What crypto projects to look out for during a bear market
Views 485 Submitted by September 8, 2022 Updated September 8, 2022 Content What are Tier XNUMX Cryptocurrencies?Tier XNUMX crypto projects versus Tier XNUMX crypto projectsBest Layer 1 Crypto Projects?Bitcoin (BTC)Ethereum (ETH)Left (LEFT)Avalanches (AVAX)Cosmos (ATOM)Polka dots (DOT)Kronos (CRO)Cardano (ADA)Binance Smart Chain (BNB)Near Protocol (NEAR)Phantom (FTM)Algorand (ALGO)Harmony (ONE)Elrond eGold (EGLD)Hedera (HBAR)Monero (XMR)Ripple (XRP)Aptos (APT)Final words
If you are looking for the best cryptocurrency to invest in during a bear market, you first need to understand how to distinguish crypto projects from each other. Many of the best cryptocurrencies to invest in are Tier XNUMX cryptocurrencies, which include platforms like Bitcoin and Ethereum. The problem with these platforms is that they were not designed with scalability in mind.
In recent years, developers have created layer XNUMX protocols that use layer XNUMX networks for consensus and security. With the advent of layer XNUMX protocols, layer XNUMX scalability issues have become less relevant. We will take a detailed look at some of the best Tier XNUMX cryptocurrencies to invest in during a bear market.
What are Tier XNUMX Cryptocurrencies?
The term "first level" refers to the entry level of a crypto ecosystem or platform. For example, Ethereum is currently considered a Tier XNUMX blockchain and Tier XNUMX projects have been placed on top of it for added functionality.
Tier 1 projects that can be placed on top of Tier XNUMX blockchains include everything from NFTs to Decentralized Finance (DeFi). In most cases, Layer XNUMX is the base layer and primary security provider for the entire network. During a bear market, when many cryptocurrencies and projects are falling in price, it is highly recommended to return to fundamentals by placing your investments in Tier XNUMX projects that have been popular for many years.
Tier XNUMX crypto projects versus Tier XNUMX crypto projects
A smart contract platform usually consists of three components, which are security, decentralization, and scalability. However, having all three of these components is very difficult (hence the blockchain trilemma). Many smart contract platforms have two of these components but are relatively weak when it comes to the third.
Platforms like Bitcoin and Ethereum are considered decentralized and very secure, but not always scalable. In comparison, a platform like Binance Smart Chain has issues with decentralization but is considered scalable and secure. Ethereum - due to its popularity for building DApps - had such difficulty scaling that they had to charge higher fees to cover the costs. In return, many users have chosen to invest in other platforms. (Note: at the time of this writing, Ethereum's long-awaited update, The Merge, was ongoing.)
As the first system built into the blockchain, Layer 1 is capable of performing standard functions such as executing transactions. While the following Layer 1 list includes over a dozen of the best smart contract platforms, Bitcoin is still the most widely used Layer 1 cryptocurrency. Layer XNUMX cryptocurrencies are protocols that are built directly on top of the layer XNUMX framework with the aim of solving cost and speed issues. Two examples of second layer blockchains based on Bitcoin are Bitcoin Lightning Network and Liquid Network. From the Ethereum side, examples of second-tier blockchains are Arbitrum and Polygon.
Best Layer 1 Crypto Projects?
If you want to know which cryptocurrency to buy now, in the following list of Layer 1 cryptocurrencies you will find 18 of the best Layer 1 crypto projects to invest in. Every coin on this list has proven to be popular among crypto investors.
Bitcoin is currently the most popular and widely used currency. It is considered one of the best cryptocurrencies to invest in due to its high value and long history, as well as its original status as the most visible form of digital cash.
Currently, Bitcoin has the highest liquidity of all cryptocurrencies, which means that no one has difficulty selling or buying Bitcoin. While bitcoin experiences volatility as part of a volatile asset class, it is among the most stable options available to investors, placing it among the top tier XNUMX cryptocurrencies. Please note that although Bitcoin operates on Proof of Work (PoW) consensus, it is considered the best cryptocurrency to invest due to its significant market share.
Ethereum is considered the very first smart contract platform and has the largest market capitalization of any such tier-one network. Therefore, it is considered to be one of the best Tier XNUMX crypto projects to date.
One reason for this is the Ethereum Virtual Machine (EVM), a decentralized computer that developers interact with when creating smart contracts. (Other Tier XNUMX networks on this list, such as Avalanche and Binance Smart Chain, are also EVM compatible.)
Due to this interoperability, many other cryptocurrencies are based on the code that Ethereum uses, which allows developers to implement their projects on numerous blockchains. Even though Bitcoin is the most common currency on this Layer 1 list, Ethereum has a strong ecosystem and is considered the most decentralized Layer 1 currency, making ETH one of the best cryptocurrencies to invest in.
As the most hyped project of 2021, Solana certainly has the potential to become one of the best Tier XNUMX crypto projects of all time due to its unique consensus mechanism. Transactions are time stamped when they are placed in a brand new block on the chain. Along with support for smart contracts and a range of DApps, Solana is considered a high performance blockchain. Its goal is maximum efficiency, which makes Solana one of the best smart contract platforms.
It can handle a maximum of 65 TPS, which is considered one of the fastest in DeFi. This has been one of the leading factors along with the “Ethereum killer” narrative that has boosted the native SOL token by 000% in 17055. It has since retreated to local lows, making it attractive and accessible to investors who were previously interested in Solana.
Avalanche is another EVM compatible blockchain that aims to solve the scalability issues that Ethereum has faced. This platform uses the C chain as its own network chain, similar to the EVM. Using the C-chain, developers can create smart contracts built with Ethereum in mind, making Avalanche one of the most versatile cryptocurrencies on this Layer 1 list.
Chain C consists of two additional blockchains: the Platform Chain and the Exchange Chain. When these chains work on specialized tasks, the network becomes more efficient and scalable, which is why Avalanche is one of the best Tier XNUMX cryptocurrencies. In addition, the network has expanded to include subnets that work similarly to sharding. Ethereum 2.0. Avalanche is on track to achieve its goal of becoming a global asset exchange.
Cosmos is another Ethereum compatible platform. It offers a native token known as ATOM. This platform is application agnostic, which means it is fully compatible with the Ethereum network and similar EVM-compatible ecosystems. The interchangeability of the platform makes it one of the best cryptocurrencies to invest in. Cosmos focuses on providing features that are not available on Ethereum.
Because developers can run Ethereum applications on the Cosmos platform without having to rewrite code, it has proven popular with developers and investors alike. In addition, cross-chain security will be implemented in the network, which will expand the possibilities of using ATOM. Cosmos aims to be at the forefront of decentralized finance, which makes this currency unique among other cryptocurrencies on this Layer 1 list.
Polka dots (DOT)
Polkadot, an open source blockchain, allows individual blockchains to become fully interconnected through the creation parachains. Each chain built on the Polkadot platform has a modular structure that is ideal for developers. Polkadot focuses on transparent governance, upgradeability, and scalability, the latter of which is missing from many of the cryptocurrencies on this Tier XNUMX list.
Polkadot's native token is known as DOT, which is used to incentivize usage within the Polkadot ecosystem. One of the notable benefits of using this platform is that the developers share a common security system, which means that they do not need to take steps to bring in validators or miners to ensure security. Polkadot ranks among the best Tier XNUMX cryptocurrencies due to its large market cap, which positions it as a Top XNUMX coin.
Cronos, an ERC-20 token listed on the Ethereum blockchain, is the main coin associated with the Crypto.com exchange. The purpose of this coin is to accelerate and stimulate the mass adoption of cryptocurrencies, making it one of the best Tier XNUMX cryptocurrencies. CRO Offers High Interest Rate APY For Staking through the exchange.
Members also receive relatively high discounts on exchange fees. If you choose to participate in a syndicate, you will be able to purchase many cryptocurrencies at a 50% discount. Keep in mind that holding a certain amount of CRO currency gives you access to additional features and benefits, which mainly include high interest rates when betting on the coin. Some investors consider CRO to be one of the best cryptocurrencies to invest in because of its reward system.
Cardano aims to compete with Ethereum by focusing on scalability and ease of use. The scalability of the platform is centered around two separate layers of technology, which include technologies for value transfer and ledger balance tracking.
Its native token, ADA, has skyrocketed in price to become one of the best Tier 22 cryptocurrencies since the Alonzo hard fork update, which introduced smart contract capabilities for developers to create DApps and NFTs. On September XNUMX, the network is waiting for the next update. The Vasil Hardfork Upgrade improves network speed and scalability, bringing Cardano one step closer to rivaling Ethereum.
At the moment, Cardano's supply is around 33,8 million. If you are wondering which cryptocurrency to buy now, then ADA is a great investment as it can be used as a hedge against Ethereum.
Binance Smart Chain (BNB)
Binance Smart Chain (BSC) is another EVM compatible platform. It offers low fees of around $0,15 per transaction and discounts on its native exchange. While there is some centralization on the BSC network, its native BNB token enables fast and affordable transactions on a secure network.
Since BSC is highly scalable, this makes BNB one of the best Tier XNUMX cryptocurrencies. Some investors believe that BSC offers better performance than Ethereum, despite the fact that it relies on the Ethereum developer community. Along with the transactions available, BSC has a fast adoption rate and also supports bridging, which facilitates the migration of tokens.
Near Protocol (NEAR)
The NEAR protocol is an open source blockchain that supports the creation of DApps. NEAR is secure, highly capable and intuitive.
This crypto platform uses sharding technology to provide infinite scalability. Smart contracts are fully compatible and gas fees are significantly lower than on Ethereum. NEAR also works as a storage tier that developers can pay to keep their DApps on the blockchain.
It also has an Ethereum compatible layer XNUMX scaling solution called Aurora. It relies on the speed and scalability of the NEAR blockchain spanning Ethereum. This allows developers to create Ethereum compatible DApps at a lower cost without changing the codebase. It also makes it easier to scale without having to worry about expensive gas fees and other disadvantages that come with Ethereum.
This makes NEAR attractive to investors as the protocol implements new features, such as the USN stablecoin, which provides additional uses for NEAR.
Fantom has been called one of the best Tier XNUMX crypto projects due to its goal of being the “nerve system” for all smart cities built in the future. With well-known developer Andre Cronje Ponce at the helm of the project, many investors were excited about Fantom's advanced distributed ledger technology, which can power a range of smart services.
In particular, Fantom uses Directed Acyclic Graph (DAG) technology to provide additional scalability as well as facilitate instant cryptocurrency transactions. The inclusion of a high-performance virtual machine means that smart contracts are easy to create and implement. The Fantom Foundation plans to release its Fantom Virtual Machine (FVM) next year, which will have Solidity compatibility and parallel processing.
Currently, the FTM token can be used for governance, staking, and paying fees. Market capitalization FTM is over $675 million and has been relatively inexpensive since its crash earlier this year.
Algorand is a popular blockchain that was founded in 2017 but only launched its ALGO token at the end of 2019. Algorand is based on the mechanism PoS and is considered more secure than some other PoS platforms, making it the best among Tier XNUMX cryptocurrencies.
Validators on the Algorand platform are randomly selected, making it almost impossible to predict who will be the best validator. The main benefits of investing in ALGO and using the Algorand platform include complete decentralization, less time required for verification, low gas fees, an experienced team, and low potential for hard forks.
Harmony One is a decentralized platform with a focus on combining decentralization and scalability. In 2021, Harmony has been among the best Tier XNUMX crypto platforms due to the skyrocketing popularity of DApp GameFi, DeFi Kingdom. Their native ONE token cannot be mined, it can only be staked to receive a reward. To do this, you need to install the Harmony One extension on your web browser, which allows you to make transactions.
Harmony One has eliminated some of the shortcomings that exist in blockchain technology and has already created an extensive list of partnerships in many industries. The market capitalization of Harmony One is over $250 million.
Elrond eGold (EGLD)
Elrond eGold is a popular smart contract platform that aims to provide high scalability through the use of sharding technology. The native token of this crypto platform is EGLD, which was originally launched on Binance DEX. Elrond eGold is believed to be about 1 times more scalable than Ethereum.
If you are wondering which cryptocurrency to buy now, EGLD is a great option due to its fast transaction speed, excellent network security, and strong DApp ecosystem. The market value of EGLD is almost $1,4 billion, one coin is worth about $60, and the circulating supply of EGLD is over 22 million.
Hedera is a carbon negative network that acts like a distributed ledger for transaction fees and payments of all types. This includes in-app payments, micropayments, and even network security. It uses a technology called Directed Acyclic Graph (DAG). This technology allows the network to achieve lightning-fast transaction speeds of up to 10 transactions per second (TPS) at a low fee of just $000 per transaction.
Hedera is also 885 times more energy efficient than Bitcoin. Users burn only 000 kilowatt-hours of energy per transaction, compared to Bitcoin transactions that consume 0,001 kilowatt-hours of energy. Due to this carbon negative nature, many energy conservation conscious people consider Hedera to be one of the best Tier 885 crypto projects in the near future when it becomes mainstream.
Monero is a popular coin that provides users with complete control over transactions. The XMR token is also considered to be fully fungible. If you decide to invest in the Monero platform, you will find that transactions can be linked and addresses cannot be traced.
This platform has no block limit and is considered to be dynamically scalable. In the event Monero ever runs out, a continuous supply of 0,3 XMR will be available to further incentivize miners. Users can make transactions visible to other users, which means that Monero can be inspected by officials for any sign of cheating.
Ripple is a unique crypto project that is equipped with a new payment protocol designed to make international payments easier. Its XRP token acts as a cryptocurrency and also powers this digital payment network that services financial transactions.
The two main reasons to use Ripple as a Tier 35 crypto project are affordability and a high $XNUMX billion market capital. As a payment processor and currency exchange, Ripple uses XRP to facilitate transactions and competes with traditional payment confirmation and money transfer systems such as Swift, ACH and Payoneer. This makes XRP an investment with huge potential if it manages to win market share from traditional payment companies.
Aptos is a brand new blockchain that is considered one of the best as it was created to compete with other top tier 1 crypto projects like Solana. Cryptocurrency promises users increased scalability, security, usability and reliability compared to other Layer XNUMX.
While Aptos is still in the early planning stages, experts are already starting to talk about the Aptos blockchain as it has raised millions of dollars from investors. The blockchain is based on the Diem blockchain initiative (from Meta), which has been abandoned.
The network plans to launch its native APT token in Q4 2022, making the launch of Aptos highly anticipated. This is a project you might want to watch. If the launch is successful, we may see an APT explosion similar to what happened to SOL earlier.
Now that you have some understanding of the best smart contract platforms and Tier 18 cryptocurrencies available, you have a better idea of which crypto projects are fundamentally strong and worthy of your investment. Each of the 1 projects detailed in this Layer XNUMX list has proven to be popular with crypto investors and stands out for specific reasons. We hope that through this educational article on the best Tier XNUMX crypto projects, you will be able to make investment decisions after doing your own research.
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