Cryptocurrency had a fantastic year in 2021. And although the era-defining events propelled the assets into a good spot, the start of 2022 was anything but joyous for the assets. In spite of the fact that the market has remained sideways, all but the most optimistic cryptocurrency players have had their profits wiped.
Yet, investors’ confidence was not damaged by the choppy market. Over the past week or so, CoinSwitch, Kuber, and other leading platforms saw a significant increase in activity. To top it all off, the year 2022 will be an important one when it comes time to implement crypto.
What are the benefits of investing in cryptocurrencies in 2022?
- Cryptocurrency is becoming more useful in the real world than ever before
Cryptocurrency prices used to be driven mainly by curiosity in the early days. Investors simply got into cryptocurrency because they thought it had promise, not because it had any actual purpose.
The real-world usefulness of major cryptocurrencies such as Bitcoin and Ethereum is beginning to alter that, although El Salvador recently made news when it became the first Latin American country to legalize Bitcoin as a currency.
Decentralized finance (DeFi) and non-fungible tokens (NFTs) are two areas in which Ethereum has gained interest recently (NFTs). Since the majority of NFTs are housed on Ethereum’s blockchain, the current NFT boom may be beneficial to Ethereum.
In the last year, DeFi has also grown tremendously. A total of nearly 94 billion dollars has been set up for DeFi projects, an increase of around 31 billion dollars from only a year earlier. It’s possible that Ethereum might grow as a result of additional DeFi applications being launched on the platform.
- The major cryptocurrencies are steadily increasing in value
Even though new cryptocurrencies emerge on a daily basis, the industry’s top players are consolidating their positions and resolving obstacles that have hindered their growth.
For example, Bitcoin has often been slammed for its high energy use and potential environmental impact. As a result, it’s difficult to scale because of its slower transaction rates.
These issues are being addressed by several cryptocurrencies, though. In the case of Ethereum 2.0, for example, this is a transitional period. As a result, not only will it run more quickly and more affordably, but it will consume 99.99% less energy. Cardano is also said to release its Hydra upgrade, which will greatly increase its transaction speed, by the end of the year or at the beginning of 2023.
- Within the cryptocurrency industry, there are now more established leaders
Choosing which cryptocurrencies to invest in might be one of the most difficult parts of the investment process. Each cryptocurrency is unique, and not every one of them is an excellent investment.
Nevertheless, as we approach 2022, there are a few obvious leaders in the crypto sector, namely Bitcoin, Ethereum, Cardano, and Solana. They may not be the best investments for everyone, but each of these coins has a distinct advantage over the other cryptocurrencies out there now, even if their success isn’t assured.
Seven of the top cryptocurrencies to invest in 2022 have been compiled for your study
- Bitcoin (BTC)
Anyone who invests in cryptocurrencies should own at least one Bitcoin, since it is the most valuable cryptocurrency available today. As of Jan. 3, the cryptocurrency had a market value of about $900 billion. The only digital asset with a U.S. marketplace portfolio of stocks, it accounts for approximately 40% of the entire market value of cryptocurrencies.
- Ethereum (ETH)
Cryptocurrencies like Ether (ETH), cryptographic protocols, and nonfungible tokens are all run on Ethereum, making it an excellent choice for anybody looking to invest in cryptocurrencies. When it switches from a proof-of-work to a proof-of-stake protocol, ETH will be even more energy-efficient than Bitcoin since it will eliminate the far more energy-intensive requirement to verify blockchain transactions via sophisticated computing operations.
- Solana (SOL)
Solana and Ethereum were designed to be the best platforms for decentralized finance (DeFi), which eliminates the intermediaries and organizations that have traditionally controlled finance, such as banks, dealers, and institutional exchange points.
- Dogecoin (DOGE)
Yes, Dogecoin is well-known for its origins as a humorous cryptocurrency inspired by memes. But, first and foremost, being a meme token is by no means an accusation in the world of cryptocurrency, where both Dogecoin and Shiba Inu are among the top-15 most valuable cryptocurrencies in terms of market capitalization.
- Cardano (ADA)
Like Ethereum, there is a cap on the overall production of 45 billion cards. The remaining erosion is expected and manageable for investors since 33.5 billion, or approximately 74%, of that supply is already in existence. During the last year, Cardano’s price has climbed from 22 cents to roughly $1.30, making it one of the best investments now.
- Polygon (MATIC)
Growth has been exponential in the past year, increasing by a factor of about 100. It’s still one of the finest cryptocurrencies to purchase in 2022, even if MATIC, with a $17 billion market value, is now in the top 15. Polygon has a similar goal as Yearn.finance, but it focuses on making blockchains more flexible in order to achieve broad adoption.
- YFI is an acronym for Youth Finance Organization
Yearn.finance is the hottest cryptocurrency you have never heard of, with a market cap of $1.4 billion and a high degree of volatility: Prices have ranged between $18,566 and $93,435 throughout the course of the past year. Yearn.finance, which is now selling for around $38,000, is the 80th most valuable cryptocurrency in terms of market value.
Six golden rules to follow religiously
To be successful in the crypto world, you will need a new approach each year. This means that investors hoping to make it big in the cryptocurrency market by 2022 should abide by the following six key standards.
- The dip is not something you should “always” purchase
You have probably been buying dips as an investor for a while now. Every decline in 2022 will not be worth purchasing since the market is rife with speculation about a slowdown and restructuring. Worth-buying should only be considered if the market or the crypto asset in question launches a new surge.
“Crypto Resilience” was redefined in 2021, but it will be redefined again in 2022. Furthermore, as an investor, you should spend most of the year learning as much as possible. As a result, CoinSwitch, Kuber and other platforms will be on hand to assist with informative listings and more.
- Follow the most important developments
In 2022, being up to date will be a prominent trend in cryptocurrency investment. More than just the hype, real world events, technical advancements, and regulatory situations will all play a large part in the months to come, regardless of how much of it there is.
- Reliably adherent to DYOR
Cryptographic tools, bars, graphs, signals, whitepapers, and instructional materials are always trustworthy. However, if you want things to operate in 2022, you will have to ‘do your own research’ (DYOR). Our unpredictable personalities are what make crypto such a wild and wonderful place to try out new ideas.There isn’t going to be a comprehensive answer to your investment concerns in any one piece of technical information, fundamental insight, or anything else, so don’t expect that.
- Consider volatility
According to Paycer’s CTO, Nils Gregersen, there has been a significant surge in the cryptocurrency market recently. There may be a big spike in the coming months as investors begin to liquidate their positions.
- Consider a more traditional approach
For investors, if you are not sure about the new altcoins and the ways they are supposed to be used, it might be better to go by the book and look at the people who have already tried and failed at this. And if you are interested in learning more about any of these assets, CoinSwitch Kuber is the place to go.
Bitcoin’s Long Term Prospects
As the most valuable cryptocurrency by market capitalization, Bitcoin serves as an excellent barometer for the whole crypto market since the rest of the market prefers to follow the patterns set by Bitcoin.
But how far will Bitcoin be able to climb? A large number of analysts believe it is simply a question of when, not if, Bitcoin will reach $100,000. As per Kiana Danial, author of “Cryptocurrency Investing for Dummies,” the history of Bitcoin may give some insights as to what to anticipate in the future of the cryptocurrency.
Since 2011, Danial claims that the price of Bitcoin has seen a number of large increases followed by sharp declines. In the near term, I anticipate Bitcoin will be volatile; in the long run, I expect it to expand.
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