Hello everyone and welcome to today’s article. In today’s article, I am going to have an honest conversation with you regarding investing in cryptocurrencies. This is not a push on my part to try and invest in cryptocurrencies. I will also actually discuss the risk profile of crypto, how much do you profit vs losing, which exchange to use, what are some of the issues that exchanges are facing. Hence this will be the ultimate investment guide for 2022 in Cryptocurrencies.
We stand at a very important juncture. There have been some latest announcements that have been made especially in the US. so I will talk about that which is why I am making this article today. Because there are some interesting regulatory changes coming up, this could actually help cryptocurrencies gain more prominence and it would create a more investor-friendly environment.
So let’s start the discussion.
Investing in Cryptocurrencies in 2022
I will speak in three simple points.
- Why investing in cryptocurrencies in 2022 makes sense
- How to invest what type of exchanges to use some key things that you need to keep in mind about the expected returns
- What you can afford and the risk you are taking to make that return
So if you understand all these three specific points, you will get more clarity about investing in cryptocurrencies. so I recommend the most. Let’s start with the recent news that has come about cryptocurrency. Investment and US President Joe Biden has made an announcement that he is going to regulate cryptocurrencies. he has asked his team to study the crypto environment more closely and suggest some changes. so this is the snippet and this gave a short rally after the announcement in cryptocurrency. It went up in price and the move is viewed very positively by the entire crypto investment community.
Why this is the Best Time to Invest in Cryptocurrencies?
so good news because it’s not like we’re saying you know we’re like pro-crypto. they’re never going to say it, almost no powerful nation is ever going to say. you know we have pro-crypto come and invest they are not going to say that. cryptocurrencies are decentralized in nature so surely governments are centralized so of course, they will not like any system or process which is decentralized. nature at least they won’t be a steadfast advocate. So you can ask me ok so why is it that you are considering this as positive news? because if you go back and watch my articles and read the comments that people give. So you know if really governments are going to ban all cryptocurrencies at once, India is going to ban, we are going to ban, China has already banned it. it becomes clearer and clearer with time going. it is almost it is really impossible to ban cryptocurrency. countries like us are moving in terms of cryptocurrency positive regulations.
can I share with you some data and facts about it? so yes, Let’s share some key points about why I think we’re inciting positive regulations. so first and foremost the fact that you can see that there are some ETFs or bitcoin ETFs launched in the US. This is a very favorable event for the entire crypto investment community. This is because if an ETF is launched on the stock market of a particular country, it indicates that that particular ETF will work hand in hand with the regulators. so this first important favorable point. the second important favorable point is that, if you are looking at some listed companies Take a look at eg Coinbase. Now it is a pure crypto-oriented firm. Its prices go up and down with the crypto market movement and it is again also a listed company in the US. There are companies listed in the US, such as Tesla, whose having a large holding of cryptocurrencies on balance sheets. for example, having two billion dollars of bitcoins on their balance sheet proves yet again that we are supporting a positive crypto revolution.
The obvious question here would be to say that, precisely because cryptocurrencies take away money printing power to countries like India. then why is it that we are supporting all of this. so there is a need for a very detailed and thorough response. so maybe I can do this I will make a whole article on the topic, just to give a high-level insight here that cryptocurrency is becoming a philosophical war now.
Will India Ban Cryptocurrencies?
like china has banned it outright, they don’t want to be part of that equation. But have you thought why?
The reason for this is quite simple that, USDT which is a stable coin that acts as a bridge between the US dollar in the physical world and cryptocurrencies in the virtual world USDT or the company that runs USDT can easily be controlled by the US government. so that they have the power. USDT is one of the strongest stable coins out there. if we can design and develop such a system, it controls a large part of the crypto network and if it is really the next generation then we have all the incentives in the world to support positive crypto regulations. that is exactly what is happening. even the recent announcement seems to be in line with supporting this ambition and vision of the US government. So this is the first big reason.
Now let me talk about the second big reason why you should be. The second big reason is that cryptocurrencies are time-tested. for example, what do I mean by time tested? If you study the history of bitcoin Let’s say that bitcoin came into existence in 2009. trading or widespread trading on bitcoin has started since 2012. so it has been almost a decade since bitcoin came into existence, it has recently started in Russia. The Ukraine crisis has weathered a bunch of storms. with regulation uncertainties including sanctions from China. There have been times from countries like India and a bunch of other different things when an asset like bitcoin has lost a lot of value. I’ll talk in a minute about why this happens but, the bottom line is that bitcoin still holds firm.
So these were some key points and my analysis based on which I can say that we should be investing in cryptocurrencies. Not only that but this is the best time to start investing. i have made further analysis on this and you can read it on .
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