There are thousands of cryptocurrencies from which to choose, varying from Bitcoin and Ethereum to Dogecoin and Tether, making it more difficult to get started in the world of cryptocurrencies. However, more investors are deciding to buy Cardano. Interestingly, investors who buy Cardano are vocal about its advantages, thus, encouraging others to buy Cardano.
As more investors decide to buy Cardano, we'll be looking at top-performing cryptocurrencies in February 2022.
Bitcoin was the very first virtual currency, created in 2009 under the pseudonym Satoshi Nakamoto. BTC, like the majority of cryptocurrencies, is based on a blockchain, that is a digital ledger that registers transactions across a network of computers. Bitcoin is kept safe and secure from fraudsters because updates to distributed ledgers must be disclosed by trying to solve a cryptography problem, a process known as proof of work.
Bitcoin's value has risen in tandem with its popularity. A Bitcoin could be purchased for around £370 in May 2016. On February 1, 2022, a single Bitcoin was worth nearly £28,000. This equates to a 7,600% increase.
Ethereum is a popular programming language because of the potential applications it provides, such as smart contracts that automatically run when certain criteria are met and NFTs. Ethereum is also a cryptocurrency and a blockchain platform (NFTs).
Ethereum's popularity has also skyrocketed. Its price increased by about 25,000 percent between April 2016 and February 2022, rising from around £8 to more than £1,980.
Tether is a stablecoin, that also means it is supported by fiat currencies such as the British pound, US dollar, and Euro and thus theoretically has the same value as one of those denominations. Tether's value is expected to be more consistent than that of other cryptocurrencies, which is why it is preferred by investors who are concerned about the excessive volatility of other coins.
Binance Coin is a cryptocurrency that can be used to trade and pay fees on Binance, one of the biggest cryptocurrency exchange platforms in the world.
Since its inception in 2017, Binance Coin has evolved beyond simply conducting transactions on Binance's exchange platform. It is possible to use it for commerce, payment processing, and even travel reservations. It can also be exchanged for other cryptocurrencies, such as Ethereum or Bitcoin.
It was around £10 in 2017 but had increased to nearly £277 by February 1 this year, a gain of around 377,000 percent.
USD Coin (USDC), like Tether, is a stablecoin that is backed by US dollars and aims for a 1 USD to 1 USDC ratio. USDC is a cryptocurrency that is based on Ethereum and can be used to conduct international transactions.
Cardano is well-known for being one of the first cryptocurrency projects to employ proof-of-stake validation. It has witnessed a massive price rise as investors buy Cardano ahead of other coins. It functions similarly to Ethereum in that it uses ADA, its native coin, to enable investors who buy Cardano to carry out smart contracts through decentralized apps. This solution reduces transaction time, energy consumption, and environmental impact by extracting the competitive, problem-solving aspect of transaction verification found in platforms such as Bitcoin.
In comparison to other crypto coins, Cardano's ADA token has grown slowly. In 2017, the price of ADA was around £1.5. Its price was at £77 on February 1, 2022, a rise of 5,150 percent.
Solana supported decentralized finance (DeFi), decentralized apps (DApps), and smart contracts. It uses a hybrid proof-of-stake and proof-of-history approach to handle transactions rapidly and securely. SOL, Solana's native cryptocurrency, powers the platform.
SOL's price was £0.57 when it first appeared in 2020. Its price has risen about 13,000 percent by the beginning of February 2022, to around £74.
XRP, a digital networking and payment systems company created by some of the same people as Ripple, could be used on that network to facilitate the exchange of many different currencies, including fiat currencies and major cryptocurrencies.
The price of XRP was £0.004 at the start of 2017. Its price hit 46p on February 1, 2022, with more than 10,000% growth.
Cryptocurrencies can use any number of blockchains. Polkadot (and its namesake coin) intends to bring them together by establishing a cryptocurrency network that connects the many blockchains and allows them to collaborate. This integration has sparked significant growth since Polkadot's inception in 2020, and it has the potential to transform how cryptocurrencies are managed. Between September 2020 and February 2022, its price increased by 565 percent, from £2.15 to £14.33.