What is the best cryptocurrency to invest in?

It’s the word on everyone’s lips: cryptocurrency (and bitcoin). But is it a safe investment? And what are the best crypto coins out there?

Cryptocurrencies are considered high-risk investments due to the unpredictable and volatile nature of the market

After a boom year in 2021 and a string of high-profile celebrities, 2022 kicked off with cryptocurrencies as a financial obsession — although a number of cryptocoins plummeted in value this week.

It has crypto commentators and investors in a frenzy, with speculation as to whether the crypto market will recover.

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After a difficult week, some crypto coins have shown signs of recovery over the past 24 hours.

When did crypto become popular in the market?

Despite this recent attention, cryptocurrencies have been around for much longer with the first digital token, Bitcoin, being created in 2009 – proving that they are more than just the latest internet fad.

Snoop Dogg is said to have been an early investor in the SafeMoon cryptocurrency

What is cryptocurrency?

The name comes from the ‘encryption’ that makes it difficult to counterfeit the currency.”

Is it Safe to Invest in Cryptocurrency?

Cryptocurrency prices are constantly changing, with large swings in both directions, making them attractive when the arrow is green, but less so when it’s red and pointing down.

Most recently, the market spiraled when Musk announced that Tesla would no longer accept Bitcoin as payment for its products due to “environmental concerns.”

Another blow was felt recently when China announced plans to tighten its laws surrounding cryptocurrency trading and exchanges, causing the market to plunge further.

It’s this volatile movement that makes cryptocurrencies risky investments and prompts warnings from regulators like the UK’s Financial Conduct Authority.

However, crypto users do not appear to be stepping up, and many see that the potential rewards outweigh the risk.

How can I buy cryptocurrency in the UK?

If you are undeterred by the volatility of the crypto market and want to get your hands on a crypto coin, you need a “wallet” – an online app to hold your crypto.

You can do this by creating an account with an exchange like Coinbase or Crypto.com. Here you can exchange real money for cryptocoins.

You have to decide whether to go for a “hot” or “cold” wallet.

A “hot” wallet is where crypto is stored by the exchange or provider through an app or your computer.

Each exchange offers a free wallet that stores your purchases. Be warned though – they are easy to set up and use, they are vulnerable to hackers and if an exchange is shut down traders have no right to get funds back.

In contrast, a “cold” wallet is a portable encrypted device like a USB stick that allows you to physically carry your bitcoin. They are more secure against hackers than “hot” wallets and can be very expensive.

The sudden surge in popularity has been fueled by record market gains since the turn of the year

Here we look at 7 of the best performing cryptocurrencies on the market coin base.

The world’s first cryptocurrency is the most established and valuable with a market capitalization (market capitalization) of £470.4 billion and is leading the way for others.

It hit new highs in April 2021 when the price of one bitcoin was marketed at £47,240.05, but has felt the full weight of the crypto crash that followed in early May.

However, it has been in an upward trend since 2009, with +28,770% since inception and +13.19% in the last 24 hours.

Whether the recent downtrend for the oldest cryptocurrency will continue remains to be seen.

Ethereum reclaimed its title as the second largest cryptocurrency by market cap in 2018 and hasn’t let go of its place behind Bitcoin ever since.

Ethereum was founded much later than its competitor in 2015 and has a smaller market cap of £210.4 billion.

Unlike some other cryptos, Tether is known as a stablecoin that aims to maintain stable cryptocurrency valuations across the market.

It has consistently held a price around US$1, which is equivalent to 71p GB sterling today, and is attractive to investors looking to avoid the extreme volatility of the market.

The crypto has a controversial past, as the New York Attorney General accused Tether’s parent company of concealing substantial losses of $850 million (£600 million) in 2019.

Its market value plummeted at the time but has since recovered, although UK investors are wary of its price fluctuating in line with the current USD-GBP exchange rate.

Binance Coin is another cryptocurrency that saw market highs in 2021 but is showing signs of struggle in 2022.

A self-proclaimed “green cryptocurrency,” Cardano has weathered the storm unleashed by environmental concerns raised by Tesla CEO Elon Musk.

Its founder, Charles Hoskinson, estimates that Cardano’s entire system uses less than 0.01% of the energy used by Bitcoin’s network and controversial mining process.

And saw an immediate surge as a result when others stumbled.

XRP, the digital token created by Ripple, made headlines in April 2021 for outperforming Bitcoin and Ethereum as it posted sizeable market gains against its more dovish peers.

Its market cap of £18.1 billion is the seventh largest cryptocurrency currently listed.

The price is up 15.1% in the last 24 hours.

Possibly one of the most popular cryptocurrencies of recent times, Dogecoin has received public mentions from Elon Musk, Snoop Dogg and others, as well as Saturday Night Live.

Created as a hoax, the crypto is synonymous with a specific breed of dog — Shiba Inu — which was an internet meme at the time it was listed on the market. “Memecoins” are particularly popular.

If you are planning to invest in cryptocoins, please note:

The value of investments is variable and can go down as well as up.

If you have been approached by a “dealer” promising high returns, this is a scam.

Always make sure the seller is registered with the UK Financial Conduct Authority (FCA). Many cryptocurrency sellers are not. A list of registered dealers can be found on the FCA website.

This article contains affiliate links, although this has not affected our editorial judgment.

https://www.nationalworld.com/recommended/best-cryptocurrency-2022-invest-how-to-buy-bitcoin-3252933 What is the best cryptocurrency to invest in?

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