The global valuation of digital commodities, including cryptocurrencies, has increased significantly in recent years and surpassed $3 trillion in November. In reality, many small investors experienced profits on their holdings in 2022 of double, triple, or even more digits. But since then, pressure has increased on the majority of cryptocurrencies, including market leaders like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). Coins and the blockchain technology that powers them continue to be of great interest.
Market analysts, meanwhile, suggest that significant cryptocurrency booms would not return until 2023. To harvest the potential rewards of the crypto realm, it is crucial to keep a long-term view.
With that knowledge, here are five cryptocurrencies that could experience tremendous growth in the upcoming 12 months:
1. Decentraland (MANA)
Decentraland (MANA), its name of our first cryptocurrency, is a decentralized, fully immersive virtual reality platform that runs on the Ethereum blockchain. It appeals to both consumers and companies since it blends entertainment, gaming, and e-commerce components.
Users may establish art galleries, music venues, and other enterprises in addition to playing games. They may, for instance, charge people to enter these places. Additionally, the platform enables users to purchase LAND, or virtual land tracts, using non-fungible tokens (NFTs). With the use of 3D content, games, and other apps, players may develop and earn money from their land.
The cryptocurrency that drives Decentraland is called Decentraland (MANA). The token is used on the platform to purchase LAND, avatars, wearables, and other in-game stuff. Among the metaverse currencies, Decentraland is seen to be the front-runner at the moment. Within its metaverse, the network has drawn well-known businesses including JP Morgan Chase, Samsung, and Coca-Cola.
With a market capitalization (cap) of $4.78 billion,Decentraland (MANA) is one of the top 50 cryptocurrencies and has increased by over 150% over the last year. Long-term investors should pay close attention to Decentraland.
2. Polygon (MATIC)
The following in our list is Polygon (MATIC). By offering a secondary chain that links to the Ethereum network, it aids in scaling Ethereum.
The network links numerous blockchain projects that might not be compatible with one another on Ethereum as a Layer 2 scaling solution. Additionally, it makes transactions speedier and less expensive.
The cryptocurrency that drives this layer 2 platform is called Polygon MATIC. To assist in scaling the Ethereum network, Polygon makes use of its own Proof-of-Stake (PoS) blockchain and Commit Chain connection. The goal is to address inefficiencies that could prevent blockchain technology from being used more widely.
Polygon is used by well-known decentralised finance (DeFi) initiatives as SushiSwap (SUSHI), Curve (CRV), and Aave (AAVE). In addition, Polygon Zero was just introduced by the network. The technology of zero-knowledge rollup is used to transfer data across networks. Many praise its little energy use.
Within the past year, Polygon MATIC has increased by around 350%. However, it has fallen by almost 35% so far this year (YTD). Despite the dip, the cryptocurrency still has a market worth of $11.2 billion and is among the top 20 cryptocurrencies. I anticipate a huge rise in the number of apps utilising the Polygon network.
3. Ripple (XRP)
The platform offers exceptionally quick transactions and real-time payments. The native coin of the Ripple network that is utilised to speed up currency exchanges is called Ripple (XRP). The Ripple platform is frequently cited as the financial institutions’ most effective interbank flow settlement alternative.
As a result, institutional and individual investors continue to choose Ripple. In reality, the Society for Worldwide Interbank Financial Telecommunication (SWIFT) communications network has been replaced by this new option. Ripple thus poses a danger to the international wire transfer industry.
Despite the platform’s advantages, the price of cryptocurrency has been constrained during the last year by the legal dispute between Ripple and the U.S. Securities and Exchange Commission (SEC). The legal dispute also bars trading of the alternative currency on exchanges with US jurisdiction.
Still, a lot of positive investors continue to believe that Ripple will replace traditional international money transfers in the future. They assert that if Ripple prevails in the SEC litigation, Ripple (XRP) may quickly hit its all-time high of more over $3.84.
With a market worth of $39.56 billion, Ripple (XRP) is the ninth-largest alternative coin. We still think highly of Ripple (XRP).
4. Terra (LUNA)
A stablecoin blockchain payment network called Terra (LUNA) on keeping the value of two separate cryptocurrencies in balance. The value of Terra-backed stablecoins like Terra (LUNA) is correlated to that of actual currency. Their counterweight, Luna, manages the Terra platform and uses Luna to manufacture fresh Terra stablecoins.
The supply and demand of Luna and Terra stablecoins incentivize users to burn their Luna to create more Terra stablecoins when the price of a particular stablecoin is higher than the value of the currency to which it is linked. Users are urged to burn their Terra stablecoins to produce more Luna when its value falls in comparison to its base currency. As the Terra platforms are used, Luna’s value increases.
By the beginning of March 2022, Luna’s price had climbed by more than 14,200% from January 3, 2021, when it was $0.64, to nearly $92.
5. Polkadot (DOT)
To connect several chains, the Polkadot (DOT) blockchain interoperability protocol was developed in 2016. It also makes it possible for parallel blockchains or parachains to perform transactions and exchange data securely. The Polkadot security may be used by developers to create their own blockchains.
Polkadot was created by Gavin Wood, who also served as Ethereum’s chief architect. The exciting thing about DOT is that the overall supply is not strictly capped. Instead, a brand-new token is consistently sent out.
Polkadot cost $6.30 at its highest point in May 2020 and $55.11 at its highest point in May 2021.
What Products Can You Buy With Cryptocurrencies?
Bitcoin was designed from the start to be a tool for regular transactions, enabling users to buy anything from a coffee to a laptop to pricey items like real estate. Although more institutions are starting to accept cryptocurrencies, that hasn’t happened yet, and big transactions utilising them are still rare.
Despite this, cryptocurrency may be used to purchase a variety of things on e-commerce sites. Here are several examples:
Online shops and technology
Many companies that sell electronic items on their websites accept cryptocurrencies, including newegg.com, AT&T, and Microsoft. One of the first to purchase Bitcoin was the online retailer Overstock. Home Depot, Rakuten, and Shopify all accept it.
High-end items.
Several upscale businesses already accept cryptocurrencies as payment. For instance, the online store Bitdials, which sells luxury goods, will take Bitcoin in return for Rolex, Patek Philippe, and other high-end timepieces.
Automobiles.
Several auto shops already accept cryptocurrency as payment, from high-end luxury dealers to mass-market brands.
Insurance.
AXA, a Swiss insurance company, said in April 2021 that it has begun accepting Bitcoin as payment for all insurance lines other than insurance coverage (due to regulatory issues). Additionally accepting Bitcoin for insurance premium payments is the US-based home and auto insurance broker Premier Shield Insurance.
Tips For Secure Crypto Investment
Consumer Reports states that all investments include some risk, but some financial experts believe that bitcoin is among the riskier investment alternatives available right now. If you want to invest in cryptocurrencies, these suggestions may help you make wise choices.
Co-operative research.
Before making an investment, educate yourself about bitcoin exchangers. More than 500 swaps are reportedly accessible. Do your research, read reviews, and speak with seasoned investors before deciding.
Recognize the best ways to keep your bitcoin.
You must buy cryptocurrencies if you want to use them. It may be kept on an exchange or in a digital wallet. There are many different types of wallets, and each has benefits, technological requirements, and security criteria that must be satisfied.
Make a range of investments.
Diversification is a crucial component of any smart investment plan, and cryptocurrency trading is no different. For instance, don’t put all of your money into Bitcoin simply because you are acquainted with the word. Numerous options are available. So it’s smart to spread your investments among several currencies.
Be prepared for instability.
Be ready for ups and downs due to the high amount of volatility in the cryptocurrency market. There will be significant pricing adjustments. If your financial plan or mental state can’t handle it, cryptocurrency might not be your best option.
However, keep in mind that cryptocurrencies are still in their infancy and are quite speculative. Investing in something new comes with problems, so be prepared. If you plan to participate, do your research and begin making wise investments.
One of the greatest ways to be secure when browsing the internet is using a comprehensive antivirus. Kaspersky Internet Security shields you from viruses, spyware, data theft, and the security of online transactions using bank-grade encryption.
Where To Buy Cryptocurrencies?
The majority of the most popular cryptocurrencies are well-known and have a lot of potential. As a result, they are currently listed on the majority of the top cryptocurrency exchanges worldwide.
eToro has one of the most user-friendly interfaces, is open and truthful about how much trading costs, and allows for social and copy trading.
The greatest place to go right now to acquire bitcoin is Coinbase. Coinbase is simple to use, provides a large selection of tradable assets, and supports a wide range of cryptocurrencies.
The greatest site to purchase potential cryptocurrencies at reasonable rates right now is Binance. The majority of cryptocurrency buyers and sellers use Binance. It also functions with a variety of coins and cryptocurrency pair combinations.
Final Thoughts
Although the bitcoin market hasn’t been performing well lately, it is progressively improving, which is a promising indication. Before 2023, purchasing cryptocurrency has the potential to make or break your financial situation. You take on a lot of risks when you invest in crypto assets, but there is also a good potential that you may profit greatly.
