If you think investing in crypto is a thing of the past, think again. Scroll down to tell us why this is the best investment option for you.
If there was one argument for investing in crypto, it would be the price of Bitcoin. To all naysayers, we say the following: On May 1, 2015, the price of bitcoin was ₹15,785. On May 1, 2020, it reached ₹7,57,394. This translates into a total growth of 4,698% and an annual increase of 116.88%.
There is no other investment option where you can expect an annual growth rate of 116.88%. To put this into perspective, let’s draw some parallels.
Since its inception, BSE Sensex has grown approximately 17-18% per year. Gold has been rising at an average rate of 10% per year. As for FDs, this has an average annual return of 6%. Bitcoin has risen to six times the growth of the stock market.
These figures, however, belong to the past. The answer to the question “Is Bitcoin a good investment in 2022?” will depend on the future.
So join us as we weigh the factors and come to a conclusion on the issue of crypto investments.
Should you consider investing in crypto?
Crypto investments started gaining popularity after the Bitcoin price exploded. Such sensational returns always attract optimists, and it was no different here. More and more people started flocking to this previously unknown market.
According to Reuters, “Industry estimates suggest there are 15-20 million crypto investors in India, with total crypto holdings of around Rs 400 billion.” This has brought the crypto market to an interesting fork in the road.
On the one hand, there is this hitherto unknown asset. Few understand the implications and ramifications of this asset. New blockchain networks are emerging and more and more crypto tokens are released. There are discussions about where cryptocurrency will fit into our financial networks in the future.
On the other hand, this obscure asset attracts billions. More and more investors are flocking there. New trading platforms are emerging and the market is getting bigger and bigger. In other words, it’s a hive of speculative activity.
If you throw in Elon Musk‘s and volatilities caused by Reddit trends, we have a hotpot of trouble on our hands!
There is also the fact that since Bitcoin reached its all-time high of Rs 51,09,531 in September 2021, it has fallen to Rs 16,05,255. This marks a 68% retracement from the high.
So the question is: Has Bitcoin passed its peak or is it time to invest? For the answer, we must look to the future. Consider the following facts.
Solid and secure base
Cryptocurrencies are based on blockchain technology, which provides a digital ledger and facilitates transactions without an intermediary. In other words, you can conduct financial transactions without the presence of a central bank or a third party. The technology secures the interaction between the two parties and protects it.
There are over 15 million retail cryptocurrency investors in India. There are over 230 startups in this industry and it is on its way to becoming a global leader. In other words, Indian investors are bullish on cryptocurrency.
As more and more retail investors participate in crypto investments (investment basics), the government stepped in to regulate the space. This will mean taxation of crypto investments, of course, but it will also bring stability and security to the space. This, in turn, will encourage more investors to participate.
Tier 2 and Tier 3 cities are jumping on the crypto bandwagon. With the rise of P2P platforms, more and more millennials are flocking to this sector. There are new innovations, new technologies and new businesses springing up everywhere. This sector is full of potential and it will manifest itself over the next few years.
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How to Invest in Crypto in 2022
Cryptocurrency platforms are readily available now. From CoinDCX to WazirX to CoinSwitch Kuber, this sector has attracted a lot of funding and talent. Investing is as simple as choosing a platform and opening an account. Because this industry is not yet highly regulated, you don’t have to go through a lengthy KYC process. You can finish it in minutes.
Then, transfer your money and buy the crypto of your choice!
EXPERT TIP: Cryptocurrency is open for trading 24/7. You can buy and sell at any time. You can also buy and sell any crypto in fractional amounts.
Don’t risk the new coins that are released. If you’re just starting out, stick to strong coins like Bitcoin and Ethereum. Start with small amounts and keep buying whenever the price drops.
It will be a long-term investment, but if the sector takes off, it will pay off!
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