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How To Start Investing In Cryptocurrency: A Complete Guide

by

Gurpreet Singh

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20 MIN TO READ

March 1, 2022

How To Start Investing In Cryptocurrency: A Complete Guide

by

Gurpreet Singh

linkedin profile

20 MIN TO READ

March 1, 2022

Table of Contents

Cryptocurrency and Blockchain technology offer a lot of potential with investing.”

― Hendrith Vanlon Smith Jr

In our previous blog, we discussed the basics of crypto & how crypto works. Moving forward, in this blog we would discuss more about cryptocurrency and a few reasons to invest in them!

Over the past few years, cryptocurrency has evolved from an underworld virtual currency to the biggest coinage of the era. For a long, Bitcoin was shunned as a criminal currency. And why was that? Well, there are many reasons, but the most important one was the mystery around its creator Satoshi Nakamoto.

But moving ahead from all the craziness and negative outlook, Bitcoin was first used legally to make a pizza purchase, and since then, there’s been no turning back.

Let’s read more about what cryptocurrency is and the biggest reasons why you should invest in this currency!

What are the Top 5 Cryptocurrencies?

Before starting, I assume that all of you must have some basic knowledge of Blockchain technology, and cryptocurrencies.

Right from the beginning of the first quarter of this year, cryptocurrencies such as Bitcoin have turned bullish. In this section, we discuss the top 5 cryptocurrencies that you should consider:

1. Lucky Block (LBLOCK)

Lucky Block is considered the overall best crypto to buy with huge potential. This is a Blockchain-based lottery platform that offers its investors a great way to generate passive income streams. Built on the Binance smart chain, Lucky Block offers a generous amount of transparency while boosting the odds of winning for each entrant.

Lucky Block platform just winded up a successful pre-sale phase raising almost $5.7 m in the process. Through this crypto-currency, players can be sure that each gaming is 100% random and credible.

2. Ethereum (ETH)

Ethereum is a smart contract Blockchain with one of the top-rated cryptocurrencies. Ethereum is based on the open-source blockchain platform that offers decentralized app (dApp) developers to host apps in a way that incorporates smart contracts. ETH is the world’s largest cryptocurrency after Bitcoin and has real potential to disrupt Defi and NFTs.

Recently, Ethereum 2.0 is being launched to cover up the fall-backs of Ethereum, such as lack of scalability and environmental issues.

3. Dogecoin

If you are looking for a cheap cryptocurrency to invest in, Dogecoin is the right choice for you. Trading below $0.20 per token, this is one of the cheapest cryptocurrencies in the current year. Since it’s high in the mid-20s, Dogecoin has dropped in value by almost 80 percent.

4. The Graph

The graph is promoting cryptocurrency and blockchain project that specializes in ‘indexing’.   In simpler words, The Graph allows the Blockchain to index its data to reduce the system burden.

Up to now, at least 25 blockchain-based systems are using The Graph protocol for the same purpose.

5. Decentraland (MANA)

According to some credible market sources, Decentraland is one of the best cryptocurrencies to invest in for the exposure of the Meta-verse. Decentraland is a blockchain-based meta-verse currency wherein users can create avatars and purchase land.

What are the Reasons to Invest in Cryptocurrency?

The scenario around crypto investment for new investors has been quite intimidating. If you are one of them, we have curated a list listing the five macro trends around cryptocurrency that would provide you with a clear image:

1. The increase in adoption

The adoption rate of crypto-currency is increasing globally, so much so that the number of users continues to grow by millions each month. Many mainstream organizations across the world took an interest in this currency and started investing in this amazing currency in 2020.

For instance, Amazon recently caught attention when it shared a job posting for a “digital currency and Blockchain product lead”. Many other fintech sharks such as Paypal & Square are also placing their trust in crypto.  See this trend from Blockchain.com-

Cryptocurrency Wallets

From the data, we can easily interpret how the trends around Bitcoin adoption are changing. This growth is also spurred by the growth of the Cash app, Paypal, and other trading platforms that allow eligible customers to sell and purchase bitcoins.

Over the last three years, according to Mallers, saving $50 per week in Bitcoin summed up to $7850 to $59,929. And the numbers are huge.

2. Increase in crypto utility

In previous years, the prices around crypto are solely based on speculation by experts. Earlier it was believed that crypto itself had no real-world use cases and investors invested in this currency because they believed that it had potential.

The scenario around the same has now started to change due to cryptocurrencies such as Bitcoin and Ethereum having started developing real-world utilities. Bitcoin is also making headlines for becoming the legal tender in El Salvador. Apart from Bitcoin, Ethereum is also gaining attention when it comes to non-fungible tokens (NFTs).

Decentralized finance or Defi has approximately $94 billion locked in Defi projects, up from around $31 billion in a year. As Defi would expand, Ethereum is introspected to grow as well.

3. The favourability of major crypto-currencies

New crypto-currencies are being introduced in the market, but at the same time, the major players in the industry are also getting stronger. According to some sources, Bitcoin is up 60 percent this year and is also the best-performing asset of the year n comparison to other assets of the same class. Despite China’s crackdown and a storm of FUD in September, Bitcoin jumped rapidly back to its bullishness by the October end.

Source: Casebitcoin.com

Talking about short-term windows, Bitcoin’s price is very volatile, but the assets performed strongly enough in the long-term price horizon. Making a great place for this trend.

Cryptocurrencies are also being shunned for their impact on climate. Due to high carbon emissions and energy consumption, these blockchain-based currencies are extremely harmful to the environment. The transaction speeds are also slower making it difficult to scale these currencies.

However, this fallback of cryptocurrency is being solved by introducing currencies such as Ethereum 2.0, which is anticipated to consume 99.95 percent less energy than traditional currencies. 

4. The imminence of crypto ETF

Starting in 2013, several financial entities have filed proposals in The United States for the Bitcoin ETF. To date, the U.S. SEC has rejected every Bitcoin ETF owing to the fear of market manipulation. But the scenario is about to change. According to a tweet by Eric Balchunas, the likelihood of a Bitcoin Futures ETF approval in 2021 was at 85%.

One of the most famous Bitcoin S2F models created by a pseudonymous quant trader PlanB shows that the Bitcoin price would reach a high of $288k in this cycle if the model continues to hold.

Recently, Bitcoin ETF made its debut on New York Stock Exchange, which completely changed the scenario around crypto investment. However, investing in crypto still carries an amount of risk, and is named a speculative investment. But with more players entering into the game such as NFTs, the hype around the crypto is at an all-time high.

5. The suitability to macroclimate

Last, but not least, the suitability of the crypto-currencies to the macroclimate is another biggest reason to invest in this currency in 2021. Bitcoin was born out of the 2008-09 financial crises, and 2019 was also a tough year for governments and financial institutions. Looking at these times of crises and Bitcoin’s soaring popularity, the proposition this currency has to offer is quite clear.

So, these were the five top trends that you should keep in mind while investing in this amazing digital currency. Smart money can prove to be resourceful if the investment made is right.

Final Words

In this article, we discussed some of the best cryptocurrencies of the digital world, and various trends that can provide you an insight into why investing in Blockchain-based digital currencies can be beneficial for your business.

If you are someone who is looking to invest in cryptocurrency, we have the right solution for you. You can reach out to us or drop an inquiry.

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July 11, 2024

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