The Advantages of Buying Cryptocurrencies like Bitcoin in 2022

2020 and 2021 were milestone years with regard to investments in cryptocurrencies. The total volume of trading and investments in certain cryptos like bitcoin and Ethereum had taken the market by storm so much so that countries like El Salvador accepted the adoption of bitcoins as the legal tender for currencies. Slowly, other assets like NFTs made their way into the market and they helped to boost the already set culture of investment in aspects other than land, gold, or stocks. The decentralized market and lack of authoritarian governance was a major factor for most people, even in India, to begin exploring this market. Bitcoin has been the talk of the town and most people are entering the crypto market after witnessing the growth of bitcoin. The bitcoin price reached its all-time high in 2021 where it gained a whopping $67,000 in the month of November. Believers are on the path to make the value reach close to $100,000 this year. 

Why invest in cryptocurrencies – Apart from the quick growth of cryptocurrencies in the last couple of years, there are many other reasons why the market is so desirable for new and old investors. Each day we are able to discover something untapped in the market and the mystery can get intriguing for many. Particularly with people with higher risk tolerance, the volatility of the market may not be a deal-breaker. Long-term crypto enthusiasts have already reached the point of becoming millionaires and experts believe that investments this year would produce a new batch of millionaires or even billionaires. Cryptocurrencies have revolutionized the way the market works and are considered a safe haven for many individuals. The value of cryptos may not be diluted due to the interference of government or authority regulations. 

The advantages of bitcoin – Not only is it the most long-standing crypto in the market, but it also has the highest market cap ever since it was introduced. These aspects speak volumes about the desirability of bitcoins among investors. Even though it is not immune to erratic fluctuations, the BTC to INR value at the moment is significantly high. This means that dramatic rise and fall may not be a huge point of concern for long-term investors. 

Here are some of the major reasons why bitcoin is predicted to remain popular in the coming years:

  • Adoption as an asset – More people are expected to adopt and integrate bitcoin as a digital investment asset in 2022. The increased understanding of this industry will lead to more mainstream adoption by industries, companies, and even countries. El Salvador has already expressed interest in utilizing BTC as a legal currency to be able to better facilitate the economy of the country. 
  • Regulations – With increasing popularity, several market analysts believe that cryptocurrency will witness more regulations in different countries. Several government authorities will probably look to streamline the process of buying, selling, and trading cryptos to maintain a uniform protocol. Having clearer regulations may help build confidence in the sector, overall. 
  • Market share – Bitcoin now has a total market share of 70% of all cryptocurrencies. According to analyses, the value has been said to grow by 40% more after Jan 2021. With the advent of metaverses, NFTs, and more digital currencies, it would be interesting to see how the value of bitcoin is affected. 
  • Support from banks – Even though global banks were earlier skeptical of adopting bitcoins into their flow, they have now recognized the value and benefits of introducing services related to bitcoins in 2022. Major banks across the globe are looking to undertake projects that would revolve around the customers’ needs to trade in bitcoins. 
  • Increased ownership opportunities – Bitcoins and cryptocurrencies can create a lot of opportunities related to ownership as people are looking for newer, more innovative ways to invest in businesses and technologies. Large tech corporations and their trust in bitcoins would also snowball into more people entering the arena with full force. 

Buying cryptocurrencies in today’s market: Buying cryptocurrency is as simple as following a few simple steps.

  • Select an exchange platform — An exchange platform is a mechanism through which buyers and sellers can meet to swap cryptocurrency. In India, various platforms, like CoinSwitch, allow eager and potential investors to meet and trade safely.
  • Create an account — Create an account on one of these websites and activate it by completing KYC registration, providing the relevant documentation and information, and submitting bank information. To begin trading, you must first deposit funds into your account.
  • Place the crypto order — After conducting research and deciding on the currency or currencies to trade, place the order. Some platforms allow you to do this with a value as low as 100 INR.

There is no doubt that cryptocurrency is an area of lucrative opportunities and unending growth. Most people who have been making smart investments in this sector have witnessed their savings increase manifold. Ensure that you are conducting an analysis of your risk tolerance and money you would be willing to invest in a sector with no set pattern. While it shows promise, you can never be too careful. Find the best guidance and platforms before beginning your investment. 

Featured Image Credit: Aleksi Raisa on Unsplash