Prepare to Take Off: How to Prepare for the Expected Rise of the Crypto Market

CrimeaPRESS reports:

In recent years, the crypto market has experienced several major declines and significant bearish movements. Many investors and analysts expect the cryptocurrency market to recover and experience a significant bullish turn in the near future. A number of media outlets report that many investors expect growth in this market. How to prepare for the possible growth of the cryptocurrency market and are there any real reasons for this?

Should we expect the growth of cryptocurrencies?

The expectation of a bullish reversal in the crypto market may be due to a number of reasons. Here are some of them:

1. Institutional Investments: In recent years, cryptocurrencies have begun to attract the attention of large financial institutions and investors. They began investing significant amounts in cryptocurrencies. The first wave of participation of global financial institutions in the cryptocurrency market occurred in 2020-2021, when institutions added Bitcoin to their balance sheets. The second wave of adoption could and is coming from financial institutions allowing clients to gain exposure to Bitcoin through spot ETFs. The market has already tested the impact of spot ETFs on the price of Bitcoin when fake news about the approval of BlackRock Bitcoin ETF sent Bitcoin to $30,000. Real approval could lead to increased demand and higher prices, with analyst estimates ranging from $50,000 to $100,000.
2. Regulatory changes: Some countries, including Russia, and regulators have begun to develop and implement more favorable rules and laws for the cryptocurrency market. For example, Japan has recognized Bitcoin as a legal means of payment and has introduced regular measures to protect cryptocurrency users. Switzerland provides opportunities for creating cryptocurrency companies and ICOs with minimal restrictions. Galaxy Digital CEO Mike Novogratz, in an interview with CNBC, citing a court decision at the end of August that upheld Grayscale Investments’ petition against the SEC for the regulator’s refusal to convert GBTC into a Bitcoin ETF, believes that the US Securities and Exchange Commission (SEC) will approve the first exchange fund (ETF) based on the spot price of the first cryptocurrency until the end of 2023. This in turn can also lead to increased confidence and an influx of new investors.
3. Technological breakthrough: Cryptocurrencies are based on blockchain technology, which has the potential to revolutionize various industries. A Federal Reserve study called the 2022 Federal Reserve Consumer Payments Choice Diary found that 20.7% of investors are interested in new technologies, which is a good enough reason for them to buy and hold cryptocurrencies. More than 10 countries have already implemented CBCD (national digital currency developed directly by the country’s Central Bank) and several dozen more are in the development and testing stage, including Russia. China, India. In Russia, testing began in August for legal entities. And in October, the country’s largest bank, Sber, joined the testing. The digital ruble will be available to citizens in 2025-2027. The development of new projects and the application of blockchain in the real world may also lead to increased interest in cryptocurrencies.
4. Economic forces: Certain economic events, such as inflation or instability of national currencies, may lead to increased interest in cryptocurrencies as an alternative means of saving and investing funds. The CEO of the investment company DoubleLine Capital, Jeffrey Gundlach, known as the “king of bonds,” expressed concerns about the possible loss of reserve currency status for the US dollar, reports Reuters. Gundlach noted that this risk arises from the growing US government debt, which continues to increase due to high interest rates. As of October 19, the total US national debt had already reached $33.59 trillion. Currently, the US government debt is more than 31 times the capitalization of the crypto market, which is a kind of record. The market capitalization of Bitcoin (BTC) is almost 49% of the total capitalization of all cryptocurrencies, which at the time of writing is equal to $560 billion.

How to prepare for the growth of the cryptocurrency market?

It is important to remember that investing in cryptocurrencies, just like traditional investing, involves risks and no one can guarantee future growth and success. Therefore, be careful and invest only what you are willing to lose. If you want to prepare for the coming rise in cryptocurrencies, here are some recommendations:

1. Start doing research: Learn the basics of cryptocurrencies and blockchain. Explore different cryptocurrencies, their technologies and application potential. Follow news and trends in the cryptocurrency industry. Signum Journal is an independent cryptocurrency media outlet that strives to inform readers about the emerging crypto economy through high-quality news journalism and accessible content. The publication’s mission is to help readers understand decentralization and how they can take advantage of the new financial world in their everyday lives.
2. Develop a strategy: Define your goals and risk profile. Develop an investment strategy that suits your goals and financial capabilities. The amount of money to invest in cryptocurrency depends on your financial capabilities, goals and risk profile. Please note that investing in cryptocurrencies involves high risks, so be prepared to lose your investment.
3. Diversify your portfolio: Diversify your investment portfolio to include cryptocurrencies and other assets. This will help reduce risks and protect your investment in case of failure in the cryptocurrency market. Before deciding how much money you are willing to invest, it is recommended that you conduct a thorough analysis of your financial situation and determine how much you can afford to lose without serious consequences. It is not recommended to invest all your savings or borrowed funds in cryptocurrencies.
4. Use reliable platforms and exchanges: If you plan to buy and sell cryptocurrencies, choose reliable and regulated platforms and exchanges. There are centralized exchanges, the so-called CEX, where all transactions between buyers and sellers of cryptocurrencies are carried out by an intermediary. And decentralized DEX exchanges like uniswap or signumswap, where all transactions between buyers and sellers of cryptocurrencies take place directly under the terms of a strictly regulated electronic smart contract. Do your research and read reviews from other users before committing to your funds.
5. Be prepared for volatility: The cryptocurrency market is very volatile and prices can fluctuate greatly. Be prepared for possible losses and do not invest more than you are willing to lose.

What are the ways to make money on cryptocurrency?

There are several basic schemes for making money on cryptocurrency. However, it is important to note that some of them may be riskier, so always be careful and do your research before participating in any money making scheme. Here are some of the common schemes:

1. Investing and trading: This is one of the most common ways to make money from cryptocurrency. You can invest in cryptocurrencies by buying and holding them in the hope that the price will rise, and then sell them for a profit. You can also engage in active trading on exchanges, buying and selling cryptocurrencies based on market analysis.
2. Mining: Mining is a process where you use the processing power of your computer or specialized hardware to validate and add transactions to the blockchain. For their work, miners receive rewards in the form of new cryptocurrencies. There are 3 main types of mining:
   1. ASIC mining. The latest Bitcoin mining computing devices use custom integrated circuits that are specifically programmed to mine Bitcoin, providing the necessary computing power. The computers that mine new bitcoins consume huge amounts of electricity, which is often generated from fossil fuels, which in turn has drawn criticism for polluting the environment.
   2. Mining on hard drives. The technology, which first appeared in 2014, opened up the possibility of mining the SIGNA cryptocurrency using HDD and later SSD devices. Unlike the well-known Proof of Work (PoW) consensus used by Bitcoin and many other coins, which require special power-hungry hardware, PoC+ simply uses available disk space. Mining SIGNA cryptocurrency on hard drives is so efficient and has such low hardware requirements that any consumer-grade PC can be used for mining.
   3. GPU/CPU mining. This type of mining uses the computer’s graphics processing units (GPUs) or central processing units (CPUs) to solve mathematical problems. This method was popular at the beginning of the cryptocurrency era, but has become less effective over time due to the advent of ASIC devices. This method was given a second wind by the popular cryptocurrency Ethereum, whose developers subsequently abandoned the method in favor of less energy-intensive staking.
3. Staking: Staking is a process where you hold a certain amount of cryptocurrency in your wallet to keep the blockchain running and receive rewards for doing so. Staking may be available for some cryptocurrencies and requires holding a minimum balance and being connected to the network.
4. Participation in ICO and IEO: ICO (Initial Coin Offering) and IEO (Initial Exchange Offering) are processes in which startups raise investment by selling their tokens or coins. You can participate in an ICO or IEO by purchasing tokens at a discounted price and hoping for their growth in the future.
5. Participation in the incentive program: Some blockchains and cryptocurrencies offer incentive programs where users can receive rewards for completing certain tasks or contributing their resources.

It is important to remember that all of these schemes have their own risks and require a good understanding of the market and technology. Be careful and do your research before participating in any cryptocurrency money making scheme. Success in the cryptocurrency market requires good market understanding, analysis and informed decision making. It is necessary to do research, follow news and trends, and have an understanding of the technology and fundamental aspects of cryptocurrencies.

Crimea news | CrimeaPRESS: latest news and main events