In this year when the impact of these digital currencies is accumulating. But what does that mean? Is it a bad time to invest in cryptocurrencies? Many people believe that the recession is the best time to keep buying, but it depends on your individual strategy.
If you’ve made it this far, you’re probably looking for new investment alternatives, and one of the most interesting right now is investing in cryptocurrencies: Assets that have appreciated a lot since their creation. In this article, we explain what cryptocurrencies are, how they work, how to invest, which cryptocurrencies to invest in and which ones are the best in 2022.
At Finect we have also enabled a section where you can see information on different platforms where to buy Bitcoin or other cryptocurrencies, compare and then decide which one suits you best.
COMPARE, GET INFORMED AND INVEST IN CRYPTOCURRENCIES HERE.
[If you have questions about cryptocurrencies, you’ve come to the right place].
What are cryptocurrencies?
The broadest definition of cryptocurrency is that it is a non-physical digital currency that uses cryptography to secure and manage transactions and create new currencies within a blockchain network.
This explanation of what cryptocurrencies are covers two of the most important characteristics of this digital currency. First, there are no banknotes or coins such as euros, dollars or pounds. Cryptocurrencies are digital and, although they can be stored in physical devices (called wallets or purses, such as hard drives or USB sticks), they have no physical representation.
Second, cryptocurrency is used to create new units. P2P technology in practice means that there is no dependence on any government or country: There is no central body or government in charge of creating new currencies and bringing more money to the market. Bitcoin, for example, uses blockchain technology to organize the creation of new units.
Types of cryptocurrencies
Ethereum, Cardano, Polkadot… There are many virtual currencies besides the well-known Bitcoin. In fact, there are currently about 10,000 digital currencies in the world.
What distinguishes the different types of cryptocurrencies is the design behind them. The blockchain technology used by cryptocurrencies can be used for a variety of purposes. From the use of cryptocurrencies as a means of payment, as is the case with Bitcoin, to smart contracts on the Ethereum network. There are also currencies that use a completely different formula.
In this video you will see how Ethereum, the second most important cryptocurrency, works:
But when it comes to investing, you have to be financially literate enough and know exactly what products we are putting our money into and what risks we are taking. We tell you what are the best cryptocurrencies to invest in and what you should look out for when choosing!
List of cryptocurrencies
How many cryptocurrencies are there? The data fluctuates constantly and is not entirely accurate, but it is estimated that there will be more than 10,000 by the beginning of 2022. A new digital currency is created every week in a process called ICO, which we summarize below.
The cryptocurrencies that maintain a solid position in the top 10 (in terms of market capitalization) despite the decline are:
3. shiba inu
9. USD currency
10. polka boot
Top 10 list according to Coinmarketcap (July 6, 2022).