Before any other cryptocurrency coins were available, Bitcoin established its reputation as the best in the world. The other coins that followed are alternative coins, popularly known as altcoins. Since then, several altcoins have entered the cryptocurrency system. Essentially, an altcoin is any cryptocurrency that isn’t Bitcoin.
Altcoins are primarily used to leverage the crypto network built on open-source blockchain technology.
Altcoins are also suitable alternatives for investors eager to diversify their portfolios. One of the popular reasons for trading altcoins is the potential for a higher return on investment on a short-term basis. Altcoins are worth investing in, whether you’re investing in Ethereum for the first time or staking on Solana.
Choosing a suitable one can be challenging if you want to diversify your portfolio by investing in altcoins because the options are many and varied.
- Lucky Block (LBLOCK)
Lucky Block aims to revamp the lottery industry. Operating on the Binance Smart Chain, it uses blockchain technology and smart contracts to enhance transparency, lessen draw times, and boost your chances of winning traditional lotteries.
The LBLOCK tokens serve as the ecosystem’s foundation, rewarding token holders with a portion of the fees. It also has an integrated burn rate, which reduces supply over time, causing the price to rise as a result.
- Ethereum (ETH)
Ethereum is highly favored by cryptocurrency investors, more so in 2022. Most blockchain applications use Ethereum technology, and many investors are inclined to think that its price potential is better than Bitcoin.
The platform serves as a medium for developers of decentralized applications (dApps) to create projects and carry out smart contracts, with the possibility of revolutionizing different industries.
- Tether (USDT)
Tether is a stablecoin and might be a good option since it has support from fiat money, such as the US dollar and the Euro, allowing it to maintain a value equal to one of those currencies.
The value of Tether is likely to stay more consistent than other cryptocurrencies. As a result, it’s a popular choice among investors concerned about other coins’ high volatility.
- Aave (AAVE)
According to many analysts in the decentralized finance (DeFi) space, Aave is a cryptocurrency worth investing in. It has the benefit of allowing users to borrow and lend cryptocurrencies without any hassle. Using liquidity pools controlled by smart contracts, Aave adjusts the interest rates and collateral ratios accordingly.
- Shiba Inu (SHIB)
Shiba Inu is another cryptocurrency to consider for 2022. The price of SHIB skyrocketed in 2021, consequently gaining a lot of social media attention as a ‘meme coin.’ It bears a striking resemblance to Dogecoin due to the hype. Although its price is predicted to increase, it remains a volatile and risky investment.
- Binance Coin (BNB)
The Binance Coin will come in handy when trading and paying fees on Binance, one of the world’s largest crypto exchanges.
The Binance Coin has grown in popularity in addition to facilitating trades on the exchange platform. You can use it for trading and payment processing, to name a few. Additionally, you can also trade or exchange it for other cryptocurrencies.
- Stellar (XLM)
When looking for a versatile cryptocurrency, Stellar might be worth checking out. Stellar is a decentralized payment network running on Stellar Lumens, the network’s native cryptocurrency.
The network allows swift payments to any part of the globe, charging minimal fees for any currency. In the long run, it could streamline the traditional banking system. With this, many investors are setting their sights on Stellar as one of the most promising altcoins in 2022.
- Cardano (ADA)
Cardano is an open-source blockchain network. It functions similarly to Ethereum, where it provides a platform for developers to create dApps and smart contracts.
Since brilliant academics designed it using peer-reviewed literature, businesses are more inclined to consider Cardano a less risky option than other blockchain networks.
- Polygon (MATIC)
There has been an increasing interest in Polygon this year. It’s a layer-2 network that’s compatible with the Ethereum blockchain.
MATIC, the network’s native currency, can be used to stake or pay fees on the network.
- Curve (CRV)
The Curve is an Ethereum-based decentralized exchange (DEX) that facilitates convenient transactions involving stablecoins. As one of the top-ranking DeFi projects, it enables investors to lend coins and accumulate high rewards.
- Algorand (ALGO)
Another altcoin worth looking into is Algorand. It’s a Pure Proof of Stake (PPoS) blockchain network with exceptional smart contract functionality and development support from a seasoned team.
- Solana (SOL)
Solana generally runs on a one-of-a-kind hybrid proof-of-stake and proof-of-history mechanism to allow swift and secure processing of transactions. It was initially designed to help decentralized finance leverage smart contracts and dApps.
- Decentraland (MANA)
Decentraland is one of the most noteworthy crypto projects to emerge recently. It’s a blockchain-based virtual world where users can create characters and purchase land plots in the game.
The items found in the game are structured as non-fungible tokens (NFTs), allowing you to monetize any in-game exploits in the marketplace. Altcoins like Decentraland are likely to gain traction as the concept of metaverse gaming continues to grow in 2022.
- Ripple (XRP)
Ripple is known as the company behind RippleNet, a global payment network that facilitates money transfers faster and at less cost than banks.
XRP is the native token of the network. It serves as a bridge that allows people globally to exchange money regardless of the currency. Payments also arrive instantly, which is a significant advantage over traditional systems. As the demand for quick transactions grows, XRP could be a great investment opportunity in the near future.
Final Thoughts
If you’re planning to diversify your cryptocurrency portfolio, whether you’ve previously invested in cryptocurrencies or this is your first time, altcoins may be a good option. Identifying which altcoins are currently on the rise in 2022 will provide insight into potential investment opportunities. Consider these choices as a good place to start this year’s investment.
