermore, no intermediary institutions are required to validate these transactions, ensuring the process’s complete autonomy.
Best cryptocurrencies to invest in right now
You’ve probably heard of Bitcoin, but you should know that it’s not the only promising currency on the market.
● Ethereum (ETH)
● Solana (SOL)
● Polkadot (DOT)
● Avalanche (AVAX)
● The SandBox (SAND)
Ethereum (ETH)
The founders created the Ethereum ( ETH ) network to compete directly with Bitcoin (BTC), and experts believe it has succeeded.
This currency has been identified as a great power in terms of expansion and appreciation, and its distinguishing feature is the ability to “tokenize” physical assets.
That is, converting something from the real world into cryptocurrency.
Solana (SOL)
Touted as an “Ethereum killer” — cryptocurrencies that emerged with the purpose and potential to overthrow Ethereum’s leadership — Solana (SOL) was up 11,179.5% in 2021.
With the ability to maintain low rates without losing security, Solana is touted as the biggest of the Ethereum killers.
Avalanche (AVAX)
Avalanche (AVAX) is a Blockchain smart contract platform that enables the development of DApps. It is a platform for building smart contracts, decentralized applications, and custom and interoperable Blockchains.
The network was launched in 2020 by Ava Labs, composed of Kevin Sekniqi, Maofan “Ted” Yin, and Emin Gün Sirer, to offer better scalability without compromising Blockchain decentralization and security.
Polkadot (DOT)
Polkadot ( DOT ) is another Ethereum-killer with a promising 2022 forecast. The cryptocurrency was launched in 2016 by an Ethereum co-founder to increase market scalability.
It closed the year with a high of 187.40 percent. Now, it is ranked among the top ten cryptocurrencies in the world.
The SandBox (SAND)
Sandbox Blockchain Technology ( SAND ) enables the creation of virtual terrains that can be traded among Metaverse players. Players can customize lands with objects created by other players once purchased.
This crypto asset is so promising that it is already being used by large corporations such as Tesla.
The Benefits and Risks of Investing in Cryptocurrencies
Cryptocurrencies are new assets with sophisticated operation logic. Therefore, many people are still looking to better understand how to operate with them. Digital currencies have some advantages over physical currencies and other means of payment. The Bitcoin website lists the following for Bitcoins:
- Payment freedom: With Bitcoin, it is possible to send or receive any amount instantly anywhere. Low fees: Currently, payments made with digital currencies are processed with low or exempt fees. There are charges if users want faster confirmation of operations by the system. For commerce in general, there are services based on Bitcoins in which the processing of sales and the transfer of values are carried out daily and with lower costs than traditional methods such as PayPal or credit card networks.
- Security: According to the Bitcoin.org website, You can make Bitcoin payments without linking the user’s personal information to the transaction. “This offers strong protection against identity theft,” he says. Another advantage is that the user can protect the money with backups and encryption.
- Transparent: All information about the offer of Bitcoin units is available on the blockchain for anyone. No one, nor any organization, can control or manipulate the digital currency protocol because it is encrypted. With this, Bitcoin’s core is recognized as trustworthy for being neutral, transparent, and predictable.
Those who bet on the digital currency market, on the other hand, need to be aware of a series of details that are specific to this segment.
Since relatively few people are familiar with and use digital currencies – even less – use digital currencies, few establishments accept this form of payment, as reported by the Bitcoin.org website.
- Volatility: Major price adjustments are not uncommon in digital currencies like Bitcoin. It is exactly because, little by little, cryptocurrencies are gaining visibility, which attracts many new users and ends up overvaluing the asset.
How to purchase a cryptocurrency
To buy or sell cryptocurrencies, you must first open an account with a cryptocurrency exchange, which is nothing more than a specific broker in this market.
Mercado Bitcoin, Binance, and NovaDAX are some examples of crypto exchanges.
With a cryptocurrency wallet or account, you can exchange your fiat currency for cryptocurrencies, for example.
However, we advise conducting research and selecting a secure platform with market credibility and a few years of operation.
Where to invest your cryptocurrency
There is no definitive information about which cryptocurrency is best for investments.
There are only speculations and expert projections.
Given that this ecosystem is relatively new and still undergoing many fluctuations, it is critical to pay attention based on each one’s performance and history.
There are a few options for ensuring your safety in this type of investment:
● Invest in stock exchange funds or unlisted investment funds; Use a digital wallet;
● Or use a physical cryptocurrency wallet, such as a hardware wallet.
Is it worthwhile to invest in Crypto assets in 2022?
Yes, the answer is yes. Regardless of the current economic climate, investing is a great option for those who want to increase their chances of financial success.
However, it is even better to enlist the assistance of an investment advisor for better portfolio monitoring and more personalized recommendations.
These professionals monitor everything in the market to recommend the best investment products for the current situation.