Cryptocurrency is getting better every day. Your wealth continues to grow, just like your viral posts on social media. A contagious 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 wonderful year, but where do we go from here?
Let’s zoom in on the situation here. Both Bitcoin and Ethereum touched the highest performance bars. Long-term investors rely on it. By the time you read this article, there may be more exciting cryptocurrency news. I will try to present here the cryptocurrency future opportunities.
The new regulation is in effect. They are under the carpet. Measures are in place to minimize the risk of cybercriminals. The goal is to make this investment a safe tool for people. For example: China declared in September that all cryptocurrency transactions are illegal. Clear regulations will remove all barriers to make trade safer.
How will the new regulations affect investors?
It will be easier for the IRS to track tax evasion. Investors can keep a record of transactions transparently. For example: recording 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 to buy cryptocurrency from existing investment companies. Due to the increasing demand, both stock and bond markets are facing it. Let’s look at it from an investor’s point of view. Easier accessibility 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 a risk. Otherwise, it is useless to invest your money.
What does the Future hold?
Bitcoin is the best in the crypto market. It has the highest market capitalization rate. In November 2021, its price increased to $68000. In October, the rate was $60000, while in July it was $30000. There is a lot of fluctuation in market rates. Experts suggest keeping cryptocurrency market risk in your portfolio to less than 5%. When talking about short-term growth, people are hopeful. Bitcoin price volatility is a factor to consider. If you want to play for the long term, short term results shouldn’t affect you.
Looking at it from an angle of increasing your wealth is not a good decision. Stick to traditional investment instruments in addition to cryptocurrencies. For example: if you want cryptocurrency as your retirement savings tool, it’s time to rethink your decision. Keep your investments small and diversified. It will reduce the risk factor. At the same time, you will have more time to think about cryptocurrencies.
It is necessary to spend your money wisely and then invest in cryptocurrencies. The associated risk factor must be assessed and a decision made. I hope this article helps.