Undoubtedly, Bitcoin has already become the most effective investment asset in the history of mankind. It still has upside potential, but cheap coins are now showing much better results. They can bring much more profit, but the risks of investing in such tokens are also much higher.
Does it make sense to invest in cryptocurrencies in 2022
Cryptocurrencies are definitely not going anywhere. Perhaps they will really become an alternative to the traditional financial system, or traditional finance will finally move to the blockchain. One way or another, it is important to choose an asset with an eye on storage for 5-10 years.
All digital assets at this stage of market development are considered high-risk. And yet it is indeed possible to make a fortune from them in a relatively short period of time. First of all, you need to find assets for yourself that match your goals, needs, and even character.
Behind each coin there is a project, a development team that sets goals and strives to achieve them. And this determines the prospects of the coin. When choosing, you will inevitably compare QNT vs HBAR, DOGE, etc. Of all the possible options, it is better to give preference to the coin that you understand better. In addition, it is important that the asset is technically easy to buy, sell, exchange and withdraw.
Promising coins for long-term investment
Bitcoin is the patriarch of the cryptocurrency market, its founder and chief conductor, but there are other interesting projects besides it. When forming an investment portfolio, remember to diversify. Not everyone gets the chance to make quick money on cryptocurrencies, but everyone faces losses.
From the point of view of minimizing risks, it would be reasonable to distribute investments among several assets. Putting only low-risk coins into your crypto portfolio is a cautious but prudent decision. Investing everything in a couple of dozen young, little-known altcoins is an outright gamble. Even with the most aggressive investment strategy, it is recommended to allocate no more than 30% of the total investment to their share.
Analysts agree that Bitcoin definitely has a future and evaluate it quite optimistically. In many countries it is already used as a means of payment. Technologically, Bitcoin is already far inferior to younger projects, but now BTC is the most reliable asset in the cryptocurrency market. The limited supply of coins creates the preconditions for an increase in demand for the asset and it can be considered as a potentially profitable investment in the next 3-5 years or more.
Ethereum is the second relatively low-risk digital coin with good potential. The project is focused on innovation and during the period of market growth, it is able to demonstrate even more impressive results than Bitcoin. Ethereum is still the leader in the DApps segment. The expected increase in throughput after the transition to the PoS algorithm can give a powerful impetus to the development of this segment.
Binance coin (BNB)
BNB experienced explosive growth in 2021. This is a native token of the Binance ecosystem, which is now very actively developing. It already has almost everything that a crypto enthusiast needs to work, including the possibility of passive income. In addition to a fairly strong fundamental basis, Binance Coin has several additional mechanisms that stimulate interest in it.
- Launchpad – BNB holders have the opportunity to be among the first to receive new tokens that take part in the listings.
- High liquidity of BNB.
- Regular burning of BNB.
Of course, the recent Binance hack is not the most pleasant event, but the crypto exchange has already compensated all the losses to its customers.
This is a fairly promising coin, which can be attributed to medium-risk assets. Fans have been calling her the “ETH killer” for a long time now. The developers set themselves the goal of eliminating the fragmentation of the crypto world and the Polkadot platform should become a universal link between blockchains. The project has few competitors in this niche and the coin definitely deserves attention for at least the next year.
If you have a sufficiently high risk tolerance, you can not weigh and compare ALGO vs DOT too meticulously, but invest ittle by little in both coins. The Algorand team is committed to building the greenest possible blockchain network. These guys are quite convincing, the platform is developing quite actively, and large funds are gradually buying the project token. However, it should be borne in mind that the concept of the project is not unique and there is a risk that it will be surpassed by the closest competitors.