What are the best altcoins? For information, now there are lots of coins or crypto assets that can be used as investments. However, can all of them make money or help you gain profit in the future?
In this case, altcoins can be an option for crypto investment in 2022. Many have even predicted that the “Altcoin Season” will occur this year.
In addition, there are at least 5 altcoins that can make big money for you in 2022. What are they? Check this one out.
Best Altcoins: Types and Profits
Basically, altcoins are the next cryptocurrency after the success of Bitcoin. Altcoins are all cryptocurrencies other than Bitcoin.
First launched in 2011, altcoin was originally intended to improve aspects of Bitcoin, including transaction speed or energy efficiency.
To get them, these altcoins are generally traded on crypto exchanges. The trading is carried out with a centralized or decentralized system, depending on the type of altcoin provided by the crypto exchange.
Altcoins are divided into four types, namely:
- Stablecoins: these crypto asset are designed to follow the prices of other assets. Most of the stablecoins are based on the value of the US dollar and are trying to match their price.
- Mining-based: this crypto asset uses a mining process to verify transactions and add more coins to the supply.
- Staking-based: this type of altcoins uses a staking process to verify transactions and add more coins to the supply.
- Governance: it is a crypto token that gives voting rights to holders to help shape the future of the project.
So, what are the advantages of investing in altcoins?
At least, there are two big reasons to invest in altcoins. First, owners of these cryptocurrencies can hold altcoins long term, in hopes that their value will increase significantly. Second, altcoin owners can increase their bitcoin stack by selling this digital currency when the price increases.
List of Best Altcoins 2022
What is Polygon (MATIC)?
Polygon is the first platform to help its users more easily scale Ethereum and infrastructure development by providing core components and various tools to join the new economy and society that has no boundaries.
The core component is called the Polygon SDK, which is a flexible framework that can make it easier for developers to produce various types of applications.
In terms of how it works, Polygon is a layer-2 network that supports the Ethereum blockchain to unblock the Ethereum Level-1 platform with high speed and low cost.
Polygon’s token, MATIC, is an ERC20 token that uses the Ethereum blockchain and is used as a payment service at Polygon and as a form of settlement fee between users operating within the Polygon ecosystem.
Why should you buy Polygon (MATIC)? For your information, Polygon is currently the best choice for solving scalability problems faced by Ethereum.
In this case, many developers who are going to use the Ethereum blockchain and are already using the benefits of multi-chain support for their projects think that using Polygon is the best option.
Algorand is a permissionless open-source two-tired blockchain that uses a Proof-of-Stake consensus mechanism. This altcoin was created to solve the blockchain trilemma. The trick is to adopt the unique ways of its colleagues with the same goal.
The way the algorithm works begins with the Proof-of-Stake on Algorand, which is one of its types that has implemented a random selection process. In this case, a validator is chosen randomly to validate the next block.
In addition, Algorand also uses Verifiable Random Function (VRF), which is a sophisticated cryptographic tool that can automatically select nodes at random. This technology is a low-cost, high-speed, and environmentally friendly alternative to Ethereum and Bitcoin.
You should also buy Algorand (ALGO) because this model plays an important role in the development of the token. Algorand also has a sentimental edge in supporting climate preservation because, unlike bitcoin, Algorand has already attained a carbon negative status.
Solana is an open-source blockchain project, seeking to leverage a number of groundbreaking technologies to power the next generation of dApps.
Solana’s main token, SOL, is used to pay transaction fees and can also be used for staking. The project was founded in 2017 by a former Qualcomm employee, Anatoly Yakovenko.
The way Solana (SOL) itself uses a series of cutting-edge technologies, including a new consensus called Proof-of-History. With this consensus, users can create records that prove that a transaction occurred at a certain time. The algorithm used here is Verifiable Delay Function with high frequency.
Why should you buy Solana (SOL)? What’s worth noting is that since launch, SOL has gained over 11,000% to hit an all-time high of $259, from around $1 initially. SOL itself is currently in the top five cryptocurrencies of all time.
In addition, unlike ETH, Solana operates on a proof-of-stake model and is able to process more transactions per second than Ethereum, at an average cost of $0.00025 per transaction.
With all the considerations above, SOL is still considered to be one of the best altcoins that are worthy to be a crypto investment in 2022.
Litecoin is one of the altcoins built by borrowing the bitcoin code. This altcoin improves many aspects of bitcoin, including increasing transaction speed and scalability.
For your information, Litecoin works on a Proof-of-Work consensus mechanism. In this case, miners have to validate each block. Litecoin’s token is called LTC, which is known to have a maximum stock of 84 million.
Uniquely, Litecoin can do this without intermediaries such as exchange platforms, for example, to be exchanged with other crypto assets. LTC can be exchanged peer-to-peer as it is compatible with Atomic Swap.
You should buy Litecoin because this token can use a Proof-of-Work mechanism that attracts a lot of miners to its network. In addition, the Litecoin team itself is also constantly working to improve the network. Investing in Litecoin can be called investing in the silver of the cryptocurrency world.
Hedera is an altcoin that uses Hashgraph as an alternative to Proof-of-Work and Proof-of-stake consensus. Hedera’s native token, HBAR, is also not only used to pay transaction fees, but can also be used for in-app payments. The Hedera network is known to have a maximum number of 50 billion HBAR.
The way Hedera (HBAR) works starts with Hedera already implementing a unique consensus algorithm, known as the Gossip Protocol—this is used to create nonlinear chains.
In order to verify the transaction, these nodes will pass the transaction details continuously to each other, then the node that received this information will pass it back on.
Why do you need to buy Hedera (HBAR)? For a record, Hedera has been used for a number of projects in sectors such as finance, ranging from health, retail, agriculture, to logistics. The major technology companies that have partnered with Hedera are Boeing Co., IBM, as well as Google.
In addition, the growth potential of HBAR is exponential. Furthermore, Hedera Hashgraph technology has also been patented so that this best altcoin is indeed suitable for investment.