The 7 best cryptocurrencies of this 2022

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The 7 best cryptocurrencies of this 2022

The cryptocurrencies continue to rise and invest in the decentralized finance keep reporting Benefits to investors who are patient in a market where volatilitythe complexity and the lack of transparency.

Virtual currencies are an investment product. Its greatest attraction is that there is no bank or intermediary in investments. Rather, they are represented by a non-replicable string of code that is transferred between users.

This monetary trend is ahead of the laws of the countries. In fact, in Spain there isn’t one yet specific law about virtual currencies. Its regulation is addressed through the regulations on the prevention of money laundering and the fight against tax fraud.

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This type of investment is so far ahead of the administrations that this year is the first that the Treasury requires the return obtained through investments in virtual currencies to be declared in Income 2021 if it is greater than 1,000 euros. Specifically, it has enabled box 46 for the taxpayer to indicate the balance they have in bitcoins or other cryptocurrencies.

These are the 7 more cryptocurrencies valued at Spain East 2022 according to your capitalization market on April 21.

Bitcoin is the queen of all cryptocurrencies. It was the first (2008) and is the best known on the market ‘blockchain’. Although its price is still below its historical highs, it benefits from the greater market capitalization and it is among the most traded cryptocurrencies, which ensures liquidity for investors because it provides higher returns in a bull market. Also, it is a good choice when it comes to retail and institutional use.

Most ‘altcoins’, which are higher risk investments, will follow the trend of the Bitcoin price. In other words, if Bitcoin does poorly, it is likely that the rest of the cryptocurrencies will also suffer.

ethereum has seen massive gains since its introduction in 2015 on the ‘blockchain’. It is the currency (and the platform) that popularized smart contracts in the cryptocurrency market. These types of contracts are intended to provide greater security than traditional contract law and reduce transaction costs associated with contracting.

Currently, the Etherthe currency of Ethereum, is behind Bitcoin when it comes to market capitalizationbut it has also become one of the most discussed cryptocurrency projects in the world.

A consortium of some of the biggest names in the industry, including Microsoft, Intel, Chase and JP Morgan, is building software versions of Ethereum prepared for the market. With the momentum and market excitement behind the Ethereum project, investors should consider it as part of a cryptocurrency portfolio.

NFTs are built on Ethereum

Furthermore, most of the non-fungible tokens (NFT) are built using the Ethereum network. Therefore, an influx of NFT buyers could increase the price of Ether.

Solarium is one of the main competitors of ethereum and has experienced exponential gains in 2021. Many investors are using the Solana block system for both NFT as for decentralized finance because it has billions of dollars in cryptocurrencies locked in its ‘blockchain’, which makes it one of the largest cryptocurrencies.

The main advantage of Solana over other ‘blockchains’ of smart contracts it’s their focus on scalability. Solana uses a “proof of stake” consensus model along with proof of history to process thousands of transactions per second. Additionally, transaction fees on Solana are around 99% less expensive than Ethereum, making it a great option for retail traders who don’t have a lot of capital to invest.

Cardano is a public ecosystem of blockchain just started offering smart contracts.But it has a specific purpose: it is a cryptocurrency focused on the specific needs of developing countries.

Frederik Gregaard, the CEO of the Cardano Foundation, which is the Swiss body that governs the Cardano ecosystem, said that they are focused on ensuring “maximum adoption and utility” to reach people in those countries. Additionally, it uses the proof-of-stake blockchain and is considered a greener alternative to proof-of-work algorithm protocols.

Polkadot is a cryptocurrency network that enables distributed computing. This is possible because Polkadot consists of a central relay chain that coordinates “parachains”, which allow developers to build chains for special purposes, e.g. social media, fintech and other tasks. These parachains are then linked to the central relay chain and can interact with each other.

This network of virtual currencies also includes the chain governance, allowing users to have more say in the future development of the network. The network has updates without forking.

chain link is the cryptocurrency used by the Chainlink network, which like Cardano aims to optimize smart contracts. Specifically, it offers sources of reliable information and of high quality to companies so that they can use that information to base millionaire contracts. This exchange of information can be from financial market information to the weather and even sports scores.

Smart contract applications within the ‘blockchain’ world generally rely on different data sets for validation of real-world data and typically use networks of Oracle For this end.

uniswap it is a decentralized application Ethereum-based that allows users to make automatic transactions between tokens in ethereum through liquidity pools. In fact, it has two main services: delivery and utilization of liquidity. Uniswap was launched in the framework of decentralized finance and created the UNI coin in 2020.

Since it was recently positioned as the first decentralized exchange which allows margin trading and leverage, market analysts believe this price is below its expected growth potential.

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