Crypto Investment Strategies: Adapting to Market Dynamics in the New Year

November 21, 2023

By Anjali Kochhar

As we approach the end of 2023 an eventful year in terms of geopolitics and financial stability of the world it’s just a matter of time before the world will start talking about welcoming year 2024.

The history of cryptocurrency is a tale of remarkable evolution and volatility, offering investors both unprecedented opportunities and profound challenges. The year 2024 is very crucial for the crypto market as the most awaited event of Bitcoin halving is scheduled for Apr 24. This event will surely have a positive impact on crypto and who knows Bitcoin prices can soar once again and reaches greater heights.

The upcoming Bitcoin halving in April 2024 is highly significant for the crypto industry. It is expected that there will be an active participation from investors and institutions accumulating Bitcoin, anticipating a surge in demand and prices due to reduced supply. Despite macroeconomic concerns, the outlook is positive.

According to Mr. Vikram Subburaj, CEO, Giottus Crypto Platform: “Bitcoin’s supply shocks have historically driven demand and price increases, mitigating macroeconomic concerns. The worst may well be behind us.”

Bitcoin halving, recurring every four years, including the upcoming one on April 26, 2024, has consistently driven price surges in the past, reflecting its significant impact on Bitcoin’s value. Amid evolving market sentiment, adoption, and regulations, the next halving remains pivotal.

“History has repeatedly shown that in the lead-up to the event and the subsequent months, substantial price increases are the norm. As market sentiment, adoption, and regulations continue to evolve, the next halving holds paramount significance” says Mr. Edul Patel, CEO of Mudrex a global cryptocurrency investing platform

Policies of GoI towards Crypto

We have seen that during Israel Hamas Conflict cryptocurrency has been used by both parties for donations for various reasons. Many countries are now supporting cryptocurrency as they support fiat currency.

One of the biggest questions in the mind of an Indian investor will be “Why should I be left behind the world in the cryptocurrency” “Should the Government of India also have a lenient approach towards crypto?

Cryptocurrency regulations vary worldwide, impacting taxation, legalization, and crypto donations. In India, evolving regulations and rising adoption may enable crypto donations but could be a gradual process. Striking a balanced approach is crucial for the government to manage risks while embracing this innovative technology.

“Varied global crypto regulations impact taxation, legality, and donations. In India, a careful balance is sought for crypto adoption, aligning with financial norms,” says Mr. Patel of Mudrex.

The Indian government takes a cautious stance while stakeholders shoulder responsibility for robust compliance and security, building trust with regulators and users. Embracing crypto for charity and humanitarian relief holds global transformative potential, leveraging borderless, transparent, and efficient fundraising.

“India’s measured stance demands stakeholder trust through compliance and security. Globally, crypto in charities enables borderless, efficient, and secure fundraising, revolutionizing charitable giving,” says Mr. Subburaj of Giottus.

Invest or Not to Invest in Crypto Currency

One of the biggest challenges/threats that cryptocurrency poses is fear of the unknown. In the recent past, we have seen a lot of crypto-related scams surfacing and millions of dollars getting lost.

Should one invest their hard-earned money in this market when there are no regulatory bodies and no clear mechanism to identify which token will rise and which will nosedive?

While crypto is a new sector, traditional banking, established for over a century, faces ongoing scams. Similar challenges continue in crypto, demanding prudence, reliance on reputable platforms, and diligent research.

“In crypto, like banking, scams persist despite robust practices. High returns come with volatility, urging caution, research, and trustworthy platforms,” says Mr. Subburaj of Giottus.

Despite crypto’s past scams, investors needn’t shy away. Caution, research, reputable platforms, evolving regulations, and diversification offer prudent strategies in this dynamic space.

“In the crypto market, avoiding scams doesn’t mean avoiding investment. Exercise caution, research, and choose reputable platforms. Diversify and invest wisely,” says Mr Patel of Mudrex.

In conclusion, the year 2024 holds significant promise for the crypto market, primarily due to the upcoming Bitcoin halving event scheduled for April 24. This event, as noted by industry experts, has historically led to price surges, driven by increased demand and reduced supply.

While there are challenges and uncertainties in the crypto space, such as regulatory variations and security concerns, prudent investors should conduct thorough research, choose reliable platforms, and consider diversification while being cautious and aware of their risk tolerance. The future of cryptocurrency investments will depend on how market dynamics evolve and how governments like India adapt to this innovative technology.

About the author

Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.

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