Opinion: Expert Picks Top 5 Altcoins for 2022

Last year was a wild run for crypto investors, as values soared to new heights. With more widespread acceptance as a form of payment came wider institutional crackdowns, which took some of the wind out of its sails.

So, what’s happening to crypto in 2022?

Currently, Bitcoin has a crypto market dominance of around 42%. As such, it acts as the primary driver of market sentiment, dictating the highs and lows. Most altcoins have a high correlation, so if Bitcoin’s price sinks then altcoins tend to slump, and vice versa.

That said, some of the biggest and most well-known altcoins have the potential to be masters of their own fate. With their underlying usefulness and utility providing a solid foundation, such as improving crypto performance or underpinning smart contracts, they have much to offer. They also have the ability to innovate and evolve when competition arises.

What to consider before investing in cryptocurrency

There are boundless opportunities available with altcoins, however, retail investors should be mindful of the risks when investing in cryptoassets.

Anyone considering investing should research the ideas behind the cryptoasset they are looking at, and its potential uses. They must look beyond headline numbers, understand what they are investing in, do their research and not invest more than they can afford to lose.

With thousands of altcoins to choose from, here are five cryptoassets that demonstrate considerable utility and stand out as likely strong performers in 2022. They each have vast volumes of transactions flowing through their networks, mostly as a result of having loyal customers that trust them. They are also all currently in the top 26 cryptoassets by volume and top 30 by market cap.

Related article: How to buy Cryptocurrency in Australia

1. Solana (SOL)

Solana is one of the world’s fastest blockchains and has the potential to be even faster. This makes it an attractive alternative to Bitcoin and Ethereum among those looking to launch crypto projects, considering that some of the major issues for blockchains remain speed and scalability. Solana’s network has also gained traction in the NFT space, where it allows users to mint, buy and sell NFTs. SOL’s value soared in 2021, but saw a dramatic correction in 2022, down 57% from its high. As smart contract platforms continue to gain traction, 2022 could be a big year for Solana.

2. Polygon (MATIC)

Polygon is a protocol and framework built with the aim of building and connecting Ethereum-compatible blockchain networks. It aspires to reduce transaction costs on the Ethereum network, whilst increasing transaction speeds and improving user experience. Its token, MATIC, has also gained a lot of traction in the Decentralised Finance (DeFi) space for its low transaction costs. You can bridge Ethereum assets to the Polygon network, allowing you to stake, swap, borrow, lend or farm with reduced fees and instant settlements.

3. Chainlink (LINK)

Chainlink is a blockchain layer used to universally connect smart contracts. Built on Ethereum, it’s a decentralised, tamper-proof network which offers secure interaction between complex smart contracts and external data feeds, events and payment methods. This gives it the potential to improve smart contracts by automatically inserting real-world data into online systems. LINK is looking to revolutionise traditional finance through DeFi and has many use cases such as decentralised exchanges, insurance, stablecoins and even money markets.

4. Polkadot (DOT)

Polkadot is a blockchain network designed to support various interconnected, application-specific sub-chains called parachains. In addition, it will enable bridges which will allow the Polkadot network to interact with other blockchains, such as Ethereum and Bitcoin. This will also allow tokens to be swapped without a central exchange. Combining blockchains will be essential as DeFi gains further traction in 2022.

5. Decentraland (MANA)

Decentraland is a decentralised virtual reality blockchain platform. It allows users to buy virtual plots of land to create and monetise content as more users move through the online space. MANA allows users to purchase, build and monetise virtual reality applications. With growing talk of the ‘Metaverse’, the MANA coin surged in value through 2021. It has retreated 55% from its all-time high but, with the Metaverse still only beginning to take shape, it has a lot of potential in 2022.

Should you buy cryptocurrency?

Before investing in cryptocurrency or any asset for that matter, you should consider your own personal circumstances, goals and tolerance for risk. Cryptocurrencies are notorious for their volatility, so while there is the potential for great gains there is also the potential for great losses. Be sure to do your research and before investing you should clearly understand what the cryptocurrency does and if it has any real-world functionality.

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