Cryptocurrency continues to improve every day. It continues to amplify your fortune، just like your viral social media posts. A sticky financial tool for a good portfolio and a catalyst for growth. An interesting fact is that there are more than 5000 cryptocurrencies.
2021 was a fantastic year، but where do we go from here?
Let’s zoom in on the situation here. Both Bitcoin and Ethereum hit higher performance bars. Long term investors are counting on it. By the time you read this article, there may be more great news about cryptocurrency. I will try to present here the future possibilities of cryptocurrency.
New regulations are currently in force. They are under the rugs. Measures to minimize the risk from cybercriminals are in place. The goal is to make this investment a safe vehicle for people. For example: China declared in September that all cryptocurrency transactions are illegal. Clear regulations will remove all barriers to make it a safer trade.
How will the new regulations affect investors?
The IRS will have an easier time tracking tax evasion. Investors can transparently keep a log of transactions. For example: recording any capital gains or losses on crypto-assets will be easier. On the other hand, the price of cryptocurrencies will also be affected by the fluctuating market.
ETF Approval – An important factor to consider
The Bitcoin ETF made its debut on the NYSE. It will help investors buy cryptocurrencies from existing investment firms. Due to increasing demand, both equity and bond markets deal with it. Let’s look at it from an investor’s point of view.
Easier access of cryptocurrency assets helps people to buy them without any hassle. If you plan to invest in a Bitcoin ETF, remember that the risks are the same as any other cryptocurrency. You have to be willing to take the risk. Otherwise, it is a waste to invest your money.
What does the future hold?
Bitcoin is the best in the crypto market. It has the highest rate of market capitalization. In November 2021, its price increased to $69,000. In October, the rate was $61,000 while in July it was $31,000. There is a high fluctuation in market rates. Experts suggest keeping the market risk for cryptocurrencies at less than 6% in the portfolio. Speaking of short-term growth, people are hopeful. Volatility in Bitcoin prices is a factor to consider. If you want to play for the long term, short term results should not affect you.
Looking at it from an angle to enhance your wealth is not a good decision. Stick to traditional investment vehicles, except cryptocurrency. For example: if you want cryptocurrency as a means of saving for your retirement, it’s time to reconsider your decision.
Keep your investments small and diversify them. It will reduce the risk factor. At the same time, you will have more time to think about cryptocurrency.
It is necessary to spend your money wisely and then invest in cryptocurrency. The risk factor associated with it must be assessed and a decision made. I hope this article helps you.