The cryptocurrency market has grown tremendously over the past decade. Since Bitcoin was launched in 2022, other cryptocurrencies have joined the market, and now, over 10,000 coins are available. While this large number depicts that the crypto market has grown, it has proven hard for new investors to know the best crypto to invest in.
The new cryptocurrencies in the market seek to solve the problems Bitcoin faces. Most of the new cryptocurrencies are supported by faster and secure networks, which have made them better options for crypto investors seeking to diversify their portfolios.
1. Avalanche
The other best crypto to invest in is Avalanche. Avalanche is one of the most scalable projects in the blockchain space. Bitcoin is not the only old cryptocurrency in the market because we also have Ethereum. While Ethereum has strong use cases, it faces a major scalability issue.
The Avalanche blockchain seeks to offer scalability to decentralized finance (DeFi) developers. The network offers fast speeds, and the transaction fees are low. These features have made the network gain adoption, which has boosted the demand for AVAX tokens. Avalanche and AVAX boasts the quickest execution of smart contracts in the crypto world. Recent partnerships with the Ethereum Network could revolutionize its capabilities, breaking down international barriers in the finance world.
Avalanche is certain to be a part of the future of blockchain and, no doubt, Web 3.0. As it has just raised $230 million from the sale of its native token, AVAX, it isn’t going anywhere any time soon. Backers include Polychain and Three Arrows Capital, so it is clear that there is strong conviction in it.
2. Polkadot
The other cryptocurrency on the list is Polkadot.
Polkadot, like many post-Bitcoin cryptocurrencies, is both a token that can be bought or sold via exchanges like Coinbase and a decentralized protocol.
The Polkadot protocol is designed to allow unrelated blockchains to securely talk to each other, so that value or data can flow between, say, the Ethereum and Bitcoin blockchains without any intermediary. It’s also designed to be speedy and scalable, via the use of many parallel blockchains (or “parachains”) that take much of the processing demand off of the main blockchain.
The Polkadot token (DOT) serves two main functions within the Polkadot network: it’s a governance token, which allows holders to have a say in the future of the protocol, and it’s used for staking, which is the way the Polkadot network verifies transactions and issues new DOT. DOT can be bought and sold on exchanges like Coinbase as part of your investment strategy.
One of the reasons Polkadot has soared is the release of the parachains auction. The auction commenced in November 2021 and is expected to continue until March 2022. Parachains are independent blockchains supported by the Polkadot ecosystem. By having independent chains that link to Polkadot, the network seeks to boost scalability by reducing congestion on the network.
Projects that want to secure these parachains have to bid through auctions, which has boosted the demand for DOT tokens. While the process will end in the next few months, the demand for DT tokens will remain high because of the growing utilization of the network.
3. Binance Coin (BNB)
The other best new cryptocurrency to invest in is Binance Coin. Binance is currently the world’s second largest cryptocurrency exchange, with around $6 billion in assets traded in an average seven day period.
Binance is also the name of a cryptocoin (BNB) traded and used on the Binance exchange. Since the ICO, the value of BNB has risen with the growth of the exchange. BNB is now among the top 30 cryptocurrencies in the world by market cap. The total supply is limited to 200 million BNB, after which no more coins will be created.
The other part of the Binance ecosystem is Binance Smart Chain. This blockchain network also allows DeFi developers to build, which drives value for BNB tokens and contributes to major price gains. Binance Smart Chain is the third-largest blockchain network in terms of TVL. It has supported some of the crypto market’s leading projects, including PancakeSwap.
The performance of the Binance Coin over the years has been impeccable, given that the token has managed to soar towards record highs. This has been attributed to the strong ecosystem backing of this project and BNB’s tokenomics. . Binance Coin quickly rose to the top 10 cryptocurrencies to buy in 2022, after so many other currencies piggybacked on its BSC chain.
