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- Cryptocurrency's Future
- The Start of Crypto Regulations
- Changes That Could Affect Cryptocurrency's Future
- Access to Crypto ETF
- Changes in Traditional Finance
- The Future of Crypto
Reading time: ~4 minutes
There are so many things that cryptocurrency has been through this year, and if you look at the changes from an investor’s view, it’s probably the best year to invest. There have been many ups and downs in cryptocurrency, but it looks like investors and traders have had a great year. Now that there are thousands of cryptos in the market, investors and traders have tons of options to choose from and most tend to start with a beginner-friendly and regulated platform like the bitcoin-profit app. On top of that, new generation cryptos are even better compared to their successors. Some cryptos were made for such purposes to better serve their users.
We’re at the last quarter of the year, and we’ve seen many good changes in crypto, and if you still haven’t invested in crypto, you might be missing some of the good stuff. Crypto’s exposure is becoming widely known, businesses have started to accept crypto as a form of payment, and many more changes, but what more could we expect in the long run? Since technology is constantly evolving, it’s almost impossible to predict what will happen to crypto in the future. Several experts have shared their opinions as to what could happen in the near future. Although it’s also difficult to say whether these things could happen or not, it’s still good to have an idea about the possible changes that could affect the future of cryptocurrency.
One of the aspects of crypto that many people like is that no industry or banks have control over what happens to crypto. Even the transactions that take place are verified by crypto’s own protocols and methods. While many people love that about crypto, there are still others that think crypto regulations are one of the aspects that it should have. If you already have experience with crypto, then you are well aware that one of the biggest risks of investing in crypto is the security of your funds. There have been many reports in the past wherein there were compromised accounts, and their funds got stolen from them. What’s worse is that it’s still happening today. Cybercriminals are still making their moves and continue to steal from other investors’ funds.
Changes That Could Affect Cryptocurrency’s Future
With the introduction of crypto regulations, it aims to provide a better and safer crypto environment for investors and traders. Some of these regulations might not be in favor of every investor out there, but they could change many factors of how crypto works. We’re not saying that it could completely change how crypto works, but it could affect the flow of how transactions are completed considering that fees could go higher as well.
Crypto regulations might be bad news for investors and traders, especially for those who transact with it daily. A possible crypto regulation that could come into play is the addition of tax reforms. With this addition, the benefits gained from crypto transactions with low fees or crypto earnings through product and services exchange might not even become a benefit anymore. Nonetheless, many experienced traders and experts believe that crypto regulations are a good addition to cryptocurrency. They said that it could be better for cryptocurrency itself and also add more confidence to the people who want to invest since it’s safer and easier for people.
Like we’ve mentioned above, if you still haven’t invested in cryptocurrency, now might be the best time to invest since crypto has tons of benefits that you could enjoy. One of the factors that could change how people invest in a crypto is the possible access to crypto ETF. For starters, an ETF, or exchange-traded fund, is a collection that consists of different cryptocurrencies. These ETFs can track different assets and can track the prices of different cryptos. With access to these exchange-traded funds, it could be easier for an investor to see which coins to invest in, and it would also make it easier for an investor to diversify their funds.
There are two types of ETFs that investors and traders can use. One of the types of ETFs is backed by physical cryptocurrencies. This type of ETF is where ownership of cryptos is represented by shares. Meaning, if you, as an investor, decide to purchase shares in the ETF, you will be labeled as an indirect owner of those cryptos. The second type of ETF is the one that tracks different types of cryptos. With the second type of ETF, it’s also possible to track future contracts and exchange-traded products, or ETPs.
Access to crypto ETF can also be good for the crypto market. If access to an ETF is approved in the future, investors who buy cryptocurrencies could affect the market positively. You won’t have to manually browse through different types of crypto to see which one has the potential to improve your crypto portfolio; instead, you can directly add the crypto to your portfolio with the use of an ETF.
Like we’ve mentioned above, cryptocurrency’s popularity resulted in it being widely known. Along with its popularity and several other benefits, businesses have already started to accept crypto as a form of payment in exchange for their goods and services. Transacting with crypto sure has its advantages, and because of that, more and more people are turning to crypto. If more people use crypto, it could also affect the traditional financial market. Take international payment transfer, for example; it’s more efficient, it’s cheaper, and faster. This could result in actual currency fluctuations. It might not be noticeable now, but the more people get accustomed to using crypto for transactions, it could affect the behavior of the traditional finance market.
There are still many factors to consider before we can come up with ideas on what the future of crypto will be. Besides, it’s still difficult to predict what will happen to crypto since it’s also hard to tell how crypto behaves. But the reality is, these are only predictions. If you want to start an investment, think about the reason why you want to do it in the first place. Invest only if you’re prepared to face the risks, and while you do it, it’s always ideal to be two steps ahead. Now, if you decide to invest or trade, try using a crypto exchange like the aforementioned Bitcoin Profit. Some exchanges are good for beginners, and some are useful for some that already have experience.
Thank you for reading!