Moving towards the second month of February 2022, there are some big opportunities to buy in some of the altcoins that are predicted to grow on value as the massive crypto market dip suggests.
But is the bottom low or can it drop even lower?
I wouldn’t dare to say with 100% certainty at all.
Instead of trying to time the market, what I’ve found is much better which is buying a bit of crypto each dip to average that out.
Top Crypto Coins to Invest in 2022
So lets look at some coins that are hot to buy in the beginning of February 2022:
Bitcoin – Bitcoin is steady and as #1 coin in the crypto market and its decentralized nature, it’s destined to grow
Ethereum – ETH is the biggest blockchain and second biggest coin by market cap with thousands of project being built on Ethereum
Polkadot – Had its boom breakthrough in 2020 breaking into the top 10 crypto ranked by market cap, it’s a huge blockchain and ecosystem
Polygon – As a No. 1 solution to scalability and high fees solution on Ethereum network, Polygon (MATIC) is yet to see massive explosion
Stacks – Layer-1 blockchain to connect smart contracts and decentralized application to Bitcoin ecosystem
THORChain – No.1 Permissionless Decentralized Protocol allowing users easily exchange crypto assets also resulting in very low fees
Fantom – Known as DAG – Directed Acrylic Graph smart contract platform for Decentralized Finance developers and services
3 Bonus Coins
Terra – Terra blockchain and its token coin LUNA has grown rapidly within the last 2 years, showing the big interest
Enjin – As a one of the oldest gaming cryptocurrencies (now GameFi), Enjin network had its own token before the Bitcoin, it’s a huge project
0x – In the last 2 years the ETH network transaction fees were skyrocketing and 0x Protocol devs have been hardly working on solutions
Quick Guide to Investing in Cryptocurrencies
The accessibility of crypto investment makes it a popular choice among young investors, but it is not without risk. Most cryptocurrencies and crypto tokens are subject to high volatility. Many retail investors see crypto as too risky, especially for newbies. It is recommended that investors limit their cryptocurrency investments to a small percentage of their portfolio and stick to a traditional retirement plan. Investing in a retirement account is an excellent choice for people who do not have access to retirement benefits.
There are several advantages of investing in crypto assets, but it is still important to use it responsibly. As with all forms of investing, you must carefully consider your risk profile before investing. The currency market is highly volatile, and investing in it is an ideal long-term strategy. If you are new to cryptocurrency investing, you should start with a small portion of your portfolio. In the long run, it will add a higher degree of diversification to your overall portfolio. However, you should avoid using crypto as a risk mediator. In fact, cryptocurrency is highly volatile, driven by greed and fear, not by quantifiable factors.
Investing in crypto should be done with caution. Despite its high volatility, the expected returns are still higher than other asset classes. In addition, there is even a way how to benefit from volatility of the cryptocurrency market and make some significant profit returns while the volatility is very high. Hence, it is imperative to do research and ensure you’re confident in your decision. To make your decision easier, The Motley Fool has listed ten stocks to invest in right now. We own Bitcoin and Ethereum. But we do not recommend you invest in a particular cryptocurrency without evaluating its risk.
Once you’ve decided on a particular cryptocurrency, allocate your new capital strategically. The idea is to reduce the overall risk of the portfolio. It is not necessary to put all of your money in one coin, but dividing it up between high- and low-risk assets can yield higher returns and lower risks. In addition, it helps to diversify your investments with stablecoins, which act as the liquidity for your portfolio. In addition, if you have an understanding of how crypto works, you can invest in it safely.
While the volatility of cryptocurrency is low, it is still a risky investment. The price of a single coin can go up or down by a lot. Therefore, you must understand the risks and diversify your investments with a suitable strategy. As a result, it is better to allocate some of your capital to a crypto investment rather than a whole asset. While crypto is volatile, it will increase the returns of your other investments.
While you can invest in a single cryptocurrency, you should know which coins have more potential. To be safe, you should invest a small portion of your portfolio in a few coins and keep the rest in a stable wallet. You can even buy fractional shares of some of the most popular cryptocurrencies. You will have a higher exposure to a few coins than you do to Bitcoin. Choosing your investments wisely will minimize the risk of losing all of your money.