Is crypto worth investing in 2022? Experts respond
Crypto markets have disappointed both investors and traders this year. Many crypto platforms will collapse in 2022, while several top coin prices have reached new lows. In the midst of extreme volatility and rising inflation, it has become important for users to decide whether crypto is worth investing in now, or whether retail investors should look behind cryptocurrencies. However, the experts’ views on these issues are different.
While some experts believe that crypto should not be considered a resource for investment, some believe that crypto can still be considered to diversify one’s portfolio. But not without doing proper research.
“Investors should always keep diversification in mind when choosing assets. Crypto-assets are not deprived of volatility risk. Investors should assess their risk appetite and invest accordingly,” said Sharat Chandra, VP, Research and Strategy at the blockchain-based identity management platform EarthID.
Gaurav Mehta, founder of the crypto-tax platform Catax, believes cryptocurrencies will remain, but one should look at the real reasons behind the current disruption to make the right decisions
“Cryptocurrency is here to stay. To make the right decisions and participate in ongoing changes in the global financial structure, we should not look past, but rather under the current market turmoil for real games,” he said.
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According to Ashish Singhal, co-founder and CEO of the cryptocurrency exchange CoinSwitch, the current crash should serve as a wake-up call for investors.
“For retail investors, the latest developments should be a wake-up call to focus more on research and look at crypto as part of a well-rounded portfolio and not a get rich quick scheme. The risk is clearly higher, and this must be taken into account when one makes investment decisions, Singhal said.
Not a retail investment product
Meanwhile, it seems that a large number of investors and traders in India have already lost interest in virtual digital assets following the announcement of flat 30% tax on income and 1% TDS on transfers.
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Some experts believe that crypto is still not worth considering a retail investment product.
“Crypto is not – at least today – an investment product for retail. Most retail investors have been brought in by classic pump and dump operators who have been searching for the bigger fool, says Utkarsh Sinha, CEO of Bexley Advisors, a boutique investment banking firm.
“If something promises you success overnight, chances are it is not sustainable, as the current crash has shown. Retail investors must always remember that time-in-market consistently beats market timing when it comes to achieving good returns,” he said. he to.
(Cryptos and other virtual digital assets are unregulated in India. They are considered extremely risky for investment. Consult your financial advisor before making an investment decision)
