the best to invest in bitcoin 2022

Top 10 Cryptocurrency Rankings For 2022 – Which One To Invest In?
The crypto market is full of established and promising projects. While many of them have turned out to be nothing more than hypes, a growing number of altcoins are listed on the .

We’ve reviewed a list of the top assets to invest in for large returns.

  1. Lucky Block (LBLOCK)

Even though Lucky Block is still new in the market, the crypto lottery protocol is one of the for the long term due to its huge growth potential.

Based on the Binance Smart Chain (BSC) network, the lottery token provides a more inclusive online lottery system where players are not hampered by distance or any financial system.

Also, Lucky Block aims to be a fairer and more transparent online lottery protocol hence its use of blockchain technology.

Lucky Block’s core mission is to ensure everyone is a winner and this is seen by the fact that every player gets a certain percentage from the jackpot winnings. In addition, players will enjoy zero transaction fees and also instant payouts.

Lucky Block has been one of the top-performing digital assets since the year began surging more than 1,200% in the past month.

The growth has since become tamed but the digital token is ramping up for more bullish activities given its recent efforts to launch on centralised exchanges line Binance, FTX, and a host of others.

  1. Bitcoin (BTC)

Despite a checkered start to the year, Bitcoin remains the number one in the . Launched officially in early 2009, Bitcoin is the first recognised digital currency and has continued to lead the crypto market. The decentralised asset controls around 40% of the burgeoning ecosystem.

The premier digital asset’s remarkable success and adoption largely lie in its cryptographic build-up. In the Bitcoin whitepaper of 2008, only 21 million BTC coins will ever be mined. This gives the crypto bellwether a deflationary outlook, with several retail and institutional investors preferring it to cash.

Bitcoin is currently the most adopted crypto asset, with a record number of legacy-facing companies adding the decentralised currency to their books. However, Bitcoin global adoption has been hampered by its energy-guzzling mining process, which reportedly contributes to the global climate crisis.

Efforts are ongoing to make this process more energy-efficient and more environmentally sustainable. One of such efforts is by computer chip manufacturing giant Intel Corporation, which has shared plans to launch a 3,600-watt miner to improve Bitcoin mining efficiency.

Bitcoin is currently facing a stiff bearish battle and has slid below the $40K mark. The digital asset is trading at $39,045.68, up 2.22% in the last 24 hours. The relative strength index (RSI) figure of 41.99 shows that BTC is trading in the underbought region, making now an ideal time to own one of the .

  1. Ethereum (ETH)

Ethereum is the premier protocol in the smart contracts niche and has birthed multiple ecosystems due to its robust network. Launched in July 2015, the Ethereum network enables the development of other decentralised applications (dApps) on top of its protocol.

Given this, Ethereum currently has 58.54% of the DeFi ecosystem in its stronghold, pointing to a flourishing protocol.

Ethereum has broken into the crypto limelight and is currently the second most valuable digital asset behind Bitcoin. The digital asset surged to the north of $5,000 during the November 2021 crypto bull run.

However, the smart contract protocol has since dipped this year and is trading at $2,686.20, up 3.61% in the past day. The DeFi hub has since posted a 51.26% increase in the last six months, making ETH one of the for the long term.

Following in the footsteps of its older crypto cousin, ETH has since been added as a form of appreciation for content on Twitter Tips. This was announced on February 16 by Twitter.

  1. Binance Coin (BNB)

Binance may not currently be the third most valuable digital asset by market cap, but the discount token is one of the . Owned by the world’s largest crypto exchange by trading volume, Binance, BNB serves as an incentivisation tool for traders.

The BEP-20 token is used by traders to cut down on their trading fees from 0.10% to 0.025% depending on the amount of BNB they hold. Binance Coin has continued to feature prominently beyond the crypto exchange and is a principal character in the larger Binance ecosystem. All protocols built atop the Binance Smart Chain (BSC) interact with BNB, increasing its use cases and user appeal.

Binance Coin is set to play a principal role in the rebranded BSC network, following a network restructuring from the BSC to BNB Chain.

The idea is to make the new protocol a multi-chain solution catering to unique needs in the MetaFi ecosystem, consisting of the Metaverse, GameFi, SocialFi, Web3, and non-fungible tokens (NFTs). BNB is currently trading at $379.30, down 0.31% in the last 24 hours.

  1. Ripple (XRP)

Ripple is another and should not be missed. The Ripple blockchain is a scalable and low-cost protocol that is focused on enabling financial institutions to transfer value across borders.

Launched using the Federated Consensus Algorithm (FCA), Ripple is one of the better-known crypto projects in the market and is currently the 6th most valuable digital asset by market valuation. The Ripple blockchain has separated itself from the crypto crowd largely due to its innovative use of its technology.

Ripple has committed to a carbon-free future, with plans to make its protocol environmentally friendly come 2030.

The Digital Euro Association (DEA) has also tapped the blockchain protocol as a principal partner to develop its central bank digital currency (CBDC) program.

Price-wise, Ripple’s XRP token is currently trading at a discount for $0.78, down 1.57% in the past day. However, the digital asset is holding its own and is trading on par with the 50-hour exponential moving average (EMA) indicator.

  1. Cardano (ADA)

Cardano is a and ranks as one of the most celebrated blockchain protocols in the crypto market. Using a peer-review system, Cardano is a proof-of-stake (PoS) protocol that enables the development of smart contract networks.

Cardano is still under development. However, it’s expected to come with a high throughput of over 3 million transactions per second (TPS) once its Hydra update launches later in the year.

Several dApps have been migrating or building directly on the Cardano network due to its low-fee and energy-efficient structure. One of the newest entrants is Acardex, which doubles as an automated market maker (AMM) and decentralised exchange (DEX). The blockchain protocol will enable the seamless exchange of native and non-native tokens on the Cardano network.

Other unique features include anonymity, reduced counter-party risks prompted by one party not going through with the transaction, and low-risk security.

Cardano’s ADA has borne the brunt of the current bear run resiliently and is currently trading below the $1 mark. At press time, ADA is trading at $0.949, up 1.22% in the last 24 hours, despite a broader market downtrend.

  1. Solana (SOL)

Solana has enjoyed a breakthrough in 2021 and is now considered one of the hottest prospects in the crypto space. Leveraging the PoS and proof-of-history (PoH) timing mechanism, Solana has a 50,000 TPS and costs way less in transaction fees than principal DeFi rival Ethereum.

These features make the DeFi hotshot one of the . It’s even better as the blockchain-driven economy continues to gain momentum.

Solana has continued to gain remarkable adoption and has reportedly suffered multiple network outages due to excessive transactions coming into the network. This points to growing market demand for a scalable and energy-efficient blockchain network — twin concepts the Ethereum network is building towards.

Solana recently launched the on-ramp payment solution in collaboration with stablecoin maker Circle protocol. The Solana Pay will enable USDC to operate in the Solana ecosystem.

Adding to this, Solana has recently been tapped by social donation tool Change for onboarding. Now, anyone can use the Phantom Wallet to sign a social cause, donate, and track their donations. SOL is currently trading below its record high of $260, with a price of $92.70, up 4.96% so far.

  1. Terra (LUNA)

Another prominent DeFi protocol, Terra blockchain, is one of the for the long term. The team behind the DeFi network aims to create a stable currency for digital assets as the crypto market is plagued by volatility.

This has led them to create multiple stablecoins for several fiat currencies, with the UST being the most prominent stable coins..

The Terra blockchain has continued to gain investor interest and is currently one of the most exciting blockchain protocols in the crypto market.

The Washington Nationals MLB franchise has recently teamed up with the Terra blockchain. It’s expected to be a 5-year partnership, and the total cost is placed at $38.15 million.

The partnership is in a bid to promote the Terra blockchain across all Washington Nationals’ networks and also boost the awareness of the UST and LUNA tokens.

LUNA has continued to ride on the crypto wave in the past year and surged to an all-time high (ATH) of $103.33 in late December 2021. Currently pegged at $51.24, LUNA is up 5.25% in the past day, showing a promising rally in the coming weeks.

  1. Avalanche (AVAX)

The Avalanche blockchain is reportedly the fastest blockchain protocol based on time-to-block finality. Also a DeFi-facing smart contract protocol, the Avalanche blockchain is a layer-1 network and aims to engender the broader adoption of DeFi and cryptocurrencies.

Avalanche has remained a principal competitor to the Ethereum network. So far, some DeFi protocols call it home. The most recent is DEX protocol ZeeDEX, which allows DeFi users to swap limitlessly with zero gas obligations, zero fees, and the best rates on its twin multichain DEX aggregator ZeroSwapLabs.

Utility token AVAX has borne the brunt of the bear market and is currently trading at $79.21, down 0.22% in the last 24 hours. This is 45.77% below its ATH of $146.22 in late November 2021. However, the AVAX token has grown more than 15,000% from its all-time low (ATL) of $2.79.

  1. Polkadot (DOT)

Polkadot is a heterogeneous blockchain solution founded by former Ethereum co-founder and CTO Dr Gavin Wood. The protocol enables the development of DeFi services on its protocol while connected to its Relay Chain. Each DeFi protocol is called a parachain and leverages Polkadot’s security infrastructure to build and launch blockchain services.

Polkadot has taken the quiet and less travelled path to building a sharded blockchain solution whereby all asset types can be seamlessly sent and received.

The protocol is currently working on its parachain auctions, which see DeFi protocols raise crowdfunds to bid for a spot on the network. HydraDX has recently won the 9th parachain auction and will join others in tapping into the Polkadot ecosystem.

The DOT token has seen its growth stalled by the broader market downtrend. At press time, DOT is trading at $16.82, up 0.32% in the past day. DOT is trading on par on the moving average convergence and divergence (MACD) indicator.

Read more:

5 Best Cryptocurrencies To Invest In For Beginners In 2022 According To Reddit

  1. Bitcoin Cash
    Bitcoin Cash is essentially an updated version of Bitcoin, the most popular cryptocurrency in the world today. Some of the benefits that it offers over the parent coin is that transactions are faster, cheaper, and more reliable with Bitcoin Cash. It was launched in 2017. It is also the closest alternative to Bitcoin. As the price of Bitcoin climbs, many investors are looking for alternative investments in the crypto space. Regular network updates to meet demand help keep the Bitcoin Cash blockchain secure.

Bitcoin Cash is what some in the crypto world call a “hard fork” of the original coin. It was formed when not all the people on the original Bitcoin network agreed to a set of updates to the original blockchain, thus creating a spinoff coin. Other examples of hard forks of Bitcoin include Bitcoin Gold and Bitcoin Diamond. Hard forks usually don’t work well with the original software and updates are needed to be installed for seamless integration.

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12 Best Cryptocurrency To Invest In 2022
It would be fair to say that cryptocurrency has had something of a bad press in the business world since bitcoin mined its first block in January 2009. But the world has moved on.

Today there are publicly listed companies that hold bitcoin on their balance sheet such as MicroStrategy and Tesla, giant fund managers Fidelity and BlackRock entering the space and banks looking to set up custody operations for clients who have been beating down their doors to get in on the crypto action, current market reversals notwithstanding.

Today, the average chief financial officer will still vigorously resist proposals to carry such a speculative asset class as crypto on the books, but the days of dismissing crypto out of hand as “rat poison squared” as Warren Buffett famously did, are less common.

Let’s leave to one side the prospect of Microsoft or Google putting crypto into Treasury, however, and concentrate instead on the real use cases for crypto, which stretch way beyond digital assets as currencies, as many firms in the software-as-a-service space will know.

Identifying business sectors ripe for disruption
Below we provide a roundup of 12 crypto assets that have the potential to scale for mass adoption in financial markets but also other areas of the economy, from cloud computing to content delivery networks.

In our survey we will resist the temptation to take an adversarial approach, where crypto’s gain is taken to be the current incumbents’ loss. We don’t believe that is how things will develop. Indeed, many of today’s leading SaaS companies are likely to be leaders in adopting aspects of blockchain technology.

To have the best shout at gaining exposure to the best the crypto sector has to offer, it is probably necessary to diversify across the asset class’s various sub sectors, which is what we have tried to do with our nifty dozen picks.

We have picked 12 cryptocurrency with the technology, adoption progress, execution and product marketing prowess to deliver on the promise of blockchain as a disruptor and disintermediator that could change the face of the SaaS space in innovative and profitable ways.

As with all definitions, competing ones can bleed into each other, but we have grouped our token selections into the following four business sectors, with three crypto in each:

All table data correct as at 21 February 2022

Here’s our 12 Best Cryptocurrency to Invest in 2022
Before you get started, you might also want to read our Best Bitcoin Brokers in the UK guide for a breakdown of the most popular places to buy cryptos in 2022.

Web 3.0 cryptocurrency for 2022 1. Lucky Block – transforming lotteries with blockchain tech
Lucky Block is a new lottery platform that aims to revolutionise the $330 billion global industry by solving, among other things, the lack of transparency and trust in current lottery products. Breaking the grip of the centralised lottery operators by applying the power of ‘Web 3.0’ decentralised networks is how Lucky Block plans to succeed.

With Lucky Block, winners are not just randomly generated in a verified manner but players will be able to vote on where charitable donations go – with all transactions visible on the public blockchain.

In addition, the cost savings that accrue from running lottery draws on a blockchain are the basis for better odds for ticket buyers. The benefits don’t end there. Lucky Block, which launches on 21 March when the mobile app is scheduled to be available, also pays a token distribution to every token holder. Ten per cent of every jackpot goes to token holders.

Then there is the added allure of the 12% transaction fee on sales of the native token of the platform, LBLOCK, which acts to incentivise long-term investment as opposed to purely speculative trading so common in crypto hitherto.

Lucky Block’s mission is nothing less than the replacement – or supplementing – of national lotteries with a truly global system open to all. There’s all to play for, so to speak.

Data in table below is from decentralised exchange PancakeSwap. We have included volume data from centralised exchange LBank, where LBLOCK also trades.

LuckyBlock (LBlock/WBNB) Price: $ 0.007681 Volume 24 hour: $3,043,505.65 (+ $3,871,040 on LBank) Holders: 37,583 Transactions: 370,495 Pooled LBlock: 626,246,281.82 Pooled WBNB: 12,207.82 Total liquidity: $9,616,200.54 Diluted Market CAP: $768 million
Launch partners

lucky block price chart 3 feb

lucky block price chart 3 feb

  1. Filecoin (FIL) – distributed file transfer and storage
    Filecoin is a distributed data storage network that seeks to turn unused data storage into a business resource, where those with excess capacity are able to sell it users seeking greater capacity.

Exchange takes place in an automated algorithmically driven marketplace.

The network is built on top a protocol known as InterPlanetary File System (IPFS), acting as both a layer to incentivise participation in the network and provide security in addition to its peer-to-peer sharing of storage.

Protocol Labs is the company behind Filecoin.

RETURN ON INVESTMENT (USD – %) 24H 0.48 7D -1.91 1M 6.88 3M -60.73 1Y -54.55
Institutional investors

Ausum Ventures
Blockchain Capital
BlueYard Capital
Boost VC
Coefficient Ventures
Continue Capital
Digital Currency Group
Galaxy Digital
Kosmos Capital
Nirvana Capital
Notation Capital
Pantera Capital
Placeholder VC
Y Combinator
a16z Crypto
zk Capital
filecoin price chart 3 feb

filecoin price chart 3 feb

  1. Theta Network (THETA) – decentralised video streaming
    Huge investment is pouring into the video streaming industry, as heavyweights such as Netflix, Amazon, Apple, Disney and more compete for eyeballs.

But Theta Network is using blockchain to transform how we consume video content, as well as up-ending the creative process and the technology of streaming.

The THETA token incentivises network usage, where excess computing power and bandwidth can be shared across the decentralised network.

RETURN ON INVESTMENT (USD – %) 24H 5.54 7D -13.02 1M 12.61 3M -54.77 1Y -13.12
Institutional investors

Consensus FinTech Group
DU Capital
Fundamental Labs
Genesis Block
Gumi Cryptos
Huobi Capital
Jove Capital
Nirvana Capital
Origin Capital
ZMT Capital
Theta network price chart 3 feb

Theta network price chart 3 feb

Metaverse and NFT cryptocurrency for 2022 4. The Sandbox (SAND) – metaverse and gaming digital asset monetisation platform
The Sandbox platform is an ecosystem where gamers can create, own, and monetise their activities wit the help of non-fungible tokens (NFTs) and its utility token $SAND. NFTs are in effect a digital certificate of ownership.

Players can use NFTs to assign verifiable ownership to their digital assets integrate into games and trade on marketplaces. The Sandbox provides tools such as the Game Maker to enable player engagement.

Also, The Sandbox virtual world – or metaverse – is comprised of digital lots of real estate bought with LAND tokens, where players can become digital property developers and interact.

Companies such as Facebook owner Meta are betting big on the metaverse as the next iteration of the internet, where people will work, play, socialise and shop, so there will be money to be made.

An unknown buyer recently paid $450,000 for a patch of virtual land next to rapper and businessman Snoop Dogg’s Sandbox ‘residence’.

RETURN ON INVESTMENT (USD – %) 24H 4.69 7D -16.71 1M 11.56 3M -37.44 1Y 943.06
Institutional investors

Binance Labs
True Global Ventures
thesandbox price chart 3 feb

thesandbox price chart 3 feb

  1. Decentraland (MANA) – Metaverse virtual world
    Decentraland is similar to The Sandbox in its virtual world aspect. Here there are also LAND tokens which are purchased with the ERC-20-compatible MANA token that runs on the Ethereum blockchain.

Again NFTs are used to assign ownership to the digital real estate. And just like in the real world, the most valuable LAND is to found in the busiest places.

NFT-focused company Tokens.Com spent nearly $2.5 million on LAND in the virtual world in an indication of the burgeoning interest in the metaverse and the commercial opportunities it offers.

And at the end of January the metaverse’s first mortgage was taken out. On 29 January TerraZero, a vertically integrated metaverse company, advanced financing to one of its clients so they could buy Decentraland real estate.

While Mark Zuckerberg’s Meta Platforms is spending billions to build its metaverse, crypto have been quietly building an ‘open’ metaverse for a number of years, and at far less cost.

RETURN ON INVESTMENT (USD – %) 24H 1.01 7D 3.76 1M 44.69 3M -26.72 1Y 838.60
Institutional investors

Animoca Brands
Boost VC
Digital Currency Group
Fabric Ventures
Fundamental Labs
Kenetic Capital
Kosmos Capital
decentraland price chart 3 feb

decentraland price chart 3 feb

  1. Enjin (ENJ) – gaming community platform, virtual goods marketplace
    Enjin Coin is another game-focused metaverse product from the crypto world, this time focused on making its token the go-to digital asset for in-game items. Enjin aim is to become the “largest gaming community platform online” and already boasts the involvement of 250,000 gaming communities with a total of 18.7 million gamers.

The Enjin team are innovators in the NFT field, with a token they invented winning approval as an Ethereum token standard for specialised NFTs – ERC-1155.

Similarly to the The Sandbox, Enjin distributes software development kits (SDKs) to developers in order to facilitate rapid deployment of integrations into games.

RETURN ON INVESTMENT (USD – %) 24H 6.09 7D -6.73 1M 8.30 3M -57.55 1Y 184.58
Institutional investors

Coinbase Ventures
DT Capital Partners
Digital Currency Group
Framework Ventures
Kilowatt Capital
Multicoin Capital
ParaFi Capital
enjin price chart 3 feb

enjin price chart 3 feb

DeFi cryptocurrency for 2022 7. Curve (CRV) – decentralised exchange
Curve protocol has been a fast-grower in the decentralised finance (DeFi) sector. Its approach was initially centred on leveraging the liquidity of stablecoins to create more stable sources for yields on loans. There are no order books for the markets on Curve, with market making instead an automated process built around liquidity pool trading pairs.

Today it has expanded to become a venue trading all manner of coins with pegged values, such as so-called wrapped tokens that run blockchains other than Ethereum where Curve runs.

Currently, Curve has 122 different liquidity pools for the pairs that can be swapped on the decentralised exchange (DEX), where its highly competitive trading fees, deep liquidity and constrained slippage (when the price slips between the time the trade execution began and it finishing).

RETURN ON INVESTMENT (USD – %) 24H 2.55 7D -7.60 1M -7.00 3M -46.94 1Y -7.78
Institutional investors

Fuel Venture Capital
CreditEase Fintech Investment Fund
Outward VC
curve price chart 3 feb

curve price chart 3 feb

  1. Uniswap (UNI) – decentralised exchange
    Uniswap took original form in 2016 in the mind of Ethereum co-founder Vitalik Buterin as a blue-sky idea he was musing about. As with Curve, it operates with an automated market making system that obviates the need for an order book. Prices are determined by the ratio of the paired swapping assets.

Uniswap is the largest DEX by volume and its AMM system solves the problem of low liquidity in assets that hard are deemed hard to trade by traditional market makers. Because on a DEX anyone can be a market maker, thin liquidity is not an issue.

RETURN ON INVESTMENT (USD – %) 24H 4.39 7D -8.29 1M -12.67 3M -56.17 1Y -66.23
Institutional investors

Andreessen Horowitz
Coinbase Ventures
Defiance Capital
Delphi Digital
ParaFi Capital
Three Arrows Capital
uniswap price chart 3 feb

uniswap price chart 3 feb

  1. PancakeSwap (CAKE) – decentralised exchange
    PancakeSwap is a decentralised exchange (DEX) that run on the Binance Smart Chain (BSC) and is also based on automated market making system. PancakeSwap is a fork of SushiSwap, which is another Ethereum-based DEX.

A fork refers to a coin that shares it’s codebase with another crypto, but there are differences that add extra features. In this case, the change is the DEX runs on the Binance Smart Chain which is faster and cheaper to transact over.

BSC is built by the world”s largest crypto exchange Binance and operates with a form of what is known as a proof of stake system, where just 21 validators verify transactions as oppose to thousands of nodes on Ethereum.

RETURN ON INVESTMENT (USD – %) 24H 4.23 7D -4.21 1M 2.26 3M -48.02 1Y -53.86
Institutional investors

pancakeswap price chart 3 feb

pancakeswap price chart 3 feb

Data management cryptocurrency for 2022 10. Chinalink (LINK) – decentralised oracle network
Chainlink’s purpose is to solve the problem of connecting smart contracts to real-world events in a secure fashion. Smart contracts are pieces of code that embody certain business logic, such as when to pay an interest on a loan. In order to known when to make the payment to lenders, the smart contract in this case would need to know the calendar date.

Real-world information such as this is provided by ‘oracles’, which are in effect data feeds of one kind or another that exist off-chain. Chainlink is a network of independent oracle node operators, which makes it more secure than previous oracle services.

Services such as those provided by Chainlink are emerging as the essential plumbing of the blockchain world.

RETURN ON INVESTMENT (USD – %) 24H 4.52 7D -4.00 1M -3.73 3M -43.34 1Y -55.27
Institutional investors

Consensus Capital
Framework Ventures
Outlier Ventures

  1. Dent (DENT) – decentralised mobile data marketplace
    Dent says its vision is to create a global exchange using the Ethereum blockchain, where everyone has the opportunity to buy and sell mobile bandwidth in any country. With 7.26 billion thought to own a smart or feature phone – 91.62% of the world’s population – the business opportunity in this market is immense.

The company has already attracted more than 25 million mobile device users onto its decentralised marketplace for trading data surpluses. Dent’s service is available in more than 140 countries.

It is making significant strides forward in enterprise. Dent has partnerships in place with Samsung Blockchain and Telecom Infra, for instance.

RETURN ON INVESTMENT (USD – %) 24H 5.97 7D -5.38 1M 7.21 3M -53.18 1Y 14.68
Institutional investors

  1. The Graph (GRT) – indexing protocol for querying blockchains
    We take for granted that the internet “just works”, without having to think about how universal resource locators (urls – web links) actually work of what TCP/IP protocols are. Without them there would be no Google search engine. The Graph is attempting to build the indexing standard for the decentralised application world, so that data on blockchains can be queried in an easily accessible way.

Developers build applications with The Graph’s open APIs can readily access on-chain data that have been previously indexed by a network of node operators.

The Graph’s technology – called Subgraphs – is open source so all-comers can build decentralised apps (dApps) using them. Among the many Ethereum dApps using Subgraphs are high-profile projects Audius, Uniswap, and Synthetix.

RETURN ON INVESTMENT (USD – %) 24H 6.00 7D 3.13 1M 0.16 3M -53.77 1Y -81.92
Institutional investors

Coinbase Ventures
DT Capital Partners
Digital Currency Group
Framework Ventures
Kilowatt Capital
Multicoin Capital
ParaFi Capital
Tally Capital
the graph price chart 3 feb

the graph price chart 3 feb

which is better to invest in bitcoin or ethereum

3 Top Tech Stocks That Are Down More Than Bitcoin And Ethereum

Cryptocurrency has a reputation for both explosive growth and cripplingly dangerous volatility. In many ways, the U.S. Stock market sell-off has been much more volatile. The Nasdaq’s decline isn’t representative of the drawdowns we’ve seen in individual large-cap and small-cap stocks. As an example, PayPal Holdings ( PYPL -1.41% ), Shopify ( SHOP ), and Meta Platforms ( FB -1.43% ) are all down more from their 52-week highs than Bitcoin ( BTC -0.34% ) or Ethereum ( ETH 0.49% ). Here’s the case for buying each tech stock now, as well as how volatility could impact your investments going forward.

A person sitting at a desk in front of a computer, appearing frustrated.

Image source: Getty Images.A play on the war on cash

In just seven months, the share prices of PayPal have been cut by two-thirds, which has dropped PayPal from the fifth-largest U.S.-based financial services company by market cap to not even cracking the top 10. PayPal stock’s ultra dip makes it look more like altcoins such as Solana or Cardano than Bitcoin and Ethereum, let alone a typical large-cap industry-leading business.

PayPal is transitioning from a young and fast-growing company to a mature and established company with moderate or even low growth. That step change has investors confused about how to price PayPal stock.

Although PayPal’s growth is slowing, it is posting consistent earnings and free cash flow (FCF) — two core fundamentals that make a company worth owning over the long term. In 2016, PayPal earned $10.8 billion in revenue, $1.4 billion in net income, and $2.5 billion in FCF. In 2021, five years later, it more than doubled revenue to $25.4 billion, tripled net income to $4.2 billion, and more than doubled FCF to $5.4 billion. That’s a great-looking run. The concern is that when we focus on 2021 compared to 2020, it’s an ugly chart.

PYPL Revenue (Annual) Chart

PYPL Revenue (Annual) data by YCharts

Prior to its Q4 2021 post-earnings sell-off, PayPal stock fetched a premium valuation because it was seen as a company that could grow its revenue by 20% or more per year while also growing net income and free cash flow. However, PayPal failed to do that in 2021, with revenue growing less than 20%, net income being down, and free cash flow growing less than 10%. 

To make matters worse, PayPal forecasts a slowdown in new account growth and revenue growth of just 15% to 17% in 2022. For this reason, it’s unsurprising that the market needs time to value PayPal as a slower-growing company. From extremely expensive to plain expensive

Shopify posted what was, by most accounts, an impressive quarter and a record-smashing year. But in hindsight, it’s clear to see the company’s stock price got ahead of itself. Shopify was a classic example of a phenomenal business with an overvalued stock.

Investing, at its core, is all about buying a company for a price that is justifiable based on its future earnings growth. It isn’t Shopify’s fault that people kept bidding its stock price up to a level that was almost unsupportable from a growth standpoint. Until the recent sell-off, there were much more attractive buys in e-commerce, like United Parcel Service, for example. That is, until the share prices of Shopify collapsed by 63% in just three months.

Shopify is still an expensive stock, trading at a forward price-to-sales (P/S) ratio of 13 and a forward price-to-earnings (P/E) ratio of about 175. But it’s a lot cheaper than it used to be. Shopify estimates that it powers 10% of the U.S. E-commerce market in terms of transaction volume. If Shopify continues to increase its share of the e-commerce market while the market overall also grows larger, than Shopify could grow into its valuation over time. For that reason, risk-tolerant investors could consider opening a starter position in Shopify now.The metaverse is a high-risk, high-reward gamble

Meta Platforms, formerly known as Facebook, shaved more than the combined current value of PayPal and Shopify off its market cap in a matter of months. What was once a company worth over $1 trillion is now worth $550 billion.

As evident by the name change, Meta Platforms is undergoing a makeover as the company invests billions in virtual reality, alternative reality, and other avenues to make sure it can succeed in an increasingly virtual world. Meta Platforms is threatened by Web3, which is the idea of transferring ownership of information and the internet away from sovereign nations and corporations into the hands of individuals. It’s an empowering proposal, but it’s also terrible for Meta’s business, which depends on data and ads.

A decentralized internet could mean that companies like Facebook have less control over information, information that is vital for identifying demographics and behaviors that advertisers look for. By investing in the commercialization of the metaverse, Meta Platforms is essentially hedging its business so that it can thrive in the internet age..

A key driver pushing Meta Platforms’ stock lower is slowing growth. Meta is guiding for just 3% to 11% revenue growth in the first quarter of 2022 compared to Q1 2021. Another major factor driving the stock lower is the concern over prolonged losses incurred by investments in the metaverse, as represented by Meta Platforms’ Reality Labs (which it previously didn’t disclose on its income statement).

For 2021, Reality Labs posted an operating loss of $10.2 billion, and Meta told investors that research and development spending would only increase from here. For investors that aren’t interested in the metaverse, this kind of strategic plan is probably not something they want to be a part of. But for those who believe in Mark Zuckerberg and the metaverse, now could be one of the best times to start loading up on Meta Platforms’ stock — and the company has a forward P/E ratio of around 16, which is the lowest it has had in years.Volatility is here to stay

Even if you’re uninterested in PayPal, Shopify, or Meta Platforms, the harsh reality that all three stocks have been as volatile as major cryptocurrencies illustrates that markets can be irrational in the short term. In today’s information age, news spreads like wildfire around the globe in seconds. Retail investors have access to tools once reserved for experts.

As we saw in December 2018 and March 2020, and as we are seeing now, market corrections are happening faster than ever before. It may be best to accept that volatility, even in large established companies, is simply the price of admission for being a long-term investor.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Bitcoin, Ethereum And XRP: The Price Levels That Must Hold

Frankfurt, Hesse, Germany – April 17, 2018: Many coins of various cryptocurrenciesgetty

It’s telling that the major cryptocurrencies have failed to sustain a rally as a major geopolitical event unfolds. Those who’ve told us that the cryptos would make a great hedge against this kind of uncertainty are clearly mistaken. At least gold and silver blasted upward on the invasion news if only for a few hours.

The price charts tell the story for bitcoin and ethereum: both are trading within striking distance of their most recent lows. From the viewpoint of classic price chart analysis, it’s important for those long that these levels hold. A drop below is likely to trigger the kind of dumping that gets attention.

Here’s the daily for an up close view of Bitcoin:

Bitcoin daily price chart, 2 27 22.stockcharts.Com

It’s that late January low down there near 34,000 that must hold. On the positive side, you can see how buyers have swooped in twice at or near that price — those are the big dark volume bars along the bottom of the price chart.

It’s unfortunate for those long, however, that Bitcoin continues to trade below both the 50-day moving average (the blue line) and the 200-day moving average (the red line). This is very unlike the old days when the crypto seemed to stay above both, no matter what. Those days are over, at least for now.

The Bitcoin weekly price chart looks like this:

Bitcoin weekly price chart, 2 27 22.stockcharts.Com

If it breaks below that 34,000/33,000 level, then Bitcoin could find support at the June/July, 2021 lows near 28,000. If the crypto were to drop below that level, it would not be a good situation for anyone still in love with the thing.

Note that the momentum indicators are diverging negatively from price on this weekly look: the relative strength indicator (RSI, above the chart) and moving average convergence/divergence indicator (MACD, below the chart). Take a look at how the 50-week moving average (the blue line) is now trending downward after months and months of just upward.

The daily price chart for Ethereum looks like this now:

Ethereum daily price chart, 2 27 22.stockcharts.Com

A drop below the late January low of just under 2200 would be a problem. For the bulls, the volume of buying last week was substantial as the price dipped toward that low — but then dried up as it attempted to move higher.

In the meantime, Ethereum’s price remains below a down trending 50-day moving average — and well below the 200-day moving average which appears to be flattening after a steady upward look.

Here’s the weekly Ethereum price chart:

Ethereum weekly price chart, 2 27 22.stockcharts.Com

So if it breaks below the 2250 level, the next support level (where previous buying showed up) would be down there near 1750, the June/July 2021 lows. You can see the negative divergences between the price and the momentum indicators (the RSI, above the price chart and the MACD, below it).

The XRP daily price chart is here:

XRP daily price chart, 2 27 22.stockcharts.Com

As it’s closed above the 50-day moving average, slightly, you could say that XRP is a bit stronger than Bitcoin and Ethereum here. The point is: no big rally on the geopolitical news for this crypto either. A drop below the late January lows near 55 would be concerning for the volatile “Ripple.”

The weekly price chart for XRP looks like this:

XRP weekly price chart, 2 27 22.stockcharts.Com

You would have to be in love with volatility to even consider a cryptocurrency that moves like this: from about 1.90 in April, 2021 down to about 50 cents by June, July, 2021. Now trading below its 50-week moving average, is the next move a sell-off toward the 200-week moving average at .49?

We will find out.

Not investment advice. For information purposes only.

Please find more words & charts at my website:CheapbargainstocksCheap Bargain Stocks – Find The Most Undervalued Stocks On Wall Street

Is Ethereum A Bigger Investment Risk Than Bitcoin?

Major financial institution Morgan Stanley has called Ethereum a greater investment risk than bitcoin. 

What’s happening in the world of crypto and blockchain? Here’s eToro market analyst and crypto expert Simon Peters’take.Geopolitical tensions send crypto spiralling

Geopolitical tension sent crypto spiralling last week, killing off a nascent recovery for bitcoin and ether prices, among others. 

The price of bitcoin began the week marching to the $44,000 level but sank on renewed tensions between Ukraine and Russia on Thursday. The price dropped from a high of $44,510 on the eToro platform to trade around the $40,000 level. 

A second hit to crypto prices took place over the weekend on the news that a major NFT hack took place. The panic from NFT traders on social media sent the price even lower to trade around $38,000. At the time of writing the price has recovered a little and is now around $39,000. 

Ether likewise rose above $3,100 early in the week before plummeting on Thursday on geopolitical tensions. The price reached as low as $2,561 on eToro before recovering to trade around $2,700 this morning. Dominoes fall as Georgia signal crypto tax incentives

Georgia has become the latest state in the US to signal that it’s ready to incentivise the crypto mining sector.

The state has clearly seen some of its neighbours beginning to benefit from the burgeoning crypto sector and does not want to miss out on potential tax receipts from inviting businesses to its neighbourhood.

The measures in legislation are small but the intent is big. Like the legalisation of marijuana in the US, state-by-state, the dominoes are falling when it comes to pro-crypto policies. 

The Governor of Colorado also recently announced he was open to the idea of taxpayers paying their bills in crypto, with the hope the state would be able to accept crypto payments by the summer. Governor Polis sees Colorado as the ‘first digital state.’ 

What is clear is that a variety of states are now vying to be seen as the most pro crypto possible. This is a very positive signal for the market and the industry more broadly. Sequoia bets big on crypto

Major investment firm Sequioa has made a $500 million bet on crypto, launching a fund to invest in tokens. 

The fund will mainly buy cryptoassets on third-party platforms, functioning as a sub-fund to the flagship Sequoia Capital Fund which invests in firms in the cryptoasset space.

The move is a big bet from Sequoia on the cryptoasset market and marks an interesting moment, especially given some of the softness in token prices in 2022. 

The firm says it is backing tokens with a 20-year lens. What is clear from this is that crypto is no longer about making a quick profit before diving out – major financial institutions are buying in and preparing to hold for the long term.

Long-termism is fundamentally a good thing, and a huge confidence boost for the market at a tricky moment. Morgan Stanley (NYSE:MS) sees Ethereum risk potential

Major financial institution Morgan Stanley has called Ethereum a greater investment risk than bitcoin. 

The firm grounded its scepticism in the fact that bitcoin has a ‘unique’ purpose, whereas the Ethereum blockchain has a sea of competitors in the likes of Cardano, Solana and others.

This is fundamentally correct. Bitcoin is far and away the most powerful crypto for what it does. Similarities could be drawn with Dogecoin or SHIB, but really they don’t compare.

The comparison of Ethereum to other app-building blockchains is fair, however. The question for investors is to balance this risk and think about diversifying within the sector so as to have a stake in a variety of projects. 

With 51 tokens on the eToro platform and counting, investors have more choice than ever in this regard. It’s really important people assess their investments and research the use cases. But we’re at a really exciting time for the sector and it’s only going to get more dynamic.

Can I invest $100 in Bitcoin?

Here’s How Much $100 In Bitcoin Could Be Worth In 2030 If Cathie Wood’s Price Prediction Comes True

Ark Funds CEO Cathie Wood has been known to make some highly criticized forward-looking predictions. Wood and her colleagues have some of the higher price targets on Wall Street for Bitcoin (CRYPTO: BTC).

Here’s a look at how much an investment could be worth in the future if their price targets are hit.

What Happened: “We are very optimistic about Bitcoin in particular,” Wood said last year, giving the crypto a price target of $400,000.

The bull case comes from more institutional interest in buying Bitcoin. Wood highlighted companies like Tesla Inc (NASDAQ:TSLA), Block Inc (NYSE:SQ) and MicroStrategy Inc (NASDAQ:MSTR) that have added Bitcoin to their balance sheets.

“What’s the reason not to diversify?” Wood asked. If all corporations put 1% to 10% of their cash balance into Bitcoin, the valuation of the coin could rise significantly and could increase the price target further for the coin.

Later in 2021, Wood and Ark Funds started discussing a $500,000 price target for Bitcoin over the next five years. Ark analyst Yassine Elmandjra wrote in a report that Bitcoin’s market capitalization could increase 25-fold in the next decade to $28.5 trillion.

The call for the gain along with gaining share versus gold helps highlight a $1 million price target by 2030 from Ark Funds.

Related Link: How To Buy Bitcoin 

Why It’s Important: Ark Funds has remained bullish on Bitcoin and the cryptocurrency remains an active position for the company’s ETFs via companies with exposure to the asset.

Tesla is a top holding across several funds. The Grayscale Bitcoin Trust (OTC:GBTC) is the third largest holding in the Ark Next Generation Internet ETF (NYSE:ARKW) at 7.2%.

Coinbase Global Inc (NASDAQ:COIN) is the sixth largest holding in the flagship Ark Innovation ETF (NYSE:ARKK) at 5.4%. Coinbase is also the largest holding in the Ark Next Generation ETF at 8.1% and the second largest holding in the Ark Fintech ETF (NYSE:ARKF) at 9.6%.

One of the most notorious forward-looking price targets from Wood ended up coming true and proving naysayers wrong. Wood predicted in 2018 that Tesla shares would hit $4,000, which at the time was among the highest public targets. Tesla shares hit a split-adjusted $4,000 in January 2021.

Investing $100 In Bitcoin: A $100 investment in Bitcoin today could prove to be a valuable investment in the future if the price predictions from Cathie Wood and Ark Funds can hit.

Based on a price of $43760.46 for Bitcoin at the time of writing, a $100 investment can purchase 0.002285 Bitcoin.

The $100 investment would be worth the following based on the price predictions from Ark Funds:$400,000: $914$500,00: $1,142.50$1,000,000: $2,285

How Do O Become Rich From Bitcoin?

Can I become rich with Bitcoin?

Despite its volatility, cryptocurrency can be beneficial to investors, especially if they invest in it for a long period of time. As an avenue for Americans to grow their wealth, it has gained traction recently and is catching up with stock trading.How much Bitcoin should I own to be rich?

The founder of Swiss Key cryptocurrency, Kyle Kemper, developed a formula that tells the amount of BTC one should own based on the growth of Bitcoin and how much wealth there is in the world. The Kemper’s formula says that the wealth of one million dollars is insured by owning a total of 100 dollars. There is 06624605 BTC in this transaction.Can you really make money with bitcoin?

Since the beginning of the year, there have been many cryptocurrencies emerging, but investing in Bitcoin has proven to be one of the most reliable methods of making money. There are now many millionaires as a result of it.How does bitcoin make money?

There are many cryptocurrencies on the market, but Bitcoin [BTC] is the most popular and valuable. A person is called a miner who completes and verifies BTC transactions. Bitcoins are received when miners use many specialized computers to complete a lot of transactions. More bitcoins are generated as a result of transactions being verified.Can I invest $100 in bitcoin?

A bitcoin investment starts at just $100. Since Bitcoin fractions are available up to $100, you don’t have to buy a full coin, which retails at $32,979 as of 1 July 2021. A thousandth of a bitcoin is also available for purchase or sale.How does bitcoin make money?

Bitcoin: how does it tcoin make money? Other than mining bitcoin, which requires experience and expensive equipment, most people simply purchase bitcoins for currency speculation, betting that the dollar will rise against the dollar in the coming years. As bitcoin becomes more valuable in the future, its dollar value will increase.Can 100 dollars in bitcoin make you rich?

As bitcoin, a digital financial asset, appreciates in value, it is a smart investment if you invest $100 now and add $110 later. In the end, however, only the sale of your asset will result in a profit or a loss.Can 1 Bitcoin make you a millionaire?

The price of a single Bitcoin is currently under $39,000 as I write this, so you won’t become a millionaire with that amount. It would take more than 16 Bitcoins to make a $1 million profit if Bitcoin reaches $100,000, so you would have to put down $620,000 at the moment.Has anyone got rich off Bitcoin?

At the age of 12, Erik Finman invested $1,000 in bitcoin and became a millionaire. According to CNBC Make It, he invested $1 million on April 5 and had made almost $1 million by mid-April. There was someone else with him.Can you really make money with bitcoin?

It is certainly possible to earn money using bitcoin in various ways. It is important to begin by purchasing bitcoins from a reputable website or exchange at a low price. Afterward, you would wait until a higher profit opportunity arose and then you would market them at that point. Just like Bitcoin holders, Bitcoin holders benefit from margins.How does bitcoin make money?With Bitcoin, mining is one of the best methods of making money. You can earn big money from it…The best way to buy bitcoins is to hold them……Accept Bitcoin as a payment method.Join the Affiliate program and begin earning Bitcoin.The act of lending bitcoins.We have Micro Earnings. We…I am involved in trading.Tips are an excellent way to earn money.Can you become rich with Bitcoin?

Digital currencies visualized in a graphical format. Despite its volatility, cryptocurrency can be beneficial to investors, especially if they invest in it for a long period of time.Can I invest $100 in bitcoin?

Is it possible to invest 0 in Bitcoin? A bitcoin investment starts at just $100. Since Bitcoin fractions are available up to $100, you don’t have to buy a full coin, which retails at $32,979 as of 1 July 2021.

How To Become Rich On Bitcoin?

How do you make money from bitcoin?

There are many cryptocurrencies on the market, but Bitcoin [BTC] is the most popular and valuable. A person is called a miner who completes and verifies BTC transactions. Bitcoins are received when miners use many specialized computers to complete a lot of transactions. More bitcoins are generated as a result of transactions being verified.Who became rich from bitcoin?

At the age of 12, Erik Finman invested $1,000 in bitcoin and became a millionaire. According to Glauber Contessoto, on February 18, he had invested all of his savings in Dogecoin. According to CNBC Make It, he invested $1 million on April 5 and had made almost $1 million by mid-April.Can I become rich with bitcoin?

Despite its volatility, cryptocurrency can be beneficial to investors, especially if they invest in it for a long period of time. As an avenue for Americans to grow their wealth, it has gained traction recently and is catching up with stock trading.Can 100 dollars in bitcoin make you rich?

As bitcoin, a digital financial asset, appreciates in value, it is a smart investment if you invest $100 now and add $110 later. In the end, however, only the sale of your asset will result in a profit or a loss.Has anyone become a bitcoin Billionaire?

It is unknown how much Bitcoin’s anonymous creator made, but other cryptocurrency founders’ wealth is publicly visible on the blockchain thanks to the technology. A look at Ripple’s cofounder, Jed McCaleb, shows his status as a billionaire thanks to the surge in the price of XRP.How much would I have if I invested $1000 in bitcoin?

The 2017 holiday season is the perfect time to consider cryptocurrencies. According to CNBC Pro, a bitcoin investment made last July would have grown 252% over the past year. On July 26, 2020, a $1,000 bitcoin purchase will be made at a $10,990 price. It would be worth $3525 if the coin were valued at 87 cents. A CNBC calculation shows that the stock should trade for $35,750 on Monday.Can 1 bitcoin make you a millionaire?

The price of a single Bitcoin is currently under $39,000 as I write this, so you won’t become a millionaire with that amount. It would take more than 16 Bitcoins to make a $1 million profit if Bitcoin reaches $100,000, so you would have to put down $620,000 at the moment.Can you invest $100 in bitcoin?

Is it possible to invest 0 in Bitcoin? A bitcoin investment starts at just $100. Since Bitcoin fractions are available up to $100, you don’t have to buy a full coin, which retails at $32,979 as of 1 July 2021.Has anyone become rich from bitcoin?

At the age of 12, Erik Finman invested $1,000 in bitcoin and became a millionaire. According to CNBC Make It, he invested $1 million on April 5 and had made almost $1 million by mid-April. There was someone else with him.How much bitcoin should I own to be a millionaire?

The founder of Swiss Key cryptocurrency, Kyle Kemper, developed a formula that tells the amount of BTC one should own based on the growth of Bitcoin and how much wealth there is in the world. The Kemper’s formula says that the wealth of one million dollars is insured by owning a total of 100 dollars. There is 06624605 BTC in this transaction.What happens if I invest $100 into bitcoin?

What Happens if You Invest $100 in Bitcoin Today? ? As you can see, the price of bitcoin has been steadily rising in 2021, so investing $100 in bitcoin today would yield big dividends in years to come. Since 2020, bitcoin’s value has quadrupled to over $28,000, from a value of $1,000 in 2014.Can you make money with bitcoin?

It is certainly possible to earn money using bitcoin in various ways. It is important to begin by purchasing bitcoins from a reputable website or exchange at a low price. Afterward, you would wait until a higher profit opportunity arose and then you would market them at that point. Just like Bitcoin holders, Bitcoin holders benefit from margins.Can I invest $100 in bitcoin?

A bitcoin investment starts at just $100. Since Bitcoin fractions are available up to $100, you don’t have to buy a full coin, which retails at $32,979 as of 1 July 2021. A thousandth of a bitcoin is also available for purchase or sale.Can you become a millionaire from bitcoin?

It is possible to be profitable when investing in crypto– especially if you pick the right time. There is a chance for cryptocurrency investors to become millionaires, but it’s not guaranteed.Who got richest from bitcoin?

A $1 billion fortune belongs to Binance’s founder, Changpeng Zhao. Binance is the largest crypto exchange by volume in the world. Nine billion dollars. Barry Silbert came in second place with a net worth of $1,625 and Zhao is the only returnee to the 2021 list of crypto billionaires. Approximately 6 billion dollars.Can I get rich with Bitcoin?

Digital currencies visualized in a graphical format. Despite its volatility, cryptocurrency can be beneficial to investors, especially if they invest in it for a long period of time.How do you make money off of bitcoin?In investing, the idea is to hold crypto assets for a certain period of time for a long-term gain.I am involved in trading.I cannot come up with a good way to explain staking and lending…Social Media in Cryptocurrency.I work in mining.You can utilize both airdrops and forks.How do you make money from Bitcoin?Affiliate programs for Bitcoin can be leveraged.Learn more about the crypto industry by becoming active…You might want to try day trading…Create Bitcoin mining rigs to mine Bitcoin…Conduct crypto currency microtasks.Make money with the skills you already have.I will conclude.How do you make money from bitcoin?With Bitcoin, mining is one of the best methods of making money. You can earn big money from it…The best way to buy bitcoins is to hold them……Accept Bitcoin as a payment method.Join the Affiliate program and begin earning Bitcoin.The act of lending bitcoins.We have Micro Earnings. We…I am involved in trading.Tips are an excellent way to earn money.

how to invest in bitcoin in 2022

It’s Not Just Bitcoin. How To Invest In The Crypto Economy.

Shopping online at Grass Hill Alpacas farm, you can buy a pair of socks in various sizes, colors, and styles. You can also choose how to pay: credit card, PayPal, or Bitcoin. Accepting the world’s leading cryptocurrency is now business as usual, says Grass Hill owner Jim Forster. “We do 5% to 10% of our sales in Bitcoin,” he says.

Buying socks, or anything, with Bitcoin has its drawbacks. The price could change in minutes due to Bitcoin’s volatility, and the transaction could trigger capital gains. But it’s one of many ways that crypto and e-commerce are tying the knot. And it’s an example of how the crypto economy is angling into the mainstream—signs of which are popping up everywhere and creating investment opportunities.

In the payments arena, Visa (ticker: V) and Mastercard (MA) are linking credit and debit cards to crypto brokerages, while PayPal Holdings (PYPL) and Block (SQ), formerly Square, weave crypto deeper into their apps. The mayors of Miami and New York are promoting their cities as crypto havens saying they’re taking some of their pay in Bitcoin and generating a little tax revenue from “CityCoins.” JPMorgan Chase (JPM), America’s largest bank, with $3.3 trillion in assets, recently opened a virtual lounge to promote its blockchain division, Onyx, in an online world called Decentraland.

The bedrock of this activity is blockchain technology—ledgers of transactions maintained by a decentralized computer network. Peering into the future—no one knows how far—is a next-generation internet, known as Web3. Blockchains, the thinking goes, could be the plumbing for a decentralized web, with cryptos as its currencies and digital assets.

The other buzzy term for Web3 is metaverse, extending the idea to online games, marketplaces, social-media sites, and workspaces. “The metaverse will likely infiltrate every sector in some way in the coming years,” J.P. Morgan said in a recent report. According to crypto fund sponsor Grayscale Investments, the metaverse will be a “trillion-dollar opportunity” in annual revenue for companies, including advertising, social media, and videogames.

If this all sounds like a Silicon Valley marketing pitch, that’s because it is. Cryptocurrencies and blockchain technology may indeed transform everything from banking to buying sneakers—the latter already in the works at Nike (NKE) and Adidas (ADDYY) (see “What’s Ahead for NFTs—and What Investors Need to Know.”). But blockchains and cryptos are still fringe technologies. And financial markets have become much less forgiving of tech investments that probably won’t generate meaningful profits for years.

Cryptos’ volatility shouldn’t be taken lightly. Russia’s invasion of Ukraine triggered a 10% drop in the crypto market over a 24-hour period, taking it down to $1.6 trillion in total value. Bitcoin fell in line with the broader market, while smaller-cap tokens slid much further, with ether, Avalanche, Dogecoin, and Solana all declining more than 15%.Read More in Guide to Wealth

Crypto proponents have long claimed that Bitcoin should be viewed as an alternative asset, dubbing it “digital gold.” The idea is that it may act as an independent source of returns in a portfolio, with a low correlation to stocks and bonds. Its other rationale, according to advocates, is as a hedge against inflation and erosion of purchasing power in sovereign currencies—ideally taking market share from gold as an investment store of value.

However, that story is under siege. Bitcoin and the broader crypto market have become more closely linked to equities, particularly tech stocks. The undertow pressuring tech—including tighter monetary policies from the Federal Reserve—has pulled down Bitcoin and other cryptos even more. The crypto market has lost nearly half its value since peaking last November at $2.96 trillion, performing far worse than the Nasdaq Composite. Gold, meanwhile, has been rising steadily, as investors snap up the metal amid the geopolitical unrest in Europe and concerns about inflation. The SPDR Gold Shares exchange-traded fund (GLD) is up 5% this year, sharply outperforming stocks, bonds, and Bitcoin.

Before investing in crypto, investors should also consider its sensitivity to government intervention and the risks of a cyberattack. China and other countries view Bitcoin as a threat to their sovereign currencies and financial controls. Beijing has largely banned crypto trading and commercial activity, and India and Russia are imposing more rules to monitor transactions. Washington is also developing rules to tax crypto transactions and supervise the industry more closely, including more law-enforcement tools to monitor transactions. Crypto brokerages, markets, and exchanges are also vulnerable to hacks and cyberattacks. If you lose digital assets to theft, there may be scant recourse to recover them.

None of this means that the crypto economy isn’t real, or that cryptos like Bitcoin won’t survive and thrive. Many advisors recommend exposure to blockchain-related companies, including software, hardware, payments, and e-commerce. Exposure to crypto, whether through the coins, stocks, or funds, is also gaining popularity among institutional investors and advisors. According to a survey by Fidelity, a third of these large-scale U.S. Investors owned digital assets or related investments last year, up from 22% in 2019. Bitwise Asset Management, a crypto fund sponsor, says that about 16% of advisors put their clients in crypto investments last year, up from 9% in 2020.

Two years ago, advisor Frank Marzano believed that as a fiduciary, he had no business making crypto recommendations to clients. “But we now feel we have a fiduciary responsibility to have solutions in this space,” says Marzano, head of GM Advisory Group, which oversees $5.6 billion in assets. He estimates that he has guided 75% of his clients on investments in tokens, stocks, exchange-traded funds, and private crypto investments.

Still, the crypto hype machine can make it hard to separate real economic value from pipe dreams. Advisors who generally praise the technology urge investors not to get carried away. “I’m a very big proponent of Bitcoin and digital assets,” says Ric Edelman, founder of the Digital Assets Council of Financial Professionals. “But you should invest for the right reasons—because you believe the technology will be adopted globally—and you’re willing to hold on for as long as that takes.” He generally recommends a 1% position in tokens, along with crypto-related stocks, as long-term holdings.

Here are a few ways to invest, with varying levels of risk:Betting on Tokens

About 60% of the crypto market’s $1.6 trillion value now sits in Bitcoin and ether. Below them reside the major alt-coins, including Cardano, Solana, Avalanche, and Binance—each a separate blockchain with its own uses for trading, payments, and decentralized finance, or DeFi, applications. Other large-cap tokens include stablecoins Tether and USDC, which function like digital dollars, and the meme tokens Doge and Shiba Inu. Nonfungible tokens, or NFTs, are another category, used for swapping everything from digital art to videogame assets.

As the oldest and largest crypto, Bitcoin has gained the most institutional traction, including a futures market, ETFs, and custody services from major firms like Fidelity and Coinbase Global (COIN). A few large companies, notably Tesla (TSLA) and Block, hold it as a corporate treasury asset. El Salvador has turned it into legal tender, albeit problematically, affecting the country’s financial stability.

What Bitcoin is worth hinges on a key premise: that it has a future as “digital gold.” The argument is that because Bitcoin has a fixed supply of tokens, which dribble out at a slow, predictable rate, it could help investors hedge against an erosion of purchasing power in traditional currencies. Gold has played that role historically, but Bitcoin will sit alongside it, proponents predict, especially as it becomes more widely adopted in countries with unstable currencies and governments.

“It’s going to be harder for Bitcoin to go up 100 times…But the other side is that you’re taking on less risk.”— Chris Kuiper, Fidelity Digital Assets

Bitcoin’s Achilles’ heel is instability. Its annual volatility is about four times that of gold, according to J.P. Morgan. That volatility prevents it from taking off as a reserve asset or transaction currency. If its volatility recedes with more widespread adoption, it could appeal more to institutional investors. Bitcoin now has a 20% share of the global store of value market, with gold capturing the rest, according to Goldman Sachs analyst Zach Pandl. If Bitcoin gets to 50% in a few years, he estimates, it would more than double in price to $100,000 a coin.

There are several holes in that argument. One is that Bitcoin’s volatility has been rising, rather than receding. Bitcoin also faces hostile governments, notably in China and other countries that view it as a threat to their financial oversight. And the carbon toll from mining—greater than Norway’s annual electricity consumption—poses environmental and energy-security risks.

Even if it holds its value, investors shouldn’t expect huge price gains. “It’s going to be harder for Bitcoin to go up 100 times, but the other side is that you’re taking on less risk because it has become more institutionalized,” says Chris Kuiper, head of research at Fidelity Digital Assets.

Crypto companies urge investors not to lose faith during Bitcoin’s periodic crashes, insisting that its real value will take time to materialize: “If you’re going to invest in Bitcoin, a short time horizon is four years, a middle time horizon is 10 years, and the right time horizon is forever,” says Bill Barhydt, CEO of Abra, a crypto lending and trading company.

While Bitcoin may be the least risky crypto, ether is a close second. The pitch is that the Ethereum blockchain has taken off as a base “layer 1” network for thousands of other cryptos, stablecoins, and DeFi applications. It’s also the underlying blockchain for most NFTs, which are priced in ether.

The hitch with Ethereum is that it is congested and costly. Mining fees are far too high for small-dollar transactions. A network upgrade is in the works, aiming to switch it from a proof-of-work to proof-of-stake method for validating the authenticity of transactions. The new system is supposed to slash fees, speed up processing, and reduce the supply inflation of ether tokens. But it’s unclear when the upgrade, scheduled for this year, will go live. It may also make the network less resilient to hacks and could centralize control in the hands of a few large operators.

For long-term investors, owning coins directly with a major exchange may be far more cost-effective than going through a fund or individual equity. While you’ll pay commissions to transact, the tokens don’t have carrying costs on an exchange. Stocks and ETFs have benefits for advisors—they can slide right into a traditional portfolio and be managed alongside other investments. But they aren’t as efficient for performance. The ProShares Bitcoin Strategy ETF (BITO), for instance, holds Bitcoin futures and charges a 0.95% expense ratio. It’s down 37% since it launched last October, against a 35% decline in Bitcoin.

Two options for baskets of cryptos are the Bitwise 10 Crypto Index fund (BITW) and Grayscale Digital Large Cap fund (GDLC). They both trade over-the-counter, similar to closed-end funds. Their share prices can diverge sharply from their underlying net asset value; both are now at deep discounts—18% for the Bitwise fund and 20% for Grayscale. Both have 2.5% annual expense ratios.Crypto Exchanges and Miners

Exchanges and miners are closely tied to crypto demand, taking cues mainly from Bitcoin. But as equities, they can be valued on metrics like price/earnings ratios and future cash flows. Many of these stocks have fallen sharply, pushing valuations to more-reasonable levels.

Coinbase is the biggest pure play on trading. The company is building out institutional services, adding more tokens to its exchange, developing an NFT marketplace, and linking accounts to Visa and Mastercard. The shares trade around $172, down from a high of $430. Wall Street is looking for $6.90 in adjusted earnings per share this year, giving the stock a P/E ratio of 25 times.

“We like Coinbase as a way to get exposure to the crypto economy,” says J.P. Morgan analyst Ken Worthington. “Its revenue is going to be tied to transactions of crypto assets—primarily tokens—but over time, there will be ancillary revenue streams,” he says. Worthington cut his target on the stock to $345 this past week, reflecting ongoing weakness in Bitcoin, but maintained his Overweight rating.

A major threat to Coinbase is industrywide pressure on trading fees. Rival exchanges like Robinhood Markets (HOOD) offer commission-free trading in several major cryptos. As more brokerages enter the field, fees are expected to fall. Bulls argue that Coinbase will be able to compensate for lower trading fees with new revenue streams like NFTs and institutional services.

Bitcoin miners get paid in crypto in exchange for their computing work to add transactions to the network. Their main operating cost is electricity to run the machines, but if Bitcoin prices top their energy costs, the business can be quite profitable. Marathon Digital Holdings (MARA), Riot Blockchain (RIOT), and Core Scientific (CORZ) are three of the largest miners. All should have production costs that are well below recent prices for the coin around $36,000, according to D.A. Davidson analyst Christopher Brendler. He rates them all Buys with price targets at least 50% above recent levels.

The stocks trade like derivatives of Bitcoin. If that token falls further into a bear market, the miners will probably dive, too. Also unclear is the resiliency of their business model; Bitcoin mining rewards will diminish as the network doles out fewer coins per block, starting in 2024, according to preset software rules. Miners also have to upgrade their machines in a network processing arms race, adding to their costs. Profits could suffer as a result.Side Bets on Blockchain and Crypto

Plenty of other companies are capturing crypto revenue. While most aren’t nearly as exposed as miners or exchanges, they should benefit if the broader crypto economy keeps growing. Stocks in this camp include chip maker Nvidia (NVDA), futures exchange CME Group (CME), and payments apps PayPal and Block.

Visa and Mastercard also aim to be players—both are building out card services with brokerages and banks, aiming to play a role in processing transactions and helping convert tokens to traditional currencies. “What can we do with Bitcoin? We can be the bridge between the crypto economy and fiat economy,” Visa Vice Chairman Vasant Prabhu recently told Barron’s.

Silvergate Capital (SI) is building a major crypto business, too. Silvergate’s bank says that it has nearly 1,400 institutional customers in crypto as it develops a network for trading and lending digital assets. Silvergate recently bought the Diem stablecoin assets from Meta Platforms (FB) and other companies, aiming to build its own stablecoin. Shares trade at 20 times estimated 2023 earnings, a steep multiple for a bank. But Silvergate is becoming more of a bet on crypto, while its core banking business continues to bring in revenue from standard deposit and lending practices. Wedbush analyst David Chiaverini likes its strong core business and sees gains in crypto hedge fund and capital inflows benefiting the bank, expecting the shares to hit $165, according to a recent note.

The Amplify Transformational Data Sharing ETF (BLOK) holds most of these stocks in an actively managed format. It has racked up nearly $1 billion in assets, making it one of the largest crypto ETFs. While it has slumped 37% in the past year, the fund has edged the Nasdaq Composite and has traded in line with the S&P 500 tech sector over the past three years.

Bitwise runs the Bitwise Crypto Industry Innovators ETF (BITQ), which tracks the Bitwise Innovators 30, an index of companies across the crypto ecosystem. About 85% of fund assets are in companies that derive at least three-quarters of their revenue from crypto.

With so many tokens and blockchains battling it out, the crypto economy may not need Bitcoin to thrive. Even if Bitcoin doesn’t settle in as a rival to the dollar or gold, though, it may still ride shotgun. Grass Hill Alpacas farm owner Forster says he’s impressed with how seamless it has been to process Bitcoin transactions, and he’s paying lower fees than he would on a credit-card purchase.

“I’ve been surprised with how smooth it’s been,” he says. “The only concern was my accountant, who said he had to fill out a bunch of forms—and charge me more.”

Email: editors@barrons.Com

Cryptocurrency For Beginners In 2022

Bitcoin: How To Invest In This Digital Asset (the Smart Way)

The popularity among American investors relies upon the cryptocurrency market.

Cryptocurrency markets are volatile. Nevertheless, it’s gotten the attention of public opinion.

The crypto market boomed after people learned that some investors generated thousands, hundreds of thousands, or millions in revenue.

Sensationalism generates expectations. Knowing that a crypto investor became rich generates interest among people.

Nevertheless, many people entered the cryptocurrency market with blind knowledge of the matter.

If you are entering the crypto market, we’ll help you with basic steps that everyone should take.Is Crypto safe to buy

Today, most people buy and sell crypto directly using crypto exchanges like Coinbase.

You can use Robinhood and other online brokers apps to trade crypto directly. Nevertheless, always be careful.Have an emergency fund

Cryptocurrencies are volatile. Prices go up and down dramatically. Investors should have an emergency refund to cover unexpected costs before investing in assets.

It is crucial to have money for emergencies before buying any cryptocurrency.

Without an emergency fund, you could be forced to sell all your assets with a loss margin.Find crypto that fits your portfolio

There are a ton of options in the cryptocurrency market. However, you need to understand how cryptos fit your other investments.

Diversifying is a good idea, but investing everything in risky (most volatile than usual) assets is not the safest idea.

It may be worth putting some of your money into safer bets.Evaluate crypto investments

Develop a strategy for cryptocurrency investment based on fundamentals rather than social media discussions, or celebrity commercials.

Commit a long-term investment, don’t plan to “get rich” quickly.

How To Invest In Cryptocurrency

Cryptocurrencies such as Bitcoin (BTC) are rapidly gaining popularity, but some investors may still be trying to determine whether crypto…

Cryptocurrencies such as Bitcoin (BTC) are rapidly gaining popularity, but some investors may still be trying to determine whether crypto is a good opportunity or a risk they’d rather not take.

Opinions about cryptocurrencies may vary widely, but there’s no denying that crypto assets are in widespread demand from individual and institutional investors alike, and they are becoming more closely correlated with the movements of mainstream indexes.

Bitcoin’s share of the total crypto market is roughly 43%, making it the most well-known and widely owned cryptocurrency, but the crypto universe is vast. More than 17,900 cryptocurrencies are available to trade, with a global crypto market cap of about $1.9 trillion. In 2021 alone, the crypto sector’s market cap grew by 187.5%, according to the World Economic Forum.

The cryptocurrency market reaches beyond the coins that are viewed as digital money to include blockchain investments, such as Ethereum (ETH), Polygon (MATIC) and Cardano (ADA), which provide networks for applications to be built on their platforms.

Bitcoin’s price has dropped about 11% for the year, but some alternative cryptocurrencies have outperformed. For example, the price of smart contract altcoins Solana (SOL) and Terra (LUNA) are up about 660% and 1,600% for the year, respectively.

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With crypto subsectors such as smart contracts, decentralized finance applications and nonfungible tokens on the rise, cryptocurrencies are making themselves indispensable. As more businesses accept cryptocurrencies and the blockchain technologies that facilitate their operation, more investors will be interested in learning the dynamics of the crypto world and investing in it.

Here’s what you need to know about investing in cryptocurrency:

— What is cryptocurrency?

— How to invest in cryptocurrency.

— What to consider before investing in cryptocurrency.

— How to make money with cryptocurrency.

What Is Cryptocurrency?

Cryptocurrency is any digital currency secured by cryptography, or secure communications, that can be used as a peer-to-peer medium of exchange, store of value or investment.

Bitcoin, the first blockchain cryptocurrency, is a form of digital currency invented by an anonymous founder using the pseudonym Satoshi Nakamoto. Cryptos aren’t managed by a bank or public agency. Instead, transactions of cryptocurrency tokens are typically recorded on a public blockchain, comprising digital information stored on a database.

Blockchain technology is used to keep an online ledger of all the transactions, and it provides a data structure for the ledger that is considered secure.

Unlike fiat money, or government-issued currency, that is controlled by central banks, cryptocurrencies do not require banks to verify transactions and are independent of a central banking authority. Each of the thousands of cryptocurrencies has its own security standards and value propositions.

Although cryptocurrency is a newer phenomenon, it has the potential to revolutionize the financial system and how we think about money.

“Cryptocurrency is a new asset class that is at the foundation of the cryptoeconomy, an entirely new set of financial services, commerce and global payments that will be built on top of this new technology,” says Max Branzburg, vice president of product at Coinbase Global Inc. (ticker: COIN), one of the leading crypto exchanges.

James Putra, senior director of product strategy at TradeStation Crypto, says cryptocurrencies are opening retail investors to “a world of global capital, as opposed to what they can access through the U.S. Market.”

How to Invest in Cryptocurrency

There are many cryptocurrencies on the market that have different fundamental values. Investors should recognize that a cryptocurrency can be here one day and gone the next, which could leave your investment worthless. That’s why it’s important to have a strategy for investing in cryptocurrencies and to know how to manage your risk.

Beginner crypto investors may want to consider elements such as transaction fees, types of cryptocurrencies available on a platform, available education resources and other features that may align with their interests and goals.

There are many crypto exchanges from which to choose. TradeStation, Coinbase, eToro and Gemini, among others, offer easy, accessible and secure platforms for owning and conducting transactions with cryptocurrencies.

Take into consideration the role cryptocurrency will play in your portfolio. Putra says it’s best to take a balanced approach toward investing in crypto, allocating only about 2% to 5% to the sector in your investment portfolio because its volatility can cause dramatic swings in value.

For investors who want to use cryptocurrency as a way to diversify, Putra says, this asset is still one of the least correlated to stocks and bonds, meaning it remains an effective hedge against those other asset classes.

Investors may also choose cryptocurrency as an inflation hedge. Putra says that since bond yields are not keeping up with inflation, cryptocurrencies can serve as a bond alternative.

“Because of the low interest rates across bonds, there is a reshuffling of capital on a macro level out of bonds and into other assets that are more inflation-protected,” Putra explains. Some cryptocurrencies, such as Bitcoin or Ethereum, can even give your portfolio some stability because the inflation protection they provide balances with their volatility, he says.

What to Consider Before Investing in Cryptocurrency

Investing in cryptocurrencies is highly speculative. Despite stories of investors making millions, entering the market at an inopportune time can result in rapid and extreme losses.

Although the prospect of striking it rich with crypto investing is enticing, it’s important to weigh the potential impact of volatility. An asset that can rise quickly is prone to equally severe drops.

Another risk: Unlike in other markets, the future of cryptocurrency regulation is uncertain. Some countries that so far allow the more-or-less free use of Bitcoin include the U.S., Canada and Australia, to name a few. El Salvador even adopted Bitcoin as a legal tender. But other countries, such as South Korea, are pushing restrictive regulation of cryptocurrency, with China essentially banning it. In the U.S., new legislation targets crypto investments for taxation.

Although cryptocurrencies were conceived of as a unit of exchange, there are only a handful of businesses today that accept crypto as a form of payment. Crypto advocates support its broad economic use, but this adoption could take time because regulators around the world are still critical of the digital asset.

[Read: Bitcoin vs. Ethereum — Which Is a Better Buy?]

How to Make Money With Cryptocurrency

There are several ways investors can increase the value of their assets and secure a profit when investing in cryptocurrency. Just like in the stock market, the way to make money when investing in the crypto market is to buy the cryptocurrency when its value is low and then sell it when its value has increased.

“You can get more out of your money with cryptocurrency than with other traditional assets,” Branzburg says, because of the price swings and opportunities that conventional investments don’t offer.

The first method he points to is staking. Staking lets you earn income with your crypto by participating in the network of the asset. When you stake your crypto, you make the underlying blockchain of that asset more secure and more efficient. In exchange, you get rewarded with more assets from the network, like a yield you would get from a savings account.

Some cryptocurrencies that offer staking rewards include Cardano, Ethereum, Tezos and Algorand.

“You can lend the assets that you have in your portfolio into decentralized finance, or DeFi, protocols to generate yield, as well,” Branzburg says. Accessing DeFi allows users to “tap into a global liquidity pool,” he says. From the decentralized money market, other users are able to borrow your crypto assets, and you garner a yield.


Cryptocurrency is a new and exciting way to think about money. But experts say the first and most important step is to educate yourself about these emerging digital currencies and the technologies they use so that you can understand the risks and rewards.

Calculating the intrinsic value of a publicly traded company might be a bit simpler, but learning about cryptos and how they perform can help you avoid investing at a peak.

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How to Invest in Cryptocurrency originally appeared on usnews.Com

Update 03/01/22: This story was published at an earlier date and has been updated with new information.