The growth of the crypto market has accelerated rapidly in recent years. As of February 2022, there are now over 10,000 tradable cryptocurrencies.

Would you also like to get into crypto trading? In our cryptocurrency CFDs to trade in South Africa guide, you can find out which cryptocurrency is the best and which cryptos have great potential. 

Let’s start with the best tips and tricks for trading cryptocurrencies.

Cryptocurrency recommendations & tips

Cryptocurrencies are used for many different areas of application, which is why you should find out more about the project before investing. 

* Our recommendation: Newcomers to the crypto world should limit their initial investments to established cryptocurrencies, as the crypto market is very volatile, and there is always a risk.
* Product recommendation: At AdmiralMarkets, you can trade CFDs on cryptocurrencies.
* Tip: You need a wallet to buy real cryptocurrencies.

In addition, Bitcoin is no longer alone on the crypto horizon. Cryptocurrencies like Ethereum and Solana are hot on the heels of BTC and have great potential.

Altcoin prices, in particular, can seemingly explode out of nowhere and rise by several thousand percent. That is why the possible returns here are enormously high.

You can find out which altcoins are available in the cryptocurrency list below.

Important: The world of cryptocurrencies and the metaverse are still in their infancy. The price developments of the cryptocurrencies depend on the future success of the projects and are difficult to predict.

Well-known cryptocurrency CFDs to trade in South Africa

What is the best cryptocurrency to buy for yield in South Africa?

Next, we look at the most well-known cryptocurrencies, as some currencies will be indispensable in the crypto market in 2022.

Coins with the largest market capitalization are an excellent place to start, especially for investors interested in investing in cryptocurrencies.

BITCOIN (BTC)

Bitcoin is the number one among cryptocurrencies. No cryptocurrency is so well known and so popular among investors.

Since Bitcoin is also expected to develop positively in the future, beginners in particular now want to buy Bitcoin. 

Meanwhile, even savings plans on Bitcoin, similar to ETF savings plans, are trendy.

In 2021, Bitcoin hit a new all-time high, trading at just under $70,000 per coin. Analysts unanimously share strong views on Bitcoin’s future, some setting incredible price targets of up to $500,000 for a single Bitcoin.

However, Bitcoin has one disadvantage: The cryptocurrency has a horrible environmental balance since the energy required by the network is extremely high.

ETHEREUM (ETH)

Ethereum is the second largest cryptocurrency on the market. While it was still trading at around $125 in 2020, ETH’s price rose to an all-time high of just under $5,000 by fall 2021. So, 2022 could also look very good for Ethereum, especially considering the development of the network.

Ethereum is the preferred network for decentralized applications.

In addition, the Proof-of-Work consensus mechanism will soon be replaced by Proof-of-Stake, which should ensure faster and more secure transactions.

TETHER (USDT)

Since Tether is a stablecoin, the price is stable. However, it is not suitable for high-yield investments since the value of the cryptocurrency is always exactly one US dollar and does not grow. USDT is mainly used to buy cryptocurrencies such as Bitcoin.

Investors can use Tether to store their money in the crypto world without fear of price collapses.

BINANCE COIN (BNB)

Binance is the world’s largest cryptocurrency exchange. The native Binance Coin (BNB) is at the forefront and ranks fourth among the largest cryptocurrencies.

A Binance Coin investment can be worthwhile, especially for people who trade other cryptocurrencies: Investors who pay transaction fees with BNB receive discounts.

With quarterly coin burns, the supply of BNB is additionally reduced, which should increase the price of Binance Coins in the long term.

SOLANA (SOL)

Solana is currently the seventh largest cryptocurrency in the world, with a market cap of over $34 billion. In 2021, it went from less than $2 to an all-time high of $260. SOL is the native token of the Solana blockchain network, which is said to have great future potential.

The blockchain is increasingly praised for its high transaction speed. Should Solana continue to expand its presence, SOL holders could look forward to a hefty return.

CARDANO (ADA)

Cardano, a promising competitor to Ethereum, is a blockchain platform used to run smart contracts.

The cryptocurrency is one of the most environmentally friendly digital tokens and has excellent growth potential, especially in 2022. The reason for this is the upcoming release of Hydra, a scaling solution for the Cardano network.

This should enable up to one million transactions per second.

The further developments of Cardano are considered a good sign: The quality of the network is being improved to remain competitive in the future.