Broader Institutional Cryptocurrency Adoption
Mainstream companies across industries have taken interest and in some cases themselves invested in cryptocurrency and blockchain in 2021. AMC, for example, recently announced it will be able to accept Bitcoin payments by the end of this year. Fintech companies like PayPal and Square are also betting on crypto by allowing users to buy on their platforms. Tesla continues to go back and forth on its acceptance of Bitcoin payments, though the company holds billions in crypto assets. Experts predict more and more of this buy-in.
Weve seen a tremendous amount of inflow of attention, and thats going to continue to drive the growth of the industry for a while now, says Abner.
Some experts predict bigger, global corporations could jumpstart this adoption even more in the latter half of this year. What were looking at is institutions getting involved in crypto, whether its Amazon or the big banks, says Weiss. A huge retailer like Amazon could create a chain reaction of others accepting it, and would add a lot of credibility.
Indeed, Amazon has recently sparked rumors that its making moves to that end by sharing a job posting for a digital currency and blockchain product lead. Walmart is also recruiting a crypto expert to oversee its blockchain strategy.
Which Are The Three Biggest Cryptocurrencies
Bitcoin launched in 2009 and remains the market leader. Its market capitalisation effectively its total worth is $1.017bn, as at April 28 2021. Ethereum and Binancecome in second and third, with respective market caps of $302bn and $85.5bn.
Find out more in our article: Bitcoin alternatives: the most important other cryptocurrencies
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Cryptocurrency To Buy: Which Are The Best Bitcoin Stocks To Purchase
Bitcoin remains the most important cryptocurrency
2021 has been a year in which different cryptocurrencies have continued their growth, marking an ATH with the market reaching close to US$ 3 billion for the first time.
The crypto market experienced a strong momentum and managed to consolidate also through two new instruments, NFTs and DeFi, despite the failure of ICOs during 2017 and 2018, which drove away many investors due to the large number of fraudulent products.
If you are wondering what are the best bitcoin stocks to buy or if you are new to the world of cryptocurrencies and want to get started in this market, there are several options to invest that promise good returns.
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Why Has Bitcoin Dropped
The price of bitcoin and several other leading cryptocurrencies suffered huge falls at the start of December 2021.
Around $10,000 was wiped off the price taking it to $45,000. Thats a long way from the all-time high of $69,000 seen in November.
The recent turmoil follows uncertainty around the latest coronavirus variant and high inflation in the US and UK, as well as threats of further regulation for crypto investments in the future.
What Are Some Other Important Cryptocurrencies
Many cryptocurrencies have gained importance or hold the promise to do so. Dogecoin, for example, was a meme-based joke coin that reached fame when Tesla CEO Elon Musk promoted the token on social media. Aside from Dogecoin and the others listed above, several other bitcoin forks also exist, such as Bitcoin Gold and Bitcoin SV. Other important coins include Ripple , Solana, USD Coin, and Tezos.
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Where To Buy Bitcoin
There are hundreds of websites where you can buy Bitcoin.
I recommend you try a few different exchanges as people have proved to have different tastes when it comes to cryptocurrency investing.
In any case, here are the best exchanges I recommend you start using today if you dont already.
*eToro Disclaimer: Your capital is at risk
For more information about these cryptocurrency exchanges, check out our full article: The 5 Best Ways to Buy Bitcoin.
Solana New Kid On The Blockchain
Solana has been a top performer in 2021, bounding up the crypto ladder to become the fifth-most-valuable cryptocurrency in the world, with a market cap of US$65 billion, as of December 3. Widely touted as a challenger to ethereum, solana has clocked a staggering year-to-date return of more than 13,000%, going from US$1.61 to US$214the most gains by any cryptocurrency so far this year. In the same period, ethereum has risen 543%.
Solana was developed to help power decentralized finance use cases, decentralized apps and smart contracts. It runs on both proof-of-stake and proof-of-history models that enable swift and secure processing of transactions. SOL, solanas native token, powers the platform.
The cryptocurrency boasts a burgeoning community of investors who liken solanas technology to that of heavyweights such as bitcoin and ethereum. Bear in mind, though, that solana is a relative newcomerit launched in 2020so its still unproven and can be quite volatile, which makes it a high-risk speculative bet at this point. Investors should understand the risks and only invest money they can afford to lose.
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What More Institutional Adoption Means For Investors
While paying for things in cryptocurrencies doesnt make sense for most people right now, more retailers accepting payments might change that landscape in the future. Itll likely be much longer before itll be a smart financial decision to spend Bitcoin on goods or services, but further institutional adoption could bring about more use-cases for everyday users, and in turn, have an impact on crypto prices. Nothing is guaranteed, but if you buy cryptocurrency as a long-term store of value, the more real world uses it has, the more likely demand and value will increase.
Why Are Cryptocurrencies Important
As decentralized platforms, blockchain-based cryptocurrencies allow individuals to engage in peer-to-peer financial transactions or enter into contracts. In either case, there is no need for some trusted third-party intermediary such as a bank, monetary authority, court, or judge. This has the potential to disrupt the existing financial order and democratize finance. The size of the cryptocurrency space has grown exponentially in the past decade, with new innovations and a collective market capitalization of more than $2.5 trillion.
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Best Cryptocurrencies To Invest In For 2022
By Vikram Barhat on December 6, 2021
Crypto experts share their top picks for investing in digital tokens now and in the new year, including ethereum, ripple, cardano and more.
What are the best cryptocurrencies to invest in right now and in 2022? We spoke to some crypto experts to find out which digital tokens will likely perform well and why. Youll see familiar names and a few promising altcoins that might be new to you. Whether youre an experienced cryptocurrency investor or just crypto-curious, youll find ideas for your portfolio.
First, a recap of 2021: Crypto has had a wild ride this year. From increased institutional and retail adoption to China cracking down on crypto transactions, no other investment asset class has drawn so much market attention.
Through it all, bitcoin kept hitting all-time highs, and it remains the most valuable and widely talked-about cryptocurrency. Yet, on a year-to-date basis, some of the top-performing cryptocurrencies have been altcoins likeethereum,up 500%, and cardano, up 1,000%.
Investors seeking similar windfall-like returns must sift through thousands of cryptocurrencies with varying specialties and differing degrees of utility, adoption and promise. In such a diverse marketvalued at more than US$2.6 trillionhow can investors decipher which cryptocurrencies to invest in? Weve saved you the trouble. Heres what the experts picked.
Best For Interest And Borrowing: Blockfi
Loan interest rates as high as 9.75%
If you have a lot of cryptocurrency and want to do more with it without selling, you should know about BlockFi. BlockFi enables you to earn interest when you deposit your bitcoin into an account. If you want to unlock your bitcoin without selling, you can also use existing bitcoin as collateral for a loan, but take note of the interest rates of 4.5% to 9.75% and the required 2% origination fee. You can also buy and sell bitcoin and other cryptocurrencies with no added trading fees. Instead, BlockFi is the opposite party in all your trades and they will sell to you at a small markup and buy from you at a slight discount.
BlockFi offers you the opportunity to earn interest on your crypto holdings. The current rate is as high as 9.5%, allowing those with large holdings to earn serious money. BlockFi also has a new rewards credit card that will pay you in bitcoin, which shows plenty of innovation to come from this unique crypto exchange.
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Cons: Why Bitcoin Could Be A Bad Investment
As much as we love Bitcoin, it would be irresponsible to pretend that it is a perfect investment .
Though people talk about it less these days, it should be remembered that there are plenty of other coins out there that are supposedly more technically sound.
Litecoin , for example, is heralded as four times faster than Bitcoin and potentially a better coin for making transactions. But thats just the beginning.
And then there is this notion from many politicians and central banks that Bitcoins sole purpose is to conduct illegal activity. While this myth has been debunked hundreds of times, it still persists.
In actuality, using Bitcoin for illegal purposes would be a pretty bad idea for criminals as you can trace transactions via the distributed ledger.
Cash, on the other hand, is much harder to trace. Despite this, the misconception continues.
But this is all nothing compared to BTCs biggest problem energy consumption.
Digiconomist is a platform that monitors Bitcoins energy consumption and impact on the environment.
According to them, at the time of writing, Bitcoin consumes the same amount of energy as Malaysia and has a carbon footprint comparable to Turkmenistan .
In a world more focused on our environmental impact, it suggests that BTC is not the right way forward, and it opens the doors to cleaner, more efficient cryptos.
Amazon To Accept Bitcoin As Payment
If the rumours are true, the technology company could accept bitcoin payments sooner rather than later which could drive the price of the cryptocurrency upwards.
Amazon is also said to be looking at launching its own cryptocurrency.
This comes after Amazon posted a job advert looking to hire someone to develop its digital currency strategy.
Amazon isnt the only tech giant to be branching into cryptocurrency there are rumours circulating that Apple will use some of its large cash reserves to invest in bitcoin.
Given the huge volatility and that the use case of crypto currencies is far from proven, traders should only dabble with money they can afford to lose.
Susannah StreeterSenior Investment and Markets Analyst, Hargreaves Lansdown
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It Really Is The Best Time To Invest In Bitcoin
All available data and trends suggest that Bitcoins price is far from reaching its peak and now is the best time to invest in Bitcoin.
Its deflationary properties and rising adoption mean there is still plenty of upside potential.
Buying Bitcoin before it becomes a mainstream investment is a smart thing to do.
Avalanche Revolutionary Game Changer
Avalanche is another rising star in the smart contracts arena. The avalanche blockchain is a competitor to ethereum, as it provides a platform for building decentralized apps, and it is the fastest smart contracts platform in the industry with very low fees, says Marcus Sotiriou, a trader at GlobalBlock, a U.K.-based asset broker.
Its native AVAX coin is used both as part of the avalanche consensus mechanism and for paying network transaction fees.
In August 2021, the Avalanche Foundation announced the Avalanche Rush program, earmarking US$180 million in DeFi incentives to encourage more applications to move to the avalanche ecosystem.
The program has already attracted established crypto projects like Aave and Curve, Sotiriou notes. Since the announcement of Avalanche Rush, the total value locked the cumulative value of assets staked on the avalanche protocolhas jumped from US$250 million to a whopping US$13 billion.
Building on the programs success, the Foundation announced the Blizzard investment fund, allocating another US$200 million to attract developers focused on DeFi, enterprise applications and NFTs to the avalanche blockchain.
Avalanche is a newer crypto relative to the more established smart contract platforms, says Sotiriou, but its incentive programs and growing institutional interest mean AVAX could soon become a blue-chip cryptocurrency.
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What To Look For When Deciding The Best Cryptocurrencies To Buy
Many platforms exist on the web today, that rate the thousands of Cryptocurrencies to help many people to make more informed decisions. Weiss Crypto is the best. You can see the list of the most rated cryptos, to make an informed decision. However, if youd like to analyze cryptocurrencies to buy without the help of a third- party, here are some of the things you should look for:
How old is the cryptocurrency, and what is the general performance since inception? Is the growth curve steady? Has it been largely static? If the crypto has shown consistent growth for at least three years, it could be worth closer attention.
The liquidity depth of a cryptocurrency is determined by the number of adopters and market capitalization. If a cryptocurrency has thin liquidity, it will be difficult for you to sell your investment in the future.
Cryptocurrencies with a decent to the high market cap are the best to consider. They also have the most liquidity, ensuring easy buy and sell of any investments.
The technology behind cryptocurrency is one of the major drivers of its adoption. Ethereum and Ripple are the best examples of cryptos backed by exceptional technology.
How Can I Trade Litecoin
LTC is available on most crypto exchanges against both other cryptos like BTC & ETH, as well as national currencies like dollars and euros. You can also buy LTC using Robinhood and Paypal.
Investing in cryptocurrencies and other Initial Coin Offerings is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or other ICOs. Since each individual’s situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein. As of the date this article was written, the author does not own Litecoins.
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Bitcoin Is Still Undervalued
At writing, Bitcoins price is nearly 25% lower than its all-time high of $61K.
Despite the fear and doubt, there is still plenty of upside.
With inflation on the rise, even large US banks who are not particularly known for their bullishness on cryptocurrencies are slowly turning into Bitcoin believers.
For example, JPMorgan, whose CEO Jamie Dimon once Bitcoin a fraud, recently forecast that Bitcoins price could rise to $146,000 within the next year.
JPMorgan believes that Bitcoin has a 200% upside.
However, that prediction pales in comparison to those of Bitcoins most ardent supporters.
In 2017, Bitcoin maximalist Max Keiser set an ambitious price target of $100,000 per coin. While this prediction appeared far-fetched just a few years ago, it is now in the lower range of future predictions. In fact, in a 2020 interview, Max raised his price target to $400,000 per coin. If these people are right and Bitcoin is really set to 3x in the next few years, it really is the best time to invest in Bitcoin.
Believe it or not, this extreme bullishness is shared by several other prominent Bitcoin believers.
Anthony Scaramuci, the co-founder of Skybridge Capital, believes the price of Bitcoin will go up at an exponential rate eventually eclipse gold and probably going to be ten times better than gold over the long term. He concluded his prediction by stating that Bitcoin could easily trade at $500,000 in the near future.
So, should you buy Bitcoin right now?
How Does A Bitcoin Exchange Work
Bitcoin exchanges connect buyers and sellers and act as a middleman, or a broker, in some cases. When you buy bitcoin using a bitcoin wallet, the transaction is recorded on the Bitcoin Blockchain, which publicly tracks bitcoin-based transactions. In some cases, exchanges may transact on your behalf and not deliver bitcoin to an external digital wallet.
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Should You Invest In Bitcoin Stocks
Bitcoin has gained momentum to challenge gold as a store-of-value investment because, like gold, it is a shield against currency depreciation and uncertainty. Investing in bitcoin stocks is a brilliant idea if you want to gain direct exposure to the digital currency market and the projects or businesses that operate their business with Bitcoin. Bitcoin investing is becoming more popular, with companies like PayPal Holdings, Inc. and Square, Inc. providing crypto trading services, and Mastercard Incorporated becoming the first credit card to deliver digital currency rewards on transactions.
When companies like PayPal Holdings, Inc. , Tesla, Inc. and Square, Inc. throw their weight behind cryptocurrency, the entire world pays attention, boosting the trust in bitcoin, ETH and other cryptocurrencies and platforms. This trend has forced conventional banks, hedge fund, investment companies like Goldman Sachs Group, Inc. , Morgan Stanley , JPMorgan Chase & Co. to give their clients options to invest in cryptocurrencies as an asset class.
Lets discuss our list of the 10 best bitcoin stocks to buy now.