Cryptocurrency has been a firm fixture in the minds – and portfolios – of many for around a decade now. Whether it’s a big name like Bitcoin or a lesser known coin like Litecoin, crypto is available left, right and centre. But if there’s one thing that might best be described as an essential part of the crypto landscape, its uncertainty – both in terms of price and in terms of regulatory responses.
With 2020 now drawing to a close and 2021 coming up on the horizon, there are all sorts of threats and challenges that crypto might face in the coming months. Whether it’s the impact of alternative opportunities like casino sites or simply an increased regulatory profile, there’s a lot to think about. This article will take a look at what the main threats are – and what savvy traders can do to ensure they stay on top of the changes.
Nothing identifies the world of cryptocurrency more than price fluctuations. And while such fluctuations cannot be accurately predicted in advance, of course, there are some early indications about how volatile – or otherwise – the market is as 2020 comes to a close. Price rises were common across 2020 after the cryptocurrency was backed by some of the world’s largest traditional investors. With Bitcoin’s price rising 170% in 2020 alone, and with firms like Wells Fargo promising lots of attention next year, the overall picture is bullish for many – although the challenge for traders is that there is of course no guarantee of any move in either direction.
Crypto laws and regulations
As this list on www.bestcasinosites.net shows, there is a lot of diversity in the world when it comes to crypto regulation. Some countries have approaches to crypto regulation that could best be described as lax. Others, like Japan, are highly organised and have added lots of proactive frameworks to their statue books. In 2021, it’s likely that crypto regulation will be back on the agenda in a number of places. The US in particular is likely to be at the forefront of this: towards the end of 2020, a leading currency regulator in the country said that regulators could provide “clarity” on federal crypto policy even before the year was out. Despite this regulator appearing to suggest that there’d be nothing close to a Bitcoin ban, the picture for American traders and brokers still looks somewhat uncertain.
It’s worth remembering, however, that crypto regulation is not necessarily a threat to traders or brokers. On the face of it, locations where there is next to no crypto regulation can seem like a good bet for someone who wants to buy, sell and profit from these assets without having undue interference. But some brokers are put off by setting up shop in countries where there is little regulation precisely because of the risk that regulators will later come along and surprise them with a business-busting set of rules – which means that traders in unregulated environments, in turn, can suffer from a lack of a quality broker market.
Competition from elsewhere
Finally, it’s also worth briefly exploring whether crypto brokers might start to find themselves being hit by competition from providers with other finance-related offers. Cryptocurrency investment is not, of course, the same as gambling; cryptocurrency’s status as a financial instrument means that investment in crypto is speculative, and there is some real skill involved in navigating price chart data.
But with many firms like online casino providers now ramping up their advertising (and with online casino games becoming more advanced than ever), those who are tired of cryptocurrency but who find appeal in the experimental and volatile nature of its price fluctuations may decide to re-allocate some of their capital to casino sites. And, as ever, crypto brokers and traders will be faced with the option to shift capital towards another speculative asset class such as stocks and shares. Whether the economic damage inflicted by the pandemic will continue to keep offering opportunities to snap up cheap stocks will persist, however, is yet to be seen.
Uncertainty, then, is baked into the crypto landscape – and, for traders, is as important a consideration as the technology or the broker used. Managing the risk that this uncertainty poses is essential for traders at all levels. By staying on top of price chart data and ensuring that regulations are monitored, though, those involved in the crypto world can do their best to ensure their portfolios are protected as 2021 dawns.