The traction and attention cryptocurrencies have gained in the last year have quickly made them the most desirable asset class to invest in by most investors. Studies and research findings have shown that the appeal of cryptocurrencies was so high in the early to mid-2020 that a maximum number of new investors decided to enter this sector only due to cryptocurrencies and the advantages they seemed to have. Of course, the market is more volatile and erratic than any other investment opportunity known to us, however, it is also easily the most rewarding.
Things to keep in mind before investing in cryptocurrencies: Since this market still has a lot of undiscovered territories, investors often seem to have a lot of confusion and questions regarding the style and methods of investment they should be adopting. Here are a few things one can take into consideration before making their investment:
- Price Swings – An incredibly common phenomenon in the world of cryptocurrencies is the erratic and unpredictable price swings that may occur. Even among the biggest and dominant coins like Ethereum and Bitcoin, the value of ETH to INR or Bitcoin against an Indian Rupee might fluctuate without any set pattern. This could be because cryptos are largely unregulated and decentralized along with a lack of control by an authority.
- Safe and Secure – Take extra precautions to make sure that the money you are putting in this market is safe and secure. Even though hacking blockchain technologies is tough, it is not impossible. Using reliable exchanges would be the first step to making sure of safeguarding your money. Wallets and platforms with KYC registration would be the ideal choice.
- Take time to learn – Most people often want to jump in on the bandwagon as they have heard of the quick and enormous profits associated with cryptocurrencies. Take time, develop an investors’ perception and be able to analyze the markets and the trends to a certain degree before making any large purchases.
What are the cryptocurrencies one should invest in: Now that there is a basic understanding of some of the key points that may affect the prices and the overall dynamic of investment, here are a few of the most profitable and lucrative cryptocurrencies you can look into.
- Bitcoin – Needless to say, this list would not be complete without Bitcoins. It is the first and market-dominant crypto in the globe today. Being tried and tested, bitcoins are desirable not only for the amount of profit they are said to provide their investors but also owing to the fact that they are now said to be used by companies and institutions as a method of payment. Tesla purchased almost 1.5 million dollars worth of bitcoins in early 2021 which only led to the increase in confidence regarding this crypto among the masses.
- Dogecoin – As one of the least-serious coins in the market, dogecoin has surely made its mark in the market cap by now standing among the top 15 cryptocurrencies. It saw a legendary run in 2021 as it reached its all-time high in the last year. The current value of DOGE to INR is around 11.73 rupees and this value fluctuates on different occasions. One of the major reasons for the boom in DOGE prices is the tweets by Tesla CEO Elon Musk.
- Polygon – This coin, MATIC, has a market cap of about $12 billion and has jumped significantly since its inception. This crypto aims to increase its reach and scalability as high as Ethereum. Its technology also allows several limitless dApps to run on the same Ethereum technology thus boosting its use among the masses and the general population.
- Ethereum – The dominant Altcoin, Ethereum, is a close second to bitcoin when it comes to popularity and purchase among investors. It is the second most-valuable crypto with a market cap of more than 300 billion dollars. Even though this currency is not immune to the rapid fluctuations, it is still a good bet in 2022 as the predictions and trends make it a good purchase. It is also the most widely used blockchain in existence currently. Another appealing aspect about Ethereum is that it is slowly shifting towards a more sustainable, environment-friendly model which would reduce the unhealthy impact on the climate and become more energy-efficient.
- Ripple – For any multinational company, organization, or individual, especially looking to conduct cross-border trades and transactions, Ripple and its allied cryptocurrency, XRP, would be the best purchase. The innovative blockchain created by Ripple has partnered with several banks all around the world and provides the organizations to conduct quick and efficient cross-border transactions with a negligible transfer fee.
- Cardano – Presently, it is deemed as the most popular cryptocurrency to purchase. It has a total market capitalization of over 35 billion dollars and is currently ranked 6th in all the existing cryptos in circulation. The technology provides decentralized apps and smart contracts an effective place to thrive and grow.
Even though the market may not be considered stable, it is still a highly profitable venture to spend time on. Creating a diverse portfolio with only a percentage of money allotted for cryptocurrencies would allow you to have the best of both worlds in terms of investment.
