Cryptocurrency keeps getting better each day. It keeps on amplifying your wealth, just like your viral posts on social media. A contagious financial tool for a good portfolio and a catalyst for growth. One interesting fact is that there are more than 5000 cryptocurrencies.2021 was a fantastic year, but where do we go from here?
Let us magnify the situation here. Both Bitcoin and Ethereum touched the higher bars of performance. Long-term investors are relying on it. By the time you read this article, there might be more wonderful news about cryptocurrency. I will try to present here the future possibilities of cryptocurrency.New regulations are currently in place. They are under the carpets. Measures to minimize the risk from cybercriminals are in place. The purpose is to make this investment a safe tool for people. For instance: China declared in September that all cryptocurrency transactions are illegal. Clear regulations will remove all the hindrances to make it a safer trade.How Will New Regulations Impact Investors?IRS will find it easier to track tax evasion. Investors can transparently keep a record of transactions. For instance: recording any capitals gains or losses on crypto-assets will be easier. On the other hand, the price of cryptocurrencies will also be affected in the fluctuating market.ETF Approval – An Important Factor to ConsiderBitcoin ETF made its debut on NYSE. It will help investors to purchase cryptocurrency from existing investment firms. Due to the rising demand, both the equity and bond markets deal with it. Let us watch in from an investor’s point of view. Easier accessibility of cryptocurrency assets helps people to purchase them without any hassles. If you plan to invest in a Bitcoin ETF, remember the risks are as same as any other cryptocurrency. You must be willing to take the risk. Otherwise, it is futile to invest your money.What does the Future Hold?Bitcoin is the best in the crypto market. It has the highest market capitalization rate. In November 2021, its price rose to $68000. In October, the rate was $60000 whereas in July it was $30000. There is a high fluctuation in the market rates. Experts suggest keeping the market risk for cryptocurrency to less than 5% in the portfolio. Talking about short-term growth, people are hopeful. The volatility in Bitcoin prices is a factor to consider. If you want to play for long, short-term results should not impact you.Looking from it at an angle to amplify your wealth is not a good decision. Stick to traditional investment tools apart from cryptocurrency. For instance: if you want cryptocurrency as a tool to save for your retirement, it is time to reconsider your decision. Keep your investments small and diversify them. It will reduce the risk factor. At the same time, you will have more time to think about cryptocurrency.It is necessary to spend your money wisely and then invest in cryptocurrency. One must assess the risk factor associated with it and make a decision. I hope this article helps you.

There exists various types of cryptocurrency wallets to allow users store and access their digital currencies in different ways. The question that is relevant in this context is how far are these wallets secure. Before taking up the security aspect, it is helpful to understand the various types or varieties of cryptocurrency wallets that exist today.Cryptocurrency wallet: Types and varietiesThese wallets can broadly be classified in 3 categories:
Software wallets
Hardware wallets and
Paper wallets
Cryptocurrency software wallets can again be sub-divided into desktop, online and mobile wallets.
Desktop software wallets: These wallets are meant to be downloaded and installed on desktop PCs and laptops. This particular variety offers the highest level of security though their accessibility is limited only to the computer in which they are installed. Moreover, in case, if the computer gets hacked or is virus-infected, there’s a possibility that one may lose all his or her money.
Online software wallets: This range of cryptocurrency wallets run on the Cloud. Thus, they can easily be accessed from any computing device and from any geographical location. Apart from accessibility convenience, this type of digital wallets store the private keys online. The keys are even controlled by third-parties; this makes them easily vulnerable to hacking and theft.
Mobile software wallets: Unlike the two other varieties, mobile software wallets run on smartphones through an app. These can easily be used everywhere, including retail stores and malls. This range of the wallets is usually much simpler and smaller compared to the normal desktop ones to accommodate with the very limited space on mobile handsets.
Difference between hardware and software walletsHardware digital wallets vary from the software ones on the aspect of storing a user’s private keys. The hardware wallets store the user keys in a hardware device (for example, the USB). Thus, as the keys are stored offline, these wallets offer an added security. Moreover, hardware wallets are easily compatible with many online interfaces and can also handle different currencies. This variety of cryptocurrency wallets is also easy to make transactions with. As a user, you just need to plug in the device to any computer, which is connected to the web before entering a PIN, transfer the currency and just confirm the transaction. Your digital currency is kept offline by the hardware wallets and thus, the risk factor or security concern is also much lesser.Paper digital wallets: This range of digital wallets is also user-friendly and ensures a high-level of security. The term “paper wallet” just refers to the hardcopy printout of a user’s both public and private keys. However, considering the instances, it can also refer to a software application meant to generate the keys securely before printing.Sweeping with paper walletsUsing paper wallets is relatively somewhat easier. In order to transfer any cryptocurrency to your paper wallet, just transfer the funds from the software wallet to the public address, which your paper wallet displays. Similarly, when you want to spend or withdraw your money, just transfer the funds from the paper wallet to your software wallet. This procedure is popularly referred to as ‘sweeping’.Sweeping can be done either manually, by entering the private keys or scanning the QR code on a paper wallet.How secure cryptocurrency wallets areDifferent varieties of digital wallets offer different levels of security. The security aspect mainly depends on two factors:
The type of wallet you use – hardware, paper, online, desktop or mobile
A chosen service provider
It doesn’t require mentioning, it is much safer to keep the currencies in offline environment, as compared to online. There’s just no way to ignore the security measures, irrespective of the wallet one has chosen. If you lose your private keys, all the money kept in the wallet will be gone away from your hands. On the other hand, if the wallet gets hacked or you transfer funds to a scammer, it won’t be possible to reverse the transaction nor reclaim that money.Investing in cryptocurrency is a smart business idea and for that, using a suitable wallet is inevitable. You just need to be bit cautious to ensure safety and security aspect to your fund transfers and transactions.

Cryptocurrencies are the latest ‘big thing’ in the digital world and have now been recognized as being part of the monetary system. In fact, enthusiasts have tagged it as ‘the revolution of money’.In clear terms, cryptocurrencies are decentralized digital assets that can be exchanged between users without the need for a central authority, the majority of which being created via special computation techniques referred to as ‘mining’.The acceptance of currencies, like the US Dollar, Great British Pound and the Euro, as legal tender is because they have been issued by a central bank; digital currencies, however, such as cryptocurrencies, are not reliant on the confidence and trust of the public on the issuer. As such, several factors determine its value.Factors that Determine the Value of CryptocurrenciesPrinciples of Free Market Economy (Mainly Supply and Demand)Supply and demand is a major determinant of the value of anything of value, including cryptocurrencies. This is because if more people are willing to buy a cryptocurrency, and others are willing to sell, the price of that particular cryptocurrency will increase, and vice versa.Mass AdoptionMass adoption of any cryptocurrency can shoot its price to the moon. This is due to many cryptocurrencies having their supply capped at a particular limit and, according to economic principles, an increase in demand without a corresponding increase in supply will lead to a price increase of that particular commodity.Multiple cryptocurrencies have invested more resources to ensure their mass adoption, with some focusing on the applicability of their cryptocurrency to pressing personal life issues, as well as crucial day-to-day cases, with the intention of making them indispensable in everyday life.Fiat InflationIf a fiat currency, like the USD or GBP, becomes inflated, its price rises and its purchasing power drops. This will then cause cryptocurrencies (let’s use Bitcoin as an example) to increase with respect to that fiat. The result is that you will be able to acquire more of that fiat with each bitcoin. In fact, this situation has been one of the major reasons for Bitcoin’s price increase.Scams and Cyber Attack HistoryScams and hacks are also core factors affecting the value of cryptocurrencies, as they are known to cause wild swings in valuations. In some cases, the team backing a cryptocurrency may be the scammers; they’ll pump the price of the cryptocurrency to attract unsuspecting individuals and when their hard-earned money is invested, the price is shortened by the scammers, who then disappear without a trace.It is therefore imperative to be careful of cryptocurrency scams before investing your money.Some other factors to consider, that have an impact on the value of cryptocurrencies, include:

Manner in which the cryptocurrency is stored, as well as its utility, security, ease of acquisition and cross-border acceptability

Strength of the community backing the cryptocurrency (this includes funding, innovation and the loyalty of its members)

Low associated risks of the cryptocurrency as perceived by investors and users

News sentiment

Market liquidity and volatility of the cryptocurrency

Country regulations (this includes the ban of cryptocurrency and ICOs in China and its acceptance as legal tender in Japan)