Cryptocurrency is getting better every day. It continues to increase your wealth just like your viral social media posts. A contagious financial tool for a good portfolio and catalyst for growth. One interesting fact is that there are more than 5000 cryptocurrencies.
2021 has been a fantastic year, but where do we go from here?
Let’s zoom in on the situation here. Both Bitcoin and Ethereum touched higher performance bars. Long-term investors rely on it. By the time you read this article, there may be more great cryptocurrency news. I will try to present here the future possibilities of cryptocurrency.
New regulations are currently in effect. They are under the carpets. Measures have been taken to minimize the risk of cybercriminals. The goal is to make this investment a safe tool for people. For example: China announced in September that all cryptocurrency transactions are illegal. Clear regulations will remove all obstacles to make trade safer.
How will the new regulations affect investors?
The IRS will find it easier to track tax evasion. Investors can transparently keep a record of transactions. For example: recording any capital gains or losses from crypto-assets will be easier. On the other hand, the price of cryptocurrencies will also be affected by market fluctuations.
ETF approval – an important factor to consider
The Bitcoin ETF made its debut on the NYSE. This will help investors to buy cryptocurrency from existing investment brokers. Because of the rising demand, the stock and bond markets are coping with it. Let’s observe from the investor’s point of view. Easier access to 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 with any other cryptocurrency. You have to be willing to take the risk. Otherwise, it is pointless to invest your money.
What does the future hold?
Bitcoin is the best in the crypto market. It has the highest percentage of market capitalization. In November 2021, its price rose to $68,000. In October, the rate was $60,000, while in July it was $30,000. There are large fluctuations in market rates. Experts suggest keeping cryptocurrency market risk below 5% in the portfolio. Speaking of short-term growth, people are hopeful. Bitcoin price volatility is a factor to consider. If you want to play long, short-term results shouldn’t affect you.
Looking from it at an angle to increase your wealth is not a good decision. Stick to traditional investment instruments with the exception of cryptocurrency. For example: if you want cryptocurrency as a 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 cryptocurrency.
It is necessary to spend your money wisely and then invest in cryptocurrency. One has to assess the associated risk factor and make a decision. I hope this article helps you.