2021 has been a year in which different cryptocurrencies have continued their growth, marking an ATH (record price) with the market reaching close to US$ 3 billion for the first time.
The crypto market experienced a strong momentum and managed to consolidate also through two new instruments, NFTs and DeFi, despite the failure of ICOs (initial cryptocurrency offerings) during 2017 and 2018, which drove away many investors due to the large number of fraudulent products.
If you are wondering what are the best bitcoin stocks to buy or if you are new to the world of cryptocurrencies and want to get started in this market, there are several options to invest that promise good returns.
After 12 years of its debut, Bitcoin remains the most important cryptocurrency in market value despite its high volatility, with a figure amounting to $1,069,414,089,906 and a year-on-year growth in its price of more than 200%.
Bitcoin is software based on blockchain technology, a decentralized database that runs on more than 15,000 computers (nodes) around the world and records transactions and account balances.
To secure that network, miners rely on a consensus mechanism known as proof-of-work (PoW), expending computing power to solve cryptographic puzzles and validate blocks of transactions.
Analysts say its price is below where it should be and that December is very likely to be the month when it can achieve a rebound that will give it greater prospects for 2022.
Ethereum, the perennial second place behind Bitcoin in the cryptocurrency market, has the great potential to be the first in the next few years.
It trades at $4100 and analysts point out that the last time ETH had a similar drop, it then had a significant rebound in price.
It dominates much of the financial transactions and payments across all sectors, as well as providing the infrastructure for much of the DeFi protocols.
In terms of ‘altcoins’, Solana which recently fell 12%, presents itself as the best option for investment as it seeks to establish a new smart contract network to compete with Ethereum.
Polkadot is very similar to Ethereum in allowing developers to create smart contracts and applications. From a functionality standpoint, it may grow a lot over the next year.
The cryptocurrency of the world’s largest exchange can have a great growth during 2022, as long as it is easier and cheaper to transact with Binance crypto, there will be more movement in the market, which would influence the trading price.