Many investors are looking for token recommendations in 2022. After months of positive news and substantial developments in the cryptocurrency markets, the year 2021 came to an end with a slight Santa Claus rally for Bitcoin. Still, it was not what many traders had expected. On Christmas Eve, Bitcoin traded at prices above $51,000 before retreating closer to $50,000 over the weekend. Even though this festive rally fell short of the $66,000 all-time high reached in October, investors are still confident that Bitcoin will continue to hold its privileged position as the world’s most valuable digital asset.
Should you enter the cryptocurrency markets in 2022, Bitcoin would be a good choice for many reasons; however, when we take into account volatility in the cryptocurrency markets, Bitcoin looks a lot like other tokens. Cryptocurrencies are always changing and evolving, and this creates a competitive climate that can benefit smart investors. There are hundreds of different cryptocurrency projects to invest in, but let’s take a look at the three “next big things” that may carry an incredible amount of potential in the near future.
Top 3 Token Recommendations
The three tokens below were recommended in late 2021 by market analysts at Forbes and The Motley Fool. These token recommendations were issued taking into consideration the seasoning of the tokens as well as the likelihood of ongoing projects to impress the market. All three tokens have been in circulation for a while, and their underlying projects show that their management and development teams want to take things to a higher level without having to directly compete against Bitcoin.
Decentraland
Decentraland is the brainchild of its founders Ari Meilich and Esteban Ordano, tech entrepreneurs from Argentina who have a keen interest in the fields of virtual economies and virtual reality development; they want to make virtual reality (VR) more immersive, accessible, and inclusive by developing blockchain tokens and marketplaces where users can do more than just trade in-game items.
Decentraland offers a marketplace for virtual items, including land, housing, clothing, accessories, and more. The ERC20 tokens of this VR world can be used to buy products from the marketplace, and the blockchain-based currency also works as the currency to purchase virtual land in the virtual world. By virtue of their ERC20 compliance, these tokens can be traded on major exchanges for other tokens or even fiat currencies.
Why should you invest in Decentraland in 2022? Meta, the company formerly known as Facebook, has shown a keen interest in organizing a collection of virtual worlds that will be known as the metaverse, a science fiction concept that CEO Mark Zuckerberg wants to make a reality. In addition, companies such as Decentraland are now Meta’s potential acquisition targets because of the blockchain technology they have developed.
Basic Attention Token
Even though the BAT project has been around for a few years, its concept is still one of the most unique. BAT is the currency of the Brave web browser, an internet application focused on privacy and ad blocking technologies. Advertising and tracking are blocked by default when using the Brave browser, but you can always choose to watch ads and get paid for it with BAT. Many internet advertising firms are reporting good results by partnering with Brave Software, and this could lead to a price increase for BAT.
Ethereum
This token recommendation has been made by quite a few market analysts who feel positive about the upcoming upgrades to the Ethereum network. The current ETH sentiment is that the market capitalization of the underlying blockchain could start catching up to Bitcoin over the next few months. Ethereum is in the best financial position in the cryptocurrency for various reasons. First off, the cryptocurrency is cash rich. The Ethereum Foundation has been burning through about $40 million per month, with some variance over the last few months, to fund upcoming development with an eye on the future.
When compared to Bitcoin, Ethereum has the advantage of being a token that experiences real gains; in other words, the wild speculation that surrounds BTC/USD is not as pronounced with regard to ETH/USD. On the other hand, the Ethereum Foundation has seen the writing on the wall in relation to the numerous decentralized finance (DeFi) projects that have emerged as side chains; there is a clear need to improve the ETH mainnet and this will invariably result in more liquidity.
Improve Your Cryptocurrency Investments With Compound Interest
Should you choose to invest in one or more of the aforementioned tokens in 2022, we strongly recommend that you take advantage of the exponential earning power of compound interest. Of course, you can do this through a BlockFi account, but you can also transfer your profits into a money market or high-yield savings account that compounds on a daily basis. Check out our daily compound interest calculator to see how much your cryptocurrency investments can grow if you apply this intelligent financial strategy.
