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Many smaller cryptocurrencies will grow faster than Bitcoin next year, but the crypto manager still has a place in all portfolios.
Ethereum, Polygon, Cosmos, and Audi us are some of the coolest coins you can watch.
Bitcoin (BTC) is the largest cryptocurrency and has generated an astonishing nearly 60,000,000% return since its launch.
However, it is declining rapidly in the aging process and has not worked with the other 300 cryptocurrencies with a market value by 2021.
That does not mean you have done wrong. Bitcoin gained about 60% during the year, according to Coin Market Cap data. Despite its fragile nature, it is increasingly regarded as a kind of digital gold or stock market. A store of value is something that will never lose its value over time.
All cryptocurrencies are risky, but Bitcoin is safer than most small coins. It has been around for a long time and has made great strides in terms of adoption.
However, it will not produce the same percentage benefits as small coins.
These four cryptos are all capable of growing faster than Bitcoin by 2022. But do not ignore the crypto giant - it still has a place in your portfolio.
1. Ethereum (ETH)
Ethereum was the first cryptocurrency to introduce smart contract capabilities, allowing applications to be built into its own network. As a result, it is the foundation of an expanded financial industry with a non-profit token (NFT). Unfortunately, it has been the victim of its success as the system faces high gas costs and network congestion.
It is in the process of upgrading to Eth2, which is due to be completed by 2022. Upgrading is a challenge - it's like trying to fix a car while driving on the highway. But if - and big if - we can complete the development on time and without technical problems, we can expect strong growth from Ethereum next year.
2. Polygon (MATIC)
Polygon is a combination of Ethereum Layer 2 solutions. Layer 2 solutions stay on top of the original blockchain and improve performance. In the case of Ethereum, this could reduce gas costs and speed up transaction processing. Polygon solves an important problem facing many developers and vendors in the Ethereum network.
Even when the Eth 2 development is complete, Ethereum founder Vitalik Buterin says layer 2 will play an important role to play in terms of measurement and collaboration. Also, a few large metaverse tokens - such as the Sandbox (SAND) and Decentral and (MANA) - are already connected to Polygon. This is a great coin to add to your 2022 watch list.
3. Cosmos (ATOM)
Some cryptos could grow faster than Bitcoin this year with layer 1 networks. These remarkable networks are back in the drawing board and building a new crypto eco-system faster and cheaper by design. They do not need layer 2 to improve their performance.
Solana (SOL) is one of the most popular this year with a rise in price of more than 11,000%. There are also a few others including the Cosmos who are vying for positions. Cosmos is interesting because it is a structured and interactive blockchain - which ensures that networks can communicate. Collaboration could be a problem in 2022, making Cosmos a good altcoin to look out for.
4. Audius (AUDIO)
Some cryptocurrency sectors are likely to grow faster than Bitcoin networks separated by real-world land use cases. Audius is a good example. It is a music streaming platform shared by some who say it could be Spotify next.
The idea is that artists can upload their music directly to the platform and win prizes. You do not need to use record labels or other forums that take up a large portion of your income. Audius announced a partnership with Tik-Tok in August 2021 and has strong crypto supporters.
Diversity is key
There are more new cryptocurrency coming into the marketplace. Industry continues to grow next year, there are various currencies that will grow faster than the king of cryptos. Small coins already have a large percentage of smart growth. But you should be the owner of Bitcoin, especially if you are new to investing in crypto.
Some cryptocurrencies are coming and going, but Bitcoin has a very long history and is the most likely to survive a market crash. Our study revealed that 136 cryptocurrencies are counted among the top 300 at the beginning of the year since the collapse.
That means more than 45% have not been able to hold their top 300 positions throughout the year. In contrast, Bitcoin has been high for more than a decade.
We do not know what will happen to crypto in 2022.
We can see prices falling behind strict rules. After the peak of 2021, the market may be due to a correction. A wider economy can pull, take crypto too. There is a good chance that crypto will go up, but it is important to remember that prices can go down to zero.
Another way to reduce your risk levels is to maintain a diversified portfolio. That means placing only a few amount of your investment in crypto and keeping a balance of different types of coins in your crypto wallet.
You may be looking to save Bitcoin and a few layers 1, layer 2s, metaverse, and web3 tokens.
Understandably, you may be tempted to seek higher income, and there are exciting projects out there. In the end, you are the only one who knows your financial goals and risk expectations. Just do not forget about Bitcoin completely.
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