Beyond Bitcoin: Three best cryptocurrencies to add to your investment portfolio this year.
The majority of cryptocurrencies have taken a downturn since the beginning of the year. The market cycle has shown us that bullish periods are preceded by bearish momentum. However, the market cannot remain in the same state for a long time. A catalyst is needed to turn the tide and steer the market in a new direction.
Vitalik Buterin, The co-founder of Ethereum, has announced that the Ethereum Merge will take place in August. This is widely anticipated as one of the most crucial upgrades to the system to date and will go a long way in terms of improving the usability of the platform. It could also trigger bullish sentiments for other projects, such as Cardano (ADA) and Uniswap (UNI).
So go on and learn about the top three cryptocurrencies as important as Bitcoin in 2022: ETH, ADA, and UNI.
Ethereum (ETH)
It is difficult to speak to somebody within the crypto sector that is not familiar with Ethereum (ETH). The smart contract blockchain is at the heart of most new emerging trends within the crypto sector. Ethereum allows for peer-to-peer transactions and serves as a framework for developing smart contracts and distributed applications. In fact, Ethereum is an industry leader in smart contracts. As such, it is the blockchain network of choice for the best NFTs, crypto-based games, and tons of decentralized finance apps.
The development of the DeFi space and NFTs are good examples of crypto sub-sectors that have excelled due to the Ethereum (ETH) network. Notably, the platform is now transitioning from Proof-of-Work (PoW) to Proof-of-Stake (PoS) consensus mechanism. This is called Ethereum Merge. It is expected to usher in a new era within the Ethereum ecosystem.
Not only will the Merge reduce the level of energy consumption required through the use of the proof-of-work consensus, but it will also significantly increase the functionality of the network. In turn, this will decrease the factors causing network issues amongst the platform users.
Along with falling transaction fees, another major selling point for Ethereum is its flexibility, which allows it to adapt to changing demands as they arise. That is how a network can stay relevant and useful for decades, and Ethereum looks set to do just that with its latest upgrade – ETH 2.0.
In the following months, investors should keep a close eye on Ethereum (ETH), one of the top cryptocurrencies as important as Bitcoin.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Cardano (ADA)
Cardano (ADA) is known to be a third-gen blockchain that is available to the overall population alongside being a dApp advancement platform. Third-gen cryptocurrencies take in examples from first and second-gen digital assets and enhance upon their constraints.
Cardano uses new advancements done throughout the years including, security, sustainability, and multiple layer architectures, to develop versatility. Cardano is said to be the first blockchain platform to have acquired worldwide media consideration by including a companion investigated research plan into its core standards.
Its proof-of-stake architecture is less harmful to the environment than Ethereum (ETH), and its founders have claimed that their mission is to give the world a platform for “change-makers, innovators, and visionaries,” and to bring positive global change.
One of ADA’s missions was to plant one million trees, which they accomplished earlier. ADA has previously been high in the rankings and, due to its long-term business outlook, is expected to become even greater, making ADA one of the top cryptocurrencies as important as Bitcoin.
Cardano endeavors to acquaint norms into the market with empower interoperability across networks. These frameworks incorporate blockchain administration models, framework upgrade protocols, and capabilities. At present, the platform has principles for overseeing privacy, security, and decentralization.
Cardano (ADA) printed an all-time high of more than $3, and the project has the potential to reach or surpass this price point. Cardano (ADA) has a strong community that continually supports the project, making it one of the hottest digital assets in the market.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Uniswap (UNI)
Built as a decentralized finance protocol, Uniswap has recently become one of the largest decentralized exchanges (DEX). This cryptocurrency has grown in importance as a core building block of how crypto investors facilitate peer-to-peer transactions in the crypto world.
Decentralized exchanges have grown in importance due to regulations surrounding centralized exchanges. Two of the most common examples of centralized exchanges are Coinbase and Binance.
These massive exchanges facilitate fiat-to-crypto purchases and the trading of various mega-cap cryptocurrency tokens. However, many altcoins and other more speculative crypto assets are unavailable for trading on these exchanges. This limited number of coins available to be traded has opened the door for decentralized exchanges to fill the void.
Uniswap, being completely decentralized, allows for peer-to-peer crypto trading. This DEX is able to accomplish this using smart contracts. Through liquidity pools, Uniswap seamlessly allows crypto traders to swap more than 30,000 different crypto assets.
As the native token of the Uniswap decentralized exchange, UNI is a governance token, which allows owners of UNI to participate in decisions on how the network operates, as well as benefit from the rising value of decentralized exchanges over time.
As the global crypto ecosystem continues to build, it is conceivable that decentralized crypto exchanges could see volumes explode. The fact that the global crypto market has recently approximated $2 trillion suggests the influx of new investors in the crypto space could continue.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Read More:
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