Crypto Investing
10 Jan 2022

Value over Hype: Why and How Crypto Investing Trends are changing in 2022?

Ananda Banerjee

Dear Investor, we come bearing good news.

The investor efficiency rank is out, and you have made it to the top of the pecking order. But that’s not the end of the road for you. In 2022, it will be an uphill task to maintain the ranks unless you read on.

Key Takeaways

  • Growing crypto literacy is going to play a significant role in 2022
  • Investing trends to focus more on discretion and safety with leading exchanges launching resources like Riskometers. 
  • HODLers are expected to be the trendsetters in 2022
  • Do not expect the trading volumes to shoot up, with HODLing being one of the primary approaches
  • Metaverse, NFTs, DeFi, and Governance tokens will keep investors busy
  • Passive income will be on the investors’ radar, going deep into 2022
  • Memecoins to become more utilitarian over time, thereby justifying rates

The crypto space is anything but stable, period. But investing in crypto assets need not be tricky if you stop following the gut. Yes, you read that right. 

For being a successful crypto investor, you must immediately stop listening to your heart. And while this might seem a bit far-fetched right now, we will surely get to the details soon enough. Considering the topic at hand, i.e., Crypto Investing and the changing trends, 2022 will surely be a decisive year for the crypto arena.

However, to make the most of this year and the endless possibilities to follow, you must weed out the noise, including shilling, FUD, FOMO, and any other form of crypto hype. But mere hype holing isn’t going to be enough. In 2022, it should be about embracing the new crypto themes that have value, utility, and security as the underlying elements.

Why will Investing Trends Change in 2022?

Well, they already have. But never mind, it’s still not late enough to catch on. Investing trends in 2022 will continue to be less sentiment-driven and more value-oriented, and this means people will value the project’s technology and resourcefulness over anything else.

Yes, an odd Musk-driven token can still register a gain of over 300% within a few trading sessions. But anything like that will be a one-off and not something people regularly associate with the crypto space. 

But that’s the what and not the why! Here are the reasons that have and are still forcing trend shifts in favor of value:

Increasing crypto literacy

Thanks to the informative resources out there, especially for token and project explainers, people are slowly getting to know the benefits of crypto as a problem solver.

Platform-Decisiveness

Leading Indian crypto exchanges aren’t going all out with coin listings. Instead, value and credibility are prioritized while listing any project coin or token. 

Risk Assessment

Crypto platforms are trying to educate aspiring investors to assess crypto risks better. And for the unversed, some exchanges are even offering risk calculators to measure asset-specific volatility and risk.

HODLing

Well, HODLers are the reason why the crypto volatility has mellowed down a bit. And with HODLers coming to their own at the end of 2021 when the market dipped a fair bit, investor sentiments have shifted from quick buy-sell to long-term. 

crypto investing trends

What will the changed Crypto Investing trends be like?

With crypto cognizance being the talk of the town, here are the vital investing trends to watch out for in 2022:

1. Emphasis on Research

With crypto literacy picking up, 2022 will see people researching more. They will start looking at the project fundamentals, problem-solving expertise, coin tokenomics, and real-world use cases. Opportunistic investors fancying a dip or two will indeed spend more time on technical analysis. 

Despite the crypto space brimming with resource material, 2022 will see a massive shift towards the DYOR (Do-Your-Own-Research-Culture)

2. A shift towards the Metaverse

Another trend that will influence crypto trading ideas and strategies in 2022 is the dominance of metaverse. With the likes of NVIDIA and Hyundai upbeat about the diverse possibilities offered by the virtual worlds, investors might start showing more interest in the metaverse-relevant tokens, like MANA, SAND, and more.

3. NFT-drivers will Skyrocket

Investors eyeing the metaverse will know that the virtual lands and marketplaces will kickstart a new era of entertainment and ownership. And unlike 2021, when NFTs were only considered shiny marketer toys, 2022 will see widespread adoption of Non-Fungible tokens. And with investors moving towards virtual art by relying on the creators’ credibility, the chances of making it big will not just be restricted to project fundamentals and technicalities. 

4. Memecoins to Maincoins

Memecoins have been belittled enough. And while some are still at the mercy of those Elon Musk tweets, the more popular ones like Shiba Inu, aka SHIB, will feature utilitarian evolutions. This would include the layer-2 solution in Shibarium followed by a more accommodative stance towards NFTs and DeFi products. And with Memecoins rising beyond the hype and starting to offer some real value, key investing strategies in 2022 will undoubtedly be based on usefulness, more than anything else. 

5. DeFi and Passive Earning

While investing in native coins and tokens will continue to take center stage in 2022, crypto evangelists might just start considering a better use for their assets. And with Defi protocols, offerings, and products showing up in every second crypto project, investors will have their eyes set on lending, staking, and yield farming to earn passively from their assets without having to liquidate the same. 

Not to mention, the DeFi-driving utility tokens like MKR, UNI, and more will continue to hog the limelight. 

6. Governance Tokens to Grow

Governance is expected to be one of the popular crypto themes in 2022. Mostly relevant in a DeFi ecosystem where power balance and consensus are important for maintaining the integrity of the ecosystem, governance tokens can influence the decision-making in the network.  

And with complex and utility-driven projects showing up each day, investors are already focusing more on HODLing governance tokens to have a better stance in an ecosystem. Some popular governance tokens to look at include Aave (AAVE). UniSwap (UNI), and Synthetix (SNX). 

Fact Check: Governance tokens have zero intrinsic value. Yet, they are popular as owning them is akin to owning specific voting and decision-making privileges. 

7. Less is More

Well, that’s how the investing trend might pan out in the upcoming months. With the crypto space already experiencing a cooldown of sorts, investors might start truncating their portfolios. In time, the top investor corpus might end up featuring only a handful of value-driven assets. 

Disclaimer: All comments are speculative and might or might not hold in the days to come. 

8. Caution and Care

Crypto is a bubble!

Crypto is an unsafe asset class!

Cryptoassets are volatile!

While these phrases will continue to show up every now and then, aspiring and sensible investors might start following a trend of caution and care. Simply put, they will eventually learn to invest only what they can afford to lose. 

And yes, talks about progressive regulations are expected to add to this purported cautionary stance. 

9. Old is Gold

With Bitcoin expected to find a new home in 2022, it is more than likely that investors will start considering the largest crypto player ever as one of their key investments. Shifting focus to the Altcoins, investors might just go old school with ETH 2.0 waiting to be unveiled in 2022. 

And guess that, there is already a dedicated Indian crypto index among us to help you track the performance of these top, traditional coins. 

10. More HODLing

Regardless of the nature, nomenclature, and type of crypto assets, 2022 will see a lot of HODLing. As believed, Crypto isn’t a sprint, but a marathon, and HODLers will continue to shape up the investing trends even in 2022 by aiming for value picks and long-term asset locking. 

However, these trends and themes are still speculative and highly time-sensitive. And at any point, you might be able to experience only a few. Therefore, it is crucial to plan out investment strategies in 2022 accordingly.

P.S- We will soon have a post regarding the top crypto investment strategies in 2022. Stay Tuned.

How will these trend shifts help investors?

  • Steady earnings

Crypto experts believe that a trend shift towards NFTs and DeFi will help investors churn out some steady passive income. With crypto use cases accommodating digital ownership, auctions, staking, and more, it will be possible to hold onto relevant assets and digital arts while experiencing value appreciation. 

  • Lesser risks

Well, a majority of these trends, riding on the perks of crypto and financial literacy, will facilitate vigilance. With people understanding crypto better and looking at the value propositions of a project instead of the clouding hype, investments will be controlled and less erratic in nature. It will be like putting the money where the mouth is, period. 

  • Long-term exposure

As mentioned, people are slowly getting to terms with the sustainability of crypto and Blockchain technology. And this approach is gradually breeding long-term investment strategies and minimizing panic selling. 

Wrap-Up

Honestly, these aren’t the crypto investing strategies to watch out for in 2022. Instead, we have discussed the investing trends at length, which need to be on the investor’s mind before drawing out the best strategies for the current year. 

And if we were to sum this up in fewer words, it would be about viewing crypto investing in 2022 from analytical, educational, and value-driven lenses. 

Already following these trends! Well, download the CoinSwitch app right now and start investing like a pro. But only after DYOR.

 

Disclaimer : Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered as investment/financial advice from CoinSwitch. Any action taken upon the information shall be at user's own risk.

writer

Ananda Banerjee

Content Writer

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