Is crypto worth investing in 2022? Experts react

Crypto markets have disappointed investors and traders alike this year. Many crypto platforms came crashing down in 2022 while several top coin prices have touched new lows. Amid extreme volatility and rising inflation, it has become important for users to decide whether cryptos are worth investing in now or should retail investors look beyond cryptocurrencies. However, experts’ views differ on these questions. 

While some experts think crypto should not be considered as an asset for investment, some believe that crypto may still be considered to diversify one’s portfolio. But not without doing proper research. 

“Investors should always keep diversification in mind when it comes to choosing assets. Crypto–assets aren’t bereft of volatility risk. Investors should assess their risk appetite and invest accordingly,” said Sharat Chandra, VP, Research and Strategy at blockchain-based identity management platform EarthID. 

Gaurav Mehta, founder of crypto tax platform Catax, believes cryptos will stay but one should look at the real reasons behind the current disruption to make proper decisions 

“Cryptocurrency is here to stay. To make the proper decisions and participant in ongoing changes of global financial fabric, we should not look beyond but rather beneath the current market disruption for right bets,” he said. 

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According to Ashish Singhal, Co-founder and CEO of cryptocurrency exchange CoinSwitch, the current crash should serve as a wake-up call for investors. 

“For retailer investors, the recent developments should be a wake-up call to focus more on research and look at crypto as a part of a well-rounded portfolio and not a get rich quick scheme. The risk is clearly higher and one needs to factor that in while making investment decisions,” said Singhal. 

Not a retail investment product

Meanwhile, a large number of investors and traders in India already seem to have lost interest in virtual digital assets following the announcement of a flat 30% tax on income and 1% TDS on transfers.

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Some experts believe that crypto is not still worth considering a retail investment product. 

“Crypto is not – at least today – a retail investment product. Most retail investors have been brought in by classic pump and dump operators who have been seeking the greater fool,” said Utkarsh Sinha, Managing Director at Bexley Advisors, a boutique investment bank firm. 

“If anything promises you overnight success, chances are it’s not sustainable, as the current crash has demonstrated. Retail investors must always remember that time-in-market consistently beats timing the market when it comes to making good returns,” he added.

(Cryptos and other virtual digital assets are unregulated in India. They are considered extremely risky for investment. Please consult your financial advisor before making any investment decision)

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