The cryptocurrency market has shown itself to be increasingly promising, a scenario that should expand even more in 2022. As this segment becomes better known, new people are becoming interested in it.
At this point, the following question is common: which currency to buy to start investing in cryptocurrencies from scratch?
The good news is that currently investing in cryptocurrencies has become easier and more accessible, with reliable platforms aimed at providing all the necessary support for those who are just starting out in this environment.
Coinext, for example, prepared a contents about the best cryptocurrencies for 2022, which can help those who want to start the year by buying cryptos, but still don’t know which one to invest in.
With that in mind, in this article we will tell you the first steps to take before making your choice and some possible alternatives among the best cryptocurrencies to start investing in 2022. Check it out!
What to know before starting to invest in cryptocurrencies?
First, it is important to know what the last year has brought the most impact to the cryptocurrency universe. Thus, it is possible to understand the great opportunities that 2022 holds for those who will enter this market.
One of the characteristics of the cryptomarket that most attracts investors is, without a doubt, the high potential for asset appreciation. This was reinforced in 2021 by the remarkable highs of several currencies, including Bitcoin’s All-Time-High.
There was also an increase in investment alternatives with the launch of new tokens. We can mention, for example, play-to-earn Games tokens, such as Axie Infinity (AXS) and My Neighbor Alice (ALICE).
Another highlight was the explosion of NFTs (Non-Fungible Tokens) as digital certificates of intellectual property on unique and unalterable items, such as works of art, which moved billions of dollars in the first half of 2021 alone.
And of course, we cannot leave out the metaverse, a new era of the internet that will be able to break the barrier between digital and material, through Blockchain, the same technology behind cryptocurrencies like Bitcoin.
With so many news and differentials involving the crypto universe, we can be positive about 2022, right? We’ll see!
What to expect from 2022?
As we have just seen, the cryptocurrency segment is extremely broad and has the potential for even more growth and diversification.
This makes the cryptomarket offer various utilities and forms of investment, being able to attract investors with different profiles and objectives. Also, some ideas, like the metaverse itself, are developing and could bring a lot of surprises for 2022.
As a consequence, we have more people turning their attention to the cryptocurrency market. All this contributes to the possibility of even more appreciation in the year that started. So, these are relevant points that can make you want to start investing and following so much innovation, right?
But it is necessary to remember that every investment brings risks and a market as new as this one needs to be well understood. That’s why it’s important to inform yourself about the first steps to start investing more safely. Find out below:
First steps to start investing in cryptocurrencies
To make a choice in our life, such as traveling, buying a product or starting a course, for example, we always research and study more about the options and only then make a decision, right? Buying your first cryptocurrency is no different. You need to do the proper planning to choose wisely and have a better chance of success later on.
With that in mind, we list below the main steps to take before starting your investments in any crypto asset:
study before you start
Searching for information about market dynamics is one of the main actions to be taken before starting any investment, because only then will you be aware of the risks and how to invest correctly. So, learn the strategies and methods of market analysis.
Also get to know the main currencies and their characteristics, both positive and negative points, and make comparisons between them. It is also important to know the platforms needed to invest and how the most used orders, such as Market, Limit and Stop, work.
Finally, get to know the basics! It is essential to contextualize yourself in this environment and define your investor profile, setting goals and establishing the risks you are willing to take.
Beware of false promises
As the cryptocurrency market is not only promising but also new, it is common for there to be a lot of misinformation about this segment.
Thus, malicious people take advantage of the naivety of those who have just started – and even those who have invested for a longer time, if they do not have the proper care and attention, can take this risk – to apply scams and set up virtual schemes, such as pyramids. financial institutions and offering fake cryptocurrencies.
Always be wary of exaggerated promises and confirmation of fixed income or very high profits. Before depositing investments in a crypto asset and informing any company of your data, try to find out who is responsible, the history of the institution or creator and user testimonials.
Choose a secure broker
A brokerage or exchange will intermediate the transactions you make and will have custody over your assets. Therefore, it is essential that you make a safe choice.
Confirm the existence of the company and its history. Inform yourself about liquidity and volume to know the relevance of the brokerage and if in fact it will be able to sustain itself. Get to know the platform used, the security protocols, fees and transaction deadlines.
And, of course, also try to find out how was the experience of other users with the service received, if there is adequate assistance for those who are starting. At Coinext you have this support, education and information to make your investments with more confidence and achieve better results.
follow the market
At this point, you will already know the basics and will have an idea of how to protect yourself from possible scams. However, your research and study should not stop there. Keep digging deeper into investment strategies and technical analysis.
Furthermore, it is essential to keep up to date. This means monitoring not only the quotes and variations of coins and tokens, but also consulting expert analysis, reading news and staying on top of relevant events that can impact asset performance and market behavior.
5 Promising Cryptocurrencies to Invest in 2022
Now that you know the first steps towards a conscious investment, it’s time to get to know some cryptos that can perform well in 2022.
This content is for educational purposes and should not be interpreted as an investment recommendation. To make investments in crypto assets, you need to consider your own investor profile, market analysis and understand all the risks. That said, let’s go!
Bitcoin is the biggest cryptocurrency on the market and therefore tends to be the first choice of beginners. It is the most well-known and consolidated crypto-asset and for this reason it can be a good option for those who are just starting out.
Despite also having considerable volatility, it is the most mature and safest crypto on the market.
With the large and growing rise of projects related to DeFi (Decentralized Finance) and NFTs developed on the Ethereum network, Ether is expected to appreciate even more in 2022.
It is the second largest cryptocurrency on the market and some experts believe that it could even surpass Bitcoin and become the most used and valued crypto asset.
MANA is the token used in Decentraland’s virtual universe and its user base has grown considerably, which may also increase its value.
It is considered one of the main alternatives of tokens related to the metaverse and therefore can be an option for those who want to start investing in these assets and enter this environment.
Uniswap is the leading decentralized exchange (DEX) project and its currency, UNI, is the leading crypto in the DeFi universe.
As new funds and investors adopt this asset, its price tends to rise in 2022 and because of this it can be an interesting alternative for those who are starting this year.
Solana was one of the Blockchain network projects that gained the most visibility in 2021, a trend that may persist in 2022 and increase the value of the SOL asset. Like ETH, its network offers possibilities for NFTs and smart contracts, being able to compete with the Ethereum network.
Where to buy
We also emphasize the importance of diversification, not only between crypto assets but also involving fixed income, so you can choose more than one financial product to invest. All this will depend on your investor profile and your goals.
Also remember that you can invest in cryptocurrencies starting small! This is because it is possible to buy fractions of cryptocurrencies.
On Coinext, for example, R$ 25.00 is enough to start. As you gain practice, know more about the market and become confident, and if you feel you should, you can start investing larger amounts.