Which cryptocurrencies should investors pay attention to in 2022? What are the most promising cryptocurrencies and the most popular cryptocurrencies? Which cryptocurrency to invest in 2022? Zineera figured out what to expect from cryptocurrencies in the new year and investments in which coins can bring more profit.
The crypto industry has experienced an eventful 2021. We witnessed the adoption of bitcoin as legal tender in El Salvador, the virtual ban on the use of cryptocurrency in China, and the start of trading of the first cryptocurrency ETF (exchange investment fund). However, in 2021, against the backdrop of a pandemic, digital asset fraud reached a record: billions of dollars were stolen. However, cryptocurrencies are becoming more and more popular.
Is it worth investing in cryptocurrency in 2022 and why?
If you are seriously puzzled by this question and have learned enough about what a virtual currency is and how it works, then the answer is yes!
It is important to consider that cryptocurrencies remain assets with increased risks for investors. However, having significant experience in investments, you can earn or invest in future prospects.
You need to invest in the electronic currency that meets your needs, needs and based on what you plan to get from it. Of course, it should be a cryptocurrency, in the prospects of which you have no doubts.
Foremost, cryptocurrencies should be fairly simple and understandable, and the mechanisms for exchanging and withdrawing funds should not be resource-intensive, that is, they should not take much time. And this means that the project should not only be promising but also with the introduction of unique technologies and innovative solutions. A project that gives or will give in the near future good opportunities for earning. Confident experts in Zineеra.
Crypto Market Forecast 2022
Bearish phase for bitcoin. Some experts believe that bitcoin could drop sharply in the coming months because it is already below $50,000, which is almost 30% less than its peak. Carol Alexander, professor of finance at the University of Sussex, expects bitcoin to drop to $10,000 in 2022. She refers to 2018 when bitcoin dropped to almost $3,000 in a few months after climbing to a high of $20,000. Crypto advocates say this time is different as more institutional investors enter the market.
Transformation to DeFi. Altcoins like Ethereum have started to play a big role. Analysts expect the trend to continue next year. New cryptocurrency developments, such as decentralized finance, “are likely to be the areas of highest growth for cryptocurrencies,” said Brian Gross, crypto platform manager at ICHI. The total amount of money invested in DeFi services exceeded $200 billion for the first time this year, experts predict that demand will continue to grow.
Focus on regulation. In 2021, government agencies have shown more interest in cryptocurrency: China has completely banned any activity related to it, and the US authorities have suppressed certain aspects of the market. Experts say that one of the key areas that regulators will focus on next year will be stablecoins. These are tokens whose value is linked to the price of existing assets such as the US dollar. The largest stablecoin in the world is Tether. The stablecoin is of particular concern, in particular about the sufficiency of assets in its reserves to justify a peg to the dollar.
