What investment strategy to use in April 2022?

Written by Vladislav Akelyev
Written by
Investing reporter
2   min.
Alternative investments 

Stock markets have been performing really badly since the beginning of 2022. Yes, we saw another ten-year rise in the stock market, the economy achieved new records. But the economy is cyclical and not the most positive time is ahead of us.

What to invest in to increase your capital in April 2022? The only true and universal answer is cryptocurrencies. And here are 5 reasons why digital coins are the best type of investment in 2022:

  1. No inflation. Unlike fiat, digital money is limited edition. This protects the cryptocurrency from inflation. With a reduction in supply, the demand for coins increases. This leads to an increase in the price of the asset. There are coins without limited emission, but it is better not to consider such coins for investment. Besides, there aren’t many of them.
  2. Crisis protection. Gold used to be a safe haven against shocks in the economy. Today the trend has changed. Now investors during the crisis are more likely to invest in crypto. This leads to the growth of the crypto market.
  3. Independence. The state does not regulate the issuance of cryptocurrencies.
  4. Volatility. Sharp exchange rate jumps open up a good opportunity for earning. If you buy a coin at the bottom, you can increase capital during periods of market growth.
  5. World recognition. Some countries have recognized cryptocurrencies. For example, Bitcoin futures trading is available in the USA today. This is good for the prospects of the entire crypto market. Global recognition is usually followed by growth.

What to choose for long-term investment?

As we can see, cryptocurrencies are indeed one of the most profitable ways to invest. But there are a lot of tokens and how to understand which one is better? We have prepared for you a list of characteristics that you should pay attention to when choosing a cryptocurrency:

  1. Market capitalization. According to this parameter, cryptocurrencies from the TOP-100 by capitalization are suitable. The rest of the coins are risky for investment.
  2. Reliability. Such assets have no problems with blockchain, security and decentralization.
  3. Scope of application. If the cryptocurrency starts to be used more often, then its value will grow on the long horizon. The coin can be included as payment by online stores, financial institutions, etc. This rule also works for mining. If miners actively mine a digital asset, then its value will increase.
  4. Representation on the stock exchange. The presence of an asset on trading floors indicates demand. The coin should also have low chances of being delisted – being removed from the exchange.
  5. Liquidity. The higher this parameter, the faster you can buy or sell an asset on the exchange. The most liquid include popular cryptocurrencies with a large trading volume per day.
  6. Uptrend. It can be seen on the chart of the cryptocurrency rate. If the asset grows on a large timeframe, then the chances of seeing a continuation are high.
  7. Expert opinions. Experts always speak well of promising coins.
  8. Low commissions. Coins with low costs take advantage of high costs. This has a positive effect on the value of the asset.
  9. Cooperation with large companies. Partnerships speak of the recognition of cryptocurrency. The digital asset is integrated into services for paying for services or into other tools.
  10. Perspective. Cryptocurrency must be unique and viable. For example, the project offers unique solutions in the field of transactions or mining.

We hope these tips will help you multiply your fortune and find those cryptocurrencies that will bring x10 during 2022. On the ECOS platform, you can find ready-made cryptocurrency portfolios compiled by analysts.

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