The growth of the crypto market has accelerated rapidly in recent years. There are now over 10,000 tradable cryptocurrencies. Would you also like to get into crypto trading? In our cryptocurrency comparison, you can find out which cryptocurrency is the best and which cryptos have great potential. Right at the beginning there are the best tips and tricks for trading in cryptocurrencies.
THE BEST CRYPTOCURRENCIES AT A GLANCE
|Cryptocurrency||Peculiarities of the crypto project|
|Bitcoin (BTC)||BTC is the 1st cryptocurrency by market capitalization.|
Bitcoin reached its all-time high in 2021 at $68,789.63.
Bitcoin is also said to have great potential for the future.
|Ethereum (ETH)||Ethereum is the 2nd cryptocurrency by market capitalization.|
ETH is Bitcoin’s biggest competitor.
The update to Ethereum 2.0 is intended to set ETH apart from the competition.
|Solana (SOL)||Solana is a competitor of Ethereum and attracts with low transaction costs.|
Transactions with Solana are faster than Ethereum.
SOL was designed for decentralized, scalable applications.
|Cardano (ADA)||Cardano successfully uses the proof-of-stake type consensus mechanism.|
The Hydra update, planned for late 2022, is intended to give ADA a boost.
|Dogecoin (DOGE)||Dogecoin is a meme cryptocurrency.|
The price is heavily influenced by Tesla boss Elon Musk and is very volatile.
|Shiba Inu (SHIB)||Shiba Inu is Dogecoin’s direct competitor.|
“Coin-Burning” reduces the number of coins in order to increase the value.
SHIB would like to settle in the promising metaverse.
|Decentraland (MANA)||Decentraland wants to build a VR metaverse.|
The cryptocurrency is based on the Ethereum blockchain.
|The Sandbox (SAND)||Sand is a token for The Sandbox metaverse.|
Investors can buy virtual plots of land with SAND.
Companies like adidas and Atari have already settled in the sandbox universe.
|Tether (USDT)||Tether is a stablecoin that does not fluctuate in value.|
USDT is used for buying other cryptocurrencies.
Investors can “park” their money in Tether.
KNOWN CRYPTOCURRENCIES COMPARE
What is the best cryptocurrency to buy for yield? At the beginning of our cryptocurrency comparison, we take a look at the most well-known cryptocurrencies, as some currencies will be indispensable in the crypto market in 2022. Coins with the largest market capitalization are a good place to start, especially for investors who are interested in investing in cryptocurrencies.
Bitcoin is the clear number one among cryptocurrencies. No cryptocurrency is so well known and so popular with investors. Since Bitcoin is also expected to develop positively in the future, beginners in particular now want to buy Bitcoin. In the meantime, even savings plans on Bitcoin, similar to ETF savings plans, are extremely popular.
In 2021, Bitcoin hit a new all-time high, trading at just under $70,000 per coin. Analysts unanimously share strong views on the future of Bitcoin, some setting incredible price targets of up to $500,000 for a single Bitcoin. However, Bitcoin has one disadvantage: The cryptocurrency has a very bad environmental balance, since the energy required by the network is extremely high.
Ethereum is the second largest cryptocurrency on the market. While it was still trading at around $125 in 2020, the price of ETH rose to an all-time high of just under $5,000 by fall 2021. 2022 could also look very good for Ethereum, especially considering the development of the network. Ethereum is the preferred network for decentralized applications. In addition, the Proof-of-Work consensus mechanism will soon be replaced by Proof-of-Stake, which should ensure faster and more secure transactions.
Since Tether is a stable coin, the price is stable. It is not suitable for high-yield investments, since the value of the cryptocurrency is always exactly one US dollar and does not grow. USDT is mainly used to buy cryptocurrencies such as Bitcoin. Investors can use Tether to store their money in the crypto world without fear of price collapses.
BINANCE COIN (BNB)
Binance is the world’s largest cryptocurrency exchange. The native Binance Coin (BNB) is therefore at the forefront and ranks fourth among the largest cryptocurrencies. A Binance Coin investment can be worthwhile, especially for people who trade other cryptocurrencies: Investors who pay transaction fees with BNB receive discounts. With quarterly coin burns, the supply of BNB is additionally reduced, which should increase the price of Binance Coins in the long term.
Ripple was created as an alternative payment system with the aim of helping banks reduce transaction costs using blockchain technology. Above all, sending money internationally should become cheaper and easier. Ripple cooperates with many different financial service providers – Ripple has already been adopted by more than 100 financial institutions. The downside: Ripple is currently not a decentralized cryptocurrency.
Solana is currently the seventh largest cryptocurrency in the world with a market cap of over $34 billion. In 2021, it went from less than $2 to an all-time high of $260. SOL is the native token of the Solana blockchain network, which is said to have great future potential. The blockchain is increasingly praised for its high transaction speed. Should Solana continue to expand its presence, SOL holders could look forward to a hefty return.
Cardano, a promising competitor to Ethereum, is a blockchain platform used to run smart contracts. The cryptocurrency is one of the most environmentally friendly digital tokens and has great growth potential, especially in 2022. The reason for this is the upcoming release of Hydra, a scaling solution for the Cardano network. This should enable up to one million transactions per second. The further developments of Cardano are considered a good sign: The quality of the network is being improved in order to remain competitive in the future.
The Avalanche blockchain’s native token is called AVAX. The aim of Avalanche is to replace Ethereum in the field of smart contracts. Avalanche was one of the clear winners in 2021. While AVAX was still trading at just over USD 3 at the beginning of 2021, the cryptocurrency reached an all-time high of over USD 146 in November 2021. Avalanche is now the tenth largest cryptocurrency in the world.
EXCITING ALTCOIN PROJECTS AT A GLANCE
In addition to the ten largest cryptocurrencies, there are also many exciting altcoins on the market that use different technologies and pursue different goals. In the following, we present the most important Altcoins in alphabetical order.
ARK is based on a system called SmartBridge, which should make it possible for blockchains from different projects to communicate with each other. The goal of ARK is to connect all cryptocurrencies together through a common connection point. This should enable users of a crypto network to run smart contracts on another platform without having to transfer their currencies.
BITCOIN CASH (BCH)
The theory behind Bitcoin Cash is to replace Bitcoin as a means of payment. For this purpose, the independent digital currency Bitcoin Cash was launched in 2017 as a faster and more secure blockchain technology. Special equipment is still required for mining. In April 2022, BCH is ranked 25th among the largest cryptocurrencies by market capitalization – so there is still some room for improvement.
ChainLink is a cryptocurrency platform aiming to encourage the use of smart contracts. Users should thus be helped in the exchange of money and other assets. ChainLink makes it easy to connect smart contracts to external resources across different networks, working with Ethereum and Bitcoin, among others. To ensure the smooth operation of the platform, ChainLink partnered with SWIFT, a global interbank data and payment system.
The Cosmos network offers technology that enables direct payments between different blockchain networks without the involvement of cryptocurrency exchanges. Cosmos is thus a decentralized exchange platform.
Dash is an open source cryptocurrency that has been around since 2014. Like Bitcoin, Dash is based on blockchain technology and is used for online transactions. Dash is an easy-to-use and scalable solution for transactions and far outperforms Bitcoin in terms of speed. While a Bitcoin transaction can take up to 10 minutes, it only takes a few seconds with Dash.
EOS is a blockchain platform designed to emulate the functionality of a PC’s hardware and operating system. EOS also offers fast transaction speeds. A disadvantage of cryptocurrency is that the number of tokens is inflationary.
ETHEREUM CLASSIC (ETC)
As the name suggests, Ethereum Classic is related to Ethereum. ETC is the original Ethereum blockchain before Ethereum Classic and ETH split in June 2016. While support for Ethereum Classic was low shortly after the separation from Ethereum, acceptance has grown over the years. ETC is constantly evolving and decentralized.
Ethereum Classic uses open-source blockchain technology and aims to become a highly scalable payment network. Ethereum Classic also supports smart contracts and decentralized apps (dApps).
Launched in February 2021, Ideaology is a peer-to-peer and open-source cryptocurrency. IDEA is based on the Ethereum blockchain and would primarily like to appeal to companies that work with crypto technologies. The blockchain project aims to create its own ecosystem with a unique business network platform. Developers, inventors and investors should be able to connect and work together on various projects via the Ideaology platform.
Idealogy wants to create a community where people can help each other and learn. Community members also have a lot of options: they can support projects together, buy various creative assets, earn dividends, lock coins and hire freelancers.
IOTA stands out from other cryptocurrencies because it is not based on blockchain technology. Instead, the network uses a technology specially developed by IOTA to process transactions. This is called Tangle and is used for decentralization. Incidentally, transactions are free of charge and are confirmed by other transmitters.
Like Bitcoin, Litecoin is also a means of payment and uses blockchain technology. The transactions are managed via a peer-to-peer network. The cryptocurrency Litecoin is particularly popular with miners, as the mining time is comparatively short and the reward for mining is high: miners are rewarded with 25 LTC on successful completion.
LUCKY BLOCK (LBLOCK)
Lucky Block Token is a very new cryptocurrency that has been listed on Pancakeswap and is said to have a lot of potential in 2022. The blockchain project is working on a decentralized, global online lottery that will give users better chances of winning than other providers. Thanks to the smart contracts of the Binance Smart Chain, the automation of the processes is intended to ensure transparency and fairness.
Formerly known as Raiblock, Nano is characterized by its highly efficient architecture. Nano wants to complete transactions within a few seconds at no extra cost. In addition, it is infinitely scalable without breaking down after a certain number of users.
The cryptocurrency and blockchain technology NEO is also known as the Chinese Ethereum. NEO offers an operating system for blockchain software and supports the programming language JAVA. This is how NEO enables simpler blockchain programming.
Polkadot is a next-generation blockchain protocol and enables the connection of different blockchains. The aim is to create a better and safer Internet. Polkadot takes on the role of a “relay chain”, which enables a simpler, faster and resource-saving start of your own blockchain system.
Stellar is both a payment system and a blockchain operating system for smart contracts and decentralized apps. The Stellar code is based on Ripple’s code. The background: The Stellar founder was once a team member at Ripple. The advantages of Stellar are fast and cheap transactions and, compared to Ripple, the decentralization of the open source network.
Stratis is a blockchain platform aimed specifically at C# developers. They aim to provide the necessary tools needed to create your own custom blockchain. In this way, companies from different industries, such as technology or finance, should be able to create and test apps.
Tezos has been on the market since October 2017 and offers companies and private individuals a development environment in which they can implement token-based business models. Tezos also uses a government system that allows XTZ owners to make decisions together.
When TRON was in its infancy, it initially ran on the Ethereum platform. However, TRON was further developed over time and received its own blockchain in 2018. Similar to Ethereum, decentralized applications and smart contracts are written and executed on this. One advantage of TRON is the energy-saving consensus process “Delegated Proof of Stake”.
Zcash is a decentralized cryptocurrency based on the blockchain. It is a so-called privacy coin and thus focuses on the data security and anonymity of its users. Particularly noteworthy: Whistleblower Edward Snowden recommended Zcash as a safe currency.
PROMISING METAVERSE COINS
The concept of the metaverse has particularly appealed to crypto lovers. New projects and new tokens also mean more chances of high returns for investors. The Metaverse is a digital reality defined by aspects of social media, online gaming, augmented reality (AR), virtual reality (VR) and cryptocurrencies. Users should be able to interact with each other virtually. Accordingly, Metaverse Coins are currently in high demand.
AXIE INFINITY (AXS)
Axie Infinity cryptocurrency is an ERC 20 token used for governance of Axie Infinity NFT game. This is a blockchain based game created in 2018 by Trung Thanh Nguyen, Aleksander Leonard Larsen and Jeffrey Zirlin. It follows a play-to-earn model, meaning players can earn money while gaming. With this concept, the project has taken over the crypto space and is currently dominating the NFT world.
Built on the Binance Smart Chain, Binamon is a full metaverse ecosystem. In this, users will find “Digital Monsters” with which they can easily and entertainingly interact in an NFT game. The native token BMON is a BEP-20 token and is used to individually emboss the NFTs – the monsters can receive a so-called “booster”.
Decentraland is a blockchain-based decentralized platform for 3D virtual reality. On this, players and investors can buy and sell land in the form of NFTs. The project aims to enable the construction of an entire VR metaverse on the Ethereum blockchain.
STAR ATLAS (ATLAS)
Star Atlas is a multiplayer online game that takes place in a virtual gaming metaverse. The game is based on Unreal Engine 5, giving players a high-definition gaming environment. The technology is based on the Solana blockchain and the native token ATLAS is used as the game currency.
In terms of content, Star Atlas is a science fiction game set in the year 2620. In this world there are three major factions that compete for different resources and control of the world. Players can join either humanity, aliens or androids.
THE SANDBOX (SAND)
Although the hype surrounding the Metaverse is very recent, The Sandbox was published back in 2011 by the Pixowl company. SAND is based on the Ethereum blockchain and is a decentralized cryptocurrency. The name “sandbox” may be familiar to some gamers, as it is used to refer to test environments in various video games. It can already be assumed that The Sandbox is a blockchain game, with SAND being the game’s native utility token. The so-called sandbox is a virtual environment in which players can buy plots of land as NFTs, among other things. The Adidas group is already part of this metaverse and has acquired a plot of land there.
UFO GAMING (UFO)
UFO Gaming is a decentralized gaming platform with play-to-earn elements, NFTs and DeFi features like staking. The gaming platform is called “Dark Metaverse” and each game published by UFO Gaming represents a different planet. UFO Gaming is based on Ethereum, but its games are integrated with Immutable X, a second-level scaling solution for NFT projects on Ethereum. The cryptocurrency UFO is the game’s primary utility token.
CRYPTOCURRENCIES COMPARISON: MEME COINS WITH POTENTIAL
Basically, meme coins are normal cryptocurrencies that have their own functions. However, meme coins are based on various internet memes or have another humorous quality. The developers of such coins often want to make a specific statement. The meme coins are subject to greater price fluctuations than other cryptocurrencies because they can be influenced by tweets from Elon Musk, for example. As a result, they often offer greater opportunities for returns than established cryptocurrencies.
Dogecoin is probably the most well-known meme currency on the market. The open-source cryptocurrency was created in 2013 based on a meme featuring a Shiba Inu dog. Dogecoin’s technology is derived from Litecoin. Thus, Dogecoin uses the same proof-of-work technology. There is a large community behind Dogecoin, including Elon Musk, who is a self-confessed DOGE fan. Dogecoin is an inflationary coin whose supply is unlimited. Dogecoin has been driven by Elon Musk since mid-2021 and is now the 11th largest cryptocurrency by market capitalization. The aim is to make DOGE’s transactions faster and more efficient in the future so that Dogecoin can be used as a means of payment.
DOGELON MARS (ELON)
The cryptocurrency Dogelon Mars has the appropriate abbreviation ELON. The meme currency was inspired by Dogecoin and Elon Musk, yet Elon Musk does not officially endorse Dogelon Mars. Nonetheless, the cryptocurrency benefits from the name. Dogelon Mars was created on the Ethereum blockchain and gifted 50 percent of the token’s supply to Ethereum inventor Vitalik Buterin. The rest is locked on Uniswap. Dogelon Mars currently ranks 135th among all cryptocurrencies and has the potential to rise further in the future.
SHIBA INU (SHIB)
Shiba Inu is an Ethereum-based altcoin. Similar to Dogecoin, SHIB also uses a Shiba Inu dog as its mascot. The cryptocurrency was founded in August 2020 by the anonymous developer nicknamed “Ryoshi” and is considered a “dogecoin killer” in various online forums. Accordingly, Shiba Inu is an alternative to DOGE. On social media, the cryptocurrency is actively supported by the self-proclaimed “SHIBARMY”. In the fall of 2021, Shiba Inu overtook Dogecoin in terms of market capitalization for the first time, taking the 9th place among all cryptocurrencies. In early 2022, it slipped to 15th place.
The project is an experiment in decentralized and spontaneous community building. Incidentally, the Shiba Inu ecosystem consists of not just one, but three tokens: SHIB is the basic token, LEASH and BONE are the governance tokens.
YOI SHIBA INU (YOSI)
Yoi Shiba Inu only came onto the market on December 22, 2021 and is therefore still a very young cryptocurrency. The ecosystem is currently still in the development phase, and plans include a separate decentralized exchange marketplace called YOSISwap. The purchase of NFTs and the development of dApps should also be made possible. The fully decentralized token thus has high aspirations for a meme coin.
HOW TO TRADE CRYPTOCURRENCIES
The potential in the crypto market seems to be great. In the following cryptocurrency comparison, we present various ways in which you can buy and trade cryptocurrencies. In this way, you can participate in the development of the prices of various cryptocurrencies in the best possible way and benefit from the courses.
TRADE CRYPTOCURRENCIES AS CFD
If you think a cryptocurrency has promise, you can buy and trade it. You can buy cryptocurrencies either as CFD or as real coins. Both types of investment have their advantages and disadvantages, although not every type of investment is suitable for every type of investor.
With a CFD, you can easily participate in the performance of the cryptocurrency. You do not own any physical crypto coins, but still benefit from the price development. As the price increases, so does the value of your CFD. The purchase of CFDs is particularly cheap as it only involves a few fees. In addition, you do not need to open a wallet to trade CFDs. For more information, see our CFD trading guide.
- Important: With a CFD you can use so-called leverage. With these you can participate in the course development by any multiplier. This increases your chance of winning, but you will also be more affected by falling prices. You can also buy unleveraged CFDs, which allow you to participate in the price at a 1:1 ratio.
- Our recommendation: Due to the volatility of cryptocurrencies, only ever trade with money that you are not financially dependent on.
- Product recommendation: If you have decided to trade cryptocurrencies as a CFD, you can use the CFD broker Plus5005, for example. Deposits can easily be made via Paypal or credit card, so you can start trading extra quickly.
CRYPTOCURRENCIES COMPARISON CONCLUSION – WHICH CRYPTOCURRENCIES TO BUY?
In conclusion, it can be said that the question of which is the best cryptocurrency is not so easy to answer. One thing is certain: the crypto market is volatile and the developments of the next few years are unpredictable. There is still a lot of room for improvement. Whether popular coins like Bitcoin and Ethereum will continue to stand out from the competition or whether they will be overtaken by an altcoin remains to be seen.
The fact is that the established currencies are currently setting the rates for many Altcoins. If Bitcoin rises, the prices of many other coins also rise. People who are interested in cryptocurrencies and want to invest their money in them should therefore find out more about the different coins, as there are many different uses for the tokens. Diversifying your own portfolio to minimize risk can do no harm on the crypto market either.
CRYPTOCURRENCIES COMPARE – WHAT YOU SHOULD DO
- Consider investing your money in the crypto market. Find out about your chances and risks and only use money that you are not dependent on.
- Pick one or more cryptocurrencies in which you want to invest your money and find out more about them.
- Decide if you want to buy real cryptocurrencies or if you prefer to trade CFDs on cryptocurrencies.
- Depending on your decision, select a suitable crypto exchange or a crypto broker that offers the crypto currency you want and open an account there.
- You can now start crypto trading!