The world has seen a significant adoption of crypto spaces throughout the last few years, which has been clearly reflected on the cryptocurrency market. After the 2020 Bitcoin halving, Bitcoin started a bull trend that launched its price to almost $70.000, dragging a lot of altcoins to new highs. Some of these assets went up 10 times its value and allowed many investors to take juicy profits.
However -as it always happens- the crypto market has experienced an extensive correction period that has taken Bitcoin to multiple key support levels, thus opening a new investment opportunity for people and trapping positions for a lot of traders. Now, can crypto make me rich in 2022? That is a question we will be debating in this article.
Can Crypto make me rich in 2022?
First of all, the key to success in any market lies in reacting to prices and not predicting them. The crypto market moves in trends and every investor has to analyze the situation in order to stay on the right side of probabilities.
Considering how low Bitcoin and most altcoin prices have fallen during April, this might be the chance many traders are waiting for; The “DIP”. Despite its corrective situation, Bitcoin is still running on a bullish structure and could potentially give profits to anyone who got in at these prices.
Becoming “rich” is not a quick process, nor is it sustaining that wealth, so you should focus on diversifying your portfolio and still keep some fiat currency (In case there is another DIP).
You can increase your winning chances by following a trading plan:
- Don’t go all in. Volatility is a factor and can keep your money trapped in unexpected circumstances.
- Don’t get caught by FOMO (Fear Of Missing Out). This will make you buy overvalued assets.
- Invest only in high-performing assets with a solid project. Every investment must have a reason and a target, otherwise it would just be a gamble.
Keeping this in mind, finding good projects at an early stage and a low market cap could make your investment worth a lot, assuming the market were to continue a bull run.
What should my expectations be?
It all depends on whether you’re investing long, middle or short-term:
- For long-term investments, the best you can do is to limit yourself to selling at top prices and re-buying at the lowest, for which you will need patience and momentum. This will allow you to increase your tokens and exponentially grow your capital once the trend you’re waiting for starts.
- For middle-term investments, successful traders set their goal at the end of a specific trend and take their profits. This could last a couple of months and you should be ready to sell/buy when necessary.
- Now, for short-term investments, you should consider a solid risk/reward ratio and set a daily goal. Earning a little % of your money will make you capitalize slowly but surely.
How to find a 10x gem?
Staying informed and analyzing the market everyday is a great way to spot the next “crypto boom”. Being updated about a project will let you know if there is any news that can help its price performance.
Although everybody wants to find a coin that will return their investment quickly, you should always be ready to sell once you have gained the desired profit. Remember that assets usually tend to go down after big upside movements and vice versa.
Crypto is all about being early, and one way to get there in time is to be aware of new updates, associations and launching that a specific project may have.
Keep in mind, not all existing crypto projects will be around in the next few years, so we recommend you to do extensive research on every cryptocurrency you might want to invest in.