The crypto market is growing at a fast pace. According to coinmarketcap, the cryptocurrency market has an estimated value of US $ 2.6 trillion, over 13,000 crypto assets, and has 308 exchanges.

Investors are considering the cryptocurrency market to diversify their portfolios, earn more, and minimize risk. Along with stock and real estate, it is good advice to invest in crypto, especially in alternative coins that can increase in value.

There is also a category of people who wants to buy cryptocurrency, hoping it will become a universal legal tender in the future. But, irrespective of the reason, it’s no longer news that people are looking to invest in digital currencies.

However, the first challenge in settling for any form of crypto aside from financial limitations is the huge number of coins available.

Of course, there is the pioneer, Bitcoin (CRYPTO: BTC), with satoshis making it available in smaller quantities to investors. But in the past years, there have been hundreds of new crypto entrants. In addition, many businesses are considering receiving payment for goods and services using digital coins and leveraging blockchain technology to better serve customers.

Dogecoin (CRYPTO: DOGE), Tether (CRYPTO: USDT), and Ethereum (CRYPTO: ETH) are some viable alternatives to Bitcoin (CRYPTO: BTC). These digital coins are called decentralized finance DeFi for short.

In the future, cryptocurrency might operate fully without interference from central banks and other governmental authorities. There will be P2P networks for varied forms of financial transactions. For example, the real estate world and cryptos are already linked; the next level of evolution might be buying your new home using BTC, DOGE, USDT, etc.

So, with thousands of new crypto projects, what are the altcoins to look out for in 2022? Some of these new projects are decentralized others are not. Some welcome community input before implementing new protocols; others don’t. In all, there are over 13,000 digital coins you can invest in.

With 2022 upon us, are you one of the many smart investors looking to invest in cryptocurrencies but not knowing what project to join? You are in luck; our in-house crypto experts have highlighted 10 crypto projects with huge potential for the new year. 

But first:

Are altcoins worth it?

There is plenty of dollars to be made from buying and selling altcoins, but like all forms of investment, you can also lose your money. In addition, altcoins have a unique set of risks, unlike traditional investing instruments.

First, altcoins have highly volatile prices. Most newbie investors are usually not mentally equipped to deal with this volatility.

In addition, there is little or no regulation in the world of altcoins. When a traditional company wants to sell its shares to the public, it is mandated by law to register the IPOs with the SEC. Altcoins offerings, however, are not obligated by law to register with the SEC. As such, there are many cases of fraud in the crypto market. Scammers regularly con investors with fake crypto projects.

This is not to discourage you from altcoins. On the contrary, they represent an excellent avenue to diversify your investment, but you should tread carefully.

Why altcoins fall when bitcoin falls

Are you an ardent follower of the crypto market? Then you must have observed that every crash in Bitcoin price triggers a corresponding crash in the prices of altcoins. However, the opposite also holds true; altcoins rally and shoot up in price for every bullish bitcoin run.

Why?

What makes BTC important such that it influences the performance of an entire industry? If we are to make a close comparison with the stock market, it is absolutely ridiculous to think that Microsoft stock would crash because of Nasdaq’s stock price.

Why is it so in the crypto market?

Bitcoin is the first crypto ever

BTC is the pioneer of the crypto industry. As such, BTC has cemented its place as a trusted store of value that can withstand the rigors of global demand and supply. This has increased its popularity astronomically.

Irrespective of what altcoins evangels say, BTC brought other cryptocurrencies to the mainstream. The simple technological concept behind the success of BTC is well-received by the public. This has driven its price to over $ 50k+ and counting.

The success of BTC paved the way for the altcoins industry. Today, almost everyone who owns a form of crypto owns some quantity of BTC. It is also important to note that, to date, BTC is the only crypto whose creator is completely anonymous.

Many investors regard BTC as a reserve currency for cryptos

Bitcoin’s pioneering status often leads investors to consider it as the reserve currency of the crypto market. This is similar to the role the US dollar plays in the global stock exchange market.

In addition, many cryptocurrency exchanges do not offer trading crypto to fiat services due to regulatory and compliance issues of many countries. As a result, investors invest in BTC, trade it for altcoins, and vice versa to make profits.

Many crypto traders do not compare the value of altcoins to a fiat currency; instead, they compare with BTC. For them, it is the market pair that matters most. Therefore, it is not hard to see the market value of altcoins take a dive when BTC is on a bearish run.

Bitcoin has by far the most secure network

BTC utilizes a proof-of-work mechanism ensured by over 18 million miners participating in the blockchain’s decentralized network. This number of miners means a very high level of network decentralization, ensuring top-notch security of the BTC payments system.

Many altcoins are Bitcoin wannabes

Due to BTC’s increasing value and popularity, there has been an increase in the number of Bitcoin clones in the crypto market. For instance, consider Litecoin, one of the first altcoins to gain public adoption uses Bitcoin code. It aims to become a faster and lighter version of the pioneer. Today, there are many other clones such as Bitcoin SV, Bitcoin BEP2, Bitcoin Cash, etc.

While these cryptos aim to be an upgrade on Bitcoin, they follow its lead.

10 altcoins to look out for in 2022

Polkadot

Polkadot is unique. It integrates different blockchains by creating crypto interphase that connects and allows them to work together. It performs reasonably well in 2021. Industry experts believe that this digital coin will sustain the upward trend for many years ahead. Hence, it is an ideal crypto investment.

Tether

As the world’s most stable digital currency, Tether is well-placed to be one of the best altcoins that will explode in 2022. So are you a risk-averse investor looking for a safe bet in the volatile cryptocurrency market? Invest in Tether.

Chainlink

This is an altcoin many investors have been eyeing for quite some time. Its usability outside the cryptosphere, combined with its DeFi adoption, makes it an excellent investment choice.

Stellar

This coin is worth a mention. It has one main objective - connecting financial institutions and delivering low-cost transactions leveraging blockchain technology. The coin’s unique network setup and a lack of legal issues are some of the reasons it had an excellent 2021. This trend will likely continue in 2022.

Cardano

Cardano has somehow worked its way into many investors’ eyeballs worldwide with a flexible network, reduced energy levels, and fast transactions. However, what really makes it an excellent altcoin to watch out for is its relatively modest growth over the years compared to other crypto projects.

Binance coin

Like Ethereum and Bitcoin, Binance has gathered steam in a very short time. It maintains a hard limit on the total number of tokens in circulation. As a result, it has experienced an exponential price increase in 2021. Crypto experts expect this digital currency to explode in 2022. 

Solana

This currency is worth a mention for many reasons. One, it allows users to deploy smart contracts and use decentralized apps (DApps). Second, it has the potential to power decentralized finance, which made headlines in 2021. Third, in 2021, this coin reached its all-time high. As such, it is a worthy investment.

Uniswap

If you invested in Uniswap in early 2021, you would be aware of the huge profits Uniswap brought in. There are two main reasons why this altcoin will explode in 2022 - utilizing and delivering liquidity.

Ethereum

This is the second-largest digital currency by market capitalization and definitely one of the altcoins to look out for in 2022. Ethereum gained worldwide popularity because of its smart contract platform used for powering decentralized apps. Ethereum astronomical increase over the years is another reason why you should consider investing in the coin in 2022.

HBAR (Hedera Hashgraph)

This altcoin often called the “trust layer of the Internet,” is a public network that allows individuals and businesses to build decentralized applications (dApps). This coin is designed to address teething issues such as instability and slow performance with old cryptos like Ethereum and Bitcoin. It utilizes a hashgraph consensus mechanism that is very efficient and can output over 10,000 transactions/seconds.

Initially launched in 2019, Hedera Hashgraph is not a newcomer to the cryptocurrency world. However, this digital coin is a prime example of an altcoin set to explode in 2022. HBAR is the platform’s native currency. It plays a dual role on the platform. First, this coin powers Hedera Hashgraph’s services such as file storage and smart contracts. Secondly, it secures the platform, as investors can stake their tokens to maintain HBAR integrity.

Hedera Hashgraph is governed by a consortium of 39 leading global enterprises. As such, it has a solid technical foundation, excellent utility, and a high market capitalization. These features make it a promising digital currency. 

Conclusion 

The altcoins on this list are some of the best to look out for in 2022. They are also reasonably safe bets for newbie investors. Most of these altcoins have their ecosystem, which improves their chances of becoming far more valuable in the nearest future. 

However, please note that crypto investment comes with plenty of risks. Since you are considering diversifying your portfolio with cryptos, take some time to learn about the possible downsides and advantages.

By discussing the top 10 altcoins that may explode in 2022, it becomes easy to pick one or more for investment. Understanding the crypto ecosystem is also a good start. With this knowledge, it becomes easier to spot other cryptos with huge potential for the future. Altcoins is an investment option that is worth considering. Pick one or more cryptos, and add them to your portfolio today!