Investors looking to diversify their portfolios have been drawn to the top cryptocurrencies. While many growing businesses accept cryptocurrencies as legitimate forms of payment, the timing appears to be ideal for investing in cryptocurrencies based on your budget. Depending on how many levels of the understanding you want to uncover, many other things in cryptocurrencies may be complex or simple concepts. It is the method by which various cryptocurrencies validate their transactions. For many traders and investors, the main takeaway is that staking is a method of collecting rewards for holding specific cryptocurrencies.CNBC, for example, discusses Bitcoin on a daily basis and keeps a ticker showing the current price on the screen.
Many people, however, are likely unaware that Bitcoin is not the only cryptocurrency available. If you’re ready to invest in cryptocurrency, here are six low-cost options that could yield high returns in 2022.
XRP (XRP)
XRP, created by Ripple, a blockchain company that facilitates global transactions, is an open-source cryptocurrency that employs the XRP Ledger, an open-source distributed ledger. According to Ripple, XRP was designed for payments and can settle transactions faster, more reliably, and at a lower cost.
The currency for the impressively named VeChain Thor Blockchain, eChain VeChain, is used to transfer value across the network. The VeChain Thor Blockchain, which employs distributed ledger technology, was created specifically for supply chain management and business processes.
The Dogecoin cryptocurrency (DOGE)
At less than $0.15 per coin as of Jan. 29, the coin is certainly “cheap,” especially when compared to its 52-week high of $0.73. The current price is down more than 58% from a year ago.
Cardano (ADA)
Cardano is one of the most popular cryptocurrencies due to its flexible network and fast transactions. Cardano was created by Charles Hoskinson (co-founder of Ethereum). Its main selling points include scalability, interoperability, and sustainability. Cardano has always been a company that takes its time and works in stages.
Linking Chains (LINK)
Chainlink is an Ethereum token that fuels the decentralized Chainlink oracle network. This network is used to connect to external data sources, APIs, and payment systems in a secure manner.
Chainlink’s price has been fluctuating in fits and starts, but it is currently trading at $16.03, down nearly 30% in a year, providing investors with an opportunity to buy low.
USD Coin
USD Coin is a stablecoin, which means that its value is tied to another asset, in this case, the US dollar. This makes it remarkably stable in comparison to other cryptocurrencies, with USD Coin prices deviating by only a few hundredths before returning to $1.
While you cannot profit by buying low and selling high as you would with other tokens, you can earn interest by lending your USD Coin through a decentralized financial platform such as Aave.