The Best Crypto Projects for Long-term Investment
If you are reading this article, it means that you are one step closer to investing in cryptocurrency. Before risking your money, you need to make sure that you are ready for such a step and choose a coin for investment.
This is quite difficult since the cryptocurrency market is unpredictable. Now, when converting 0.125 ETH to USD, you could get about $200, and this is three times less than in November 2021. The market decline after explosive growth is a natural phenomenon, but it was difficult to predict its scale and pace.
Key Parameters for Choosing Coins for Investment
To date, the number of cryptocurrencies has already exceeded 20,000 items. There are many unviable among them, so you definitely should not neglect your own market research. When studying the coin you are interested in, pay attention to a few key points:
- The popularity of the project. If a coin is traded on many major exchanges, news related to its network is often published in reputable blockchain publications, this already indicates its prospects. A popular coin is easy to sell. This is important to minimize losses.
- Ease of travel. Solid startups usually have several types of wallets. In addition, popular and promising coins support multi-currency crypto wallets issued by third-party developers.
- Safety. The network you choose should have well-designed protection against hacker attacks.
The competitiveness and reliability of Bitcoin are no longer in doubt, so we will consider alternative options.
Ethereum (ETH)
The coin consistently holds the second position in the capitalization rating. The Ethereum blockchain became the first platform for smart contracts and decentralized applications.
It is expected that the final transition to a more environmentally friendly and energy efficient Proof-of-Stake mechanism will give the coin a new impetus to growth. First of all, problems with network scalability will be eliminated. Equally important is the fact that it is becoming more environmentally friendly, as regulators are very concerned about the impact of mining BTC and other Proof-of-work coins on the environment.
Many experts believe that by the end of 2022, ETH can grow strongly. In the most optimistic forecasts, a mark of about $ 7,600 is called. However, it is profitable to exchange 0.145 ETH to USD, bought at the local minimum of the current year, even now.
Activity on the ETH network is rated as one of the highest. It is possible that over time, Ethereum may surpass Bitcoin. One way or another, the coin has high growth potential.
At the same time, there are fears that after the transition of the network to Proof-of-Stake, technical difficulties may arise.
Binance Coin (BNB)
To date, BNB occupies the 5th position in the capitalization ranking and is trading at $276 per coin. Binance Coin is the native token of the Binance ecosystem, which is intended for use within the network. Crypto exchange Binance has become the most popular and successful cryptocurrency trading platform and continues to grow rapidly. The development of the project and the general increase in the interest of the general public in cryptocurrencies are interrelated processes. The scope for further expansion and improvement of the ecosystem gives grounds for optimism about the future of the coin.
Some crypto enthusiasts believe that by the end of 2022, BNB may rise in price to $700. However, it should be borne in mind that Binance is under the close supervision of regulators and this can greatly affect the dynamics of the exchange rate.
Ripple (XRP)
The project was created to improve the existing financial system. Its technical base is already used by many major players in the financial market.
The native token of the project is held in the TOP-10 most capitalized cryptocurrencies, despite the general market downturn and the ongoing legal proceedings with the SEC. Ripple representatives believe that by November 2022 it will be completed and the coin will receive an impulse to grow.
XRP is currently trading at $0.32, but a recovery to last year’s high does not look impossible. At the same time, there is a risk of further litigation, which could push the coin down.
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