Most Valuable Cryptocurrencies are Available in 2022? What are they Worth?

Let’s start with understanding What are Cryptocurrencies?

Cryptocurrencies are virtual currencies without any central authority they are worthy
because the user agrees to that worth. Without national authority, the price of these
currencies is extremely high and volatile. These currencies have taken the form of digital
coins or tokens. It is based on blockchain technology.

Worth of Cryptocurrencies?

When talking about the worth of cryptocurrencies some cryptocurrencies hold huge value
like Bitcoin and Ethereum and others hold comparatively fewer values as per the market
capitalization data. Bitcoin holds $923.2 billion while Ethereum holds $470.6 billion market
capitalization. The third one Binance coin holds $88.6 billion in market capitalization. Now
approx. 8000 cryptocurrencies are there. But Some of them have few values and are neither
treated. The worth of Bitcoin is holding far more value than Ethereum and while Binance
holds very less value relative to Ethereum.

Reference : www.coinmarketcap.com

Let’s explore more about a few popular and most traded cryptocurrencies.

1. Bitcoin

Bitcoin is the most traded cryptocurrency and it holds a huge market capitalization.
Bitcoin is the first trendsetter and brings the revolution in the field of virtual
money. The craze of holding digital currency started with Bitcoin. Bitcoin is appearing
as a standard cryptocurrency because it holds huge value and price is also highly
volatile.

2. Investing in Bitcoin

Now, investors started investing in Bitcoin as it can achieve huge gains just like
shares. The price of bitcoin is nothing but decided by the buyer. Sometimes investors
may see these as an opportunity but it may be fumbling them with paying extremely
high prices for no value.

3. Volatility

The value of Bitcoin is highly volatile. On 17 December 2017, the price of one bitcoin
was $19783.06 while on 5 February 2018 the price was $6200. So within 2 months,
bitcoin took a dip of 30%. So, investors must protect themselves from these huge
dips and ups.

4. Ethereum

Behind Bitcoin, Ethereum is the second-largest digital currency as per the market
capitalization. It is an open-source software-based blockchain technology where
developers can develop applications to work efficiently without any fraud and
downtime. Ethereum is based on a decentralized structure system and enables
smart contracts.

The value of one Ethereum in December 2021 is around $4000 and which is quite
low from Bitcoin but overall we can say it has huge worth compared to other
cryptocurrencies.

5. The transformation

At present, Ethereum is more popular compared to bitcoin as it is supported by
DAOs. The future path of Ethereum looks much hopeful. Bitcoins are limited in
numbers but Ethereum is a software-based program where no limit of applications
and any central authority to regulate it. DAOs are specific groups that hold kinds of
Non-fungible assets and are ready to accept similar kinds of supporters. Ethereum
has wide scope in retails and other industries. Another acceptance is on gaming,
crypto exchanges, insurance etc.

6. Investing in Ethereum

Similar to Bitcoin, the price of Ethereum is highly volatile. So investors can buy
Ethereum if they are expecting profits in future. Moreover, Ethereum is widely
accepted as the price is quite affordable and many groups and games accept
Ethereum as a single currency so in that case also investment happens.
Another way is to invest in Ethereum stocks. These are funds and companies which
invest in Ethereum on behalf of you. These companies have vast exposure to these
currencies.

7. Binance coin

Binance coins are ranked #3 in cryptocurrencies as per the market capitalization
data. It has a market capitalization of around $100 billion. It supports trading fees,
exchange fees, listings fees etc. In simple terms, These coins allow you for
rebates in various fees. It also helps in trading other cryptocurrencies. Binance coins
are utilized in credit card payments, hotel bookings, payments processes where
acceptance is allowed by the authorities. Right now it is traded at $554 US. So, the
worth of Binance coin is comparatively less than Bitcoin and Ethereum. But yet as a
rank 3, it has the potential to be accepted in various sectors.

Future worth of Cryptocurrencies

1. Overestimation of the value

Investors are expecting that the price of these currencies increases in future. So,
they want to buy now to earn huge profits in future. The current scenario is of
collecting more and more coins to earn huge profits later.

2. Decentralized structure

Some of the groups support the decentralized structure of virtual money. They predict
there is no requirement of a central authority for daily operation. Blockchain
technology can replace the centralized authority structure.

3. Security

Some believe that the Blockchain technology associated with cryptocurrencies are
safer to deal with compared with the traditional one. The confidential data of
investors, buyers and sellers are completely secure in blockchain technology.

4. Fair & Transparent

During this talk have you noticed? The cryptocurrencies are traded without any
boundaries of location, people and community. The system is very transparent as it
has removed the necessity of central authority. Investors may seem as favorable to
invest and worth.

Conclusion

So, till now Bitcoin and Ethereum are two major game players in the cryptocurrencies
market. Binance coins are also favorable for some sectors. Moreover, people are
procrastinating on the acceptance of cryptocurrencies as the national legal currency. After
approval, it may stabilize and reduce overvalued prices. However, it may take time for legal
approval till that the worth of cryptocurrencies is highly volatile and unpredictable.

Source: Amar Infotech