1. Is it worth investing in cryptocurrency in 2021-2022 and why? What needs to be done to enter the crypto exchange?
1.1. Coin and token what is the difference
1.2. The most promising tokens for 2021-2022.
2. What cryptocurrencies should you pay attention to today.
2.1. TOP-22 currencies and an overview on them
2.2. Forecast on the exchange
2.3. Arguments for investing in cryptocurrency
2.4. Risks
2.5. Where to buy and sell cryptocurrency? Review of exchanges
The epidemiological situation in the world has made its own adjustments in all spheres of human life, and especially in the economy. The financial options for investing funds - currency and even gold - were under attack. At that time, there was practically not a single asset in which to invest safely, and then investors turned their attention to the "unpopular" asset class - cryptocurrency.
An asset that, moreover, has little correlation with other types of assets. Moreover, in recent years, the traditional currency has become less and less attractive to investors due to its strong exposure to the influence of geopolitical and economic factors, and also does not have the possibility of a sharp jump in value.
The growth of interest in cryptocurrency is due to the following factors:
· Great potential for growth, which makes it possible to rapidly and significantly increase their investments;
· Decline in confidence in the currency;
· The "cryptocurrency boom", which attracted the attention of a large number of new investors in early 2021.
Two conditions for the growth potential of the price of cryptocurrency.
1. Cryptocurrency has a fundamental basis - a useful function for the outside world, and a limited emission of coins.
2. The hype around a certain cryptocurrency. The more investors want to invest in virtual currency, the faster the price increases. The more influential a person is interested in investing in cryptocurrency, the more rapidly its price grows.
Is it worth investing in cryptocurrency in 2021-2022 and why?
If you are seriously puzzled by this question and have inquired enough about what virtual currency is and how it works, then the answer is yes!
It is important to keep in mind that cryptocurrencies remain high-risk assets for investors. However, having significant investment experience, you can earn or invest in future prospects.
What needs to be done to enter the crypto exchange?
First, understand the instruments found on any exchange.
They include the price chart, order creation form, order book or order book, information on trading volumes and transaction history.
In order to successfully buy and trade cryptocurrency, you need to choose a platform that meets your desires and needs. In addition, you need to choose a cryptocurrency wallet. Each e-currency has its own dedicated wallets. So, for example, for the most common coin - Bitcoin, there are Exodus and Coinbase wallets. For the equally famous Ethereum - MyEtherWallet.
The selling process is the same on all exchanges:
1. Registration. The procedure is standard - you can register using e-mail or by phone number, come up with a password and create an account.
2. Verification. Most exchanges require full verification from users, but some provide a choice: verify their identity or trade anonymously. It is important to understand that verified users have greater security guarantees and extended trading limits.
3. Trade. All actions with assets take place in the "trade" tab using the trading terminal. The algorithm is the same on any exchange: choosing a trading pair and filling out an order for buying / selling in accordance with the selected order type.
Coin and token - what's the difference?
Cryptocurrencies have their own blockchain. The units of such currencies are correctly called coins. The coin has a measurable value and can be used as a settlement currency. Among them are Bitcoin, Ethereum, Litecoin, XRP, EOS, etc.
A token is the same digital asset, but developed on third-party platforms, on a blockchain owned by the company, with the aim of participating in the development of the network and performing purchase and sale operations. The most famous tokens are Tether and USD Coin, developed by the Ethereum platform. The token works in conjunction with Bitcoin.
The most promising tokens for 2021-2022
Uniswap (UNI) (Ethereum platform)
Chainlink (LINK) (Ethereum platform)
FTX Token (FTT)
Aave (AAVE)
The Graph (GRT)
DAO Maker (DAO)
SHIBA INU (SHIB)
Thorchain
What cryptocurrencies should you pay attention to today
We have already answered the question: "Is it worth investing in cryptocurrency in 2021-2022?" And our answer is yes. Now it's worth figuring out which digital assets it is better to invest your money in, including for the long term.
You need to invest in the electronic currency that meets your requests, needs and based on what you plan to receive from it. Of course, this should be a cryptocurrency, in the prospects of which you have no doubt.
First of all, cryptocurrencies should be fairly simple and straightforward, and the mechanisms for exchanging and withdrawing funds should not be resource-intensive, that is, should not take much time. This means that the project should be not only promising, but also with the introduction of unique technologies and innovative solutions. A project that gives or will give in the near future good earning opportunities.
TOP-22 currencies and an overview on them
1. Bitcoin. The undisputed leader in the world of cryptocurrency. It represents the most secure electronic asset option among all currently existing. Electronic currency has been on the market since 2009, and this year it has reached a peak in its value. According to analysts' forecasts, Bitcoin will continue to grow until the end of this year and break its March record of $ 64,000.
Investors prefer Bitcoin, since its capitalization is ten times greater than that of other currencies in the world - about $ 583 billion. Therefore, the purchase and sale of bitcoin has the highest liquidity, which means it will be profitable regardless of the state of the market. Despite the fact that cryptocurrency as a whole is a very volatile asset, Bitcoin has shown consistent growth over the long term.
2. On the second, together with Ethereum. This coin made the list for obvious reasons. Ethereum strengthened its position in the market throughout 2020, and already in 2021 broke its record in value by two times - 4.3 thousand dollars. Interest in Ethereum has been fueled today by the launch of Ethereum 2.0, which is scheduled to be completed by the end of this year.
The coin will move to the Proof-Of-Stake algorithm, which will allow the decentralized application to run more smoothly and efficiently. This upgrade cannot but delight users. Ethereum is good because it has been close to Bitcoin for many years. This cryptocurrency provides the greatest investment prospects in the long term. The release of Ethereum 2.0, in addition to the above, implies the elimination of perhaps the only drawback of Ethereum - the high cost of commissions within the network.
3. Litecoin. When the student is superior to the teacher. Litecoin is the younger brother of Bitcoin, based on its protocol. Litecoin differs from its "big brother" in ease of use, as well as in 4 times speed. The speed of sending and receiving Litecoin payments can be compared to sending a message in instant messengers. Plus, the withdrawal fees are lower than the credit card company. Litecoin is not lagging behind in capitalization - today it is more than $ 5 billion, which increases the popularity of this token.
Despite the fact that some consider Litecoin to be a side effect or a copy of Bitcoin, experts recommend taking a closer look at it. Since over the past year the coin has shown very interesting results and groundwork for prospects, and today it has a smooth and stable growth in price.
4. Ripple. Another dynamically developing cryptocurrency originally from China. The developers of this cryptocurrency focus on large financial corporations, and not on ordinary users, like many cryptocurrencies. They see their product as a bridge between traditional banking systems and digital payment technologies. The development team is really making a huge effort to modernize and promote their brainchild. Ripple is already partnering with Japanese and Korean banks interested in and testing cryptocurrency technologies. The main indicator of the stability and potential of this cryptocurrency is that it did not hit the stock exchange as hard as others during the March crisis. Official site ripple.com
5. Chainlink. This cryptocurrency in 2020 was in first place in the list of cryptocurrencies with the highest return on investment. This is one of the main arguments in favor of buying and selling and investing in this token. Especially long-term. Last year, the coin rate increased from one and a half to twenty dollars, which is a very solid dynamic for a beginner. If the trend continues until the end of this year, then by the beginning of 2022, according to analysts, the cryptocurrency will be able to compete with such giants as Bitcoin and Ethereum. Official website chain.link
6. Tether. This token works on the Ethereum blockchain. One of the five cryptocurrencies in terms of capitalization. What makes Tether special is that it is pegged to the dollar, which makes it less volatile. This feature will allow the token to gain popularity on all exchanges.
7. Binance coin. Cryptocurrency from the largest cryptocurrency exchange - Binance. Throughout the year, there was a positive trend in the token, including on the Binance exchange itself. If analysts' forecasts come true, then the coin will have great prospects. In particular, thanks to it, it will be possible to reduce commissions on the Binance exchange, which will positively affect its competitive position.
8. EOS. Recognized as the world's leading electronic currency. In terms of technical characteristics (speed and scalability), it surpasses the leaders of the rating - Bitcoin and Ethereum. The token operates on its own platform.
9. Cardano. A fairly new but rapidly developing cryptocurrency. Despite its recent appearance on the digital asset market, it is already yielding excellent results - it is one of the five cryptocurrencies in terms of capitalization. He specializes in launching smart contracts and decentralized applications. Developed as an alternative to Ethereum. And she really did. Official site cardano.org
10. TRON. Perhaps the most unique cryptocurrency and blockchain currently on the market. Cryptocurrency has become widespread among gamers - it is used to pay for content. According to experts, Tron has great prospects and growth in value.
11. Huobi Token. A cryptocurrency developed by the Huobi exchange. Tokens go well in a trading pair with giants - Bitcoin, Tether and Ethereum. The platform offers a unique service - insure against unforeseen situations. For example, losses associated with market instability or hacker hacking of the site.
12. Dash. A cryptocurrency focused on long-term investments in their digital assets. The uniqueness of the cryptocurrency lies in the fact that all transactions are performed without banks as intermediaries.
13. Monero. The leader among anonymous digital currency, which it remains to this day. All transaction data is stored in a decentralized way using the blockchain.
14. Dogecoin. It is often used for charitable purposes due to its simple mechanism of use and low cost. Like Bitcoin, it is quite dependent on the hype created around it in the information field. Official website dogecoin.com
15. DBX. These are not just tokens, but a whole digital ecosystem. Users are distinguished by high transaction speed. A distinctive feature is that the developers from time to time conduct a free distribution of tokens to any interested user, investor or company. Official site www.dbx.so .
16. Stellar. It is a platform for the implementation of cryptocurrency transactions. Over the past three years has become the fastest growing platform. Many users love Stellar for its high transaction speed.
17. Polkadot. Blockchain project with which you can create applications and functional services. Experts believe that the speed of the project's development will allow it to soon have the same impact on the cryptocurrency market as Ether did at one time.
18. Zcash. Refers to the number of anonymous digital currencies. The functionality of the token is aimed at maximizing the protection of the privacy of its users. Moreover, you yourself can choose which data to hide.
19. Horizen. The platform developers are focused on protecting the data of their users. An end-to-end encryption mechanism is used to maximize security. This project provides a wide range of functionality for developers.
20. Solana. A young cryptocurrency that appeared on the market in 2020, but has already entered the rating of promising cryptocurrencies for investment. Solana attracts its investors with two advantages: high and constantly growing data processing speed and low production costs.
21. IOTA. Ayota developers have created an entire ecosystem that allows multiple devices to interact with each other. A distinctive feature is that it does not have a blockchain, but works on the unique Tangle system.
22. Uniswap. Newbie on the stock exchange. Its concept is an Ether token exchange dedicated to Ether tokens. Basically, it is an automated exchange serving Ethereum tokens.
Forecast on the exchange
1. Bitcoin. The popularity of Bitcoin and its leading position in the coin market sometimes plays a cruel joke with it. Since its changes in the market are influenced by news related to it, the statements of opinion leaders and the hype created by some news. Over the past year, in addition to the information field, the sphere of influence on Bitcoin can be attributed to the governments of different countries, resolutions on the legalization or prohibition of cryptocurrencies in the country, as well as the participation of large financial organizations and corporations in the popularization of cryptocurrencies. It is extremely difficult to make an accurate forecast. It is necessary to constantly monitor news, articles and assumptions of experts on the relevant economic forums, as well as blog posts and social networks related to Bitcoin. At the moment, analysts are considering two possible options for the position of Bitcoin on the exchange: as growth,
Reasons that can cause a decline in the value of bitcoin include:
· Hacker attacks and failures affecting the stability and security of the system;
· Prohibition of some countries on the use of cryptocurrency;
· Development of other coins and tokens in the electronic currency market and increasing competition every day.
Factors affecting the rise in the value of bitcoin:
· Legalization and support of the governments of countries for the use of electronic currencies;
· Investments and media reports on the sale and purchase of large corporations or opinion leaders;
· Growth in the capitalization of bitcoin itself;
· Weak competitiveness of cryptocurrencies or a fall in the exchange rate of the dollar and euro.
2. Ethereum. The most anticipated cryptocurrency-related event is, of course, the release of the updated version of Ethereum 2.0. Experts predict the following features of the upgraded version:
Lightweight blockchain
PoS Pure Negotiation Protocol
· Acceleration of transaction confirmation - 8-16 seconds.
Analysts believe that the release of the update will stimulate the growth of the cost of Ethereum at the end of 2021. In addition, experts identify the following factors for the development of Ether on the market:
· Over the past year, there has been a trend of stable and rapid growth of the cryptocurrency rate. It will continue at the beginning of next year.
· The demand for Ethereum in the market is also growing. He is increasingly interested in large banking organizations, as well as software developers and technology giants.
· Ethereum developers themselves are constantly upgrading technology. So, for example, in Russia “Masterchain” was launched, which is based on the principles of the Ethereum blockchain.
· The answer to the question "Is it worth looking at Ethereum as an electronic asset for investment?" Is unequivocally positive.
3. Litecoin. Litecoin is the dynamically developing brother of Bitcoin. Analysts believe that the features and key differences between Litecoin and Bitcoin will become the reasons for the growth in popularity and development of the potential of the cryptocurrency in the near future.
What is the difference: high speed of transactions and low fees for transferring funds, as well as centralized currency management.
At the moment, Ether is more than 5 times more expensive than Litecoin. However, the share of experts suggests that by the end of this year, the difference in rates between the already established and proven Ether on the market and the young, promising Litecoin will be reduced to three times.
Also, experts believe that the cost of litecoin will be affected by the work of developers on the security and speed of transactions, as well as improving the scalability of the blockchain.
4. Ripple. An actively developing Chinese token, whose developers have never bet on the skyrocketing price of the cryptocurrency. At the moment, the team is working to strengthen its position in the market and stabilize it. The developers see the prospects for Ripple in cooperation with large holding companies. Large financial organizations in Austria, credit companies in New York, as well as the National Bank of Canada are already interested in the diploma. Of the most famous companies with cryptocurrency is Google. Ripple is the case when attracting large investors affects not so much the value of a cryptocurrency, but rather its stabilization and reputation among competitors.
Experts believe that the main factors guaranteeing a rise in prices by the end of 2021 are:
The trust of the banking sector, for which Ripple is now working
Its technological safety
Ripple's growth statistics in 2021 is due to the technological superiority of tools and is little dependent on news and hype around the currency
Developers are actively expanding the operational capabilities of the cryptocurrency, and also never stop at its technical modernization
Arguments for investing in cryptocurrency
Why do I recommend investing in electronic assets?
First, there is a low threshold for entering the exchange. Most of the traditional investment options come with the condition of investing large sums of money. At the same time, in order to purchase cryptocurrency, you need to have a solid account with a round sum. The financial injection can be several dollars. You can count from the finances at your disposal, and choose a cryptocurrency based on your needs, which you plan to implement with the help of cryptocurrencies. Moreover, the e-currency market does not require intermediaries. You can buy tokens in a few clicks, and even anonymously on some exchanges.
Secondly, the advantage is high profitability. The cost of individual cryptocurrencies, and especially the most popular ones like (Bitcoin or Ethereum), is increasing every day. Experts predict their stable growth until the end of this and the beginning of next year. Thus, by buying a cryptocurrency today in a few months, you can sell it at a higher cost.
Thirdly, it is the good liquidity of the system. It works equally quickly and efficiently in both directions, that is, you can both quickly acquire a currency and sell it quickly.
Risks
Of course, work with cryptocurrency exchanges has not yet been brought to perfection. It is important to understand the risks of investing in electronic assets.
These include:
· Hacker attacks. According to experts and analysts, this problem will bother the crypto market for a long time and be a headache for investors. Since not only large companies and investors want to grab a tidbit of crypto riches, but also scammers.
· Legal risks due to the lack of a legal framework. At present, there are practically no exchanges that insure against losses and problems that have arisen in the system. You will not be provided with legal assistance in case of loss of your investments.
· Of course, the obvious risk is the volatility of cryptocurrency exchanges. The rate of many coins and tokens depends on factors that are very difficult to track. Therefore, it is important to be wise when choosing a cryptocurrency for investment.
Where to buy and sell cryptocurrency? Review of exchanges
I described the differences between cryptocurrencies and tokens, examined the most popular and promising cryptocurrencies today, as well as their development prospects for 2021-2022.
Now let's talk about where to buy and sell e-currency.
Before you go to the exchange and start buying, selling and investing, you need to decide on your goals. There are crypto exchanges for beginners, exchanges with anonymous money transactions. They make up whole ratings of the safest crypto-exchanges, ratings according to reviews of traders, TOP exchanges with a low trading commission.
I'll tell you about the most popular exchanges.
· Binance. The largest exchange in terms of the number of users and the volume of trade. Verification on the exchange is required. The commission is only 0.1%. Provides input and output to a bank card.
· KuCoin. One of the largest platforms for trading and selling cryptocurrency. Commission 0.1%, as well as the stipulated discounts for large trading volumes. The exchange does not require verification, however, in this case, there is a restriction on the site's functionality.
· ProBit. A fairly new but fast-growing electronic money exchange. The exchange features its own PROB cryptocurrency. Verification is not required, while the platform guarantees a high degree of protection for your account, two-factor authentication is used.
EXMO. Most of the exchange is represented by Russian-speaking users, as evidenced by reports provided by the exchange itself. Margin trading and fiat are supported.
· Garantex. The platform works with cards of any banks, and the deposit and withdrawal of money from the exchange is possible in cash. Verification on the platform is optional.
· BITMEX. It has been on the market since 2014 and during this time there has not been a single data breach and user funds theft. Verification is optional. The commission is one of the best on the market. Supports margin trading and fiat.
· Gate. Own GT cryptocurrency. Verification is not required to perform operations on the exchange, but it is required to withdraw funds. Large selection of cryptocurrency pairs, margin system support.
Conclusion
In conclusion, I would like to return to the thesis that started it all: is it worth investing in cryptocurrencies in 2021-2022?
Now is by far the best time to invest in digital money. Every day, new cryptocurrencies and tokens appear, and more and more companies, users, investors and banks want to have the coveted electronic money. Meanwhile, the prospects for the cryptocurrency market are expanding every day. Cryptocurrency, no matter how dubious in its stability, has nevertheless occupied its niche in the world of financial assets that are gaining popularity. Electronic transactions, investments, trade and mining have already entered and established themselves in the global economy.
However, before making a choice in favor of a particular cryptocurrency, wallet and exchange, it is important to understand your needs. Do you need a cryptocurrency to trade quickly and get money here and now, or are you looking for a long-term perspective. It is necessary to carefully study the electronic asset market and their course, try several digital platforms for buying and selling electronic money.
In the article, I tried to tell you about the nuances and features of the cryptocurrency market.
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