2022 has been a rocky year indeed for cryptocurrencies across the board. The original cryptocurrency of Bitcoin, for example, has plummeted in value by 60% compared to its price just twelve months ago. But this hasn’t deterred crypto investors; countless traders worldwide are jumping on board to take advantage of the price dip. But why?
For savvy investors, this volatility presents many exciting opportunities to profit from the crypto market, hence the term; buy low, sell high! But that’s not the only reason crypto investment is booming in the current market downturn.
From diversifying portfolios to riding out inflation and making money for life goals such as travelling the world or achieving higher education, in this article, we’ll introduce you to five eye-opening reasons why cryptocurrency investment is still a high priority for new and experienced investors alike.
Most importantly, we’ll also be informing you of how to invest in it properly if you’re new to the crypto market.
But before we start, it’s worth pointing out that crypto investing can be a volatile venture. Prices can fluctuate wildly, and one should be prepared to weather the storm when a price dip occurs. If you’re investing for the first time, always consult with a financial professional first and utilise the services of a trustworthy broker, exchange or service like Binance, eToro, and Bitcoin Loophole.
Now, let’s begin!
You’ve likely heard the term; don’t keep all your eggs in one basket, right? Well, this is an apt phrase for an investment portfolio. Some investors restrict their portfolio to the conventional opportunities of stocks, bonds, etc. and neglect crypto entirely.
However, in the event of a stock market downturn, it’s historically been shown that crypto can do the opposite in such an event. So to ride out rocky markets, it’s crucial to diversify. With thousands of cryptocurrencies and altcoins now available, there has never been a better option for potentially profitable diversification.
As the enthusiasm around crypto grows and the number of users gets higher, there has been a huge increase in crypto investment from people seeking to diversify their investment portfolios. Retirement plans are particularly popular due to the potentially bright future for crypto.
Any investment portfolio considered modern and with the times will surely include a significant amount of crypto, regardless of the age or background of the portfolio owner.
Over the last decade, Bitcoin has gone from being relatively worthless to being sold for the price of a house. Its value has skyrocketed by over 540,000%, making it one of the most profitable ventures in the history of investment.
Ethereum is another example. It surged from a modest 2015 launch price of just $0.31 to over $4,800 a coin in 2021. The blockchain powerhouse has even managed to outperform the profit performance of Bitcoin at some points over the years.
And then there was the classic meme coin called Dogecoin. In 2021, for example, if you’d invested around $1,000 into DOGE at the beginning of the year, you would have made over $14,500 within the first six months.
And these are only three examples. We could talk all day about incredible profits made through other cryptocurrencies. But our point is that there are serious profits that can potentially be made through cryptocurrency investing (provided that it’s done correctly).
So naturally, one of the biggest reasons people are flocking to invest in crypto in 2022 is to potentially make a very healthy profit from buying into the current market downturn. Skyrocketing inflation, rising costs of living, and political uncertainty worldwide are only encouraging more people to do so.
Long-Term Store of Value
Many major cryptocurrencies, like BTC, are classed as scarce assets due to having a limited supply. Hence why, Bitcoin is often referred to as digital gold.
This means that the returns on investment can be astronomically higher than the traditional stock market, and prices can skyrocket when demand for a particular scarce asset grows.
In 2022, distrust in mainstream banks is extremely high among the younger generations. According to EY’s 2021 NextWave Financial Services Survey, consumers aged 65 and over are the only demographic that trusts traditional banks more than fintech.
As a result of this distrust, millions are flocking to the salvation and transaction freedom of cryptocurrency that conventional banks simply cannot offer. Trusted and well-regulated cryptocurrency exchanges easily replace banks’ services.
In 2022, Canadian banks froze the accounts of people
Cryptocurrency Is Reliable
Due to its decentralised nature and ability to largely stay out of the reach of political movements and government interference, crypto is widely seen as a reliable form of currency in the long term compared to conventional fiat currencies.
In addition, cryptocurrency is increasingly regarded as one of the best safeguards against inflation worldwide. This has never been truer than in 2022, with inflation rates currently around 8.5% in the US and 10.1% in the UK. With inflation rates like that, the historically-volatile crypto looks like the more stable option!
It’s a Social Investing Experience
Cryptocurrency is, at its heart, an inherently social investing experience. Few other traditional investments come close to the community aspect of crypto investing. Those who get on board get the chance to access a potentially highly-profitable asset and become part of the wider cryptocurrency community with members in almost every corner of the world.
In Summary, Crypto is Booming! But How Do YOU Get On Board?
This article has covered some of the most compelling reasons why millions worldwide will continue investing in cryptocurrency in 2022. Despite the current market downturn, people are flocking to the crypto market. But say you want to join them, how do you do it?
The foundation of any profitable crypto investing journey begins with avoiding scam platforms and instead signing up for well-regulated exchanges, brokers, and services with a solid history and the ability to provide a world-class trading experience.