Are you considering investing in crypto this year?
The world of cryptocurrency blew up in 2021, with people all around the world becoming aware of the trend and many even making the decision to invest. It has transcended investment spheres and is now even a hot topic in popular culture, with almost everybody now knowing of somebody who invests in crypto.
Bitcoin is undisputedly the most recognisable of all of the different cryptocurrencies, so many people will be wondering if 2022 is a good time to make an investment of their own.
Bitcoin tends to be an indicator of general trends in the crypto market, as it is by far the biggest cryptocurrency and the rest of the market tends to follow trends first seen with Bitcoin.
In 2021, Bitcoin’s price reached an all-time high at over 68,000 dollars, but it dropped lower than 30,000 dollars in July. It is precisely this volatility that has experts encouraging potential investors to keep their crypto investments to under five percent of a portfolio at the start.
According to time.com, a number of experts believe it is only a matter of time before Bitcoin hits 100,000 dollars, meaning 2022 might well be a good time to invest to ride that wave.
It’s hard to predict what swings will come in the cryptocurrency, but the whole market is still very new and its lack of history only add to the complications in predicting what will happen next.
This mysteriousness surrounding it is exactly why investors should be cautious, and only invest what they’re prepared to lose.
“If you were to wake one morning and find that crypto has been banned by the developed nations and it became worthless, would you be OK?” Frederick Stanield said to NextAdvisor, trying to explain the importance of limiting investments.
If you are to invest in crypto in 2022, it’s advised to keep your investments small and to never put crypto above other financial goals, such as saving for retirement or paying off debts.
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