The crypto landscape and the varying crypto trends have changed over the last three or five years, and it’s not just about Bitcoin anymore. There are so many coins to follow that it can be hard to keep track sometimes. But, everyone is looking for the next big project, and rightfully so. This new wave of crypto coins isn’t a bad thing. It presents more opportunities for the average investor than ever before. Investors need to understand which cryptocurrency trends to watch to cash in.
With 2021 coming to a close, it’s time to focus on 2022. First, we will run down all of the coins and crypto trends investors need to watch for in the coming year. But, of course, if you’re buying crypto at all, you’ll want to pay attention.
Read along with us until the end, and you’ll have a few good ideas about your investment strategy in the new year. There’s much information for us to cover, though, so we need to get started.
Get your pen and pad ready. Class is now in session, so keep reading below!
What Is Cryptocurrency?
If you’re reading this, the chances are good that you already know a little about cryptocurrency. But we don’t want to leave out our first-time investors. We also don’t want to leave out any Boomers that are tuning in!
Cryptocurrencies are digital currencies used in transactions all over the internet. The number of online retailers and institutions that accept cryptocurrency is growing by the day. In addition, certain websites and organizations have their tokens.
The reason cryptocurrency is so essential is that it’s a “decentralized market.” Banks and major financial institutions aren’t very “hands-on” when it comes to governing cryptocurrency.
Most investors see this as a good thing. However, cryptocurrencies are “decentralized,” meaning individuals in the crypto space govern themselves. In short, this new wave of the crypto economy is bringing power back to the people!
Defining the Blockchain
So, how do different crypto coins accomplish this? How can everyone govern their transactions? The answer is the blockchain.
The blockchain is the technology that makes it all possible. Of course, there is a lot of complex computer programming that goes into the blockchain. But, in simple terms, the blockchain’s main job is to act as a digital “ledger.”
If you own 1 Bitcoin, the Bitcoin blockchain keeps track of that. This prevents dishonest people from creating more counterfeit Bitcoin, ensuring two things; value and trust.
The blockchain establishes Bitcoin as a rare, finite resource, demonstrating Bitcoin’s value. Similar to gold or other precious metals, the blockchain acts as the ledger. As a result, Bitcoin’s value increases due to supply and demand.
It’s not like the Federal Reserve, which can keep printing money.
Next, the blockchain ensures that transactions are honest. Fraud was one of the biggest hurdles to a digital, online currency. But, of course, that was before Bitcoin and the blockchain came along. Bitcoin’s limited supply and blockchain technology help keep track of everyone’s Bitcoin resources.
The result is a Bitcoin’s value is good once and only once. No one can recycle Bitcoin again and again like counterfeit money.
Crypto’s Rising Popularity
Part of the reason crypto is so popular is that it’s a hot topic in the media. Major news media outlets are constantly watching cryptocurrency costs and changes in value.
An unintended result of this mass media coverage is that the general public is constantly hearing about crypto trends. As a result, they’re more eager to learn about new coins in detail and invest in them.
Millions of millennials also talk about Bitcoin, altcoins, and NFTs all over social media channels. The result is a wave of new, young investors that can grow along with the space.
It’s a great thing to see. Finally, becoming financially literate and investing in your future is becoming “cool.”
Another reason crypto has gotten so popular is that crypto isn’t prone to inflation like traditional fiat currencies. This fact makes crypto, unlike any other investment vehicle that has come before it. As a result, investors can still experience the immense upside of investing. However, now they can do it with much more security.
Finally, investors are attracted to crypto’s volatility. We know that may seem counterintuitive but allow us to explain.
In investing, volatility is a good thing. Prices need to change for investors to make that money. As the saying goes, “buy low and sell high.”
Cryptocurrencies like Bitcoin follow a “parabola” shape as they move through the market. We know the word “parabola” may bring up nightmares of 8th-grade math for some of you, but try not to focus on the word itself.
All you need to know is what the “parabola-like movement” means for crypto trends and values. To explain, it means that the value of cryptocurrencies is constantly going up and down, giving investors many opportunities to buy Bitcoin when it’s inexpensive and resell again when the price increases.
Crypto Trends to Watch in 2022
So, which coins are the ones to watch in 2022? Investors will obviously be paying attention to Bitcoin because Bitcoin is the “benchmark” of what happens in the crypto market. BTC is the equivalent of the gold bar when America used to be on the Gold Standard.
There will be opportunities in 2022 when it comes to Bitcoin. But, there may also be even more excellent opportunities with some of the lesser-known crypto trends.
Let’s take an in-depth look at all of the coins to watch down below.
Bitcoin is everyone’s favorite, and it’s made thousands of millionaires already (and probably will continue to do so). However, due to the parabolic movement we talked about earlier, there will still be opportunities with this coin in 2022.
Although it’s constantly growing, investors still need to be mindful of that “finite supply” we discussed. There can only be a maximum of 21 million Bitcoins minted. This scarcity in supply is only going to help Bitcoin continue to grow.
Investors who are paying attention to the market noticed Bitcoin’s massive jump in value recently. The coin was hovering around $30,000 to $40,000 in value and then shot up to $64,000 seemingly overnight. This value increase relates to cash injections into the market from key players like Tesla CEO Elon Musk.
Experts in the finance and investing space see no end in sight for Bitcoin’s growth. Many people within the industry agree that we could see Bitcoin’s value shoot up over $100,000 in 2022. And, since it’s widely considered the most stable cryptocurrency, many investors are buying as low as they can and holding on for the ride.
If you think it’s too late to get in on the Bitcoin wave, you might be wrong. The price will eventually dip again. When that happens, it might be a good time to get in and hold onto your BTC.
It’s important to note that this is just a suggestion. It’s not professional investment advice.
If you’re looking at popularity numbers, Ethereum is a close second behind Bitcoin. But, investment experts are beginning to argue that experts cant compare the two.
Ethereum is slowly drifting away from being a “cryptocurrency.” Instead, it’s becoming more of a crypto platform. 2021 was a massive year for this growth.
The Ethereum blockchain started as a “smart contract” format, allowing investors to buy and sell NFT collectibles, art, games, and even conduct legal transactions.
Ownership rights for creative and intellectual property, like music, are now being transferred, bought, and sold on the Ethereum blockchain. These are only some of the applications that the Ethereum blockchain supports in the crypto market.
Ethereum, just like Bitcoin, has been steadily increasing in value throughout 2021. Fortunately, there’s no sign of this trend ending anytime soon. As a result, investors should keep their eye on Ethereum moving into 2022.
New Developments in Ethereum
One of the exciting things about Ethereum is that it’s already established a level of stability, making it different from Bitcoin because Ethereum is still developing. Bitcoin is already established and has already reached “full-phase” development.
Investors and enthusiasts are excited for some of the growth and changes happening within the Ethereum blockchain. One of the newest updates which seems to be gaining attention is the creation of the Constantinople protocol.
This change in Ethereum technology aims to increase the speed and security of transactions on its blockchain.
Speed is one of the challenges facing a lot of cryptocurrencies and their blockchain ledgers. These platforms struggle to support transactions at the rate and volume necessary to keep the global economy moving. At least that was true until advancements like Constantinople.
Initially, the Ethereum blockchain could only handle around 15 transactions per second. But, thanks to Constantinople, that number will increase dramatically. Investors are hoping that Ethereum’s popularity will increase dramatically, too, as a result.
Experts predict that Ethereum will have a value of over $17,000 per coin by the end of 2021. What’s more, they indicate the value to be even higher as the market opens for 2022. Experts estimate that Ethereum’s value will be just shy of $19,000 by the time 2022 begins.
You may think you haven’t seen or heard of Ripple, but we’re here to tell you that you have. Most crypto websites and investment tickers go by the symbol XRP.
Have you seen it now? We thought you might be familiar with it.
Ripple is one of the “big three” crypto coins. It was one of the first to burst onto the scene along with Bitcoin and Ethereum. But, recently, it’s taken a backseat to the other two cryptocurrencies.
Now, that doesn’t mean Ripple is dead by any means. On the contrary, there is still much opportunity for investors who want to use Ripple to enter the crypto space.
Ripple is beginning to carve out its niche in the digital currency marketplace. The goal of this coin is to integrate cryptocurrency into banking. But Ripple isn’t going to be used in the banking space in the ways you might think.
The minds behind this coin are choosing to focus Ripple’s function on transactions between banks. Banks appreciate the creators of Ripple cooperating with older, more traditional financial institutions. As a result, these central banks are working with Ripple to integrate it into mainstream payment functions.
The IT minds of the crypto space are also looking at Ripple as a means of data transfer. Therefore, because Ripple isn’t afraid to integrate with other payment platforms, experts believe that XRP can increase the simplicity and speed of crypto transactions moving forward.
Seen as one of the safest digital currencies on the market, XRP remains one of the top 5 cryptocurrencies today.
Ripple and International Affairs
Another area where Ripple is bringing big institutions together is on the government level. Governments make international payments via Ripple. For example, the U.S. and Mexico are currently relying on Ripple for some of their trade deals.
This fact is further proof that cryptocurrencies like Ripple can break down borders. Experts see no reason why Ripple can’t replace global payment methods like major credit card companies. Using XRP and Ethereum for purchases will soon return the Visas and Mastercards we once knew.
Keep a Watchful Eye
There are many crypto trends to watch moving into 2022. Multiple coins seem to be rising in value as we move toward widespread adoption. We’re living in a digital age in nearly every area of our lives.
Why should the economy be any different?
Contact Byte Federal today for more information on what’s going on in the crypto space and how to put cryptocurrency to work for you in 2022. Our friendly and knowledgeable team is here to help everyone transition into the crypto age.