5 Cryptocurrencies That Could Double Your Money in 2022

These digital currencies have the competitive advantage and differentiation to stand out in a crowded field.

Although the S&P 500 more than doubled its average annual total return in 2021, compared to the past four decades, it is the cryptocurrency market that has once again stolen the show.

As of the time of writing on December 28, the total value of all digital currencies is $2.25 trillion, according to CoinMarketCap.com. This is a whopping 191% up from the start of 2021. Thanks to the continued outperformance of “Big Two” – Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) – crypto investors are likely to be much richer now than they were in the past. This time last year.

However, despite periods of high volatility, opportunities still ring for investors to make money – assuming they stick to digital currency projects that offer differentiation and competitive advantages.

As we head into the new year, here are seven cryptocurrencies that have the potential to triple your money in 2022.

1. Avalanche

Among the largest cryptocurrencies by market cap, the one that I am most excited about and has a realistic chance of triple in value this year is Avalanche.

Avalanche is a smart contract-based blockchain network that offers amazing speed and compatibility, making it a logical choice for developing decentralized applications (dApps). Smart contracts are the protocol that helps verify, facilitate, and enforce the negotiation of a contract between two parties.

According to the Avalanche development team, the blockchain-based network can process 4,500 transactions per second (TPS) north, and it provides a block finale of less than two seconds. To put this in context, the two most popular blockchain networks, Bitcoin and Ethereum, can handle 7 and 13 TPS, completing transactions in about 60 minutes and six minutes. This is how effective the avalanche is compared to the most popular cryptocurrencies.

But the real temptation is the aforementioned compatibility. It's no secret that dApp developers love to use the Ethereum Virtual Machine (the software that allows developers to create dApps on Ethereum). Avalanche has an Ethereum Virtual Machine running on its blockchain. This means that dApp developers have the opportunity to avoid the congestion, high fees, and processing delays associated with the Ethereum blockchain and migrate their projects to the Avalanche supernet. This should be a major selling point for the avalanche in 2022.

2. Qtum

If you want something a little more off the radar, QTUM (pronounced “Quantum”) is the cryptocurrency that could triple your money in 2022.

It is relatively clear, based on their dominance of market capitalization, that Bitcoin and Ethereum are loved by investors. However, these networks have their drawbacks. They are slow, crowded and often accompanied by high transaction fees.

Enter Qtum, which aims to combine the best aspects of both networks into one blockchain project.

The Qtum blockchain integrates the highly secure Bitcoin UTXO transaction model and combines it with the Ethereum Virtual Machine. The result is a secure network that can support smart contracts. In other words, Qtum can be used to send payments, or it can be a hub for dApp development, including Decentralized Finance (DeFi) applications. With low transaction fees and the ability to process 70 TPS, it is another smart choice for dApp developers.

Furthermore, the Qtum Computation Abstraction Layer (AAL) provides differentiation from other platforms. Without being overly technical, AAL is the component that allows Qtum engineers to continuously upgrade the smart contract component of the blockchain while always ensuring that, no matter how many upgrades are thrown, it will remain compatible with the UTXO transaction model.

With a few major partnerships under its belt, Qtum is a solid bet to outperform.

3. Stellar

I'll be the first to say this: Aside from Bitcoin, coin-based payment networks don't get much love in the crypto space. But if there is one that needs to be, it is XLM, which is the 27th digital currency by market capitalization.

Imagine you have US dollars in your pocket and you want to send money to a friend or family member in the UK. With traditional banking methods, today's current infrastructure can take up to a week to validate and settle such a transaction.

Relatively speaking, if you use the blockchain-based Stellar network, your US dollars will be converted into Lumens (XLM, network protocol token), sent to their destination, and converted into British pounds. The right time to close this deal? About 4 to 5 seconds. That's pushing the send button, validating, and settling faster than most people can walk to the fridge. And Stellar can handle up to 3,000 TPS, per developer, blasting most blockchain-based networks out of the water.

What Stellar offers is also incredibly cost effective. The average transaction fee on the Stellar network is 0.00001 XLM. Based on the last rate of $0.274 per lumen, we're talking about over 364,000 transactions before the user is charged a $1 fee. Compare that to traditional bank fees or even Bitcoin, which regularly feature average transaction fees of $2 or higher.

Given that Stellar has a history of landing major partnerships, it's a project that crypto investors should take seriously.

4. Algorand

Another cryptocurrency that could triple your money in 2022 is Algorand which slips as the 22nd largest cryptocurrency by market cap.

One of the main topics in this list is competitive advantages. With Algorand, users get high execution efficiency and scalability. Based on recently updated data from Algorand, the network was processing 1,162 TPS and gave a final block of 4.36 seconds. This is somewhat on par with Stellar.

The unique thing about Algorand is the tweaking of the traditional Proof of Stake consensus mechanism. Through Algorand's Pure Proof of Stake (PPoS), ALGO holders are randomly and secretly chosen to propose blocks and vote on the proposals. The randomization associated with PPoS ensures that a small number of ALGO carriers do not collude to disrupt the network.

But what makes Algorand so exciting is its focus on interoperability. The development team understands that countless unique blockchain projects are being developed, and many of them may not be compatible with each other. Algorand focuses on filling these gaps to make DeFi and dApps prevail.

Having quadrupled in 2021, Algorand has all the tools to triple in 2022.

5. Iota

The seventh and final cryptocurrency that could triple your money in 2022 is IOTA Once it became the top 10 cryptocurrency by market cap in 2017, IOTA dropped all the way to №42, per CoinMarketCap.com.

The main theme in this list is the idea that competitive advantages and differentiation are necessary to emerge when there are more than 16,000 cryptocurrencies listed. IOTA, like the projects I described above, provides this differentiation.

The interesting thing about IOTA is that it is not based on blockchain. Instead, the developers created what is known as a “Tangle” – a direct acyclic graph (DAG) that requires new parameters to confirm at least two previous ones. Imagine this interdependence between transactions spread out along a timeline and create something like an entangled network (hence, a “tangle”).

Why does Tangle and not blockchain look like any other project? The answer is that the blockchain can be slowed down by the need to create, vote on, and validate new blocks. Eliminating these obstacles with Tangle means a faster and more scalable network, like the Nano, with no fees.

IOTA has also made waves by forging a large partnership with Dell Technologies. This agreement, known as Project Alpharium, will seek to analyze and record the credibility of data before an app uses it.

Long story short, forget about brand-name coins and think a little smaller and off the radar in 2022 if you want to triple your money.

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