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11 Altcoins to Watch in 2022

11 Altcoins to Watch in 2022
Written by publisher team

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Here are some coins to keep on your radar this year – both as potential investments and as they could affect the entire industry.

the main points

  • Ethereum, Solana, Elrond, and Cardano are good Tier 1 cryptocurrencies to watch.
  • If you’re thinking about gameplay or the metaverse, put Enjin and the Wilder World on your watchlist.

2021 was an exceptional year for the cryptocurrency industry. There are now more coins, more investors, more cryptocurrency exchanges, and more money than ever before in crypto. With over 16,000 cryptocurrencies to choose from, it’s hard to pick just a few.

To help focus our list, we’ve divided cryptocurrencies into sub-sectors. Looking at coins by sectors is a good way to ensure that your portfolio is diversified and not overly heavy on one or two types of coins.

Which coins are right for you depends on the type of investor you are. Some people are willing to take higher risks in exchange for higher potential rewards. Others are looking for safer long-term bets. Either way, these 11 altcoins are worth watching in 2022:

Layer 1 encryption

Layer 1 encryption is the backbone of the crypto industry. Right now, many of them are vying for market share, and the most likely scenario is that four or five will eventually come out.

1. Ethereum (ETH)

In theory, 2022 is the year that Ethereum finishes the upgrade of Ethere 2 to make it more scalable and more sustainable. It is not yet clear if Ethereum can deliver on time and without any major glitches. Either way, investors need to pay attention. If the upgrade goes well, it will be positive for the entire market. If things go badly, it could have a knock-on effect on the many crypto projects running on its network and reduce public trust for investors.

2 – Solana (SOL)

Solana is one of the superstars of 2022, but the big question is: Can he continue to grow? Its speed and cheap transactions are attracting a lot of developer interest, and it may continue to lead the Ethereum alternatives. However, it has already encountered two technical problems and it is not clear if it can maintain its momentum.

3. Elrond (EGLD)

Elrond is an interesting cryptocurrency contract that has seen significant growth, but has yet to reach the peak of Solana and still has room for growth. It is worth watching the development of Maiar’s decentralized exchange system and the number of projects that its ecosystem can attract.

4. Cardano (ADA)

Some find Cardano’s research-based approach less exciting, but it may also appeal to long-term investors. The project is actively looking to solve problems that may arise in the future, such as the effect of quantum computing. It already has several real world projects, and after the smart contract capability was launched earlier in 2021, we are likely to see several new projects launched in Cardano.

Layer 2 encryption and interoperability

Layer 2 solutions sit on top of existing block chains to improve their performance, while interoperability projects help different networks communicate with each other.

5. Polkadot (DOT)

2021 saw the emergence of a handful of Ethereum alternatives that offered faster and cheaper transactions. Polkadot has done well, but the problem it solves – interoperability – is still a problem. At the moment we have many popular blockchain networks that are not very good at talking to each other. When developers start using a number of Layer 1 blockchains, interoperability will be critical.

6. Polygon (Matic)

Polygon aggregates Ethereum 2 layer solutions. Until the Eth 2 upgrade is complete, existing projects can help reduce costs and solve network congestion issues. Even after an upgrade, it will still have a role to play, especially when it comes to interoperability.

Many metaverse and game icons such as Axie Infinity (AXS), Decentraland (MANA), and Sandbox (SAND), have produced impressive returns in 2021. Everyone is looking for the next big thing, and these two are worth watching:

7. Enjin (ENJ)

In games and the metaverse, non-fungible tokens (NFTs) give people more control over their in-game assets. This is one of the reasons why NFTs are another major trend in 2021. Outside of games, they can take the form of anything from art to music to domain names. Enjin makes it easy to create and manage NFTs, especially for gamers.

8. Wilder World (Wild)

Wilder World calls itself a “5D immersive metaverse.” Unfortunately, it is not yet listed on many US cryptocurrency exchanges. But with so many games to be played to earn and an interesting community experience about metaverses on its platform, it’s worth having on your radar.

DeFi Tokens

Decentralized finance is one of the main uses of blockchain technology to date. It allows people to keep the middleman away from all kinds of financial transactions. However, there is also a strong possibility that DeFi will see increased regulation around the world and the space could change in a heartbeat. As a result, only one of these coins was placed on the watch list for 2022.

9. Earth (MOON)

Terra was one of the best performing cryptocurrencies in 2021, but the stablecoin-based financial ecosystem continues to grow. It has many different stablecoins linked to different currencies, all backed by their own LUNA token.

Other altcoins

It is worth paying attention to the following currencies that can have a huge impact on the rest of the crypto industry.

10. XRP (XRP)

XRP – also known as Ripple – struggled a bit in 2021 due to an ongoing lawsuit with the Securities and Exchange Commission. The SEC accuses it of operating as an unregistered security agency, which Ripple’s team opposes. If the SEC wins, it could destabilize the entire industry as the SEC may take action against a number of other crypto projects.

11. Cord (USDT)

I avoid using the Tether stablecoin and do not recommend buying it because it is not transparent enough about its reserves. But I still pay attention because it is the fourth largest cryptocurrency by market capitalization. If Tether collapses, shock waves could shake the industry.

The price of a stablecoin is tied to a different commodity such as gold, or in the case of tether, the US dollar. In theory, each USDT should be backed by a reserve of $1. This way, there will be enough cash to pay if too many people decide to withdraw USDT at once. the problem? Tethers hold much of their reserves in unspecified commercial paper – a type of short-term debt. In addition, a New York attorney general’s investigation found that he did not always have enough money to support the coin.

Be prepared for a bumpy ride

Many analysts are warning that the cryptocurrency market will correct in 2022, which is not surprising given the massive gains we have seen. Others believe that this is only the beginning and that encryption still has huge potential. What is certain is that we will see increased regulation, continued economic fallout associated with the pandemic, and continued volatility.

Make sure you do your research and only invest money you can afford to lose. If crypto makes up only a small percentage of your portfolio, you can reduce your risk and be sure that in the event of a market crash, it will not knock you off the financial track.

Buy and sell cryptocurrencies on an exchange chosen by experts

There are hundreds of platforms around the world waiting to give you access to thousands of cryptocurrencies. In order to find the right feature for you, you will need to decide which features are most important to you.

To help you get started, our independent experts have tested the options to bring you some of our best crypto exchanges for 2021. Check out the list here and start your crypto journey, today.

About the author

publisher team