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If you’ve just gotten started on your crypto journey, you’re probably tempted to limit yourself to Bitcoin, the most valuable cryptocurrency. While Bitcoin is a high-reward investment with low barriers to entry because of its widespread availability, it is also a high-risk one. Given the crypto market’s constant bouts of extreme volatility, it’s always a good idea to diversify your portfolio rather than putting all of your eggs in one basket.
This is where altcoins come in. The term altcoin refers to any cryptocurrency that is not Bitcoin. Their name derives from the fact that they are “alternative” coins to Bitcoin. No doubt, Bitcoin is the market leader and the largest cryptocurrency by market capitalization, but several altcoins have more use cases and growth potential than Bitcoin.
For example, although the price of Bitcoin increased by 58.02% from $32203.64 on 1 January 2021 to $50888.72 on 25 December 2021, the price of Ethereum, the second-largest crypto by market cap, increased by 423.30% from $774.90 to $4055.12 in the same time period. Solana, whose price was only $1.837 at the beginning of 2021, was valued at $193.127 on 25 December 2021, having grown by a whopping 10413.2%.
Top 8 Altcoins to Invest in India in 2022
BTC dominance, or the ratio of Bitcoin’s market cap to the rest of the cryptocurrency markets, which was well above 70% at the start of the year, had dropped to almost half at 40% by the end of the year 2021. Clearly, for those looking for a diversified portfolio, altcoins are the best solution. Let’s take a look at the best altcoins to invest in 2022.
#1. Ethereum
One of the fastest-growing cryptocurrencies and the second-largest cryptocurrency by market capitalization, Ethereum (ETH) dramatically outperformed Bitcoin in 2021, and experts anticipate this trend to continue into 2022. The rise in the value of Ethereum can largely be attributed to the rise of the DeFi (Decentralized Finance) market and the widespread popularity of NFTs (Non-Fungible Tokens).
At the time of writing, Ethereum is trading at $3,130.36 per token and has a market cap of more than $370 billion. The arrival of ETH 2.0 in 2022, when Ethereum transforms from a proof-of-work (PoW) to a proof-of-stake (PoS) model, is expected to drive up prices further, taking Ethereum well beyond the $10k mark.
#2. Tether
The third-largest cryptocurrency by market capitalization, Tether is a stablecoin designed to be pegged to the dollar; hence its value always remains at $1. Because its value is fixed to the US dollar, Tether experiences lesser fluctuations, thereby making it one of the best alternatives to Bitcoin. With Tether being one of the most stable cryptocurrencies, it is certainly an excellent investment option for investors concerned about the extreme volatility of the crypto markets.
#3. Solana
Without a doubt, Solana (SOL) made the biggest gains in 2021, going from a mere $1 at the beginning of the year to as high as $200 by the end, making it one of the best altcoins to invest in 2022. Currently, Solana trades at $136.08 and is the seventh-largest crypto by market capitalization.
The success of Solana can be largely attributed to its unique blockchain technology, where the ‘proof-of-stake’ technology is combined with Solana’s ‘proof-of-history.’ This makes transactions on Solana quicker and cheaper, placing it directly in competition with Ethereum. According to predictions by coinpriceforecast.com, Solana prices are expected to hit $300 by the end of 2022.
#4. Cardano
Cardano (ADA) is currently the fifth-largest cryptocurrency and trades at $1.50. It is also one of the fastest-growing cryptocurrencies. Cardano, valued at only $0.177 at the beginning of the year 2021, grew by 689.26% to $1.397 as of 25 December 2021. Launched in 2017, Cardano is a proof-of-stake blockchain platform, and its cryptocurrency is known as ADA. According to forecasts, Cardano prices are expected to start at $2 at the beginning of 2022 and reach $4 by year-end.
#5. Litecoin
While Litecoin is not a top 10 crypto by market cap, it is still a valuable coin that has attracted significant investor interest. Because its crypto network has proved to execute transactions four times faster than Bitcoin, Litecoin remains an excellent alternative for people looking to transfer large quantities of money. Investors believe that as Litecoin’s adoption grows, so will it’s market capitalization. Litecoin currently trades at $140.59 and has a market cap of $9,763,022,000. According to coinpriceforecast.com, Litecoin is expected to climb to $200 by the end of 2022.
#6. Avalanche
Investors who bought Avalanche (AVAX) at the start of 2021 were certainly in for massive luck. AVAX, which was worth $3.207 at the beginning of the year, was worth $103.60 per token in December 2021, marking a 3130.43% increase. Having given investors 34x returns over the year, experts anticipate Avalanche to further go up in 2022, with prices going beyond the $200 mark. If you’re looking for the next big cryptocurrency to explode in 2022, go for Avalanche, a relatively unknown cryptocurrency at the beginning of 2021 which has now grown into one of the fastest-growing cryptocurrencies, with a market capitalization of over $20 billion. The current price of AVAX is around $84.98.
#7. Ripple
Are you looking for a relatively low-risk investment with the potential for greater rewards? Ripple (XRP) is the answer. Ripple is a blockchain-based digital payment network and protocol, and XRP is its native cryptocurrency. Presently the 8th largest cryptocurrency by market capitalization, Ripple is one of the best altcoins to invest in 2022. At the time of writing, Ripple trades at $0.7444, having grown by more than 270% from $0.221 at the beginning of the year 2021. According to experts, Ripple prices are expected to be between $3 and $5 in 2022.
#8. Polkadot
The 10th largest crypto by market capitalization, an open-source blockchain platform and cryptocurrency that allows for distributed computing, and DOT is its native token. Polkadot is currently valued at $24.78 and has a market cap of more than 24 billion dollars. One of the key reasons Polkadot is deemed a worthwhile investment is because it can facilitate cross-blockchain transfers of any type of data or asset. In addition, scalability and speedier transactions further add to Polkadot’s functionality. DOT prices are expected to climb above the $50 mark by the end of 2022.
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Frequently Asked Questions
Is Mining Cryptocurrency Legal?
Cryptocurrency mining can be time-consuming, expensive, and sporadically profitable. Mining has an appeal for many cryptocurrency enthusiasts as miners are paid directly with crypto tokens for their efforts. The legality of cryptocurrency mining is dependent on where you live. In India, there is no restriction on crypto mining.
Is Crypto Legal In India?
Cryptocurrencies are legal in India, and anyone can purchase, sell, and exchange them. It is currently uncontrolled, as India lacks a regulatory structure to oversee its operations. Per the Ministry of Corporate Affairs, companies must now record their crypto trading/investments within the financial year. In cases where a person receiving the gains is an Indian tax resident, or the cryptocurrency is regarded as domiciled in India, cryptocurrency transactions have been taxable in India
Is Ethereum Safe To Invest?
The Bitcoin market is unquestionably more volatile than the stock market. This may not be the market for you if you are incredibly risk-averse. Ethereum, on the other hand, may be a terrific investment for you if you're a diamond-handed investor who won't lose sight of short-term losses. Ethereum is a relatively safe investment as it is also based on blockchain.
How To Invest In Cryptocurrency Stocks?
Cryptocurrency can be purchased in two ways: through mining or exchanges. The process of confirming and adding transactions to the blockchain public ledger is known as cryptocurrency mining. Cryptocurrency exchanges are another option. Exchanges make money by charging transaction fees, but there are alternative platforms where you may communicate directly with other cryptocurrency traders.
Are Cryptocurrencies A Good Investment?
Cryptocurrency has the potential to make you extremely wealthy, and the potential to cause you to lose your money. Crypto assets, like any other investment, come with many risks and potential rewards. Fundamentally, cryptocurrency is an excellent investment, particularly if you want to gain direct exposure to the demand for digital currency.
What Is The Meaning Of Crypto?
A cryptocurrency is a digital currency that is secured by the process of cryptography, making counterfeiting and double-spending almost impossible to happen. Blockchain technology is used to produce cryptocurrencies ( a distributed ledger enforced by a distributed network of computers). Cryptocurrencies are distinct in that a centralized authority does not issue them.
Which Cryptocurrency Is Best To Invest In 2021?
Many altcoins are flourishing to invest in. Some cryptocurrencies with great potential are Ether, Ripple, Tron, and more. Investors are trying to diversify their portfolios and are flocking to the leading cryptocurrencies. Many growing businesses are already accepting cryptocurrency as acceptable payment methods.
How Many Cryptocurrencies Are There?
There are over 5000 other digital currencies available on the internet in addition to Bitcoins. The only problem is that they haven't gotten the users' attention. Besides Bitcoins, a few other digital currencies have gained popularity among users. It's been more than ten years since Bitcoins were first released, and now they've achieved new heights thanks to their phenomenal success.
How To Invest In Cryptocurrency In India?
There are two ways of investing in cryptocurrency, mining and via exchanges. Cryptocurrency mining is the process of verifying and adding transactions between users to the blockchain public ledger. Purchasing cryptocurrency in India is a straightforward procedure where investors simply participate by registering with a crypto exchange such as WazirX. After registering for an account, citizens can trade multiple cryptocurrencies, store cryptocurrency in wallets, and more.
Can I Invest In Cryptocurrency?
Yes, with exchanges like WazirX, you may invest in cryptocurrency in India. To begin, go to the WazirX website and register. After that, you will receive a verification email. The link received by verification mail will only be available for a few seconds, so make sure you click it as quickly as possible. This will successfully verify your email address. The following step is to set up security, so choose the best solution for you. After you've set up the security, you'll be given the option of continuing with or without completing the KYC process.
Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.
