Should I invest in cryptocurrency?
If you have this question, “should I invest in cryptocurrency?” Then you have come to the right place. Here you will learn whether you should invest in cryptocurrency or not.
Bitcoin is making a new hit every now and then, and all thanks to its high profits and all-time high prices. Do you know that the cryptocurrency market has become the second-biggest market in the world? Crypto has taken the digital financial market to the next level within a few years.
At present, people are intrigued to invest in cryptocurrencies because they get higher profits with little investment. But you should not fall for this trap because the crypto market is volatile, and you can lose an ample amount of money within a few minutes if you don’t invest in the right assets.
Various famous celebrities have taken a keen interest in cryptocurrency, and it has made huge popularity among the masses, such as Elon Musk openly promoting his interest in cryptocurrency. Also, U.S government officials and the Biden administration have expressed their interest to bring a new regulation for cryptocurrency. All this promotion about cryptocurrency has made it skyrocket in recent years. Various investors have already invested ample amounts of money in cryptocurrency.
Therefore, if you have this question – “should I invest in cryptocurrency?” then read this article to get your answer. In this article, we will tell you whether or not investing in or buying cryptocurrency is a good idea. Along with that, what you should expect from the crypto market in 2022.
Is buying a cryptocurrency a good idea?
According to various crypto experts, the year 2021 was a breakthrough for the development of many popular cryptocurrency exchanges. There were numerous people who have taken a keen interest in cryptocurrency and uplifted the market sector by investing money. Besides the public, various celebrities have taken tremendous focus and paid attention to the crypto industry. And all this has brought a huge change in the digital financial market sector.
As per our research, crypto investors had a terrific year and earned huge profits as compared to equity investors. In 2021 prices of some crypto coins surged up to 6,000%-7,000% and that resulted in amazing returns to the investors. Some investors have earned millions of dollars from cryptocurrency that they have not earned from the equity market.
Even some of the famous cryptocurrencies such as Ethereum and Bitcoin have risen to 40-45% in 2021 and this has made them the blue-chip crypto assets. You might be thinking that investing in crypto is hugely profitable and regretting why you haven’t started it yet. But this was all the fun and positive side.
The Crypto market is volatile, and it was proved significantly in 2021. The price of bitcoin has almost touched the 5.1 million mark in the month of April, and suddenly in the month of May-June, it has fallen down by 50% after Elon Musk tweeted regarding his concern towards the environment. Also, countries like China had crashed down the crypto trading in that month. And as a result, investors started selling their cryptocurrencies, and it further resulted in a crackdown in the crypto market. Some of the cryptocurrencies have fallen down by 30%-45% within a few hours.
However, the investors have again returned and started investing in the cryptocurrencies after a few months, and that helped the crypto market to come back in a stable position. In the month of September-November, the price of Bitcoin closed at the 5.4 million mark, and the crypto market settled the year at 4 million, which is around 35% higher than what it was at the beginning of the year.
Therefore, if you think, “should I invest in cryptocurrency,” then buying a cryptocurrency can be a good idea but you have to stay alert and understand the risk factors before investing your money.
What to expect from the crypto market in 2022?
If you are wondering, “should I invest in cryptocurrency” then first you have to know what to expect from the crypto market in 2022. Well, it all depends on the government, and how they handle this digital financial market. But for your information, China which is considered the world’s largest crypto market has banned all transactions since September of last year. However, in India, the movement has adopted new policies and they are planning to bring new rules and regulations for making cryptocurrency official and bringing a new legislature to make crypto trading legal. They have also made a new official digital currency bill for that which the parliament and the discussion are going to hold later this year.
However, Bitcoin price is showing a good indicator, and the experts are saying it will cross all-time high prices this year, therefore, you can expect some huge profit. The bitcoin price will easily cross the $68,000 mark and can even touch the $100,000 mark this year.
Hopefully, this article has helped you to understand whether you should invest in cryptocurrency or not. Also, you have understood what you can expect from the crypto market in 2022. However, before investing, you must know that the crypto market is volatile, and hence you must have adequate knowledge regarding cryptocurrency and how the crypto market works.