Market analysis

Five crypto New Year’s resolutions for 2022

5 min read

Another year, another set of ultimatums for getting fit, losing weight, finally taking that night class and bagging that dream job. While you’ll likely give up on all of that by January 14, though, one New Year’s resolution you can easily keep is to up your crypto game.

According to research from TripleA, currently only 4% of the global population owns any digital assets. However, this rate is growing fast, with the crypto market predicted to grow by an incredible 56.4% every year up until 2025. 

This means that crypto is set to expand: big time. So, to make sure you have your strategy straight by the time everybody else catches on, we’ve put together a list of leading resolutions to help you make sure your crypto is doing exactly what you want it to do.

Do your due diligence

The most important principle to incorporate into any crypto strategy is due diligence, aka “do your own research”, or DYOR in crypto parlance. While exciting and potentially lucrative if you play your cards right, the crypto world is full of bad actors ready to take advantage of a newbie.

To avoid falling into such a trap, do as much work as you can to ensure that any coin, token or project that you invest in is legit. You can do this by looking into its management team, community groups and whitepaper. The more transparency given the better.

READ: What are the risks of DeFi and how can you mitigate them?

Hold more, trade less

Just like in the world of traditional investment, one of the best strategies when it comes to crypto is to buy and then walk away for a year or two. Even cryptocurrencies with huge volatility like Bitcoin will typically win out over the long term, even if there is a tricky year in between.

For example, while investors that bought Bitcoin for around $19,000 just before its big crash in 2018 had to wait 18 months for the price to recover, the flagship cryptocurrency is now sitting at around $49,000. That’s an increase of 158% in three years, or more than 50% per year.

READ: How to overcome emotional investing 

Avoid hype

Typically speaking, the more hyped a coin or token is, the more wary you should be of it. Again returning to Bitcoin, periods of hot headlines tend to precede a crash as inexperienced investors pile in, only to pile out at the first downward price move. Savvy investors would have waited for the mood to turn before buying low.

More importantly, there are those tokens and projects that are hyped because they are, in fact, fraudulent. This year has witnessed more than one exploit during which over-eager investors have piled into a hot project only to wake up and find the founder has run away with their money.

READ: What is a rug-pull and how to avoid one 

Find passive income opportunities

As with any kind of financial plan, building in some passive income is a good way to bring some resilience to your portfolio. This is because passive income is a bonus whether your crypto is going up or going down.

For example, those holding one Bitcoin in a platform like YIELD App that pays passive income on the cryptocurrency would have lost less in real terms than those just holding during the flash crash of May 2021. And then, on the flip-side, those earning income will make more during the good times.

READ: How to live off the interest from stablecoins 

Learn about the metaverse

One of the hottest topics of 2022 is almost certainly set to be the “Metaverse”, thanks in no small-part to Facebook pinning its colors to the virtual mast with its rebrand this year. Referring to all things metaphysical, or not “real”, the metaverse is the digital playground we will perhaps all find ourselves living in, with everything from land to fashion now moving meta. 

There are a growing number of crypto projects pioneering this new space, including Decentraland and Sandbox in the real estate sector and NFT collectibles studio RTFKT (pronounced “artifact”), which was just snapped up by Nike, which we can only assume is ready to dominate the virtual sneaker world.

So exciting is the Metaverse that we have decided to dedicate a bumper episode of our YouTube show, Fridays with YIELD App, to it. Featuring no less than five pioneers from diverse corners of the metaverse, the episode aired on Friday, December 17, at 15:00 GMT and can be viewed on demand on our YouTube channel.

READ: What is the metaverse of Mark Zuckerberg and why does it mean?

There is little denying it: the cryptosphere is in an exciting phase of development. And so, whether you pick one or a dozen New Year’s resolutions, if you have any interest at all in finding out what digital assets are all about – be sure to put crypto on your post-Christmas list.

Do you want to make 8% - 18% APY on your USDT, USDC, ETH and BTC? Sign up for a YIELD App account today!

DISCLAIMER: The content of this article does not constitute financial advice and is for informational purposes only. The price of digital assets can go down as well as up, and you may lose all of your capital. Investors should consult a professional advisor before making any investment decisions. 


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