2022 is set to be a big year for cryptocurrencies, and now would be a great time to start looking at altcoins with potential. While it’s always good to have some Bitcoin in your portfolio, it’s better to diversify it. This could help you capitalize on small-cap coins that haven’t reached their full potential. There’s also the chance that one of the top altcoins surpasses Bitcoin, or at least starts gaining ground against it. Here are some altcoins you should keep your eye on in 2022.
Ethereum, or Ether, is the second-largest crypto in terms of market cap. You cannot invest in crypto without knowing about Ether and owning a few. Ether is one of the most respected coins in crypto, and some value it more than Bitcoin. This is because Ether has intrinsic value, unlike Bitcoin.
Ether is not simply some cryptocurrency you can speculate on. It’s actually the “fuel” that powers decentralised apps on Ethereum’s blockchain, which is one of the most robust and sophisticated in the world. This means that there will always be a demand for Ether as long as there’s demand for its blockchain.
XRP is probably the best cryptocurrency for those who hate crypto. This is because XRP is made to work with legacy systems, not disrupt them. Their blockchain is also centralized and controlled by the creators of the coin.
Some people in the crypto space see this as a form of treason, but others will love that a clearly defined board is making decisions. If you want safety and a coin that has a real use case, then XRP is a great option. It’s also an easier project to grasp for those who are more used to traditional assets.
Litecoin is another coin everyone should have in their wallet. What many people don’t know about Bitcoin is that it’s not the best as a cryptocurrency. This might be shocking to some when knowing how popular Bitcoin is, but it has many flaws.
The biggest issue with Bitcoin is transaction speeds, with the second being fees. Litecoin solves all that and has much larger blocks, which allows transactions to be processed much faster for less.
One Word in Favour of Bitcoin
With that being said, you still should own some Bitcoin for many reasons. With it being the most recognizable name, it will usually lead the way as new investors will start pumping money into it before they invest in other coins. Another reason why investing in Bitcoin is a good idea is because it’s the coin that has the greatest potential for mass adoption right now. It’s also seen as the gateway coin for other coins as not all exchanges allow people to trade fiat money for coins, but all of them accept Bitcoin.
This is why we would suggest that you still hold some Bitcoin and find a good Bitcoin Wallet UK to keep your funds safe. Owning Bitcoin is not only great if you want to make transactions, but it’s also a good shield against inflation due to its limited supply, so consider keeping some just in case.
These are all altcoins you should think about adding to your portfolio next year. This will allow you to shield your assets and make profits if one of these coins takes off.