What Does the Future Hold for the Crypto Market?

Crypto industry experts mixed the options regarding the future of cryptocurrencies. Some believe that the market will continue with its volatility, while others expect some sort of stability in 2022. 

If equity stockholders experienced a great year, crypto investors had a bad one in 2021. Prices of several cryptocurrencies mixed out unbelievable returns for investors. Cryptos like Bitcoin or Ethereum experienced a price improvement of 40% last year. However, since prices aren’t stable, Bitcoin prices fell abruptly in May 2022. Elon Musk tweeted about his worry regarding the impact on the world and China cleft the crypto market. As investors rushed to sell their coins, prices of some cryptocurrencies fell in just a couple of hours. 

What to expect in 2022? It depends on government policies, as China, the world’s biggest crypto market, banned transactions in September 2022. Blockchain technology reaches wider usage, which will isolate China from the rest. 

Thinking of entering the crypto world in 2022? Here’s what you should do. 

First things first, you need to follow the basic rules. As such, invest small amounts. Crypto coins have poured around 5,000% in the past months. However, you shouldn’t get carried away with these numbers. Even if you have a strong passion for trading, do not invest more than 10-15% of your overall portfolio in cryptocurrencies. 

As you may know, this is a highly risky game and as an investor, you must be able to digest high volatility. As May month showed, cryptocurrencies can drastically fall overnight, by almost 80%. Remember that even the Bitcoin price fell 25% from its November price. Enter this market only if you can afford to lose money. 

Also, it’s essential to use a trustworthy platform – the crypto space is not regulated in all places in the world. Invest only in reliable crypto platforms, so that your money doesn’t get stuck. Invest in a well-established platform to avoid complications. 

The crypto space lacks credible data. Investors are reliant on unreliable info on the internet. Some scammers might even charge you for the tips they provide and then use the “pump-and-dump” operation. So, be careful when buying obscure coins just because the price is low. You can buy fractional, so don’t worry about the prices. Ethereum and Bitcoin are the crypto market’s most secure coins, which also drive the overall market sense. 

Cybercriminals use innovative ways to defraud people, especially beginners who aren’t familiarized with online digital ecosystems. Spam, phishing, and spyware are the most common forms of digital banking fraud intended to obtain people’s personal account information and then illegally withdraw money into their bank account. It’s also advisable to not click on any suspicious links you might receive through emails or messages. 

How stable will crypto be in 2022?

On the point of the crypto market’s future, experts believe that the volatility will remain high for the rest of the year. Bitcoin, for example, is the world’s most known altcoin, and it’s much more than other cryptocurrencies you’ve seen before. Most investors and enthusiasts expect Bitcoin price USD to go above $4,000 in 2022.  Ethereum, on the other hand, has grown exponentially in its value since 2015, when its price was $0.311. Now, the ETH price rose to around $4,800, which is the highest since its launch. In August, Ethereum hit $1,680, the highest it has been in the past months. 

So, how high do experts expect Bitcoin or Ethereum prices to climb? Prediction for 20223 says: that the price for Ethereum or Bitcoin will be between $400-4,500 in 2022. The most recent price prediction was $4,000. However, it’s nearly impossible to predict the price with 100% certainty. The crypto reports say that Ethereum could rise to $6,500 by the end of 2022. However, ETH could be involved in another crash this year, dropping its price to $500. 

Experts say that ETH’s price will be even more unstable than Bitcoin’s in the following months. However, this doesn’t change Ethereum’s appealing widespread use; until the price drop happens, crypto experts wait to see how investors build their tech on Ethereum’s platform to reply to those changes. Whatever may happen in the future, investors will need to improve demand to continue rising. The blockchain platform has serious competition from other platforms that are using ETH to transition to its new updates. 

What influences a cryptocurrency’s price? 

Its reputation. Now, new coin alternatives with capabilities similar to ETH and Bitcoin are entering the market, managing to change the demand for a cryptocurrency in pro and con ways. Here’s what impacts a cryptocurrency price.

High traffic and utilization. Although it’s uncommon for Bitcoin, for example, to increase and decrease its price several times per day, smaller cryptocurrencies can have even bigger price changes. If you understand the essential value of source and demand behind a cryptocurrency and its value, you can make better crypto decisions. If you think demand will increase for whatever reasons, that cryptocurrency is going to be a great investment, bringing you profit at some point. However, governments still don’t have proper regulations put in place for the crypto market, which still makes it a risky investment, after all. 

Conclusion

Although investors want to know what will happen to crypto prices, it’s difficult to predict with certainty. However, it’s not surprising to hear from someone who invested heavily in Ethereum or Bitcoin that these currencies will soon be worth hundreds, if not thousands of dollars. Bitcoin’s price is still in its infancy phase, which means that prices will continue to drop and rise until a stable point can be reached (if it will ever happen). If you want to buy crypto to reserve capital, the price can be extremely volatile. There’s no guarantee that you will see any returns! You’re likely to lose everything you invested. However, please make sure to do plenty and good research before starting investing in crypto.