11 Altcoins to watch in 2022

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Here are a few pieces to keep on your radar this year, whether as potential investments or because they could impact the entire industry.

Key Points Ethereum, Solana, Elrond, and Cardano are good Layer 1 cryptocurrencies to watch out for. If you’re considering the game or the metaverse, put Enjin and Wilder World on your watchlist.

2021 has been an extraordinary year for the cryptocurrency industry. There are now more coins, more investors, more crypto exchanges, and more money than ever in crypto. With over 16,000 cryptocurrencies to choose from, it’s hard to pick a few.

To help focus our list, we’ve broken down cryptos into sub-sectors. Looking at coins by sectors is a good way to ensure that your portfolio is diversified and not overweighted towards one or two types of coins.

The right coins for you depend on the type of investor you are. Some people are willing to take higher risks in exchange for higher potential rewards. Others are looking for safer long term bets. Either way, these 11 altcoins are worth checking out in 2022:

Layer 1 cryptos

Layer 1 cryptos are the backbone of the crypto industry. Right now, many of them are vying for market share, and the most likely scenario is that four or five will win.

1. Ethereum (ETH)

In theory, 2022 is the year Ethereum completes its Eth 2 upgrade to make it more scalable and sustainable. It is not yet clear if Ethereum can deliver on time and without major issues. Either way, investors should be careful. If the upgrade goes well, it will be positive for the entire market. If it goes badly, it could have a ripple effect on many crypto projects executed on its network and reduce investor confidence overall.

2. Solana (SOL)

Solana is one of the superstars of 2022, but the big question is: can she keep growing? Its speed and cheap transactions are attracting a lot of developer interest, and it may continue to dominate Ethereum alternatives. However, he’s had a few technical issues before and it’s unclear if he can maintain his momentum.

3. Elrond (EGLD)

Elrond is an interesting crypto smart contract that has seen tremendous growth, but has yet to reach Solana highs and may still have room to grow. It’s worth monitoring the development of its decentralized Maiar exchange and the number of projects its ecosystem can attract.

4. Cardano (ADA)

Some find Cardano’s research-driven approach less exciting, but it may also appeal to long-term investors. The project actively seeks to address issues that may arise in the future, such as the impact of quantum computing. It already has several real-world projects, and following the launch of smart contract capability earlier in 2021, we will likely see several new projects roll out on Cardano.

Layer 2 and interoperability cryptos

Layer 2 solutions complement existing blockchains to improve their performance, while interoperability projects help different networks communicate with each other.

5. Polkadot (POINT)

2021 saw the rise of a multitude of Ethereum alternatives that offered faster and cheaper transactions. Polkadot has performed well, but the issue it fixes – interoperability – is still a problem. Right now, we have several popular blockchain networks that are not good at talking to each other. As developers begin to use a number of Layer 1 blockchains, interoperability will be crucial.

6. Polygon (MATIC)

Polygon aggregates Ethereum Layer 2 solutions. Until the Eth 2 upgrade is complete, it can help existing projects reduce costs and resolve network congestion issues. Even after the upgrade, it will still have a role to play, especially when it comes to interoperability.

Several metavers and gaming tokens like Axie Infinity (AXS), Decentraland (MANA) and Sandbox (SAND), have produced stunning returns in 2021. Everyone’s looking for the next big thing, and these two are worth checking out. to be watched:

7. Enjin (ENJ)

In gaming and the metaverse, non-fungible tokens (NFTs) give people more control over their in-game assets. This is one of the reasons why NFTs were another key trend in 2021. Outside of games games, they can take the form of anything from art to music to domain names. Enjin makes it easy to create and manage NFTs, especially for gamers.

8. World wilder (WILD)

Wilder World is called “an immersive 5D metaverse”. Unfortunately, it is not yet listed on many major US cryptocurrency exchanges. But with several games up for grabs and an interesting community approach to Metaverse on its platform, it’s worth having it on your radar.

DeFi Tokens

Decentralized finance is one of the main uses of blockchain technology so far. This allows people to cut out middlemen from all kinds of financial transactions. However, there is also a high probability that DeFi will see increased regulation around the world and the space could change in the blink of an eye. As a result, I only put one of these coins on this 2022 watchlist.

9. Earth (MOON)

Terra was another top performing crypto in 2021, but its financial ecosystem based on stablecoins continues to grow. It has several different stablecoins linked to different currencies, all of which are backed by its LUNA token.

Other altcoins

It is worth keeping an eye out for the following coins which could have a disproportionate impact on the rest of the crypto industry.

10. XRP (XRP)

XRP – also known as Ripple – struggled a bit in 2021 due to an ongoing lawsuit with the SEC. The SEC accuses it of operating like an unregistered title, which the Ripple team disputes. If the SEC wins, it could destabilize the entire industry, as the SEC could then take action against a number of other crypto projects.

11. Tie (USDT)

I avoid using Tether stablecoin and would not recommend buying it because it is not transparent enough on its reserves. But I’m still careful because it’s the fourth largest crypto by market cap. If Tether collapses, the shockwaves could rock the industry.

The price of a stablecoin is pegged to a different commodity such as gold or, in the case of Tether, the US dollar. In theory, each USDT should be backed by $ 1 in reserve. That way, there would be enough money to pay if a lot of people decided to withdraw their USDT at the same time. The problem? Tether holds a large portion of its reserves in unspecified commercial paper, a type of short-term debt. Additionally, an investigation by the New York attorney general found he didn’t always have enough cash on hand to support the coin.

Be prepared for a bumpy ride

Many analysts warn that the crypto market is expected to undergo a correction in 2022, which is not surprising given the huge gains we have seen. Others believe that this is just the beginning and that the crypto still has huge potential. What is certain is that we will see increased regulation, continued economic fallout from the pandemic, and continued volatility.

Make sure you do your own research and invest only the money you can afford to lose. If crypto is only a small percentage of your portfolio, you can minimize the risk and make sure that if the market collapses, it doesn’t cause you to drift financially.

Buy and sell cryptos on an exchange chosen by experts

There are hundreds of platforms around the world waiting to give you access to thousands of cryptocurrencies. And to find the one that’s right for you, you’ll need to decide which features are most important to you.

To get you started, our independent experts have sifted through the options to bring you some of our best cryptocurrency exchanges for 2021. Check out the list here and start your crypto journey, today.

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