Everyone talks about the volatility of cryptocurrencies. But the drop in rates in December 2021 was still a surprise. It can be used to make profitable investments. You only need to know what cryptocurrencies to buy in 2022 on the crypto aggregator website.
Reasons for the December rate drop
At the beginning of December last year, there was a drop in the price of many financial assets. As a result, a bearish reversal was observed on stock, commodity, and currency exchanges. U.S. stock indices lost up to 3% and European ones up to 4%. Some fiat currencies fell against the dollar.
Most often, there is no direct influence of the economic situation on the rate of cryptocurrency. This is what makes investing in virtual coins attractive. But at the same time, with the bad economic situation, there were other events. They caused a serious collapse.
It is impossible to predict how past and future world events will affect cryptocurrency in the future. But the current fall can be used to invest in crypto at a low price. This will allow you to get a profit at the moment when coins regain lost positions. You need to consider the risks of investing and know which cryptocurrencies are worth buying.
Bitcoin and Ethereum
It is no longer possible to buy cryptocurrencies that are number 1 and number 2 in terms of capitalization at a low price. However, they have already proven their worth and are considered by most as reliable objects for investment. Therefore, the collapse in prices can be considered not a minus, but a plus for new investors.
A cryptocurrency that can also be used in decentralized finance because of its blockchain features. It is seen as a more progressive competitor to Ethereum. On the basis of distributed networks, smart contracts can work.
The main advantage of Binance Coin is that the system has already implemented improved features compared to Ethereum. While the latter delays the transition to the second version of the protocol, the BNB has a chance to grow in value and make investors rich.
The Polkadot (DOT) project is interesting because its developers are trying to combine the advantages of several blockchains into one system. This blockchain is in constant development and is seen as an alternative to Ethereum.
The DOT coin itself is not the main goal of its creators. It is used by investors not only inside the created project but also outside of it. DOT is the 9th most capitalized coin in the world. This once again proves the suitability of the token for profitable investment.
The coin XRP in 2022 can again be positively evaluated by investors and become a promising target for investment. The coin’s creators continue to work on extending the blockchain’s functions. Financial institutions in several countries have taken an interest in the product.
Now the only obstacle is a lawsuit between the U.S. regulator, the SEC, and Ripple. The SEC believes that the token can be treated as a security. The developer opposes it. Depending on the decision, two options are possible:
- An explosive rise in the value of XPR;
- A total ban on XPR in the U.S. and a drop in the price
Cardano cryptocurrency had a market cap of $45.2 billion at the start of 2022, making it the world’s sixth-largest cryptocurrency. The main reason for its popularity is that it can be used in the DEFI sphere. Blockchain-based smart contracts can work. The currency will be a great option for investing this year.
What’s the bottom line?
Even if you know which currencies are worth buying this year, you can’t forget the high volatility. Strong fluctuations in prices bring large profits, but can also lead to a total loss of capital. However, this should not stop you from making a profitable exchange from ETN to CAD. Experienced traders and investors recommend diversifying assets.