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The top coins in the 2022 cryptocurrency list

Cryptocurrency list
By nature, no man can produce everything that he needs, so there is a need to exchange what you have for another product or service. That was how to trade by barter systems came about and later transited to physical money which is used to pay for goods and services. Some societies started with cowries, later; precious metals like silver and gold served as money. Today, several nations have their own money printed in form of paper and coin. In our world today, there are about 180 currencies recognized and accepted as money.
 
Each government normally has a body or central bank that issues and assigns values to their printed currencies. So, these currencies are commonly referred to as ‘fiat currencies’. The most popular fiat currencies are the US Dollar (USD), Euro (EUR), Pound sterling (GBP), etc. Over 20 countries have their own form of dollars; e.g. NZD, CAD, Singapore dollar (SGD). Countries like Ecuador and Panama use USD as their official currency. About 19 countries use EUR as their official currency.

One of the greatest limitations of fiat money is that it is specifically recognized and used within a restricted jurisdiction. This is why international businesses, tourists, banks, etc always have to exchange one currency into another. In fact, the big international banks, investments firms, financial services companies and even individuals participate in forex trading on a 24/5 basis via the forex market which is a virtual marketplace where currencies are bought and sold between the market participants.

As technology advances; e-commerce and other digital solutions become accessible and available to everyone irrespective of location. There arose a need for a digital solutions to currency conversions which comes with conversion fees, waiting times and is sometimes unavailable. For instance, a graphic designer in South Africa has designed a digital logo for an entrepreneur in China who wants to pay in Renminbi (CNY). The designer cannot accept CNY; rather he wants his money in Rand (ZAR). One solution is to use bank wire transfer but the charges may be high and will take days. What if there is a digital currency that cuts across everyone in the world and controlled by no one?

A Cryptocurrency is a digital currency that is not controlled by any bank, government, company or individual. A cryptocurrency (or crypto for short) has no physical form; no printed paper or coin form. Basically, it is a computer file that stored in various individual computers; the transactions are encrypted and irreversible. The technology deployed is known as a blockchain; which is a decentralized database of transaction records that is encoded and immutable.

In order to own and use crypto coins, you must have a wallet that is used to store it. The wallet can be in digital form, paper or hard wallet. Digital wallets are desktop or mobile apps that can store the private keys used to move the crypto coins. Paper and most digital wallets are free and widely used but hard wallets are physical devices that store the addresses of the tokens offline. So, you need to buy it. With cryptocurrencies, transactions are fast, reliable and less expensive.

Top 10 Cryptocurrencies in 2022

According to Statista website; there are over 5,000 cryptocurrencies that are available in our world today. However, many of them are not popular and only have a few number of users. According to Forbes, below is a list of the most popular cryptos. 

1) Bitcoin (BTC)

In 2009, Satoshi Nakamoto created the very first cryptocurrency known as Bitcoin. Up till date, no one knows the identity of Satoshi Nakamoto as he has chosen to remain anonymous. Bitcoin was designed as a digital medium of exchange to be used in making payments for goods and services. It uses blockchain technology which comprises of individual peer-to-peer computers without any central control. Each computer or node on the Bitcoin network maintain a copy of the database, validates transactions and maintains the network.

Mining is the process of creating Bitcoins by solving complicated mathematical problems that usually verify transactions, adds new block to the blockchain and secures the network. Miners use sophisticated computers and are rewarded with Bitcoins. The total number of Bitcoins to be mined has been fixed at 21 million but as at Sept 2021; about 18.82 million have been mined.

Today, Bitcoin is the most popular cryptocurrency with a high trading volume. It is also the most accepted by merchants and e-commerce websites. The value of 1BTC has varied over the years but it peaked at $64, 863 in April 2001. Currently (Sept 2021) it is about $42, 830 and the market capitalization is $806.147 billion. 

2) Ethereum (ETH)

After Bitcoin was launched, other cryptos followed and Ethereum became the next most popular. Ethereum was launched in 2015 and has since gained popularity because it was built to exploit the power of blockchain technology. It was specially designed to give anyone from anywhere the platform to run smart contracts and decentralized applications (Dapps). A smart contract is a program that executes itself on the Ethereum network. They are stored in the blockchain to facilitate, verify and initialize transactions.

Dapps are computer applications designed to run on decentralized networks. They are usually connected to the blockchain by smart contracts. All transactions on the Ethereum network are powered by ether (ETH); which is the cryptocurrency that is used to pay for transactions on the network. You can buy ETH tokens from crypto exchanges and store it in wallets. 1 ETH costs about $3,038.68 and its total market cap is around $357.379. 

3) Cardano (ADA)

Though its development started in 2015, Cardano was launched in 2017. Charles Hoskinson is one the expert engineers that designed Cardano after leaving Ethereum. He was one of the five people who founded Ethereum. Cardano was built after extensive peer-reviewed research and profuse paper presentations on the subject of blockchain technology by a group of experts. Cardano was finally designed as an open-source, decentralized network that uses proof of stake protocol (ouroboros) to validate and confirm transactions. Similar to Ethereum, the Cardano network can run smart contract codes and DApps.

The native cryptocurrency that powers the Cardano blockchain is ADA. Its market capitalization is about $68.35 billion. It is traded on exchanges and has a value of about $2.13. 

4) Litecoin

Launched in 2011, Litecoin is one of the first cryptocurrencies to be launched after Bitcoin. It is very similar to Bitcoin except that its blockchain network processes transactions about four times faster. It was launched by Charlie Lee; a computer scientist and former Google employee.

Just like Bitcoin, Litecoin uses a proof of work algorithm but uses ‘scrypt’ cryptographic algorithm while Bitcoin uses the SHA-256 algorithm. This makes Bitcoin mining more complex; often requiring specialized computers or joining a mining pool. Conversely, Litecoin mining is less complex and more accessible to miners.

1 LTC is valued at around $160.48 while its market cap is $10.713 billion. 

5) Polkadot (DOT)

Uniquely designed to connect private blockchains to public blockchains, Polkadot was launched in 2016 by Gavid Wood who was one of the founders of Ethereum. Its relay chain was built to enable different networks to work together. Though similar to Ethereum, the intended objective is greater scalability. One of the major differences is that Polkadot allows developers to create their own blockchain in addition to creating Dapps.
 
Its native crypto token is the DOT which is traded on exchanges with a market cap of $29.105 billion. 1 DOT is valued at around $29.64. 

6) Bitcoin Cash (BCH)

BCH was created as a result of a hard fork of Bitcoin in 2017. Fork in blockchain technology refers to a change in the protocol of the network. Since the network is decentralized; miners has to agree before a successful update or a change in the protocol; when that happens it is a soft fork and the network remains one. But, when there is a disagreement, it leads to a parallel network that is not compatible with the new one. This is known as a hard fork.

BCH was born out of a desire by miners to upgrade Bitcoin’s initial block size of 1MB. After the hard fork, the new BCH blockchain had a block size of 8MB which has faster processing speed. In fact, BCH has even upgraded to 32MB while BTC network has maintained 1MB block size.

BCH is traded on exchanges with a market cap of $10.33 billion. 1 BCH has a value of about $547 but fluctuates a lot just like other cryptocurrencies.

7) Steller (XLM)

Steller was designed as an open-source protocol for the exchange of cryptos, forex, and securities with full decentralization. It is capable of handling institutional large-volume purchases, sales as well as individual transactions. Stellar is used to move and store money; fiat money can be converted into crypto tokens at minimal costs. It was developed in 2014 by Jed McCaleb who was one of the founding members at Ripple Laps and helped develop Ripple.

The native crypto token of the network is Lumen (XLM) which is traded on crypto exchanges with a market cap of $6.756 billion. 1 XLM is approximately $0.2842. 

8) Chainlink 

Chainlink is designed to extract data from real live data feeds and convert it to smart contracts on the blockchain network. Its smart bond architecture can connect the network to live fluctuating data feeds such as sports results, market prices, weather forecasts, etc. It is a decentralized oracle network built on Ethereum.
 
Chainlink was founded in 2017 by Sergey Nazarov, Steve Ellis and Dr. Ari Juels. The network’s native token is LINK which is an ERC677 token. It has a supply limit of 1 billion and can be bought on crypto exchanges. The price of 1 LINK is around $23.86 and its market cap is$10.82 billion. 

9) Binance coin (BNB)

In 2017, Changpeng Zhao; a Chinese Canadian computer scientist founded Binance. According to Statista, Binance is currently the largest cryptocurrency exchange in the world today with a trading volume of over $29 billion per day. Though the company was founded in China, its headquarters has been moved to the Cayman Islands since the Chinese government banned crypto exchanges. Anyone can buy, sell or trade one crypto for another on the Binance platform.
 
Binance has its own crypto coin; BNB which can be used for payment on the platform. You can also purchase and use BNB on other exchanges. The price of 1 BNB is around $370.17 and its market cap is $61.51 billion.       

10) Tether (USDT)

Stablecoins are cryptocurrencies whose values are pegged on the value of an external reference or tangible asset like gold, fiat currency, etc. Tether is one of the popular stablecoins whose market value depends on fiat currencies kept in bank accounts. USD Tether (USDT) is directly tied to the price of USD; so 1 USDT = $1. It was launched in 2014 as a blockchain platform with the aim of using fiat currencies in a digital form.
 
USDT is traded on exchanges with a market capitalization of $68.76 billion.  

Trading cryptocurrencies with Investby

Investby is a forex and CFD broker located in Belarus. On the Investby platforms, cryptocurrencies are paired with fiat currencies and offered as contracts for differences (CFDs). This means that traders will only speculate on the cryptocurrency prices without actually owning them. For example, if you believe that the price of ETH will increase against the USD, you simply open a buy position on the trading platform, but if you forecast a price decline, then sell the asset.

Investby offers its clients professional trading platforms; the online platform and the popular MT4. The charts of all instruments can display on several timeframes. Risk management tools are provided on the platforms to close out losing trades. Once a trade is closed, the platform will automatically calculate the results of the trade and update the account balance. The spreads are very competitive and there are no commissions. Pro clients can trade with a leverage of up to 1:500.

Apart from crypto CFDs, you can also trade forex, CFDs in stocks, indices and commodities. All client orders are processed in split seconds; thanks to the sophisticated technology deployed by the broker. New clients are supported with demo accounts and an education center. Customer service is available 24/5. Investby is suitable for both beginners and expert traders. 

FAQs 

What is the best Cryptocurrency to invest in?

According to the Forbes website, there is a range of options. Some of the best cryptos for investors are:

• Bitcoin
• Ethereum
• Binance coin
• Cardano
• Tether
• Ripple
• Dogecoin
• USD Coin
• Polkadot
• Solana

Please note that investing or trading cryptos come with the risk of losing all or part of your capital.

What is the cheapest Cryptocurrency to buy?

There are many cheap cryptocurrencies that are not popular and cryptocurrency prices vary a great deal. For example, Safemoon is priced at $0.000001422 but the problem lies in its popularity, trading volume and profitability. Investors may not be interested in such cryptos and it will definitely not be available on CFD trading platforms.
 
 
 
The information above is for education purposes only and cannot be considered as investment advice and past performance is not a reliable indicator of future results.
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