Investing in Cryptocurrency – Profitable or Not?

Invest crypto currency is a subject that concerns many investors. This is not surprising given the growing popularity of digital currencies. In fact, cryptos are assets that are volatile enough to generate significant income in a very short time. So, this is an opportunity for you to make profits. However, it is better to learn about the world of cryptos before you start. This is why we present this complete file to you.

Top 10 Crypto Currencies with High Potential

If you are looking for something to invest in this year, here is our top 10 cryptocurrencies with high potential:

1. 1. Bitcoin – BTC
   2. Ethereum - ETH
   3. Ripple - XRP
   4. Toncoin – TON
   5. Binance Coin – BNB
   6. Cardano – USDC
   7. Dogecoin - DOGE
   8. Litecoin - LTC
   9. Avalanche – AVAX
   10. Solana - SUN

What Future for Cryptocurrencies?

The future of crypto currencies depends on several elements, namely:

• The Usefulness of Crypto

The future of a cryptocurrency depends a lot on its usefulness. In fact, in 2022, most of the tokens that exploded provide a real solution for their users. Those who have no useful contribution tend to stagnate without really increasing in value. Take for example the case of Ethereum. We know that this cryptocurrency is the base of practically all decentralized applications.

As a result, its blockchain is used by millions of people around the world. This allows the Ethereum cryptocurrency to project itself into the years to come. If this token had no use, it is clear that it would not know the success it enjoys today. The usefulness of a token is therefore inevitably an indicator of its future on the market.

• Volatility

To know if a cryptocurrency is destined for a bright future, we must also take into account its volatility. It is actually the magnitude of the changes in the price of a crypto currency. As you know, the price of crypto currencies constantly varies. This is because of the exchanges between buyers and sellers. That said, a digital currency whose volatility is more positive than negative can claim a bright future.

When the bearish movements are more recurrent, we can say that this cryptocurrency is going straight into decline. To illustrate this point, you have for example the Shiba Inu. This coin quickly experienced a sharp rise as soon as it appeared on the market. In line with this significant positive volatility, SHIB can be seen as a crypto of the future.

What is a Crypto Currency?

A cryptocurrency is a digital currency. Unlike fiat currencies, crypto tokens are intangible and run on huge decentralized databases called blockchains. These are managed by the users themselves. This means that crypto currencies do not depend on any government or bank authority.

We can therefore say that cryptocurrencies are assets that work on a peer-to-peer basis. They allow you (for the most part) to make faster transactions anywhere in the world without going through a bank or other intermediary. Also note that cryptos are likely to rise in value depending on the exchanges between sellers and buyers. They are therefore also profitable areas of investment.

Quelles sont les Différentes Catégories de Crypto Monnaies en novembre ?

The different categories of crypto currencies are:

• The corners

The first category of cryptocurrency is the “Coin”. This term refers to all digital currencies that are based on the same decentralized database or Blockchain. Any coin that is issued from a network other than the one created by its founders is not a Coin.

The best-known token in this category is none other than the Bitcoin Exchange (BTC). It is issued using its own blockchain which also bears the same name. You also have ETH which is the Coin of the Ethereum network.

• Altcoins

By Altcoins we mean any cryptocurrency other than Bitcoin. The expression is composed of the prefix “Alt” which refers to the word alternative. Then you have the term “Coin” which means coin. Basically, “Altcoin” represents an alternative to Bitcoin. So this term was created just to distinguish BTC from other tokens. The distinction is important since Bitcoin is the very first cryptocurrency to appear. So you understand that all other cryptos (Ethereum, Dogecoin, Litecoin, etc.) are altcoins.

• Tokens

Third, you have the category of tokens. These are all crypto coins that work through a third-party blockchain. In other words, any cryptocurrency that does not have its own cryptographic network is a token. This is the case for all ERC-20 tokens on the Ethereum blockchain. The same is true for digital currencies based on the Binance Smart Chain.

• Stable Coins

As their name suggests, stablecoins are cryptocurrencies meant to hold a certain value. Unlike most digital currencies that vary in price, this type of crypto does not vary much from its standard value. Stablecoins are typically used to cryptographically represent fiat currencies. This is the case of Tether which is a token backed by the American dollar. This cryptocurrency is almost always equal to $1.

• Memecoins

This category of crypto currencies is characterized by its uselessness. Indeed, most digital currencies serve a specific purpose. This is not the case with Memecoins. These cryptos are only worth humor. Generally, they are inspired by gags or memes that are becoming popular on the internet. Still called Shitcoins, this class of cryptocurrency has the particularity of bringing together strong communities of users.

This is the case of Dogecoin, Shiba Inu, Dogelon Mars, Floki Inu and many others.

• Non-Fungible Tokens

The last class of crypto you need to know about is the Non-Fungible Token (NFT). It is not a digital currency like the different categories mentioned above. In fact, NFTs are non-fungible. This means that they have a unique value and cannot be exchanged for assets of the same type.

To better understand, take a classic cryptocurrency such as Bitcoin. You can exchange this coin for another since there is its equivalent in another digital currency. For example, we know that 1 Bitcoin is equal to approximately 13,77 Ethereums currently. Exchange is therefore possible. On the other hand, in the case of an NFT there is no no equivalence. So you cannot exchange this type of crypto asset for another non-fungible token.

NB : It is possible for a cryptocurrency to belong to several categories simultaneously. This is the case of Ethereum. This token is first a coin since it has its own blockchain. It is also considered Altcoin, since it is a coin other than Bitcoin.

Staking Crypto Currency

Crypto staking is a consensus mechanism that allows you to earn cryptocurrencies by securing a blockchain. Anyone who does Staking is called a Stacker. This mechanism is based on a cryptographic process called Proof-of-Stake (PoS) or Proof of Work. So any blockchain that is not compatible with this consensus is not stackable.

That said, cryptocurrency staking consists of immobilizing part of its tokens in a Pool or a smart contract. This simple action gives you the right to validate a transaction on the blockchain and receive crypto currencies in return. And the more immobilized pieces you have, the more chances you have of validating more blocks. There is therefore no question here of solving complex equations to secure the network.

Staking is therefore a way to earn cryptocurrencies but not all of them are stackable. Among the coins that you can stack, you have for example Polkadot (Polkadot Avis) and BNB. Ethereum recently announced a future migration to Proof-of-Stake consensus. It will therefore be possible to stack this piece very soon. For more information, here are some reviews on staking coins as well as a cryptocurrency staking guide

Crypto Currency Mining

Mining is also a means by which you can obtain cryptocurrencies. Just like Staking, it involves participating in the validation of transactions on a blockchain. The difference here lies in the mechanism. Indeed, mining is based on consensus Proof-of-Work (PoW) or Proof of Work. In this case, the miner must use his power to solve equations.

When the mathematical problem is solved, it validates the transaction and it automatically completes the chain of blocks called Blockchain. The miner therefore receives crypto currencies as a reward. It is possible to mine several digital currencies. You have for example Bitcoin, Ethereum and many others.

There are three main ways to mine cryptocurrency.

• CPU Mining : This is the least profitable form of crypto mining. It consists in using the processor of a computer to solve the equations of the blockchain. This option is certainly less profitable but generates little energy cost.
• GPU Mining : This form of mining consists of using the graphic power of a machine to mine cryptocurrency. GPU Mining is 200 times more efficient than CPU mining. However, it generates huge electrical energy costs.
• Cloud Mining : It is the fact of paying a subscription to take advantage of the performance of mining devices held by a third party company. In our opinion, this is the best compromise for mining digital currencies.

Buy Crypto

Buying cryptocurrencies is arguably the easiest way to acquire coins. In this scenario, you have two options. The first is to buy real cryptos. To do this, you simply need to register with an online broker or exchange that offers digital currencies. From this moment, you will be able to buy coins via FIAT currencies using the payment methods authorized by the broker (this can be credit card, bank transfer, PayPal, and others).

Another alternative is to opt for Crypto Airdrops. It is a mechanism for the free distribution of tokens launched during the primary phases of the launch of crypto projects or sometimes called ICOs (Initial Coin Offering).

Wallet Crypto Currency

Using a wallet is essential when you want to invest in cryptocurrency in 2022. For information, a Wallet is a cryptographic wallet that allows you to secure your assets. There are two main types of crypto wallets. First of all, you have the Hardwares Wallets or cold wallets. These are physical vaults that keep your coins offline. Thus, you don't have to fear attacks from cybercriminals.

Then you have the Softwares Wallets or hot wallet. These are software-type wallets. Unlike the previous type, they only work under an internet connection. They are therefore susceptible to being hacked. Despite everything, software wallets are very fast when transferring crypto currencies. To learn more about the different brands of Wallets, here are some interesting pages.

4 Tips to Follow for Investing in Cryptos in?

Investing in cryptocurrency in 2022 requires having a certain number of prerequisites. So, to help you get started, here are some tips that we advise you to follow:

1. Train well before investing in cryptos : Do not hesitate to consult books and all kinds of manuals. You can also use online broker education programs.
2. Choose the right investment platform : You must choose an efficient and regulated crypto buying site. This is a determining point in your success because you will lose a lot of money using an unreliable crypto platform.
3. Establish a budget : You should definitely not invest at random. You must plan an investment budget (daily, weekly, monthly or annual). This allows you to have a better appreciation of your profitability. For a start, invest 1000 euros, investing 5000 euros is suitable. You can then increase this amount and invest 20000 euros or invest 25000 euros, invest 30000 euros, invest 40000 euros, or even invest 50000 euros in different investments.
4. Become aware of the risk : Investing in cryptocurrency in 2022 carries a risk of capital loss. You should be aware of this before placing your money in a cryptocurrency. We also advise you to study the risk of loss using the various technical indicators at your disposal. In this way, you will make more objective decisions.

Avantages and Disadvantages of Investing in Cryptocurrencies?

Main Cryptocurrency Exchanges

There are several exchange platforms for investing in Cryptocurrency. Each of them offers numerous functionalities and specific features to its users. So, it is up to you to choose the site that best meets your requirements. To help you in your choice, here are some exchanges that are among the best:

Some Crypto Trading Robots

If you want to invest in cryptocurrency automatically, you have to use a trading robot. These are configurable algorithms that invest in your name according to the orders that you have previously defined. Trading robots are a good solution for beginners. However, this significantly reduces the control you have over your investments.

Crypto Price

Crypto prices are constantly changing. However, it is important to regularly consult the price of the coins on which you invest. Below, we present you a list of the best altcoins as well as links to follow their prices in real time:

Conclusion: Should you invest in Cryptocurrency?

Yes, it is advisable to invest in cryptocurrency in 2022. As we said at the start of this content, digital currencies are now essential. These are assets that are likely to increase in value quickly. In addition, certain cryptos have a real contribution to society. However, you need to know which promising new cryptocurrency to place your money on. Likewise, you must carefully choose the site on which to buy tokens. The information provided in this file allows you to make the right choice. All you have to do is follow our instructions to finally make your debut.

Who Creates Cryptocurrency?

Cryptocurrency can be created by anyone. It is the project that underlies this currency that is the most important to analyze. In the case of Bitcoin, Satoshi Nakamoto was the creator in 2008. Unknown to everyone, he created a great revolution.

Where to Invest in Cryptocurrency?

You have several options for investing in cryptocurrency. You can invest in cryptocurrency by purchasing cryptocurrencies on an online platform like Binance. You can also trade cryptocurrency on reliable platforms like eToro.

❔How Does Cryptocurrency Work?

The operation of a cryptocurrency is based on Blockchain technology. It is a chain of blocks formed by transactions issued by investors. This generation of blocks is regularly authorized through mathematical calculations carried out by a person or a computer: we speak of the minor. In return, the miner receives a reward in crypto assets for each validation.

❓ What is a Cryptocurrency used for?

Cryptocurrency enables payments for goods and services online, financing stock market investments and raising funds for digital projects.

What are the Different Cryptocurrencies?

There are thousands of cryptocurrencies divided into various categories. You have the infrastructure currencies made up of Ethereum, Stellar, Cardano, NEM, Ripple and many more. Bitcoin, Litecoin, Dash and Bitcoin Cash are an integral part of currencies with payment systems. Finally, you have social (Gemz, Dogecoin, Steem, etc.), local (Spaincoin, FirmKrypto) and single-use (SexCoin, PotCoin, etc.) crypto currencies.

What is the Value of Cryptocurrency?

The value of a cryptocurrency is defined according to its penetration rate in the real economy, its rarity and the confidence it inspires in economic actors. This price may also vary depending on economic news.

What is the Most Profitable Cryptocurrency?

The most profitable cryptocurrency is Bitcoin given its higher value and the different guarantees offered.