Cryptocurrencies are quickly becoming a more prevalent aspect of our everyday lives. Bitcoin is now accepted as payment for goods and services by over 100,000 businesses worldwide. It’s not just Bitcoin that has seen growth in adoption, though; thousands of other cryptocurrencies have been created to serve various purposes. These projects all offer different features and benefits, making it challenging to choose the best one for you. Here are five projects that we think will be worth keeping an eye on throughout 2022.
Ethereum is one of the best-known cryptocurrencies. It is a blockchain-based platform that allows developers to create and deploy decentralised applications (DApps). These DApps can run on Ethereum’s blockchain, eliminating the need for third-party intermediaries. Ethereum has seen significant growth in adoption in recent years and is currently the second-largest cryptocurrency by market cap.
- Ethereum has a large and active community
- It is one of the most well-known cryptocurrencies
- It has a wide variety of DApps that can be used
- The network is congested, resulting in high transaction fees and slow transactions speeds
- The code is complex and difficult to understand
Polygon is a blockchain-based platform that allows users to create and trade digital assets. It utilises a unique Proof of Stake protocol that enables users to earn rewards for participating in the network. Polygon also claims to have fast transactions speeds and zero transaction fees, making it a suitable choice for users looking for cryptocurrency platforms that are both secure and affordable.
- It is one of the most secure cryptocurrencies on this list
- The project is led by CEO and co-founder Tron Black who has extensive experience in venture capital and blockchain technology
- Polygon’s MATIC token is unique, as it can be staked to secure a single account or pooled to secure a group account
- As of right now, Polygon is still in alpha and has yet to be fully released
- There are concerns over whether the project can live up to its lofty promises
Solana is another blockchain platform that promises to solve the scalability issues faced by many other blockchains. It does this by using a unique Proof of History protocol that allows nodes to verify transactions without downloading the entire blockchain. This makes Solana ideal for applications that require high transaction speeds.
- Solana has a highly experienced team of developers
- The project already has a working product
- Transaction speeds are far superior to those of Ethereum and Bitcoin.
- The team has yet to deliver a formal whitepaper
- There are concerns over the level of competition that Solana faces from other projects in the space
- The project is still in its early stages of development
Decentraland is a blockchain-based virtual world that allows users to create and trade digital assets. It is powered by the Ethereum blockchain and utilises a unique proof of ownership protocol that allows users to own virtual land. Users can build, mine, and trade digital assets in this virtual land. Decentraland has seen a lot of interest from investors since it is one of the first truly immersive virtual reality projects to emerge within the blockchain space.
- The platform offers users complete control over their digital assets
- It already has an existing community
- The virtual world is highly immersive and offers a wide variety of experiences
- The project is still in beta and has yet to be fully released
- There are concerns over the level of competition that Decentraland faces from other projects in the space
Polkadot is a blockchain-based platform that facilitates the exchange of different assets and data across multiple chains. It uses a unique relay chain technology to complete transactions as fast as two seconds. Polkadot also has a built-in governance system that allows users to vote on important decisions relating to the project.
- Transaction speeds and fee structures are far superior to those of other networks
- Polkadot doesn’t have a native token, so transaction fees are lower than most other cryptocurrencies
- It has the vision of being the link between all blockchains in existence
- The project is highly complex, which makes it difficult for the average user to understand
- The governance system needs further development
- Polkadot attracts high competition from other projects that are looking to create a similar network
These are just a few of the most promising crypto projects to look out for in 2022. There are many other great projects out there that are worth keeping an eye on, so be sure to do your research before investing in any of them.
Quick Tips before investing
Do Your Homework
Before investing in any cryptocurrency project, it’s important to do your research and understand what it is trying to achieve. This means reading the white paper, checking out the team behind the project, and looking at the competition that it faces.
Be Wary of Scams
Unfortunately, there are a lot of scams in the crypto space. It’s important to research any cryptocurrency you are thinking of investing in, and to only trust well-known projects that have a good track record.
Don’t Invest More Than You Can Afford To Lose
It’s also worth remembering that cryptocurrency is an extremely volatile asset class. Don’t invest more money than you can afford to lose, as there is always the potential for a price crash.
Diversify Your Portfolio
Finally, it’s important to remember that no one project will be a sure-fire winner. Spread your investment across many different projects to minimise your risk.
Cryptocurrencies have been a part of mainstream society for a relatively short time. Because of this, the market is constantly changing and growing. It’s important to bear in mind that most blockchain projects are still in their early stages and could fail at any moment. Therefore, it is vital to do your research before investing in them.