With a such huge array of cryptocurrencies or crypto tokens available to invest in this day and age, it can be quite stressful to curate your portfolio, especially when you know the benefits of diversifying your investments. Here are the top cryptocurrencies and tokens likely to generate high returns for you this year, with a mix of older and newer ones to balance out your portfolio between stability and growth potential.
Bitcoin needs no introduction, being the biggest cryptocurrency out there. It was launched in 2009 and runs on a blockchain, where additions to distributed ledgers must be verified by solving a cryptographic puzzle (called Proof Of Work) so Bitcoin is kept secure. While the price of Bitcoin has fallen recently, it’s still insanely high as compared to what it was many years back. Although you have already missed the boat of buying Bitcoin at $0.0008 or even $500, given the market now, Bitcoin is still on a steady increase in time to come.
Ethereum is the second-biggest cryptocurrency, being both a cryptocurrency and a blockchain platform. It is used by many program developers because of its smart contracts that automatically execute when conditions are met. It can also be used for NFTs. It has also risen greatly in price since its launch, but being one of the main platforms that many other projects are built on, is probably a safe bet for you as you curate your portfolio.
United DAO Token (UTD)
United DAO is the newest on this list, and is included because of the potential it has to grow like Luna and Solana from launch. The UTD token is a treasury-backed token built on the Ethereum blockchain, similar to the popular Olympus DAO (OHM)’s token. However, it takes protocols like OHM’s up a notch with its innovative tokenomics that ensure that returns are high while volatility is managed. It is also set apart by its belief in credibility; the protocol has a doxxed and experienced founder and advisory team, which means that issues like rug pulls, lack of responsibility and accountability or even bad treasury management will not be a concern.
Binance Coin (BNB)
Binance is one of the main crypto exchanges out there, and the Binance Coin can be used to trade and pay fees on Binance. The Binance Coin initially only facilitated trades on Binance’s exchange platform, but it can now be used for trading, payment processing, booking travel arrangements and more. Like many other coins, it can also be traded or exchanged for other forms of cryptocurrencies. Being the coin of one of the biggest crypto exchanges, it is a relatively safe bet and can be considered when the price dips.
Terra is a blockchain payment platform for stablecoins that focuses on keeping a balance between stablecoins and unstable coins. While the stablecoins like TerraUSD are linked to physical currencies, LUNA, the currency that powers the Terra platform, is used to mint more Terra Stablecoins. The stablecoins and LUNA operate according to supply and demand; it incentivizes holders to burn their LUNA for more Terra stablecoin when the stablecoin’s price rises above its linked currency’s value, and encourages holders to mint more LUNA when their Terra stablecoins’ value is lower than its linked currency’s value. The value of LUNA increases with the adoption of Terra.
Solana is often dubbed the “next Ethereum” and for good reason. It was created to power DeFi, dApps and smart contracts, and many projects are also built on it. It is powered by SOL, Solana’s native token. It also boasts being the fastest and most secure platform to process transactions, running of a hybrid proof-of-stake and proof-of-history system.
Polkadot is an open source blockchain platform and cryptocurrency that allows for distributed computing. The network uses a proof of stake consensus algorithm. has been increasing in popularity recently, due to the low fees and higher speeds it offers as compared to other cryptocurrencies. Its strength lies in scalability, and there is still room for growth for Polkadot.
That sums up the list of tokens you must have in your portfolio in 2022 to see steady growth over time. Of course, cryptocurrencies are generally still considered volatile, so do remember to always DYOR before investing, and only invest only the amount that you can afford to.