The cryptocurrency market is experiencing a boom. The crypto market’s unprecedented performance in 2021 marked the end of the crypto genesis stage. It also accelerated mainstreaming of crypto assets. Many altcoins have outperformed bitcoin. Visual Capitalist (dot.com) reported that bitcoin’s return was 59.8% and that crypto’s market cap increased by 187.5%. Crypto is no longer a topic of conversation at the water cooler. Is this a tipping point? Is it now the right time to get on board and trade crypto?
Slowly, the Cryptocurrency Market is Being More Regulated
The new regulations that governments have put in place are a good indicator that the cryptocurrency market will become mainstream. The cryptocurrency market today is much more transparent than it was five years ago. Additionally, the government around the world is making great efforts to regulate the sector, making it safer for investors. The Chinese government, for example, has enabled blockchain technology to improve transparency and fight fraud.
Last week, the White House issued an Executive Order with new regulations regarding U.S. traders. Biden’s order asks the government to look at the benefits and risks of cryptocurrency.
The order addresses six areas: financial stability, consumer protection, and financial inclusion. The administration plans to investigate the idea of a digital currency.
The jury is still out as to whether or not the order will be beneficial for the cryptocurrency industry and investors looking to invest in it.
Brokers will continue to offer competitive rates despite increasing investor interest in cryptos, despite the bear markets.[related_link]
Major Banks and Companies Make Bitcoin Buying and Selling More Accessible
Another indicator that cryptocurrency is becoming mainstream? Businesses are becoming more open to cryptocurrency as a payment method. According to a 2022 report by Visa, 73% of 2,250 companies surveyed believed that digital payment is fundamental for growth in 2022. One-fourth said they would accept cryptocurrency as payment.
More than 2300 U.S. businesses including Microsoft, Whole Foods, and Starbucks now accept bitcoin. In fact, more than 15,000 companies worldwide accept bitcoin as a payment option.
Consumers are responding. According to PYMNTS/BitPay, 72.2% and 63.8% respectively of generation Z have used cryptocurrencies for payment.
What New Traders Should Know About Cryptocurrencies
Although this market can be a benefit for many, it is not ideal. Trading is also too easy. It is dangerous for new traders to enter the cryptocurrency market without fully understanding what they are purchasing. Before investing, it is important to have the right information.
It’s all about risk. Traders need to be aware of the risks they take and how it affects them. Trades can be placed thinking of the return and failing to consider that there are many possible problems.
A bad trade is something that anyone can avoid. This is why it’s important to carefully evaluate every investment. It is best to first consider the potential losses before making a trading decision. This reduces your risk and allows you to limit the losses.
A trading plan is a key aspect that most traders overlook. Avoid knee-jerk decisions. They can be too emotional. However, it is possible to reduce losses by planning ahead based on statistical data and tests.
Too many traders are currently handling cryptocurrencies the same way they would any other market. Many of them feel lost in the bear markets drawdowns we’ve seen since January. They have difficulty anticipating what the future holds. You need a plan. You can make informed decisions when you have evaluated your investment strategies in volatile periods.[related_link]
Another Boom in Cryptocurrencies
A huge rally is the best time to invest in cryptocurrencies. Many people believe that if the rally ends and the market falls, it is time to buy cryptocurrencies. They are confident that the market will continue rising after it has retraced. It is difficult to predict how the market will move in the future.
It may rise again, but it could also go sideways or down for many years. It doesn’t necessarily mean one should not invest in crypto. This simply means that one should choose an investment approach that allows him to make profits regardless of how the markets move in the future.
Although cryptocurrencies can offer huge earning potential, the traditional buy-and-hold strategy may not be the best way to take advantage of them. Trading with strategy is a better way to take advantage of the volatility and inefficiencies of these markets. It can even be more profitable.
To adopt this approach, you will need to have the skills and knowledge. To be successful with cryptocurrency investing, you must first learn and study. Trading without proper preparation can result in heavy losses on all markets, including crypto.
Now is The Right Time to Invest in Crypto.
Markets are volatile at the moment. The cryptocurrency market has experienced its third market decline since the beginning of the year. The cryptocurrency industry fell below $1.8 trillion again after regaining $200billion in the span of one day following Russia’s invasion of Ukraine.
Many people believe that the current prices of the most popular cryptocurrencies offer significant opportunities, particularly for new investors. They may return to their previous highs.
I am not a fortune-teller and I do not attempt to forecast the future of the markets. I do not trade on the basis of forecasts, personal opinions, or gut feelings.
Instead, I approach markets with a well-diversified portfolio that includes different strategies. This allows me to manage risk and limit losses even during periods of market drawdowns.
This is the best time to enter the market if you’re considering trading crypto.
If you are looking to make your money work harder, you should abandon the buy-and-hold strategy in favor of a scientific, time-tested trading system. You’ll be more likely than ever to capitalize on opportunities in volatile markets such as the one we trade.