Should you invest in Cryptocurrency right now?
Find out if you should invest in cryptocurrencies in 2022. Use Exnesscom and its KWS to get the best loss and profit results.
There are many answers to the question, Should one invest in cryptocurrency in 2022? But which of them is the most suitable? In any case, the Exness app is your direct way to enrich yourself when trading crypto. The company managers would gladly explain everything related to crypto, and you will surely make your proper choice!
Cryptocurrency and its role in the modern world
Cryptocurrency has no form, neither material nor virtual. This is information describing the number of units of account. Their data is not even encrypted, and transactions are carried out with cryptocurrency.
Also, the system through which transactions are carried out does not contain data on virtual currency owners, which ensures anonymity, but reduces confidence in this payment method.
Cryptocurrency transactions resemble cash payments, even though it was created for non-cash payments.
Today, virtual currency is becoming the same means of servicing exchange transactions, like money in cash and non-cash form. Some major brands accept it as a unit of account. The purchase of cryptocurrency is available on notable exchanges.
Thanks to government regulation and the recognition of virtual currencies in different countries, information about them have become publicly available. The most popular currency is Bitcoin. But operations with cryptocurrencies harm the financial stability of national economies.
Therefore, countries are interested in the issue of their introduction into financial circulation. Experts believe that cryptocurrency has every chance of strengthening and full legalization.
It is believed that in the near future, it may become on a par with the world's reserve currencies—the euro and the US dollar. Some banks began to provide the service of opening accounts for storing cryptocurrencies. But uncertainty remains about its future use.
Recent Market crash
At the beginning of 2022, the crypto market experienced a bearish season; bitcoin fell in price by 12%. The other leading digital currencies lost up to 22%. The sharp drop in their value is due to the situation in Kazakhstan and the tightening of the monetary policy of the Federal Reserve System (FRS).
Bitcoin reached its lowest value since the end of September 2021 and cost $40.5 thousand on January 8.
Although the value of the currency rose to $41.5 thousand on January 9, 2022, its capitalization was less than 40% of the market.
Ethereum also fell in price by 18%, to the lowest levels since October 1, 2021. Its value is $3,000. Cryptocurrencies such as Binance Coin, Solana, and Cardano show a drop from 14% to 22%.
However, the main factor in the fall in the value of cryptocurrencies is tightening the Fed's monetary policy. It became clear the position of the regulator to quickly raise the interest rate, as well as reduce the number of assets on the balance sheet, the newspaper notes.
Experts believe that the decline in quotations will last for several more weeks. Bitcoin will fall to $38 thousand. Experts associate more optimistic forecasts with a period of more than six months. But still, people tend to invest in crypto assets, and the Exnesscom traders exemplify it.
Best Cryptocurrency to invest in and sell at the moment (according to Influencers)
Here is the list of top cryptocurrencies to buy/sell in 2022. This list can be shaped in the following way:
- GTM coin
As for DogeCoin, Elon Musk Twitter has a strong conviction that "even though it was created as a silly joke, dogecoin is better suited for transactions." He also adds that "the transaction volume of bitcoin is low, and the cost per transaction is high".
The other crypto influencers believe that it is necessary to invest in Bitcoin Cash. For example, Roger Ver believes that "one of the things that most people don't realize — there are already more transactions happening on the Bitcoin Cash network, right now, today, than there are on the Bitcoin network."
In a video interview, he also underlines that "right now, today, as we're recording this, more people are going to transact on the Bitcoin Cash network than on Bitcoin."
Another crypto influencer, Jack Dorsey, mentions that "Bitcoin changes everything for me. I don't think there's anything more important in my life to work on, and I don't think there's anything more enabling for people around the world."
So, as evident, the influencers have different ideas on which crypto is better to sell and buy. In any case, they are common in one presumption: it is necessary to trigger the crypto environment to make the participants wealthier!
Image from Exness.com
How to handle risk with crypto in 2022
2021 gave crypto investors many entry points – drawdowns, corrections, flats. Even though 2022 has just begun, it has also provided some good opportunities. The bitcoin price has fallen below 40k, and the chart is tracking different patterns. Some see a bottom in the 40k zone; others are waiting to drop to 30k and 20k.
Crypto is not a traditional asset. It behaves atypically. Previously, instability in the world raised the price of cryptocurrencies. The situation is the opposite—instability in the world provokes the fall of cryptocurrencies.
And in such a situation, starting from the news seems like a logical solution. But the reasons for the decline and growth run in parallel, and the market reacts differently: large players are more likely to buy on the straits of prices down when negative news is published.
The main rule is to weigh the risks. Remember the DYOR rule (Do your own research). Also, try and study projects on your own to evaluate the prospect. It is also an excellent strategy to distribute the portfolio.
Always remember that a long-term investor earns more than a short-term trader. But only at a distance. Do you want to invest in debt? Select quality projects!
As you might have understood, the best options to sell and buy for crypto assets are BNB, Doge, GTM coin, Ethereum, DOT, BitcoinCash, and LINK.
These cryptocurrency items would serve the best as they are expected to have a mind-blowing growth that is likely spring-like. As a result, the best strategy to stick to when selling or buying the mentioned cryptocurrencies is short-term.
By monitoring the growing tendency of the cryptocurrencies in this text, a trader will likely succeed.
Besides, one should always follow the advice from famous crypto influencers since it is the right way to get the best outcomes out of the trading process.
Do not forget to communicate with your Exness manager to keep posted about all the changes in the cryptocurrency market. In such a way, you will indeed have great success!