Much about the world was unpredictable in 2020 and 2021. Nobody could say with certainty that their lives were heading in a positive direction.
While there are still a few questions marks for 2022, there is reason to believe that people’s prospects could improve in certain key areas. One of these could be cryptocurrencies, a digital payment method that can be traded in exchange for goods, services, and real money when sold.
Cryptocurrencies may have been on your radar for some time. For one reason or another, you may not have felt ready to take the plunge and invest just yet. Could 2022 be a good turning point for you in this regard?Here are some of the reasons cryptocurrencies could be a good investment for you in 2022.
Learning is Easier
If you are unfamiliar with cryptocurrencies, it can seem overwhelming to partake in. However, you do not need to be an exceedingly savvy tech wizard or businessperson to make good progress here.
Learning resources around Bitcoin are widely available, for example. Companies like Wealthsimple can quickly bring you up to speed on how to buy Bitcoin in Canada efficiently. If you want a more detailed overview, they walk you through trading platforms, Bitcoin wallets, payment methods, and much more. Exchanges are also detailed, and they also break down who is competing with who to give you an intricately informed insight into the industry’s expectations.
Put simply, cryptos are accessible to everyone. Thanks to the resources linked above, anyone can start learning about what is required to succeed here. You can also build your confidence with this kind of online literature, developing your understanding before taking your first steps in the industry.
Google Searches Are Promising
You may feel somewhat alienated by prolific investors. Perhaps you do not consider them to be peers or envision yourself investing shoulder to shoulder with them, and that is okay.
However, Bitcoin was one of the terms that Canadian’s Googled most in 2021, highlighting the growing interest in cryptos amongst the general population. As mentioned before, learning about crypto is easy, and these search results prove that to be the case yer further. The crypto arena is incredibly active, and momentum is constantly building. After all, it is hard to imagine there will be a steep decline in these search trends in 2022 either.
Of course, internet trends, in general, can become so vast that they take on a life of their own. Before long, very few people are not clued to the topics and interests taking the world by storm. People would not search for topics that lead to nothing but dead air. All of their enquiries have answers, and every search is met with a barrage of quality content about all things crypto. Hopefully, that should excite you and give you plenty to read and think about throughout 2022.
Room to Grow
You should only channel your resources into things that have promising prospects. That way, yours can develop steadily alongside your investment target.
Still, Bitcoin has received major upgrades in recent times, turning the heads of enthusiasts everywhere. More complex and private transactions are now possible through the crypto’s blockchain. Additionally, the Bitcoin network can now process more smart contracts, which are pre-pre-programmed transactions that are self-executed thereafter.
All of this has allowed Bitcoin to compete more ably with other cryptos like Ethereum. Because of this, the industry will keep pushing itself forward as each digital currency raises the game to a new level. 2022 will likely be full of further exciting developments, and being involved with cryptos during that time will undoubtedly be a thrilling ordeal.
Some cryptos have earned a reputation for being volatile investments. While their values can certainly change, it’s only a question of when exciting opportunities will come, not if. If you are content in playing that waiting game patiently, then fine rewards should follow.
Portfolios Can Be Diversified
Much of the dialogue around cryptos is centered around Bitcoin. It is the one that started it all, and has consistently been the most popular digital currency to trade with.
However, other cryptos have been steadily gaining attention. Ethereum is widely considered the second-largest virtual coin and is now regarded as a serious Bitcoin alternative. Others have made waves, too, including Litecoin, which some claim processes transactions faster than Bitcoin.
Though Bitcoin is deservedly at the top of the chain, more prolific investors will want to diversify their portfolios. By having their eggs in different baskets, they can ride the terrain more steadily and seek out far more opportunities wherever they occur.
It may take some time to be ready for this type of investment strategy on your end. However, if you are feeling more sure of yourself toward the end of 2022, you can find space to broaden your investment prospects when it comes to crypto.
Investor Confidence is Growing
The exciting developments in the crypto arena are unsurprisingly drawing interest from investors. As moves are made, influence and inspiration will surely spread, generating further industry activity.
Last October, it was reported that Bitcoin hit a new all-time high above $66,000 USD. The rise was due to the first of trading for the ProSahres Bitcoin Strategy ETF; the first futures-based exchange-traded fund launched at the time of writing. Analysts then asserted that these developments would drive further investments into cryptos.
If others are confident, it could mean that you have every reason to be too. You can use their energy as your own. Some people think that smart investment means pouring money into original business ideas, but when it comes to cryptos, following the crowd can be a smart move. Put simply; the world is changing. There are plenty of opportunities to go around here, so taking part in 2022 is likely to be worthwhile.
Cryptocurrencies used to be seen as something of a risk. People who invested in digital money were characterised as brave or even reckless in the past.
However, cryptocurrencies are now functioning much the same as regular currencies do. In other words, they are being used for practical measures. Their spending is building and sustaining lives, rather than just helping people to make a quick profit.
For example, some stores are now accepting Bitcoin as a way to pay for goods and services. Well-known brands like Starbucks trade with it in certain regions. Things are moving from strength to strength here, and if popular businesses are on board, the rest of the world will not be far behind.
It has been predicted that the heat from Bitcoin mining could be used to keep homes warm next year as well. Therefore, the resourceful nature of cryptos goes beyond spending alone. As the digital currency has a more prominent presence in regular daily life, its popularity will increase, and its uses will further expand. You will also have greater confidence in it as an investment opportunity.
Could Crypto Be For You?
You now understand some of the benefits of investing in crypto. Still, that does not mean that each one of them will apply to you personally or profoundly resonate with you.
Therefore, it is important to consider what you want out of crypto. This investment opportunity is still in its infancy in the grand scheme of things. It has only been around for the last decade, so to frame it in your mind as a bulletproof long-term investment is perhaps unwise.
Additionally, crypto is not something you should invest in on a whim. You should only explore opportunities here if you are fully confident in your decision-making and willing to learn the tricks of the trade. 2020 and 2021 have put mental and financial pressures on many people, so if you act out of desperation to make up for lost time, you may need to reevaluate your reasons.
Hopefully, 2022 will be a calmer year than the previous two. Take stock of your situation and do some independent research. If you can approach things in an even-minded fashion, you will be in a much stronger position to invest in cryptos moving forward.
It is the Future
All the points raised so far seem to indicate one thing; cryptocurrencies are not a fad but the future. While serious doubts have been expressed over their long-term viability, all the signs indicate a prosperous future for virtual coins.
The novelty of crypto is fading, and what remains is a useful resource worthy of investment from industry figures and average joes alike. Some of the perks keeping crypto at the forefront of people’s minds include:
- Payments are being quick without a third party’s intervention.
- Banks are not being compulsory to make financial moves.
- Users trade anonymously online for safety and privacy reasons.
Crypto means convenience, and that sentiment will likely resonate more powerfully as 2022 goes on. People have far less patience for shortcomings and disappointments of any kind. Not one more day can be wasted, and every opportunity needs to be seized, and for many people, that will surely mean investing in crypto throughout the new year and likely beyond.