Which is the Best Cryptocurrency for Trading?
Bitcoin, the most well-known cryptocurrency and probably the current gold standard for cryptocurrency investments, increased by more than 10,753% in 2017 and touched an all-time high price of $63,000 in April 2021 while dropping to a price of $31,500 in July 2021. During the same time span, though, more than a dozen other cryptocurrencies have outpaced Bitcoin, with increases ranging from 3,300 percent to Ripple’s astonishing 36,000 percent. Since then, crypto fans have been attempting to identify the next bitcoin or best cryptocurrency to purchase. I want to assure you that it is not the first bear market and definitely not the last, and there’s nothing to fear! This brings our list of the top cryptocurrencies for 2022 to help you begin investing in the future of finance – DeFi.
Cryptocurrency for Trading: Ethereum (ETH)
Ethereum is the second most popular cryptocurrency for trading in the world, following bitcoin. A reason for its popularity is that it is both a cryptocurrency as well as a blockchain platform. This platform allows for the creation of new coins as well as the development of decentralised apps. When it comes to day traders, a fair level of volatility is what offers a fantastic chance to earn, and that too in a short period of time. Now that Ethereum is listed on the majority of exchanges, it is quite simple to trade in the cryptocurrency. Ethereum’s value is $3850.
It is regarded as one among the finest cryptocurrencies, with a price of $1. There are many factors for this. Tether now has a high trading volume. Tether, in particular, drew notice due to having one of the largest 24-hour trading volumes. It’s no surprise that it is so important to the cryptocurrency industry. This large trading volume is also one of the reasons why more traders are drawn to it. Though there has always been a strong conviction that the price would never go below $1, the price did decrease some time ago. However, the fact that this is a steady currency with little volatility attracts attention.
Cryptocurrency for Trading: Binance Coin (BNB)
Only a few years ago, one of the most reputable exchanges launched its own cryptocurrency for trading – Binance coin. When traders saw a reputable exchange launch its own coin, confidence naturally grew. The increasing demand for BNB has led to its selection by day traders. With a price of $560, this is an excellent currency to begin day trading.
This cryptocurrency’s price has hit new highs many times. This sheds insight on the extreme volatility. As a result, profiting from this volatility is worth mentioning. With active team support accessible in the majority of exchanges worldwide, this can be another feather in your investment hat.
Cryptocurrency for Trading: Litecoin (LTC)
Litecoin, which debuted in 2011, was one of the first cryptocurrencies to follow in the footsteps of Bitcoin and has been dubbed the “silver to Bitcoin’s gold.” Litecoin is built on an open-source global payment network that is not centralised and uses “scrypt” as a proof of work that can be decoded using consumer-grade CPUs.
Litecoin is similar to Bitcoin in many aspects, however it has a higher block generation rate and therefore provides faster transaction confirmation time. Aside from developers, there is an increasing number of merchants that embrace Litecoin. Litecoin has a market capitalization of $10.1 billion and a per-token value of $153.88, making it the world’s sixth-largest cryptocurrency.
Tron has captured the interest of people all around the world because of the advancements it is connected with. This, along with its extreme volatility, gives it the position of the top cryptocurrency for trading. Tron was originally designed as a platform for breaking down all barriers on the Internet. There is a reward for each coin traded. Tron, as a cryptocurrency, is quickly expanding.
Cryptocurrency for Trading: Monero (XMR)
Monero is the best cryptocurrency for trading that is safe, private, and untraceable. This open-source cryptocurrency debuted in April 2014 and quickly gained popularity among the cryptography community and fans. This cryptocurrency’s development is entirely donation-based and community-driven. Monero was created with a heavy emphasis on decentralisation and scalability in mind, and it provides full anonymity via the use of an unique method known as “ring signatures.” Monero has a market capitalization of $2.8 billion and a per-token value of $158.37.
Dogecoin has gained popularity as a result of celebrities and billionaires such as Elon Musk having over $44 billion in market capitalization. Dogecoin famously began as a joke in 2013, but due to a devoted community and clever memes, it quickly became a popular cryptocurrency alternative. Unlike many other cryptocurrencies, such as Bitcoin, there is no limit to the amount of Dogecoins that may be created. In 2017, the price of Dogecoin was $0.0002. By June 2021, the price had risen to $0.32, a 159,900% increase.
So, that’s it for our list of the top 10 cryptocurrency for trading you can consider if you’re looking out to start trading.
How to Select Cryptocurrency for Trading?
By now must ask this question to yourself – “how to choose cryptocurrency for trading?” I have got you your answer.
1. Conduct a Fundamental Analysis
The term “fundamental analysis” simply refers to an investment’s underpinnings – its team, goals, and strengths, for example. If you’re new to cryptocurrency, don’t worry about the technicalities!
Fundamental analysis will benefit you just as much as technical analysis in the long term. Understanding basic analysis can therefore assist you in making better investing choices. In a market where the majority of people are pursuing low-quality cryptocurrencies, fundamental analysis enables you to distinguish the wheat from the chaff.
2. Check Out the Pricing
Have you ever heard the expression, “The greatest predictor of future conduct is previous behaviour?”
Of course, this isn’t always the case, particularly when it comes to cryptocurrencies. However, price swings provide a strong history of the currency and indicate if it will be a good investment in the future.
3. Investigate Unknown Crypto Exchanges
If you missed an ICO, you may still purchase the currencies on cryptocurrency exchanges. The majority of well-known and established exchanges restrict the currencies they trade. Lesser-known platforms are more likely to provide a higher return on investment. Conduct independent research on the crypto exchange and the individuals who run it to safeguard your money.
Are You Prepared for What’s Next?
Blockchain and digital currency are the future of finance. Despite their present volatility and lack of broad acceptability as a payment mechanism, cryptocurrencies seem to be on their way to being more widely utilised for online payments. As a result, they are an intriguing long-term investment, particularly if you have a high tolerance for risk.
Nobody knows where we will be in 20 years, but cryptocurrencies and blockchain technology are gaining traction as financial forces to be reckoned with. Begin your long-term investment plan with the decentralised farming pool of DeFi’s top projects at UniFarm!