Best Coin To Invest In 2022
I imagine that anyone reading this piece is a new investor that is looking for a place to start. I hope to do more than just answer your question but also give you a few more pointers that will help you in this cryptocurrency journey that you are about to embark on.
With over 10,000 Cryptocurrencies available in the market, it can be difficult to pick just one. In this article, I recommend Bitcoin as the best coin to invest in 2022. However, I am not trying to fence you in; feel free to explore any of the other available Cryptocurrencies.
Figure: Bitcoin as the best coin to invest in 2022 (source The Motley Fool)
Best Crypto investment practices
Crypto has indeed outdone itself by exhibiting an impressive global rise to prominence. Dues to factors like NFTs, there has been an upturn in Crypto adoption in the recent past. Today, more people view Crypto as a worthwhile part of their portfolio.
- Diversify your portfolio – Along your crypto journey, you will soon realize that there is no such thing as the best coin. Different coins handle different issues making it impossible to establish to compare them.
You must invest in several coins (diversify your portfolio). This way, you will spread the risk and increase your chances of making a profit. Consider a variety of combinations among the top coins by market capitalization.
- Evaluate your reason for investing – Before you even decide on which coin you are going to be investing in, you simply must establish your motivation. Why are you investing in Cryptocurrency?
Is it simply because of how trendy they are? Or do you have a more compelling reason?
There are no good or bad reasons; however, establishing your motivation will greatly inform the kind of coins that you end up investing in.
- Get a good feel of the industry – This particularly applies to new investors; I mean it only makes sense for you to understand the industry if you want to succeed. Gather as much information as you can about the coins, apps, reference platforms, and even Blockchain technology.
- Join an online community of Crypto enthusiasts – Being such a trendy area, Cryptocurrency trends tend to rise and fall very quickly. Much of this can be attributed to the Crypto community. A crypto project can only be as successful as its community is engaged. It would therefore help you greatly to join one.
- Read Cryptocurrency white paper – Knowledge is power, and what better place to find information than in the cryptocurrency whitepapers?
- Work on your timing – The goal is to always buy low and sell high, timing is therefore very important.
- Consult widely – Read as much as you, ask good questions, and create relationships with specialists. Today, you can even hire Crypto experts on freelancing platforms like Fiverr and Upwork.
- Only invest what you can afford to lose – You have no business selling your house, car, or even kidneys to buy Cryptocurrencies. Treat it like any other investment and have a longevity mindset.
Bitcoin as the best coin to invest in 2022
A good investor is one who never gets caught up in the hype. As with any other investment, you must be strategic particularly considering how volatile Cryptocurrency prices tend to be. Don’t commit rash acts, take your time, be smart.
Here is why Bitcoin makes for the best coin in 2022.
- Reputation – The reason why I picked Bitcoin as the best coin to invest in 2022, is because it is the king of all Cryptocurrencies. No cryptocurrency list is complete without Bitcoin; it was the first-ever created coin and has remained to be the most popular. Bitcoin has indeed proven to be a great store of value.
- Performance – Not only is it the largest coin by market capitalization, but it is also among the most highly traded Cryptocurrencies assuring liquidity to investors. Bitcoin is a major trendsetter in the crypto industry, most coins follow its price trends. Did I mention its limited supply which guarantees its growth? It also takes lead in terms of retail and institutional adoption.
- Great track record – even though it has repeatedly experienced major falls from robberies to government regulations, it stabilized and showed growth again. Although Altcoins usually have higher returns than Bitcoin in a bull market, they also depreciate more in a bear market.