Whats In Store For 2022
The coming 12 months are set to be an exciting year for cryptocurrency, with many key trends taking centre-stage in the blockchain world right now.
Although we have highlighted our top cryptocurrencies to invest in 2022, there are many other coins that could see success next year. Dogecoin and litecoin were top contenders but did not make Doughs list. He said litecoin was slacking in 2021 and will redeem itself in the new year. He also argues that the meme industry will continue to grow, potentially reaching the same heights as decentralised finance.
All of these cryptocurrencies may show promise but none of them are guaranteed to see success next year. The crypto market is volatile and a crash would not be unprecedented. In 2018 many coins dropped in price, including ether and bitcoin.
Remember, you should always do their own research before investing any money, and never put in more than you can afford to lose.
What Is Binance And Can I Still Use It In The Uk
The UK financial watchdog has blacklisted cryptocurrency exchange Binance and banned it from carrying out any regulated activity over concerns about its money laundering controls.
The regulator has also ordered the company to stop any form of advertising in the UK.
Binance isnt based in the UK, so the British regulator doesnt have the power to stop investors from buying and selling cryptocurrency using the exchange. However exchanges do have to register with the FCA to operate in the UK.
This is a clear warning that investors should be very cautious.
You Dont Understand How To Read A Trading Chart
Once you understand some basic dynamics such as supply and demand, then you should start learning how to read trading charts, also known as technical analysis.
Technical analysis is a science which helps you better predict the future by analyzing historical market data. Youll gain a feel for when markets are about to turn, or if assets arent priced properly.
For some, its super helpful and core to many peoples cryptocurrency investment strategy.
BabyPips is a popular place to start learning technical analysis, and it applies to all markets, not only crypto.
Knowing how to read charts can give you an advantage over those who dont – and it can be quite lucrative.
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You Make Sloppy Mistakes
Hold your horses, buddy! Take your time when transferring your money.
Dont rush, and make sure the sending and receiving addresses are correct. Never type an address. Just copy and paste them. This way you avoid any chance of typos. And hey, its faster!
After you copy and paste it, always verify the first two characters and the last three characters match your address.
Why Are Cryptocurrencies So Popular
Cryptocurrencies appeal to their supporters for a variety of reasons. Here are some of the most popular:
Supporters see cryptocurrencies such as bitcoin as the currency of the future and are racing to buy them now, presumably before they become more valuable
Some supporters like the fact that cryptocurrency removes central banks from managing the money supply, since over time these banks tend to reduce the value of money via inflation
Other supporters like the technology behind cryptocurrencies, the blockchain, because its a decentralized processing and recording system and can be more secure than traditional payment systems
Some speculators like cryptocurrencies because theyre going up in value and have no interest in the currencies long-term acceptance as a way to move money
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App That Invests Change Into Bitcoin
Even perhaps scarier, LendEDU asked respondents if owning bitcoin was unlawful in the U.S. BFi is simply 200,000 max supplies and 50% might be burnt because it makes use of a burning mechanism which makes it a deflationary token. The situation is different, nevertheless, with the crypto securities register keeper, for which the draft bill does not make a transparent statement. If the draft law is handed promptly, the new act for digital securities and crypto securities ought to apply in Germany from 2021. On the European degree, a first draft of the Markets in Crypto Assets Directive is announced. A day trader cannot actively commerce the markets without Level 2 or Time & Sales. How fast can I get a Crypto Trader account? Some can even convey these threats into your infrastructure by carelessly plugging in their very own telephones, notebooks, and storage devices to your network and computers. Data retrieved from a Chainalysis report ranked Nigeria because the eighth in its 2019-2020 international adoption index.
Is It Worth Mining Ethereum In 2022
Some might say that mining Ether , the token that powers the Ethereum network, is worth it in 2022 because this might be the last year anyone can do so.
Ethereum developers are working on an upgrade to the network called Ethereum 2.0. This upgrade will change the consensus mechanism for Ethereum from proof-of-work to proof-of-stake. The first phase of the upgrade began in December 2020 and the final phases are planned for periods throughout 2021 and 2022.
While its still possible to mine ETH so long as the network uses proof-of-work, doing so will no longer be possible with proof-of-stake. Instead, only those who hold large quantities of ETH will be able to stake their tokens and become validators. Validators will have a chance at winning the next block rewards, with the highest odds going to those with the greatest amount of ETH staked.
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Maintain A Healthy Crypto Portfolio
Keeping a healthy portfolio means creating your core investment, and making sure you diversify by adding in a number of satellite investments. This helps to even out your returns as the winning picks offset any losing picks.
This is true of diversifying your entire portfolio by including cryptocurrencies and its true of the crypto portion too. By adding a number of different cryptocurrencies youre diversifying your risks and spreading your exposure to a broader mix of assets.
While this type of diversification means youll almost surely have some losers in your portfolio its far better to lose a few while winning some rather than losing it all because you kept all your crypto investment in one coin. You might not get the eye watering returns of a single rocketing coin, but you also wont risk losing everything if the coin you pick crashes and burns.
How Crypto Is Used
Crypto-assets were first developed as a digital form of currency, to be used as money. Some stores accept crypto as payment for goods and services, and some ATMs let you withdraw it as physical money. However, crypto is not legal tender in Australia and is not widely accepted as payment.
Crypto is more commonly used as a speculative, longer-term investment, as most people dont access their balance for everyday transactions.
Bonus: You Only Invest In Cryptocurrencies
This last mistake comes as a surprise, but why invest only in cryptocurrencies? Its wise to diversify your portfolio not only amongst cryptocurrencies, but stocks, bonds, and other assets as well so you should check the 50/25/25 rule.
The stock market is indeed a safer bet than crypto, so if you want to be conservative, put say 15% of your investment funds into crypto. If you hold safe stocks and bonds with the remaining money, then you should be pretty safe.
Disclaimer: we do not know your financial situation, nor are we financial advisors.
The world is your oyster, so dont be afraid to invest in different markets and niches.
Well, you made it to the end, congratulations we hope that you learned something about a crypto investment strategy that can suit you!
Although there are plenty of mistakes to avoid, most of them are common sense and require no memorization. Simply being aware of them should be enough to make you think of and improve your cryptocurrency investment strategy.
Which mistake from the list prevents you from making more profits? Which one do you make again and again? Do you make mistakes that arent listed? Let me know in the comments!
Lastly, here are more resources you might like:
Things To Avoid On Your Journey To Becoming A Crypto Millionaire
The journey to becoming a crypto millionaire isnt as problem-free as many would have you believe. In fact, the chances of losing your entire investment are greater than that of you becoming a millionaire.
To reduce the risks of these pitfalls, we have compiled a list of things you should avoid in the crypto space. While the list is not exhaustive, it will give you a clear idea of what to look out for before investing.
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What More Institutional Adoption Means For Investors
While paying for things in cryptocurrencies doesnt make sense for most people right now, more retailers accepting payments might change that landscape in the future. Itll likely be much longer before itll be a smart financial decision to spend Bitcoin on goods or services, but further institutional adoption could bring about more use-cases for everyday users, and in turn, have an impact on crypto prices. Nothing is guaranteed, but if you buy cryptocurrency as a long-term store of value, the more real world uses it has, the more likely demand and value will increase.
Factors To Consider When Choosing A Mining Pool
After securing the Bitcoin mining equipment and electricity required for mining, a small miner will need to find a suitable mining pool. There are a few important factors to consider:
Fees: Most, but not all, Bitcoin mining pools charge fees. The fees are taken from the reward payout and generally range from 0% to 4%. Pool size: The larger the pool, the more frequent the payment, as more hashing power equals more blocks being found. This also means that the payouts are smaller, since rewards are shared between more people. On the flip side, smaller pools pay out less frequently but in larger amounts. Security and reliability: Miners might want to find a mining pool that they can trust wont steal users funds or get hacked. Joining established pools with long histories may help to reduce these risks.
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How To Invest In Blockchain
Outside of crypto trading and individual stocks, investors can gain exposure to the blockchain through exchange-traded funds .
A blockchain ETF holds a basket of publicly traded companies exposed to the technology. These companies can either directly use blockchain or profit from their services that support the industry.
Its important to note that blockchain ETFs dont directly hold cryptocurrency assets. Instead, these funds are designed to invest in global companies, of which many are blue-chip technology names.
Is Crypto A Safe Investment
Any type of investment can be risky and investing in cryptocurrencies is no different. Investing in crypto can have a unique set of problems and is susceptible to hacking.
However, crypto trading platforms try to provide additional security for investors due to this issue. Using a trusted platform like Coinbase can help ensure the security and safety of your crypto transactions. Read more into any platforms fine lines to see how as an investor you are being protected.
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Disadvantages Of Investing In Crypto
However, along with its upsides, there are disadvantages to investing in crypto. Since crypto is susceptible to high volatility, theres room for the possibility of major losses.
Additionally, since it is decentralized, sometimes crypto is utilized for black market activity. Plus, due to this, there is not a possibility of refunds with crypto.
You Dont Stay Clear Headed
Remember to stay calm and relax.
You should have invested an amount you are comfortable losing, so have fun with it. Dont let the negative press or big news sway you.
If you do let negativity get to you, then you are more likely to make poor decisions.
Disconnect from crypto from time to time to stay clear-headed.
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Platforms Promising Impossible Weekly Roi
If you have been on social media recently, the chances are high that you have come across a link to a Telegram group or a specific subreddit on Reddit.com promising you 50 percent ROI one week after investment.
For the sake of your heart, avoid such platforms, run away from them like you would from a burning building. They are scams. One popular project is Bitconnect which was responsible for defrauding people of $2.6 billion worldwide.
Popular Staking Coins In 2021
As you already know there are many different cryptocurrencies, and there are also many different cryptocurrencies that can be staked to earn yield. While the list below is far from exhaustive, it will give you a starting point in your research for good staking coins in 2021:
Cardano Cardano was created by one of the founders of Ethereum who was frustrated at the slow pace of development of Ethereum back in 2016. Cardano is also unique in that all its technology goes through a peer review process prior to being implemented. In July 2021 Cardano staking yields roughly 6.5% APY.
Ethereum 2.0 Technically Ethereum is not yet a proof-of-stake blockchain, but that change is expected to occur in late 2021 or early 2022. In the meantime it is still possible to stake Ethereum, but any rewards cant be withdrawn until the blockchain officially switches to proof-of stake. Ethereum is yielding around 6.1% APY as of July 2021.
Polkadot Polkadot facilitates the cross-chain transfer of any data or asset types, not only cryptocurrencies. This achieves blockchain interoperability, which makny believe will be one of the keys to blockchain adoption in the future. Polkadot is yielding roughly 13.3% APY as f July 2021.
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Early Bitcoin Investor Jered Kenna
While Bitcoin is past its early days where you can get 1000x your investment, there are other cryptocurrencies at this stage.
Caution: On the account of the latest crypto market bull run, expect to see a plethora of cryptocurrencies promising 1,000x returns before the next quarter of the year. Any crypto that promises returns first , avoid it like the black plague.
Jumping on the next crypto remotely looks promising, but isnt a guaranteed way of becoming a millionaire. Jared and the hundred others wont be millionaires today if Bitcoin hadnt survived the test of time.
There are currently over 8,200 cryptos on CoinMarketCap. For a project to fetch you a million, it must be future proof. Although it is getting increasingly difficult to find such projects because of the growing number of cryptos being launched, the possibility still exists.
How Many Bitcoins Will Be Mined In 2022
Currently, there are about 900 new bitcoins being mined every day. If this were to continue to be the case throughout all of 2022, then about 328,500 bitcoin could be mined this year.
The interesting thing to note is that more people mining Bitcoin does not lead to an increase in the number of coins being mined. The block reward is currently set at 6.25 , and one block gets mined roughly every 10 minutes. Increased competition for blocks leads to a higher hash rate, but the number of new coins being minted remains the same.
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Investing In Crypto Is Risky Is It Worth It
It’s possible to get filthy rich by investing in cryptocurrency in 2021. But you could also lose all of your money. How can both be true? Investing in crypto assets is risky but also potentially extremely profitable.
Cryptocurrency is a good investment if you want to gain direct exposure to the demand for digital currency, while a safer but potentially less lucrative alternative is to buy the stocks of companies with exposure to cryptocurrency.
Let’s examine the pros and cons of investing in cryptocurrency.
Don’t Try To Time The Market
When you look back in time everything seems very logical and obvious. You may regret not having bought Bitcoin at $1,000 or not having sold it at its peak. This regret will get you nowhere. Do your research and if you feel that a particular crypto is undervalued, then buy it. Or if you think it’s overvalued, then sell it.
Fear Of Missing Out And Over
These are the two easiest ways to lose all your crypto holdings. Some investors, mostly beginners, want to make 20 trades a day. In reality, there may not be 20 good trading opportunities a day. Trading too much leads to poor decision making.
Another way to lose money is Fear of Mission Out or FOMO, when investors hear of a price spike in a digital asset, they quickly jump on the bandwagon to make their own share of profit a recipe for disaster.
Chasing trades and investment opportunities never end well. Before investing, do a detailed research on the project. When trading, we recommend that you create a checklist of rules and always stick to it.
Should I Invest In Cryptocurrency
Plain and simpleinvesting in cryptocurrency is not a good way to build wealth for your future. If you really want a solid investment, dont mess around with adding some crypto coins to your digital wallet. Heres the better plan: If youre out of debt, have an emergency fund that will cover three to six months of expenses, and youre ready to invest, then focus on investing 15% of your income in growth stock mutual fundswhich are way more secure than crypto.
Dont give in to stupid just because theres a lot of hype. Weve talked to people who have taken out a mortgage or cashed out their entire 401 early to invest in cryptocurrencyheck no! Dont put it all on the line and risk your financial future, your retirement dreams and your familys well-being. If you cant afford to lose the money, dont invest it in something as unstable as crypto.
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