What changes have occurred in the cryptocurrency market

Before we tell you which cryptocurrencies to try to invest in, it’s worth examining what state the market has approached by this point. The cryptocurrency market in 2022 practically repeats the dynamics of 2018 with the same deep drawdown of bitcoin, investor panic, and the fall of altcoins. But every investment market is always cyclical, so now is a time of opportunity for seasoned investors.

Reasons for the changes in the cryptocurrency market

One of them is the extraordinary activity of Ilon Musk, who declared that bitcoin is toxic to the environment. You probably know that most of the mining is concentrated in China, whose economy is heavily dependent on coal. And coal is at the top of the list to be phased out by the eco-conscious countries of the world. Musk’s statement was followed by an informal ban on selling Tesla for bitcoins.

There is a possibility that Elon made all these verbal interventions under pressure from institutional investors and financial regulators. It looks like this is just the beginning of harsh crackdowns proposed in the hope of driving cryptocurrencies into the regulatory realm, but bitcoin has been proving for years that it’s quite willing to withstand the blows and respond with new rounds of growth.

But there is good news: PayPal announced that in the near future its users can easily withdraw their assets to third-party crypto wallets, and this news must have come very much to the hearts of online casino lovers, as today gaming industry is trying to adapt to market conditions and give its customers everything they want, and the number of people willing to bet on sports and play online casinos using cryptocurrencies is increasing every day. In addition, U.S. banks are now allowed to hold crypto assets of legal entities. The condition is one – companies need to work within U.S. law, and banks and financial institutions must comply with all laws and audit digital coins for origin. Analysts have also noted an increase in interest specifically in secondary currencies. Answering the question of what cryptocurrencies to invest in, now investors are considering investments in second-tier coins and withdraw funds from the top altcoins to more risky projects. Such are the times!

Which cryptocurrencies to look more closely at

Experts warn about the high risk of investing in altcoins. All talk about bitcoin prevailing over the nearest top altcoins. The capitalization of the main cryptocurrency is higher than the rest of the market and it is unknown where all this will lead. But analysts also note that now the market is not a bad situation for buying alternative coins with good growth points.

Solana (SOL).

Quite good, and, according to analysts, promising token project Solana – SOL. The project builds a blockchain for DEFI and smart contracts. It will be such an alternative decentralized platform with a well-functioning ecosystem.

Ether (ETH).

The next non-obvious candidate for a major token is good old Etherium. Another hardfork, Ethereum London, is scheduled for July. In the process, the new protocol will be comprehensively studied. Experts suggest that the cryptocurrency is sure to go up on such positive news. But also the opportunity to take the coin at the minimum values can also bring additional profits to the investor.

Binance (BNB)

The token of the specialized cryptocurrency exchange Binance – BNB has been rising against bitcoin for several weeks this spring, and in general has been in a general trend since 2018. Soon the coin will reach local peaks and will try, having strengthened there, to storm new heights.

Moreover, the exchange Binance is preparing for the launch of the NFT-marketplace. This is a breakthrough event not only in the local niche, but in the whole marketplace cryptocurrency space, because the fees in the marketplace will clearly be lower than those inside the Ethereum ecosystem.

So is it worth investing in the cryptocurrency marketplace

First, you need to understand that only free funds can be invested, not borrowed money. Second, an investor needs to consider both the strengths and weaknesses of cryptocurrency assets in order to make an informed decision that is not based on emotions and opinions of the crowd.

The advantages of investing in cryptocurrency include:

• High returns. Despite the volatility, cryptocurrencies fundamentally grow in value and allow you to really multiply your starting capital.
• Low costs. Due to its openness and decentralization, the cryptocurrency market does not have a cumbersome infrastructure of intermediaries. Therefore, commission costs are minimal compared to more traditional investment instruments, such as stocks or bonds.
• Ease of purchase. While an individual must purchase securities through a licensed intermediary, cryptocurrencies can be purchased in a variety of ways.
• Low inflation risk. Whereas the national currency can be printed in huge quantities at any time by the government, this trick does not work with digital money. The blockchain system reliably protects crypto from inflation.
• A low entry threshold. You don’t need a large sum of money to buy tokens. Even a few hundred rubles will allow you to buy altcoins.
• Elimination of counterfeiting. Digital currency, unlike fiat money, is impossible to counterfeit.
• The ability to remain anonymous. During transactions there is no need to disclose your personal data.

But it is worth realizing that the purchase of any financial asset involves risks. Cryptocurrency is no exception.