Cryptocurrencies have had a terrific year, and it seems like next year might even be better. The year 2021 was a big one for cryptocurrencies. Investing in digital assets is becoming more popular, and cryptocurrency has provided investors with a slew of profits if they only knew where to look.
There hasn't been a boring moment this year, with Bitcoin (BTC) earning about $40,000 and Shiba Inu (SHIB) demonstrating that pupcoins are more than a joke.
The first and second quarters of 2022 are projected to be the busiest for gem efforts.
There is no doubt in my mind about this. The Metaverse is, of course, the place.
Due to Facebook's Evolution to Meta, social media platforms like Facebook and Instagram will soon be flooded with crypto advertisements.
An analogy to venture capital investment in the bitcoin world is the purchase of shares in an early-stage company.
However, things are just beginning. In anticipation of a busy 2022, cryptocurrency investors are looking to make a purchase.
Exactly What Does an Airdrop Entail?
Diversifying your cryptocurrency holdings is essential if you want to build a long-term, diversified crypto portfolio.
Your investments will be bolstered over the following year by selecting leaders in these areas.
1. Solana SOL
In the eyes of investors seeking the next great thing, Solana is an excellent choice.
In the eyes of many, the network is a serious competitor to Ethereum, and it is proving that it is a force to be reckoned with.
To establish its usefulness, it has made a venture into NFTs and made huge profits. Blockchain's scalability, on the other hand, will be a major selling point for new users.
Indeed, Solana is renowned for its propensity to grow. Solana's scalability contrasts starkly with Ethereum's.
Ethereum is now unable to handle more than a handful of transactions per second.
Until the Merge revamps are complete, Solana is offering an urgent solution. Solana can process 50,000 transactions per second, according to its creators.
To get an idea of how many people are using the cryptocurrency network, there are now 68 million hardware wallets in use.
For the foreseeable future, developers predict that this number will continue to rise.
Mobile-friendly services, which are being implemented by an increasing number of networks, are sure to increase mobile usage.
If this is correct, transaction volume will rise, necessitating the need for networks like Solana.
NFT market share is also contested by Solana, a lesser-known rival. However, it's proving to be a worthy competitor for the Ethereum virtual currency.
In August, 10,000 Solana Apes NFTs were sold out in only a few minutes at the debut of the tokens.
The incident made Solana a household name. To put it another way, it helped Solana reclaim some market share from Ethereum over the long term.
2. Decentraland MANA
The MANA token, issued by Decentraland, is off to a terrific start in 2021.
After four years of hard work, the metaverse is now making its way into the public eye.
When it comes to virtual reality in 2022, Decentraland seems to be leading the pace.
It's safe to say that the metaverse isn't a new concept.
It is becoming more popular to have virtual reality meetings in the aftermath of the Facebook (Meta) makeover.
Investors assume there must be substance and opportunity in this segment if one of the world's top internet firms is going all in.
However, Meta's management of private information has irritated some customers (and investors).
Several decentralized solutions promise a product that is driven by the consumer in the metaverse.
You can vote on what changes you'd want to see and set your own rules in a decentralized metaverse.
They may preserve their liberties and enjoy an area that is genuinely theirs in Decentraland.
A user's imagination is the only limit in the metaverse, where they may travel wherever they want, do whatever they want, and even attend virtual live events.
They can also make money passively by minting and reselling NFTs on the network.
In 2022, Decentraland's MANA will be at the head of the pack, already in the top 25 cryptos by market capitalization, as the metaverse continues to flourish.
Opportunities abound if you want to get in on MANA before it becomes any hotter.
3. Uniswap UNI
Uniswap may blow up in 2022 as a result of the growing interest in DeFi.
In the world of finance, many individuals are looking for a passive way to generate money from their current assets, but they also want to be able to access those assets at any time.
Due to personal circumstances, some individuals are unable to register a bank account, preventing them from earning money.
Traditional banking also turns off some customers because of the red tape and expenses that come with it.
Uniswap, on the other hand, offers investors an alternative to conventional banking that may be both more independent and more rewarding.
Uniswap is a DeFi technology, which means that users may earn interest on their crypto assets without doing anything.
With the Uniswap protocol, one may bet their coins and tokens to get a larger yearly percentage income than with a regular savings account.
Furthermore, customers have complete control over when and how they utilize their money.
In this approach, the protocol may operate around the user's schedule instead of the other way around.
For the most part, Uniswap is well known for its decentralized exchange (DEX). An automated market maker (AMM) is used to match buyers and sellers to guarantee that the market remains open at all times.
Additionally, it doesn't need a custodian to enable transactions, as a centralized exchange would. For people who are concerned about the safety of their crypto holdings, this is a useful tool.
Uniswap's flexibility to develop and adapt to the needs of its users is one of the most enticing aspects of the protocol that attracts investors.
The protocol has been updated twice since the debut of its exchange in 2018.
Consolidated liquidity was introduced in May 2021 with the introduction of the new Uniswap V3 platform, which improves transaction execution while also rewarding liquidity providers.
Of course, the Uniswap DEX itself is where you may purchase the UNI coin. To begin with, if you don't already own any cryptocurrency, you'll need to acquire a stablecoin from another source.
This is because DEXs do not enable the trade of fiat money.
4. Ethereum ETH
It's a no-brainer that Ethereum will take the world by storm in 2022 for so many reasons.
As a starting point, it's one of the most secure investments in the sector because of its enormous market value.
In other words, the company's large market value indicates that it is well-known and financially secure.
If you look at Ethereum's roadmap for the next year, it's impossible to argue that ETH isn't a great investment for 2022.
Ethereum is the best NFT cryptocurrency out there. Nearly all NFT sales take place on the network, accounting for 97% of all NFT transactions.
Compared to the other significant blockchain networks with smart contract capabilities, this market share is astounding.
As the NFT market continues to heat up, Ethereum is an obvious choice for investors to cash in on the rising demand.
Ethereum has a lot more going for it than just the fact that it's a hot topic.
Decentralized apps (DApps) have proliferated on Ethereum, and developers are increasingly interested in launching their projects on the platform.
This is because it boasts the greatest active user population of any blockchain network, in addition to its huge web of goods.
To make matters worse, the Ethereum network will undergo a significant upgrade in the next year.
There are several features that users have requested that will be included in the Merge update, which is scheduled to be released in 2022.
To merge Ethereum and its "beacon chain" is the goal of the Merge.
All of the improvements that developers wish to implement may be found in the beacon.
Other major changes include a switch from proof of work (PoW) consensus to proof of stake (PoS) consensus, which will significantly reduce energy usage.
You don't have to worry about finding a place to purchase Ethereum since it's so widely available. The cryptocurrency may be found on any reputable exchange.
5. Bitcoin BTC
You can't go wrong by adding Bitcoin to your portfolio based only on the currency's demand.
Aside from that, the crypto market is a barometer for the whole sector, impacting the value of practically every other asset.
BTC is the most valuable asset a crypto investor has at his or her disposal.
As a percentage of the industry's total market value, bitcoin accounts for around 40%.
As a result, it's more like a steering wheel than a weather vane for the market.
One might expect a positive crypto market if Bitcoin is on the rise. All bets are off if Bitcoin goes down.
We've already seen this in the summer when the value of Bitcoin plummeted and almost all other digital currencies followed suit.
When you invest in Bitcoin, you're investing in the future of the whole industry, not just the Bitcoin itself.
To top it all off, Bitcoin has seen astronomical growth over the last several months.
Coin prices have increased from approximately $30,000 to just under $70,000 in the last 12 months alone.
In other words, it's not slowing down at all! According to several experts, Bitcoin is on track to soar to a new all-time high.
You can purchase Bitcoin from a real Bitcoin ATM or just about anyplace else.
To Sum it Up
The crypto sector has seen a slew of trends during the last year. Bitcoin and other value-store currencies were the rages in early 2021. Dogecoin's (DOGE) meteoric rise sparked interest in Pupcoins, which in turn sparked interest in Shiba Inu tokens.
People who wanted to cash out on digital art were intrigued by non-fungible tokens (NFTs). With the rebranding of Facebook to Meta Platforms as we close out the year, the metaverse has risen to prominence (FB).