With Millions Investing In Digital Assets For The First Time In 2021, 2022 Is Ideal To Pick Some Crypto For Investment
So the hype around the crypto boom has finally caught your attention and you want to jump on the bandwagon to grow your investment. Crypto has emerged as a great alternative to traditional investment. Here, investors can grow their investment manifolds in a limited time period. Decentralization is at the core of cryptocurrencies and hence, it runs on the idea of financial independence. With millions of new investors entering the crypto market in 2021, it is normal to see crypto as a lucrative investment. But, how do you pick the best crypto tokens for investment in 2022?
Before jumping into crypto, it is important to be mindful of the extreme volatility of the market. The crypto market cap grew by 187.5% only in 2021, adding to the hype. With some coins like Solana and Terra providing more than 1,000% returns to investors, the interest of common users in the sector has increased substantially. Rallies and dumps are a part of the crypto market and hence, tracking the highs and lows is vital to success. To become a successful investor, it is important to do proper research and educate yourself about the key developments and the fundamentals of digital assets. Here are a few tips that can be handy in picking the best crypto tokens for investment in 2022:
- Community Strength: Strong community support is vital to a project’s success. A vibrant community can do wonders for a project. The strength of a community shows how many people are invested in a particular project. The Crypto economy thrives on demand and a strong community is a surety for the steady demand for a token. Therefore, you must have a look at the community strength of a project before investing in it. A lot of information about the community can be accessed through GitHub, social media handles, and other communication channels. All the work done on GitHub is open to all and you can easily evaluate the essential metrics to pick the best crypto in 2022.
- Developer Activity: Technology is the foundation of the crypto economy. The development activity of a project is a sign of the project’s strength. GitHub is the most convenient source to track the development activities of a project. A project releasing regular updates, fixes for issues, and new features, is likely to sustain. Regular development activities indicate the backing of a strong and dedicated team and it could be one of the major metrics to evaluate the potential of a project.
- Marketing & PR: Effective marketing requires communication and communication is a two-way channel. While community strength is a major factor in a crypto project’s growth, the road to community building goes through effective marketing. Hype plays a key role in the increase of a token’s price and it is easy to spot projects with high community engagement and frequent online activities in form of PR, update blogs, contests, partnerships, and other exercises. Hence, a little research on the internet can help you find crypto projects with effective marketing. Marketing could be another factor to consider while picking the best crypto tokens for investment in 2022.
- Token Distribution: Tokenomics in general and token distribution, in particular, plays a major role in the growth of a cryptocurrency. While decentralization is at the core of crypto, concentrated distribution may lead to market manipulation. Whales ( investors owning a huge chunk of the total supply) can create positive or negative sentiment through to use it for their benefit. Moreover, a massive sale by a whale often leads to a price dump. Therefore, you should prefer projects with even token distribution while picking the best crypto for investment in 2022.
- Listing On Exchanges: Exchanges are the platform on which one can buy or sell their favorite cryptocurrencies. While there are hundreds of crypto exchanges floating on the internet, there are only a few who walk the talk. A wider range of investors has the access to a token listed on top crypto exchanges like Binance, Kucoin, and Huobi. Easy access means more people can invest in a token and it results in an increase in demand. Hence, it is generally safe and reliable to invest in crypto tokens listed on the top crypto exchanges.
Final Word
Investing in crypto might appear lucrative but it is important to note that the market moves both ways. Event the top cryptocurrencies like Bitcoin, and Ethereum have witnessed dumps. Therefore, it is extremely important to educate yourself prior to putting your money into digital assets. Remember, there is always the next opportunity, and investing in a token due to FOMO seldom gives positive results. Always think of the long term and keep an eye on the highs and lows. Follow steps like creating a watchlist, and tracking top crypto news websites and education platforms. Connect with the top crypto influencers to learn more about the industry.