{"id":11203,"date":"2021-11-30T19:18:33","date_gmt":"2021-11-30T16:18:33","guid":{"rendered":"https:\/\/onlinetranslators.de\/news\/?p=11203"},"modified":"2021-11-30T19:18:35","modified_gmt":"2021-11-30T16:18:35","slug":"is-it-worth-investing-in-cryptocurrency-in-2022","status":"publish","type":"post","link":"https:\/\/onlinetranslators.de\/news\/nachrichten\/is-it-worth-investing-in-cryptocurrency-in-2022\/","title":{"rendered":"Is it worth investing in cryptocurrency in 2022?"},"content":{"rendered":"\n

The cryptocurrency market is increasingly attracting the attention of investors who want to multiply their assets. On May 6, 2021, the capitalization of all types of “digital gold” reached $2.4 trillion. However, this was followed by a collapse in value by more than a third. Experts and investors are competing with each other at the extremes of forecasts. Some of them say that the cryptocurrency is a bubble that is about to burst, while others are promising bitcoin at $500,000. Let’s try to figure out if cryptocurrency is worth investing in 2022. Should we jump on the speeding train, or even those who ride in the “SV” carriage, it’s time to unhook from the cryptocurrency train. And the head of the IQ Coins platform<\/a> explains it in more detail.<\/p>\n\n\n\n

\"Is<\/a><\/figure>\n\n\n\n

Which cryptocurrency to invest in?<\/h2>\n\n\n\n

As noted, the virtual money market is subject to strong fluctuations. Therefore, when answering the question which cryptocurrency to invest in now, it is necessary to analyze the rate dynamics of different coins at once for several years. Focusing on short-term data is fraught with a sharp increase in risks and serious financial losses.<\/p>\n\n\n\n

An important consequence of the volatility of the market in question is the difficulty of predicting scenarios for future events. Therefore, most experts prefer to limit themselves to a few virtual coins that are among the most promising to invest in. Today, the top cryptocurrencies for investment include 5 of them, and each of them deserves a separate and more careful consideration.<\/p>\n\n\n\n

What does the growth of a cryptocurrency depend on?<\/h2>\n\n\n\n

Interest in a token depends on a large number of factors. The most significant of them are considered to be the following:<\/p>\n\n\n\n

  • The development team. The status of the creators and the staff serving the virtual coin is extremely important for the prospects of investment. It is with the study of this parameter that familiarity with the cryptocurrency usually begins;<\/li>
  • Scope of application. All tokens use basic blockchain principles. But the functionality of each coin is seriously modified and differs from the others. An example are the already mentioned above ETH and ADA, which have emphasized the creation of a platform for decentralized applications;<\/li>
  • Cooperation with exchanges. The more exchanges there are, the higher the probability of selling. This rule is fully true for most markets, including cryptocurrency;<\/li>
  • Capitalization and current ranking position. Far from being the most important, but still an important indicator. It is enough to cite the leading positions of BTC and Ether (1st and 2nd place by a wide margin) to understand the impact of this parameter on interest in a particular token;<\/li>
  • Expert opinion. It’s up to a potential investor whether to listen to forecasts of numerous experts. But it makes sense to consider their opinion, at least to broaden one’s horizons.<\/li><\/ul>\n\n\n\n

    Even a comprehensive study of all the above criteria is unlikely to give a clear answer to the question of which cryptocurrency to invest in. But lack of analysis is hard to call it a worthy alternative, especially considering the volatility of the digital money market.<\/p>\n\n\n\n

    Where to buy cryptocurrency?<\/h2>\n\n\n\n

    As of mid-2021, there are more than three hundred cryptocurrency exchanges open and operating around the world. The largest and most famous of them is Binance. It has been operating since 2017, and the daily volume of sales is about $72.5 billion. Among other popular exchanges trading virtual coins, we should note such:<\/p>\n\n\n\n

    • EXMO (c 2015);<\/li>
    • Huobi (c 2013);<\/li>
    • Bybit (since 2018);<\/li>
    • Coinsbit (since 2020) and others.<\/li><\/ul>\n\n\n\n

      Threats<\/h2>\n\n\n\n

      Currently, cryptocurrencies have proven to be sensitive to the statements of an individual entrepreneur, such as Ilon Musk. His tweet could cause a 23% rise in bitcoin or a global plunge. His last post with an emoji caused bitcoin to lose another 3.6%.<\/p>\n\n\n\n

      The high returns on cryptocurrency investments come with equally serious risks. These include:<\/p>\n\n\n\n

      1. Lack of tangible collateral. A virtual coin is called a virtual coin for a reason.<\/li>
      2. High level of volatility. The news feeds of the world’s leading news agencies are constantly full of reports about another collapse of Bitcoin or, on the contrary, a jump in the Ether’s value.<\/li>
      3. Uncertainty with the legal status. Not all states in the world have introduced cryptocurrencies into the legal framework. In some countries, large and developed, there is no consensus on the prospects of private digital money. As a consequence, there are problems with taxation, up to serious administrative or criminal liability of token owners.<\/li>
      4. Lack of legal protection of users’ rights. A logical continuation of the previous item on the list. The buyer of virtual money completely relies on the developers’ word of honor, as there are no real levers to influence them.<\/li>
      5. The rapid development of cryptocurrency fraud. Improvements in information and communication technologies have both positive and negative consequences. Among the latter is an increase in the number of thefts and various scams related to digital money.<\/li><\/ol>\n","protected":false},"excerpt":{"rendered":"

        The cryptocurrency market is increasingly attracting the attention of investors who want to multiply their assets. On May 6, 2021, the capitalization of all types of “digital gold” reached $2.4<\/p>\n","protected":false},"author":1,"featured_media":11204,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-11203","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-nachrichten"],"_links":{"self":[{"href":"https:\/\/onlinetranslators.de\/news\/wp-json\/wp\/v2\/posts\/11203","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/onlinetranslators.de\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/onlinetranslators.de\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/onlinetranslators.de\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/onlinetranslators.de\/news\/wp-json\/wp\/v2\/comments?post=11203"}],"version-history":[{"count":1,"href":"https:\/\/onlinetranslators.de\/news\/wp-json\/wp\/v2\/posts\/11203\/revisions"}],"predecessor-version":[{"id":11205,"href":"https:\/\/onlinetranslators.de\/news\/wp-json\/wp\/v2\/posts\/11203\/revisions\/11205"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/onlinetranslators.de\/news\/wp-json\/wp\/v2\/media\/11204"}],"wp:attachment":[{"href":"https:\/\/onlinetranslators.de\/news\/wp-json\/wp\/v2\/media?parent=11203"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/onlinetranslators.de\/news\/wp-json\/wp\/v2\/categories?post=11203"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/onlinetranslators.de\/news\/wp-json\/wp\/v2\/tags?post=11203"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}