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Investing in Cryptocurrency — What to Buy in 2022

Investing in Cryptocurrency

Despite the major cryptocurrency’s decline at the conclusion of the previous year, the cryptocurrency market had a prosperous year overall in 2021. Bitcoin increased by 64% throughout this period.

Read more: What is diversification?

The sector capitalization initially crossed $ 2 trillion in November at the same time the coin reached a record high of $ 69,000. But does that imply that the value of digital assets relative to fiat currency will increase this year? What trends the cryptocurrency industry is likely to experience this year and which cryptocurrencies are worth investing in.

Bitcoin (BTC)

Bitcoin will still be the most valuable cryptocurrency in the world even after its value drops towards the end of 2021. Since entering the market in 2009, Bitcoin has established itself as a trustworthy investment cryptocurrency. Investors may view any decrease in the value of BTC as a chance to purchase this virtual currency at a lower price since it is no longer able to do so.

Currently, the price of BTC is $ 43,914.39; its market capitalization is $ 828,005,485,118; and its daily trading volume is $ 27,993,754,952.

Bitcoin’s value might reach $100,000 in the following five years, according to Goldman Sachs researchers. About 20% of funds are currently held in Bitcoin, but by the end of 2022, that percentage will rise to 50%.

Ethereum (ETH)

In terms of market capitalization, Ethereum is one of the greatest cryptocurrencies to invest in, coming in second place to Bitcoin. This digital coin now has a market capitalization of $377,855,502,904 and a trade volume of $28,207,246,654. This digital coin has a lot of applications technologically. The automation of the exchange is the primary purpose. With the use of Ethereum smart contracts, two parties can interact quickly, securely, and with the least amount of red tape imaginable.

The development of new commercial and decentralized application models will help this coin thrive over time.

It should be highlighted that the project’s fundamentals, its strong plan through 2022, and Ethereum’s significant upgrade to version 2.0 next year will all contribute to the coins’ further appreciation.

Ethereum may cost between USD 8,000 and USD 10,000 by the end of 2022, according to analysts.

Space (ATOM)

Cosmos (ATOM) is regarded as one of the best options if you want to invest in cryptocurrencies. Currently, the project has a market capitalization of $8,624,134,049 and a daily trading volume of $758,246,885.

The blockchain that this coin runs on is fittingly referred to as «Blockchain 3.0.» Cosmos is a cross-chain solution that enables communication between all blockchains operating within the Cosmos ecosystem and external networks like Ethereum and Bitcoin.

On the Cosmos network, more than 250 decentralized applications with a combined capitalization of over $70 billion have already been deployed. Binance Smart Chain, Qredo, and OKExChain all utilize the Cosmos infrastructure.

There are no comparable cryptocurrencies to Cosmos. Polkadot, which allows for self-creation of parachaines, is the lone exception to this rule.

Since several large cryptocurrencies already employ the Cosmos project’s technology, experts think this ecosystem has significant future growth potential. As a result, by the end of 2022, the price is anticipated to reach $40–$50. Keep in mind that the price of Cosmos (ATOM) is currently $30.35.

Solana (SOL)

Decentralized finance (DeFI), decentralized applications (Dapps), and smart contracts are all powered by Solana. To ensure that transactions are processed quickly and securely, Solana uses proprietary hybrid Proof of Stake (PoS) and Proof of History (PoH) protocols.

The SOL token was created to function on the Solana platform. After the project took part in the Initial Coin Offering (ICO) in 2018, the value of SOL started to increase. Solana then sold about 80 coins. The token’s price at the time was 4 cents. Currently, investors are paying $ 117.39 for each coin. The SOL coin has a market cap of $38.010,676,434 and a 24-hour trading volume of $2,500,219,132.

Users of the platform have access to the Solana blockchain using SOL tokens, which enables the development of decentralized applications, or Dapps.

Compared to its well-known rival Ethereum, Solana is much faster. Between 3,187 and 65,000 transactions are processed every second by Solana. Only 15 transactions are processed by Ethereum every second, compared to 5–7 for Bitcoin.

A network information block is created by Solana in 0.4 seconds, an Ethereum block in 10 seconds, and a Bitcoin block in 10 minutes. The speed of the work affects the commission that miners pay. Because of this, the fees for Solana range from $ 25 to $ 53 depending on the price of electricity, or less than a cent per transaction for Ethereum. The Saber cryptocurrency exchange, the DeFi Land simulation game, the Audius streaming service, and over 900 more apps have all been developed on the Solana blockchain. There are over 3,000 such applications in Ethereum, according to the State of the Dapps tracker.

Polkadot (DOT)

One of the most promising cryptocurrencies to invest in in 2022 is Polkadot (DOT). Due to the successful integration of numerous blockchains from the same network, it has gained popularity by providing investors with a range of options. Polkadot is expected to help cryptocurrency investors make huge gains since analysts predict that as parachains are introduced one after another, Polkadot’s value will rise sharply. A price range of $40–$60 is the realistic goal for 2022.

DOT currently trades at 22.73 dollars, has a market cap of 22,536,546,667 dollars, and a 24-hour trading volume of 1,529,062,811 dollars.

Binance (BNB)

Globally, many people use the Binance cryptocurrency exchange. The purpose of this platform is to facilitate cryptocurrency trading while reducing transaction costs. Fast and safe transactions are available to users of the Binance exchange.

The native Binance coin (abbreviated BNB) is used to cover exchange service fees. According to several analysts, people who purchased BNB tokens now would profit greatly because the currency price might reach $1,000 in 2022.

BNB is worth $71,972,186,832 on the market. On February 9, 2022, the cost increased from $ 0.10 in 2017 to $ 428.63. So, if you’re interested in investing in cryptocurrencies, you should consider this virtual money.

Cardano (ADA)

One of the greatest cryptocurrencies to invest in is Cardano (ADA). The Cardano cryptocurrency ranked seventh globally in terms of capitalization in February 2022 with a value of $ 40,252,702,248. The ability to use this design in the DeFI space is the primary factor in its appeal. Smart contracts built on blockchain technology can assist in settling transactions between participants with full compliance and transparency, without the need for middlemen.

Application

Be mindful of the extreme volatility of digital assets if you do choose to invest in cryptocurrencies this year. Strong value changes can lead to both significant profits and complete losses. Therefore, seasoned traders and investors advise diversifying your assets by buying a variety of coins.

Additionally, you should conduct market research to determine the current trend in cryptocurrencies before making an investment. Following the study, you can choose a course of action and determine which cryptocurrency to invest in.

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What is diversification?

What is diversification?

In financial markets, the idea of diversity is more prevalent. However, it helps to lower risk and boost your profit line even in conventional business. Don’t put all of your eggs in one basket is the simplest way to define this phrase.

Read more: What is investment?

What, in plain English, is diversification?

The word «diversus» is derived from the Latin words «facere,» which means «to do.» It involves creating new forms of production, breaking into new markets, and reorienting them toward a larger consumer base. These actions are taken to lessen the financial risk in order to gain further advantages.

To lessen the possibility of insolvency and deposit loss, capital is allocated to comparable activities and assets. The selection of prospective locations, however, has the biggest impact. A crisis can quickly seize the entire complement of available instruments when a businessperson or trader constructs a portfolio without considering liquidity or other financial criteria. And the outcome could be unfavorable.

The rationale behind the diversification approach

Diversifying manufacturing and offering makes sense for business development. At the same time, several objectives are pursued. To maximize coverage of the market, the first step is to establish subsidiaries and a network of branches. The second is the development of a sizable network of suppliers and customers who can make up for one another in the event that collaboration is temporarily or permanently terminated.

Measures to diversify an organization’s economy can avoid many negative aspects:

  • When the demand for one type of product / service drops, they are quickly replaced by others that are in greater demand.
  • Leveraged trading requires a constant flow of funds, so it is appropriate to spread costs / income over multiple profitable projects.
  • The possibility of full production self-sufficiency in raw materials, goods, warehouses, means of transport.
  • The presence of reserve areas for investing current profits, so that in the absence of growth in key projects, the owner can ensure the company’s development through other programs.
  • When it comes to the stock market and other financial assets, diversification plays a role in spreading your investment across different instruments. In addition to many stocks of commercial companies, government bonds are bought, private mutual funds are sponsored, real estate, foreign exchange, precious metals and other valuables are purchased.

Diversification methods

A high degree of diversification is achieved through a variety of ways. This provides a flexible structure on the interior or outside for the business or individual shop. Here, everything hinges on the task at hand, the need for steady internal development, horizontal market growth, and the application of a variety of methodologies.

The investment efficiency is increased through the following activities:

  • Establish long-term planning and a sustainable management system. If you correctly calculate the necessary business processes, it will be easier to do without external funds, shortages of liquidity and the presence of liabilities / receivables.
  • Launching a completely new product line that does not match the current list, which increases the degree of market presence and eliminates the likelihood of a sharp drop in sales due to the loss of interest in one of the types of products.
  • Selection of the investment portfolio in such a way that the depreciation of one of the assets is accompanied by an increase in the liquidity of the others.
  • Synchronized launch of diversified production to ensure presence in different market sectors.

In production, geographical diversification is often used: the opening of representative offices, branches and subsidiaries. When it comes to the forex market or the stock exchange, the buying rate for the asset with the highest growth prospects in the near future is selected. As macroeconomic rates change across states and new regulatory standards emerge, the investment portfolio is reviewed to exclude risky assets.

Strategies for diversification

Diversification techniques do exist, although they are rarely applied in their «pure» form. Usually, a comprehensive strategy is created that enables you to react quickly to developments in the financial markets, commodities, manufacturing, import, and asset retirement.

These are the most typical forms of diversification strategies:

  • Concentric. Opportunities for the emergence of new forms of goods and services are found in already-existing activities.
  • Horizontal. Current production, the product line, and the launch of new ventures are all being developed.
  • Conglomerate. establishing subsidiaries for a range of operations (compared to the main company). This occasionally leads to diversified businesses with a single founder.

Additionally, there are alternatives for combinational, horizontal, and vertical diversification. Such a classification is quite arbitrary because each business or trader is different from the others and it is pointless to apply general rules to any of them. Making your own development plan and following it while putting it into action will be more profitable.

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What is investment in simple words?

What is investment

By spending free money in brand-new ventures, you can boost both the company’s profitability and your own personal wealth. If the owner of the funds chooses a bad course, investments may become unprofitable.

Read more: Make money on the Internet — the 5 best ways

An investment is what?

It is simpler to comprehend what an investment is if we use bank deposits as an example. The owner of the funds trusts a financial institution with his resources for a predetermined amount of time. The investor receives the funds and a percentage fee for their use at the conclusion of the predetermined time frame. As safe as it gets, this choice is. The bank identifies projects on its own where it may profit while using borrowed money.

The most well-liked investing sectors:

  • Purchase of land.
  • acquisition of real estate, including non-residential and commercial structures.
  • refurbishment and reconstruction of already-existing structures.
  • investing in an established company (one’s own or another’s).
  • purchase of patents, licenses, and other intangible assets such as copyrights.
  • Private investors do not have «direct» access to all investment types. Similar to a bank, there are organizations that collect donations from the public and then distribute the money to sponsored business ventures.

Financial and actual investing differences

There are various investment options. It is possible to buy securities, such as shares, bonds, and bills of exchange, in addition to purchasing equipment for the development of production and residential real estate for future rental. The latter presupposes that the investor is knowledgeable about the financial market and how numerous fundamental processes affect the growth or decline of the assets they have acquired.

All existing investment kinds are split into two conditional categories:

  • True. investments in fixed assets, intangible assets, and inventories
  • Materially. By issuing shares, promissory notes, and other securities that are traded on the market as «commodities,» they are transformed into a type of autonomous investment.
  • In trade organizations, the first choice is more typical, where gains can either be rewarded as profits or spent in expanding your own business or entering new markets. For private investors, the second choice is preferable. Because of this, investing in securities lowers the danger of suffering substantial losses. The money is actually managed by professionals.

Investment options that are appealing

Every business eventually suffers with the issue of declining profitability. Management may be left with no choice but to liquidate (go bankrupt) the company if this aspect is not factored in beforehand. Rapid business modernisation, restructuring, or corporate expansion can prevent this. All of this, however, costs more money.

The following categories of investments are separated based on the source of income:

Private. You can rely on them to coordinate the issuing of company shares, guarantee their entry into the market, and generate investor interest.
a federal state. Generally speaking, local and federal authorities are interested in fostering new activities and as a result, they support particular fields at the expense of tax dollars.
Foreign. It can be necessary to extend your business internationally or to get loans with cheaper interest rates, such those offered by US or European banks.
Regardless of the source of funding, a preliminary project analysis is necessary, as well as the estimation of predicted earnings, particularly when accounting for all potential hazards. A conclusion regarding the application’s viability will be reached after a thorough investigation.

What is investing in stocks?

A sizable investment is typically needed to invest in a firm. Even with government assistance, not all private investors can satisfy the demands of seasoned startups or advanced manufacturing enterprises. As a result, they look for strategies to draw investments that are accessible to owners with limited finances.

Examples of participation:

  • Share in the share capital of LLC. The investor then becomes a co-owner of the company. The percentage of profit is not known in advance, it all depends on the success of the entrepreneur.
  • A block of shares of a large company. The investor obtains an amount for which he has sufficient funds. The value of each share is constantly changing, you can take advantage of the price decrease / increase.
  • Investment fund shares (UIF). The club owners themselves are looking for the most profitable profit opportunities, investors are usually not informed about the details, but only receive the final reports.
  • When you invest in a mutual fund, profitability data from previous periods is usually available. However, it should be noted that the existence of gains from past actions does not guarantee that they will be received in the future, the risk of losses is always present.

How dangerous is investing?

Despite assurances that every investment will provide a profit, most propositions nonetheless carry some risk. Not all risks are predictable because they can be internal or external. By creating an investing portfolio that lowers the probability of losses, part of the issue is resolved.

Depending on the type of investment, there are risks of the following types:

  • liquidity risk. Interest in the asset may drop rapidly and its value will be significantly lower than its purchase price, regardless of current market conditions.
  • Inflation. Buying power in the market can drop so much that all assets lose a significant percentage of liquidity.
  • Currency. If assets are tied to foreign currencies, devaluation in the domestic market will lead to a depreciation of assets in rubles.
  • legal. Changes to the regulatory framework may reduce / increase the risk of losses.

There are natural man-made factors, but they are originally referred to as force majeure and are referred to as separate clauses in the contracts. The rest can be «adjusted» by continuously monitoring changes in financial markets (domestic, global), with a timely adjustment of the investment portfolio when new regulations come into force.

Rules for safe investments

If you consider the implementation of investment rules at the portfolio planning stage, risk can be reduced more easily. They are applicable to everyone and let you keep investment risk to a manageable level. One cannot entirely rule out this possibility.

The most popular guidelines are:

  • It is acceptable to just invest free money. Since the risk is too high, loans should be omitted from the portfolio.
  • A detailed list of the things in which money can be invested must be made.
  • It is advised that you distribute your savings equally among various investments.
  • You should carefully research the projects before investing, taking into account past investor ratings.
  • Profits up till the initial deposit is fully repaid should be accumulated until the investment portfolio is fully profitable.

Even if the most dangerous ventures have previously shown high profitability, you shouldn’t become overly enthused and invest a lot of money on them. No one can ever promise that a business will always be profitable.

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Make money on the Internet — the 5 best ways

Make money on the Internet

The internet provides a lot of chances to make money outside the home, including time management as a freelancer, no dress requirement, and working on your own sofa. We provide you with the top concepts.

By taking online surveys, you can make money online

Online surveys are a well-known quick and simple technique to earn money. Following is an explanation of how it functions.

Online surveys can be finished on a wide variety of portals. Form completion is rewarded with discounts, coupons, or cash.
You must first register for free on one or more portals in order to do this. After that, you can begin completing the surveys. It often just requires a few minutes, and you may even do it while on the road using your smartphone.

Toluna, GfK, Opinion Site, Opinion Research, and LifePoints are the biggest and most well-known providers in this industry. For each finished study, you can typically earn a few euros, but occasionally up to fifteen.

Online earnings from stocks and companies

Additionally, investments can be managed from home and produce passive income.

Savings invested in stocks or mutual funds can have a significant impact over time. Generally speaking, your success increases as you engage with the subject and participate in the stock market more.

Particularly investing in stocks is never without risk. As a result, you must prepare thoroughly for this subject and pay attention to the thoughts and suggestions of specialists.

Konsorsbank, ComDirect, or ProRealTime are a few well-known and frequent institutions for making such investments. However, you can also ask your bank directly about the options.

Making money from your photographs online

Using your own images or graphics, you can also earn money online. Here, we outline the many options accessible.

The Instagram social network is the first place where you can make money off of your images. You can make money here if you have a lot of subscribers owing to paid collaboration with businesses. However, you must first create a fantastic community.

Another choice is using stock pictures. Users of the Internet can obtain a broad variety of photographs that have been uploaded to stock photography services. Typically, the photographer receives payment based on the quantity of downloads. iStock and Shutterstock are the most significant platforms in this case.

Participating in photo competitions is the final option to get money from photography. They come in a wide variety of photographic styles and subjects. They frequently consist of substantial monetary awards or tangible goods. It should be kept in mind, nevertheless, that entering tournaments is frequently compensated.

As a product tester, you can get paid online

Another option to make money from home and without any experience is to work as a product tester.

On a number of websites, including mingle, testerheld.de, recommended.de, and toluna, you can sign up as a product tester. Additionally, businesses will occasionally directly hire individuals to test their own goods. For instance, this also holds true for Samsung or Apple product testers.

Then, you can browse the portals’ selection of products. You obtain them as a product tester, test them, evaluate them, and get compensated for doing so.

You can typically retain the things you evaluate, which is a wonderful perk. The product selection includes anything from food and cosmetics to home goods and home goods.

With your own items, make money online

Homemade goods can also be sold online for profit. We’ll go over your options with you.

It makes sense to sell your arts and crafts products online if you have a certain hobby and you particularly enjoy creating them. Whether they are fabrics, paintings, or other home or ornamental goods doesn’t matter.

Etsy is a popular venue for this. provides people with the chance to sell their products. The platform makes it simple to set up your own Etsy shop; there is a nominal fee for using the site to sell items.

Alternatives to Etsy include websites like eBay and Palundu auctions. They all provide the option for you to quickly and hassle-free sell your own things online.