As the debasement of central banks and governments became a very pressing concern at the height of the pandemic, share prices of cryptocurrencies like bitcoin nearly quadrupled in value. This was particularly impressive in light of the general decrease of almost every market in the financial sector, and it saw a significant uptake in the number of people who were dealing in and trading crypto overall.
The trend didn’t last, and bitcoin share prices dropping by an astounding 10% when Tesla ceased trading in the currency. Now, bitcoin and crypto, in general, are under further fire from increasingly stringent restrictions on the trading and dealing of cryptocurrencies in general.
This shift can largely be seen in Chinese markets, where Beijing banks have banned crypto transactions. In the UK, too, banks are implementing restrictions off the back of an Action Fraud report that revealed how victims have lost over £63m to investment fraud scams, 44.7% of which related to cryptocurrency trades. Now, as the future of cryptocurrencies comes under further governmental scrutiny, we’re left wondering, is there such a thing as a wise crypto investment right now, and if so, what does it look like?
The location lottery
Chinese territories have altogether restricted the availability of crypto transactions, while UK banks like Barclays have temporarily suspended payments to certain platforms. In this sense, how wise current crypto trading is right now very much depends on the location of both trader and market.
Most notably, individuals looking to see results from their trades should aim to avoid locations like China or South Korea.
Even within the UK, suggestions of a cessation in crypto trading until further regulations are possible means it may be best to consider trades available in less stringent locations like the US or Australia for the time being.
The platform panic
As mentioned, even UK banks have suspended transactions on certain crypto trading platforms. This highlights the need for all traders to trade only on platforms that they know and trust, at least until improved regulations are implemented at government level.
Luckily, there are plenty of platforms to choose from on the crypto market, including names like Swyftx.
Used in the right locations, these platforms may ensure trades that are already tailored towards fast-moving restrictions.
However, bear in mind that you will still experience a great deal of risk and volatility. You should never invest more than you’re willing to lose. Past performance is never guarantee of future performance.
The fast-moving market
As we touched on at the start, cryptocurrencies move fast and, right now, the crypto market is doing the same but with regards to rules, regulations, and accessibility rather than value.
Traders looking to make any kind of wise investment right now therefore need to keep one eye on market news, ensuring that they know about any location-specific regulations or changes before they lose money by making an unwise or uninformed trade.
Trading is never without risk, but in the cryptocurrency world especially, increasing restrictions are adding a new level of uncertainty. Wise deals are still possible, but only if traders work around even upcoming restrictions by keeping these pointers in mind.
(Disclaimer: This content is a partnered post. This material is provided as news and general information. It should not be construed as an endorsement of any investment service. The opinions expressed are the personal views and experience of the author, and no recommendation is made.)