This article will primarily focus on some of the best NFT cryptos to buy in 2022, and we’ll be throwing some light on why some of the cryptos listed can be the optimum choice for your investment.
Table of Contents
- Bitcoin comes top on the list of cryptocurrencies that you can buy from BYDFI.
- Ethereum is considered the second most likable cryptocurrency by most traders and is a decentralized, open source blockchain with smart contract functionality.
- Flow is one of the fast and scalable blockchains which was developed and created by the same development team who created the popular CryptoKitties game.
- The Graph crypto is a decentralized protocol that is used for indexing and querying data from blockchains.
- The Frax Share is a volatile governance token that is based on Chainlink and Uniswap oracles.
5 NFT Cryptos to Buy in 2022 from BYDFI
Bitcoin is among the first and also most widely recognized cryptocurrencies. It enables peer-to-peer exchange of value in the digitally through cryptography and stores the transaction data in the blockchain.
A blockchain is used to achieve a global consensus on the state of a periodically updated public transaction ledger and a decentralized protocol.
In order to be more practical, Bitcoin is a form of digital money that can be transferred globally without the need for a centralized intermediary, exists independently of any government/financial institution/state.
Moreover, Bitcoin’s regulatory status varies from region to region and continues to resolve. It is one of the most commonly regulated as either a commodity or a currency.
Bitcoin’s cryptocurrency is BTC, a virtual currency that is designed to act as money and also as a form of payment outside the control of any one group, entity, or person, and thus it removes the need for any third-party involvement in financial transactions.
- Bitcoin is decentralized, i.e., nobody owns or controls the Bitcoin network. Instead of that, the Bitcoin network consists of willing participants who agree to all the rules of a protocol.
- All of the Bitcoin transactions are recorded on a public ledger known as the blockchain.
- All the payments go directly from one person to another, eliminating the need for a ‘trusted third party to act as an intermediary.
- Anyone can use the Bitcoin network.
- All the transactions are recorded and are available publicly for everyone to see.
Ethereum is an open-source, decentralized blockchain with smart contract functionality. Ethereum came into the picture in the year 2013 by programmer Vitalik Buterin and some other founders, including Charles Hoskinson, Joseph Lubin, Gavin Wood, and Anthony Di Iorio.
Moreover, Ethereum allows anyone to deploy smart contracts and create or interact with decentralized applications.
In addition to this, it allows all the users to create and exchange NFTs, which are like unique tokens representing ownership of a privilege or an associated asset, as any number of institutions recognize it.
Furthermore, many other cryptocurrencies make use of the ERC-20 token standard on top of the Ethereum blockchain and have also utilized the platform for initial coin offerings.
Further, as we know the ETH Merge is right around the corner, it might create a huge supply shock in the market, creating a really good investment opportunity.
ETH or Ether is Ethereum’s cryptocurrency which is the main fuel that runs the network. It is used to pay transaction fees for any transaction that is made and also for computational resources executed on the Ethereum network.
It is more accurate to consider Ether as the “gas” of the network rather than just thinking of it as a cryptocurrency of Ethereum. This is because ether is primarily used to pay the gas fees for the Ethereum Network (things will change after the Merge).
- Ethereum allows the deployment and development of smart contracts.
- It also provides the underlying technology, software, and architecture that understands smart contacts and hence enables people to interact with them.
- Consolidated applications, also known as decentralized applications (Dapp), can be created through Ethereum.
3. The Graph Token
The Graph Token is a protocol for accessing and indexing blockchain data. It indexes blockchain records from networks such as Ethereum in a similar way as Google indexes the web.
The Graph is like a global data layer that runs on top of storage networks and blockchains, acting as an organizing and uniting factor for the decentralized movement.
In layman’s terms, we can say that The Graph organizes all the data and further makes it easy to retrieve it from the blockchain.
The Graph Network’s native token is GRT which is used to allocate various resources that are used within the Graph ecosystem.
It is a blockchain data querying protocol that implements everything so that it can be used to pay the query fees, which is further used to reward validators.
Therefore, if you are staking GRT, then it can help you earn more of the token than the actual GRT tokens you hold.
Moreover, the indexers always compete among themselves and stake the GRT (The Graph Token) to run a graph node.
- The Graph or GRT deals with decentralized apps. Moreover, it allows all the developers to switch between dApps effortlessly.
- Querying blockchain data can provide great insights on what’s happening on-chain, hence, graph might be a really great project here.
- Further, given the present market dynamics, Graph doesn’t seem to have any major market competitors.
Flow is known as a high-performance, developer-friendly, fast, and decentralized blockchain specifically for creating crypto games, NFTs, and apps.
Unlike all the general purpose blockchains, Flow is built to efficiently scale for billions of people that are interacting with NFTs like in-game items.
Further, it believes that blockchains are the backbone of the digital economy and provide all the necessary tools for developers to build it.
Flow can be regarded as a project in the right place and at the right time as Dapper Labs created it. This is the same team that was behind NBA Top Shots and the not-so-famous CryptoKitties blockchain game.
Further, Dapper Labs recently came out with the Dapper Wallet that allows you to interact, buy, sell, and store NFTs on the Flow blockchain.
The native currency for the Flow network is ‘FLOW.’ It is the default token which means that it is used for all rewards, staking transactions, and protocol-level fee payments.
Moreover, FLOW also implements the standard Flow Fungible Token interface to which all the other on-chain fungible tokens conform.
- Flow has been designed keeping all the developers in mind. It includes features like Upgradable Smart Contracts and Flow Emulator, which are helpful for developers.
- It has a unique design that allows the network to scale to serve billions of users and also without losing decentralization.
- It is designed carefully for mainstream consumers. Moreover, it has payment onramps, thus enabling a fast and frictionless payment path for all Fiat currencies.
- Cadence is a safe and easy programming language for crypto assets that is used to write smart contracts in the Flow Blockchain.
5. Frax Share
Frax Share is the first fractional-algorithm stablecoin. Its main innovation was made using an algorithm and a crypto-collateral to help stabilize its price.
Frax is open-source, entirely on-chain, permissionless, and currently implemented on Ethereum. The goal of the Frax protocol is to provide decentralized, highly scalable algorithm money instead of fixed-supply digital assets like BTC.
The Frax Share token, or FXS, is a non-stable utility token in the protocol. FXS is meant to be volatile, holding rights to governance and all utility of the system.
Moreover, FXS can be used for several purposes on the platform, like to accrue fees and also for the excess collateral value and seigniorage income. Furthermore, the FXS token is majorly available on most of the exchanges and DeFi platforms like DEXes and Uniswap.
- The Frax Share is mainly focused on offering highly algorithmic, scalable, and decentralized money by replacing fixed-supply cryptos.
- Its creators are highly promoting it as a unique design stablecoin because FXS is partially backed by the collateral and supply algorithm.
- Frax is a community-governed protocol with a highly autonomous and decentralized approach.
- Moreover, it has no active management in order to manage this platform. Hence, FXS token holders play an important role in its progress.
To learn more about the Frax Protocol, you can read our in-depth article Frax Protocol.
Bitcoin might be the crypto OG and the obvious investment opportunity in the longer timeframe, regardless of the timeframe. However, given the downturn of the entire market, this might be the best place to accumulate more of it for a longer term.
Further, GRT, FLOW, and FXS are some of good projects in the crypto market that deserve attention and might turn out to be a really great oppotunity, given the timeframe is long enough.
Frequently Asked Questions
Is Ethereum a good investment?
As with any kind of investment, the answer to this question depends on your goals, risk tolerance, and financial objectives. The cryptocurrency ETH can sometimes be volatile, which can further put capital at risk, but it can also be beneficial. Ethereum is certainly worth researching as an investment because of the various emerging and also existing innovative technologies that the organization of Ethereum uses.
How does one acquire bitcoins?
Bitcoins can be acquired through the following ways:
* It can be acquired as a payment for goods and services.
* It can be purchased at a Bitcoin exchange.
* You can also exchange bitcoins with someone near you in order to acquire them.
* Moreover, it can also be earned through competitive mining.