Cryptocurrencies have become the latest quick profit method in the investment world over the past few years, but that does not mean that all investments are profitable in this field. It may require experience, wisdom and more accurate and continuous monitoring of the digital currency market.
In this regard, CNBC published an article written by Nicolas Vega, initiating it by emphasizing that 2021 was a special year for cryptocurrencies, and stated that the market value exceeded $ 3 trillion in a short period, and the writer mentioned how much can Get it from investing $1,000 in 4 currencies: Bitcoin, Ethereum, Solana and Dogecoin.
He gave some important advice for those who want to enter the world of cryptocurrencies, noting that making a large purchase at one time is a risky step, and said that the cryptocurrency “Solana” was launched for the first time in 2020, despite that, it grew by more than 13,800% during the year. the past.
It is known that “Bitcoin” and “Dogecoin” have different levels of technological development and scarcity, both of which experienced strong growth in 2021, along with other coins.
Now, read on to know the value of investing a thousand dollars in 4 popular cryptocurrencies from the beginning of last year to the end.
(The prices calculated are as of 3:30 after mid-December 28th).
But keep in mind the following when it comes to cryptocurrencies, remember that past performance is no guarantee of future returns, and experts warn investors not to put more money into cryptocurrencies to avoid losing.
If you decide to get into cryptocurrency, consider not making large purchases at once, but instead use the strategy of averaging the dollar cost by spreading it out into smaller purchases over time.
Price on January 1, 2021: 29,290 dollars.
Price on December 28, 2021: 47,795 dollars.
Investing $1,000 in Bitcoin at the beginning of the year at $29,290 would have bought you 0.034 of the coin, which would be worth about $1,632 at the December 28 price of $49,150 per coin.
The world’s largest cryptocurrency saw a spike in 2021, increasing in value by about 65% between January 1 and late December.
In February, the market cap hit $1 trillion for the first time, but it has since fallen to nearly $900 billion.
Price on January 1, 2021: $730.
Price on December 28, 2021: $3,816.
The value of a single Ethereum has increased by more than 400% over the past 12 months. Buying a thousand dollars of Ethereum on January 1, 2021 at a price of $730 and 30 cents, will now be worth about $5226 at a price after mid-December 28, 2021, when the price was then $3816.
Ethereum proponents say the blockchain will become more scalable, secure, and sustainable after an Eth2 update, scheduled for 2022, during which the network will transition to a “proof of stake” or “POS” model. S” (PoS).
Currently, Ethereum is working on a “proof of work” model. This model is often criticized for its environmental impact because it requires a great deal of computing power.
Switching to BOS will allow users to validate transactions according to the number of coins they hold, rather than the power-intensive mining hardware now in use.
Price on January 1, 2021: $1.53.
Price, December 28, 2021: $181 and 18 cents.
If you had invested a thousand dollars in the cryptocurrency “Solana Blockchain” at the beginning of 2021, when the price of one coin was at 1.53 dollars; Your investment will have grown to about $118,418 at the Tuesday, December 28, 2021 price of $181 and 18 cents.
Although first launched in 2020, Solana has grown by more than 13.80% over the past year and is currently number 5 among the largest cryptocurrencies with a market capitalization of over $57 billion. Solana is seen as a competitor to the Ethereum chain.
It was designed by its founder, Anatoly Yakovenko, to support smart contracts, a collection of code that executes a set of instructions on the blockchain and creates decentralized applications, or dapps.
Price on January 1, 2021: $0.0056.
Price on December 28, 2021: $0.18.
If you put $1,000 into Dogecoin at the beginning of the year at $0.0056 per coin, it is now worth $32,142 at the Tuesday, December 28, 2021 price of 18 cents.
Not bad for a numeric code that started as a joke inspired by an idea that went viral.
Fueled in part by Elon Musk’s popularity, Dogecoin grew as much as 12,000% in the first half of 2021. However, the value of Dogecoin declined in the latter half of the past year.