8 Best Ways To Invest In Cryptocurrencies In 2022
In this article, learn different methods to invest in cryptocurrencies: buy outright, invest in DeFi, NFT, stocks, Bitcoin ETF, trade bitcoin futures, crypto CFDs.
The technological revolution has given way to new trends, such as e-Commerce and digital transactions. In turn, the COVID-19 pandemic generated an increase in online sales and electronic payments. And it accelerated the business transition into the digital world for years to come. In this article, learn different methods to invest in cryptocurrencies: buy outright, invest in DeFi, NFT, stocks, Bitcoin ETF, trade bitcoin futures, crypto CFDs.
It is becoming more and more common for users to carry out transactions over the Internet and are attracted to crypto, which will be one of the main avenues of trade. This cryptographic system had a dizzying pace of development in 2021 with an expected rise in 2022.
Amid the digital boom, cryptocurrencies set a world record price in terms of use and value. Although they failed between 2017 and 2018 due to various investor fraud, it now has a price that evolves in the market where Bitcoin exceeds the threshold of $ 67,600.
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Today it is betting on two new investment instruments: DeFi and NTF, along with ETF, CFD and futures. So, one wonders: does the year 2022 also offer the opportunity for investing in crypto?
What are cryptocurrencies and how do they work?
Cryptocurrencies are independent digital currencies that do not belong to any state. These are decentralized currencies from central banks, financial institutions, and governments. In other words, regulators do not intervene in the price of Bitcoin or other cryptos. In fact, Bitcoin has a limit number of 21 million coins in circulation. You can learn important terms, words and units related to crypto here nexdex.pro.
The structure of Bitcoin makes it impossible to manipulate its value. So much so that the control of Bitcoin is in the hands of the users, who are the ones who validate all operations through P2P. The investment is more secure due to its blockchain system as they are an independent asset. That is why cryptocurrencies like Bitcoin are very popular worldwide.
The cryptocurrency boom will sweep in 2022
In the digital age, crypto is a preferred digital payment method for users by guaranteeing encrypted and secure operations. They can be purchased from cars and properties to products and services, in addition to saving and obtaining profits from the rise in the price of cryptocurrencies.
Investing today provides short-term profits, and its use gives the opportunity to carry out commercial transactions with security and immediacy. The value of crypto is estimated to increase significantly in 2022. So far the most popular currency is Bitcoin, followed by Ethereum, DAI, BitStamp, Litecoin, Dogecoin and others. It is also necessary to mention the expansion that the cryptocurrencies of games and NTF projects are having, which will be explained later.
By 2022 a new phase of Bitcoin begins; a transformation in business transactions and practices is imminent. There is a significant improvement in the macroeconomic efficiency of cryptos like Bitcoin.
Statistics from Statista show that the market capitalization of cryptocurrencies rose by 300% in the previous year. It is a progressive conversion of digital currencies, with an investment boom that will increase in 2022.
In this sense, experts explain that users operate and invest in the currency they want to become independent from state and financial interventions in their country. Bitcoin is the currency most chosen for its high value in the market with a year-on-year figure of 200%.
This marks the difference between the past and the future, wherein 2022 the virtualization of business operations will end. There is even talk of democratization of access to finance that focuses on Crypto Education for economic freedom.
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The methods of investing in cryptocurrencies in 2020
2021 is the year of cryptocurrencies that reserves a good investment in 2022 to finish consolidating in the financial market. This type of currency maintains high expectations for users, despite the volatility that they could present because they promise higher profitability and capitalization than conventional currencies such as the euro.
Currently, there are several platforms to invest in, these days you can easily find the best bitcoin brokers Australia and exchanges, since choosing the right company with which we are going to operate is important to make an investment with more efficiency and safety.
The methods that can be used to invest in crypto are:
1. Buy cryptocurrencies directly
The direct purchase of cryptocurrencies is one of the recommended methods for investment since the process is simpler and safer. Some real crypto investment platforms are Binance, Bitpanda, Cex.io, Coinbase, and Kraken through Centralized Exchanges, Decentralized Exchanges, P2P Buying Sites, and ATMs.
Once the cryptocurrencies are acquired, the user will be the only legitimate owner and can use them without intervention. Although it is best to wait for it to appreciate over time.
2. Invest in DeFi projects
The DeFi refers to the decentralized finance projects of the Blockchain, which allows investment in different crypto assets to obtain the returns generated. This financial product is already very popular and is expected to increase during 2022. It is because it offers the possibility of entering and exiting the investment without losing returns.
The best thing about DeFi is that they generate paid returns to investors. The investor receives the interest from the DeFi when they lend the crypto assets to other users who pay to use them.
3. Invest in NFT projects
The NFT are non-fungible tokens with virtual property certificates that are evolving since 2020 in the world of unique virtual properties, with high sales and profits. An example is that artist Beeple sold a work of art for $ 58 million that was not physically delivered, but instead offered a digital NFT certificate-granting ownership of the work.
Other NFTs refer to unique properties of other areas that are not only artistic, such as video games, which are handled with NFT characters. It is possible to trade with these NFTs or make them profitable with the profits obtained in cryptocurrencies within these video games.
These types of non-fungible tokens represent a good investment opportunity. They are original and valid in commercial sectors, even more so in art, whose transactions reach 200 million dollars every 2 months.
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4. Invest in company stocks
Companies related to Tesla, Nvidia or Square are succeeding all over the world. Following demand from the automotive, technology and digital sectors, these companies will maintain an important position in the market with shares sold on a daily basis.
The investment in Tesla is an assertive decision foreseen by the trend of electric cars that will replace conventional (gasoline) cars in a few years. In the case of Nvidia, it is a real investment that could reach $ 1,000 per share for being the leader in microprocessors. The price of Nvidia shares evolves in national and international brokers in a bull market that will not stop growing in 2022.
Also investing in Square-related businesses is an excellent idea. Wall Street analysts say it tripled in value in twelve months with expected earnings of $ 3.16 a share from 2022 to 2033.
5. Invest in a Bitcoin ETF
The ETF is a publicly-traded mutual fund, similar to a stock. But its methodology is more efficient and economical when investing. It is a set of assets determined by a daily value calculated in real-time, which represents an indirect investment of Bitcoin through a basket of values. This investment is useful to access global markets, assets and raw materials.
6. Trading Bitcoin futures
In futures contracts, investors must predict the value the cryptocurrency will have on a specific date. When the contract is made, you have to buy and sell at the agreed price; it doesn’t matter if the price was just updated. This can lead to investment risk because it is difficult to guess how much Bitcoin will be worth.
Still, futures contracts amplify the gains from the leverage system. If you invest $ 1,000 with a 100-times trade and the price goes up 2%, you make $ 2,000 in profit. Therefore, trading Bitcoin futures is a great alternative in 2022 if you invest wisely to minimize risks.
7. Trade cryptocurrency CFDs
CFD trading is a contract for differences between two parties. The seller stipulates that the buyer will pay the difference in the present value of an asset after the contract ends. It offers wide versatility for trading currencies, Bitcoin, indices, commodities, and more. Although there is a risk of volatility with the CFD, so it is recommended for wholesale investors.
These operations require vigilance over the investment to be attentive to the volatility of the asset. However, it is an ideal investment to make a profit in the bull market and bear market of 2022. The profits are received based on the size of the investment and the spread generated that provides greater growth in the crypto market.
8. Investing in a crypto startup company
Some companies have direct exposure to cryptocurrencies, such as publicly-traded startups. Their goal is to be successful, and according to Douglas Boneparth of Bone Fide Wealth in New York, these companies succeed because they have products or services that can be appreciated even before launch. At that point, investors can sell the tokens when their value increases while adding liquidity and profit to their own investment.
Since 2021, investment in crypto startups is a trend that has been forged as assets increase by millions of dollars. It is a way of financing business projects.
A conclusion about cryptos
Cryptocurrencies will continue in 2022 in their decantation process by users. Bitcoin is likely to continue to dominate the current market and penetrate hundreds of global sectors. Businesses are already assuming the new modality of crypto by adapting their online marketing and investment systems.
At the same time, technologies will soon mature alongside the popular culture of purchasing and financial processes. There will be no going back in this system. Even those who do not know about the subject are beginning to learn to work with cryptos. It is a competitive advantage in the digital age of e-Commerce necessary for the exchange of goods and services.