After reading about various cryptocurrency investing success stories, retail investors in India are waking up to the potential returns that digital assets offer. However, it is advisable to approach this new trend with extreme caution.
If you have been investing in the stock markets for a while, you may have an edge over other newbies in the cryptocurrency space. This is because some of the principles overlap in these two markets. For instance, many seasoned cryptocurrency investors actually use Warren Buffet’s value investing philosophy in the cryptocurrency space.
For a balanced approach, you can go for a strategy of investing majorly in cryptocurrencies which are established “large caps”, some amount into “mid cap” cryptos and some amount into “small cap” cryptos. Also, given the volatility of the crypto market, it pays to have a long term mentality unless you are an expert trader. Although many people want to know which is the best coin to buy now, it is advisable to take a diversified approach. Below are some of the Best Cryptocurrencies To Invest In 2022:
1. Bitcoin (Large Cap) - Market sentiment tends to revolve around this cryptocurrency which is still the number one in the crypto market by a long way. It can be argued that Bitcoin is one of the least volatile coins in this space, given its large market cap and more mass adoption coming its way.
Current Price per coin - ~$44,000
Total Supply of Max Supply -~ 18.9 Million of 21 Million
2. Etheruem (Large Cap) - This is the second biggest cryptocurrency in terms of market cap. Etheruem serves as a protocol which various other projects use.
Current Price per coin - ~$3,010
Total Supply of Max Supply -~119 Million of Unlimited (capped at 18 Million a year).
3. Polygon (Mid Cap) - This cryptocurrency, founded by our own countrymen, significantly reduced the “gas fees” of Ethereum users and has a lot of potential for the future. It recently raised $450 Million from Sequoia Capital India.
Current Price per coin - ~$1.8
Total Supply of Max Supply - ~7.53 Billion of 10 Billion
4. Decentraland (Mid Cap) - This gaming oriented token targets virtual reality, a space that has huge potential.
Current Price per coin - ~$3.2
Total Supply of Max Supply - ~1.8 Billion of~ 2.6Billion.
5. Telcoin (Small Cap) - With a compliance first approach, Telcoin aims to disrupt the traditional remittance market and also provide Decentralized finance (DeFi) products to the unbanked population via telecom partnerships.
Current Price per coin - ~$0.008
Total Supply of Max Supply - ~59Billion of 100 Billion.
As an investor, it makes sense to ensure that your future financial security is taken care of via investments in more trusted and proven asset classes. You can do this through prudent asset allocation across stocks, equity mutual funds, debt funds, gold and more. You can also have an emergency fund and necessary insurances in place. Post these measures, if you have a surplus amount left, only then should you consider investing in digital assets, because this is money you can afford to lose.
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