Are you wondering how to start your journey in cryptocurrency? That’s a good question that will lead you to success or failure. That’s because your results depend on your actions. Many people gain great achievements by investing in crypto but there are also those users who experience negative consequences.
Cryptocurrency is a virtual coin (also called token or unit) you can buy from specific companies and then trade. The value of the exact coin differs and depends on many factors. Compared to traditional stocks and real estate businesses, the biggest influence has the consumer’s interest. Everything is simple: if many people want to buy cryptocurrency then its price increases, and vice versa.
Let’s find out the key advantages and risks of crypto investments so you can make a rational decision for yourself. Also, we’ll discuss where you need to start today to succeed soon.
Is 2022 good for crypto?
First of all, we are seeing the constant rise of this industry on the global stage. Year by year, long-term players in this market make sure they have made a wise decisions before. At the same time, more and more newbies got interested in developing professional skills as investors.
It means that the current doesn’t really matter. As well as in 2021 and in previous years, you can take advantage of crypto investments in 2022. Everything depends on your skills to analyze the market of cryptocurrency.
Second of all, no matter how great your analytical skills are, you can’t allow yourself to forget about security. The cryptocurrency industry attracts many individuals but carelessness and naivety wouldn’t play into your hands. So if you use Mozilla then VPN for Firefox is a must. If you want to use VPN on Chrome then find it in the Chrome Web Store as well. That’s up to you to select the service you like but pay attention to its reputation and available features.
For instance, VeePN is a top-rated and functional Virtual Private Network service. It is stable, fast, and flexible so people like it. Thanks to this service, you will protect your data from third parties and surf safely on the Web. Another good feature is the free trial. You can try the app or extension for free and decide if it is worth downloading or not. Although we are different, this
Anyway, FireFox security is vitally important for all users using the Internet for business or personal needs. VeePN has an app for gadgets and an add-on for Mozilla. You may select any option you are comfortable using.
Pros and cons of investing in cryptocurrency
On the one hand, no expert can tell you that you will definitely gain success in this industry. Any guarantees are absent. You have to get rid of the black and white worldview. As a result, there is both an impressive potential and possible risks in crypto investment.
On the other hand, by being able to make rational decisions you’ll be able to join the community of people who make successful purchase and sale operations. So let’s have a closer look at the pros and cons of investing in cryptocurrency.
Benefits of crypto investments
Here are the top reasons why you may be interested in trying your hand at investments:
Crypto investment is still a new field
Although this concept has been very popular for many years already, it is still considered actual. Just take into account that the most famous currency Bitcoin was launched only in 2009. This year the Lucky Block was launched and has already framed itself as the most fast-growing and best-performing crypto. That’s why the market of cryptocurrency is very young and the best is yet to come;
International companies invest in cryptocurrency
We can admit that huge corporations also invest in crypto. Such a fact highlights that this industry is truly forward-looking and ambitious. For example, Tesla is known to put $1.5 billion from its balance in the most famous cryptocurrency Bitcoin. Another good example is when huge companies allow customers to pay for their services and goods using Bitcoin. Among them are Microsoft, PayPal, Starbucks, etc.;
An ability to make money on 2 fronts
On the one hand, you can gain direct profit by earning margins when the price of your token grows on the market. This is a standard option you can count on. On the other hand, you are also able to get passive income. By making deposits of your tokens into a special account, you can earn a stable percent annually;
A variety of projects
At the moment there are thousands of great projects to participate in. As a result, every individual has enough chances to find the most appropriate cryptocurrency tokens. If it’s your first time trying to invest in cryptocurrency you should better prefer a large-cup option, for instance, Ethereum or Binance because of their volatility. If you are capable of handling bigger risks and want to get higher margins you should consider cryptos with a smaller market capitalization;
Although crypto investments are riskier than traditional stocks, you can expect higher profits. For example, Bitcoin has increased by more than 3,600% during the past 5 years. At the same time, don’t forget that this cryptocurrency isn’t the most efficient option. There are many other currencies with better rates. For instance, Ethereum has increased more than 25,000% since its launch;
Well, the list of advantages impresses. It’s no surprise that people desire to know how to invest in crypto. They are excited to try spectacular opportunities with the hope of desired results.
Risks of investing in cryptocurrency
We must be honest and clarify that investing in cryptocurrency also has risks. It’s not about direct disadvantages but possible dangers always exist. Let’s reveal the main risks for newbies:
- Speculative activities: In general, the whole cryptocurrency market is extremely speculative. As a result, everyone is focused on short-term deals and avoids long-term deals. Such speculative activities cause unstable and unpredictable results;
- Unstable market: This issue is a direct consequence of speculative activities on the market and means its smaller capitalization. As a result, the market becomes more and more volatile;
- Scams: You may have already heard the term “Rug pulls”. It was used to describe a project that aimed to steal investors’ money. Because of such scam projects, customers may lose their funds;
- Hacking attacks: Hackers are watching all the time and nowadays they pay much attention to the cryptocurrency asset class. For this reason, you must protect your e-wallet to make it resistant to hacking.
Anyway, you can reduce these risks by doing in-depth research and developing your professional skills. Before you put your money you should be sure you make things right. Right after you have clarified all particularities of investing you can move on and select a cryptocurrency to put your money on.
Which cryptocurrency should I invest in 2022?
It’s great to know that there is a wide range of different currencies. But it’s better to know which options are the best-performing and promising. Here are the top cryptocurrencies for beginners in 2022:
- Bitcoin: This is the most well-known crypto in the world and it is perfect for a beginner. Its important benefit is compatibility with all top currency exchanges;
- Ether: Another great option for newbies. It is focused on buying mobile software without the necessity of paying an extra fee to a facilitator (for instance, Google Play or App Store);
- Ethereum: This is an open-source blockchain with native crypto called Ether. It was launched in 2015 and has increased by 28,000% in value.
- Cardano: Such crypto is mostly used to hold private information. Compared to Ethereum, Cardano is known for better performance and price;
- Lucky block: This is a very young cryptocurrency that was launched at the beginning of 2022. The project is focused on lottery games.
Now you know 5 options you can try. You should start your journey in cryptocurrency by taking your ID, bank account data, and safe Internet. Then make the following steps:
Step #1. Select a crypto exchange. Among the most popular are Kraken, Coinbase, Gemini, Binance, GDAx, and so on.
Step #2. Buy coins and units. Use your debit card to make your first and further purchases of cryptocurrencies you prefer.
Step #3. Hold your tokens in your wallet. This is the virtual account you’ll receive when you register at a crypto exchange.
It’s important! Keep in mind the capital gains tax. According to all statements, crypto is an assent so you must pay capital gains tax on the sum you earn on crypto exchanges.
It’s hard to predict for sure which crypto will go up in 2022 but you may try to work with the most ambitious currencies. With this information about potential benefits and risks, you may make your first moves in this industry. Remember that the value of each crypto is defined by the public perception of its price. So do your research and make your own decisions according to your findings, experience, and professional hints.