Reportedly the future of mainstream economy, crypto is a fast evolving space. Despite controversies about the legitimacy and sustainability of crypto, a leading international bank had officially claimed that crypto is likely to replace fiat in the coming 10 years. Over the past decade, crypto has only grown and that too at an astronomically high percentage (101,750%). And as crypto prices have taken a plunge after the May 2022 crash, several investors are aspiring to purchase crypto at low with the goal to sell them later at high price. Are you too motivated by your crypto-enthusiast friend to try hands at crypto? Well, if you are just starting out, make sure to check out how to invest in cryptocurrency in 2022? an ultimate guide
Before delving deeper into the beginner’s guide for crypto investment in 2022, let’s remind you that crypto is wildly volatile and hence a high-risk asset. So, you need to keep yourself mentally prepared that you might suffer sudden losses with crypto investment in 2022. Thus, your crypto investment portfolio should be something that won’t affect your major or crucial expense areas.
Read More: Multibank cryptocurrency exchange
Choose coins with long-term potential
While 2021 will be remembered as the ATH-year for several coins, 2022 is no doubt a tricky one. All the coins that had piqued to an All Time High stature in 2021 had suffered giant losses in 2022, after the May catastrophe. And that includes the blue chip coins like Ethereum and Bitcoin. Many investors are worried about the future of their crypto holdings after the crash. However, several crypto analysts are optimistic about a surge for several coins at the end of this year and/or the beginning of the coming year.
But then, some analysts have also pointed out that the recent crypto crash has exposed which coins hold the potential to work out in the long run – and, most importantly, which coins might fail. According to them, coins that mostly run on hype won’t be able to sustain the crash in the long term. So, the key tip for crypto investment in 2022 is to sign up for coins that boast promising potential. You need to look at the bigger picture always, especially when you are planning for long-term investment or HODL with crypto investment in 2022.
Choose coins with purpose and ambitious roadmap
Despite the volatility quotient, some cryptos promise to offer generous returns on crypto investment in 2022. One of them is certainly Ethereum. With Merge upgrade scheduled for August 2022, ETH is about to rise up to 400% by Q4 of 2022. Cardano is another coin that is expected to experience price surge in the coming months, thanks to its series of upgrades- especially, the Hydra upgrade.
Upgrades on the roadmap stand testimony to the fact that the crypto project is taking proactive steps towards growth and looking forward to bringing improved experience for users. And, that eventually hikes up the market value and price of the coin.
Bottom line is, if you are aspiring for a profitable crypto investment in 2022, look for coins that are developed to cater to a meaningful purpose. Also, the coin must be backed by a dynamic roadmap that can promise steady growth in near future.
Check the price predictions
As mentioned previously, the middle quarter of 2022 had to witness some of the biggest drops in crypto prices. But, premium coins are still offering hope for great returns for investors after a few months onwards. In that light, one of the major tips for crypto investment in 2022, is to check the price predictions for your shortlisted coins.
Don’t just stick to one single site for checking price predictions for crypto investment in 2022. Rather, you must follow at least 4-6 sites and opinion from multiple experts to attain a fair picture about projected price movements about your chosen coins for crypto investment in 2022. The goal is to form an unbiased opinion so that you can take an informed decision for crypto investment in 2022.
For example, although some experts have projected pessimistic views about Bitcoin yet a major section of crypto analysts has claimed that Bitcoin is likely to touch $100,000 by the final section of 2022.
How much should you invest?
So, how much have you planned for crypto investment in 2022?
If you are new to the field, chances are high that you are looking for suggestions on how much to allot for crypto investment in 2022. For newbies, the most suggested percentage is 1% of net worth for crypto investment. Good part is, you can start crypto investment in 2022 with as low as $10-$25. As crypto is extremely volatile, the idea is to start small for crypto investment in 2022.
Kick-start your crypto journey with one but highly potential coin. After 3-4 months, once you have got a basic idea about the market and related facts, you can add another coin for crypto investment in 2022. According to experts, in general, your crypto investment should hover around 5% of net worth. It won’t offer dramatically high returns always but at least will eliminate risks of huge loss.
If you feel adventurous later, you might amp up the percentage to 10-15%.
Go for fixed amount
You can’t let your emotions get the better of you when you are investing in a highly volatile asset like crypto. One of the best ways to check your emotions and prevent huge losses is to schedule a fixed sum for every month. Also, make sure to stick to a fixed amount. Follow the strategy for 6-12 months at least and you will find a decent and steady ROI on your crypto investment in 2022.
Don’t store crypto in exchange wallet
Did you know around 20+ crypto exchanges were attacked by hackers last year? And the numbers are only increasing. So, do you think it would be a wise idea to store your crypto investment in 2022 in your exchange wallet? Well, you know the answer.
If you are aiming for safe and successful crypto investment in 2022, you must be careful about storage. Experts always stress on spring crypto holdings in independent wallets. You can choose from hot and cold wallets- however, cold wallets are offline wallets and hence can assure maximum protection for your crypto investment in 2022.