Succeed With cryptocurrency in 2022

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Over the last several years, the crypto market has grown in value and popularity that alternative financing options have practically become outdated. While Bitcoin is the first cryptocurrency and is currently the most well-known cryptocurrency, many others have appeared. The phenomenal gains that some investors have achieved are part of the cause for the cryptocurrency asset class’s buzz.

The rising popularity of cryptocurrency is expected to extend into 2022. Here are just some reasons we think investing in the crypto market is a viable option for the coming year!

Ease of Payment

One of the most significant disadvantages associated with cryptocurrencies is that they are not accepted as a viable alternative for regular currencies for payment purposes. Many cryptocurrencies may become worthless due to their lack of practical use.

In 2021, however, the reverse had occurred. The trend appears to be changing and is set to continue through 2022. An increasing number of companies are now moving towards accepting cryptocurrencies as legal cash, such as Bitcoin. Therefore, cryptos’ viability and return rate are expected to rise and maybe even skyrocket in some cases.

The volatility of Crypto is Expected to Reduce in 2022

In the past, cryptocurrency was viewed as a highly risky and volatile investment. With the prices of bitcoin rising from $1,000 to almost $20,000 in 2017, the trends have continued. Even in 2021, it was observed that the prices for Ethereum also increased by quadrupled. However, experts are now predicting a decrease in the volatility of cryptocurrency in the coming year, thus making it a less risky investment.

Increased popularity and credibility of cryptocurrencies are expected to help mitigate risk and reduce some of the volatility surrounding cryptocurrency. It has been pointed out that prices may continue to fluctuate drastically in 2022, but these fluctuations will not be as dramatic as those observed in recent years.

Invest in Solana

With a market price of almost $52 billion, Solana is currently the fifth most popular currency in the crypto market, compared to Ethereum, which has a current market capitalization of around $452 billion. This puts Solana in a strong position since it has developed enough traction to compete with the crypto market’s top players, but there’s still plenty of opportunity for expansion.

Solana also has a lot in common with Ethereum. Both networks are smart contract platforms that can host decentralized finance apps and non-fungible token (NFT) marketplaces, among other things.

On the other hand, Solana has one significant benefit over Ethereum: speed. Solana is capable of processing up to 65,000 transactions per second, compared to Ethereum’s current rate of roughly 15 transactions per second. Therefore, many developers have gravitated to Solana’s network due to its speed, making it the fastest-growing cryptocurrency in the crypto market.

Expansion in derivatives and other secondary markets

In February, purpose Investments, located in Canada, introduced the world’s first bitcoin-based exchange-traded funds (ETFs). It already has $1.4 billion under control after less than a year. There is no reason why this step couldn’t be replicated tens or hundreds of times in markets other than the United States. The Securities and Exchange Commission, despite its reluctance, might approve a bitcoin or crypto ETF in 2022, thus expanding its practical use.

Individual investors are more likely to understand that they may benefit from a crypto portfolio and borrow against it despite the dangers. All of this is contributing towards a growing crypto ecosystem.

What Cryptocurrencies Should I Invest in To Succeed In 2022?

With multiple new options entering the market, experts and analysts have predicted the probability of the success of specific cryptocurrencies over others. Some cryptocurrencies you should invest in include the following:

  1. Bitcoin: it is no surprise that bitcoin has made it to the list. Despite its volatile nature, bitcoin has yielded some highly fruitful results in the past and is expected to show the same trend in the future.
  2. Ethereum: ETH is being looked upon as the next bitcoin. Its fast-gaining popularity is resulting in an increment in its value. In addition, the launch of Ethereum 2.0 is anticipated by many investors and is expected to produce favorable outcomes.
  3. Binance coin is another popular option, launched in 2017, set to achieve extreme heights in 2022.

Conclusion

With the rising popularity and the value of cryptocurrencies is increasing, along with the ease of multiplying your gains, people are becoming increasingly interested in the crypto market. Be it, people who are crypto-curious or dedicated crypto investors, at erecoin.io, we can guide you!