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What problems can the crypto world expect in 2021?

SEC-sponsored witch hunt against XRP may end up happening with other cryptocurrencies in 2021

Cryptocurrencies have been a constant presence in the minds – and wallets – of many for about a decade. Be it a big name like Bitcoin or a lesser known coin like Litecoin, cryptos are available on the left, right and center. But if there is one thing that can be described as an essential part of the crypto scenario, it is its uncertainty – both in terms of price and in terms of regulatory responses.

With 2020 coming to an end and 2021 already in front of us, there are all kinds of threats and challenges that cryptocurrencies may face in the coming months. Whether it’s the impact of alternative opportunities, like casino sites or simply a higher regulatory profile, there is a lot to think about. This article will examine what the two main threats are – and what more experienced traders can do to ensure they stay on top of changes.

Price fluctuations

Nothing identifies the world of cryptocurrencies more than price fluctuations. And while these fluctuations cannot be predicted accurately in advance, of course, there are some indications about how volatile – or not – the market will be during 2021. Price increases were common in 2020, after the cryptocurrency was supported by some of the world’s largest traditional investors.

With the price of Bitcoin rising 170% just in 2020, and with companies like Wells Fargo promising a lot of attention in 2021, the overall picture is optimistic for many – although the challenge for traders is that there is obviously no guarantee of any movement in any direction.

Cryptocurrency laws and regulations

There is a lot of diversity in the world when it comes to crypto. Some countries have approaches to regulating cryptocurrencies that can best be described as relaxed. Others, like Japan, are highly organized and have added many proactive structures to their “statue books”.

In 2021, crypto-regulation is likely to be back on the agenda in several places. The United States, in particular, is likely to be at the forefront of this: at the end of 2020, a major currency regulator in the country said that regulators could provide “clarity” about federal cryptocurrency policy. Although this regulator seems to suggest that there would be nothing close to a Bitcoin ban, the picture for American traders still looks somewhat uncertain.

It is important to remember, however, that cryptocurrency regulation is not necessarily a threat to traders. Given that, places where there is almost no regulation of cryptocurrencies can seem a good bet for those who want to buy, sell and profit from these assets without undue interference.

Text adapted from: CryptoCoinSpy

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