FX.co ★ Сhallenges of the cryptomarket 2018: what should investors prepare for

According to experts, last year there was a boom in cryptocurrencies, in particular, in bitcoin. The current situation in the market of digital means of payment cannot be called stable. Having analysed the situation, specialists offer to take a look at the challenges that await investors in this sphere.

Risks to bitcoin

Profit fixation by many large investors, which contributes to a sharp decline in the price of bitcoin, is named by analysts as one of the risk factors for bitcoin. Slower transactions and increased costs, as well as tighter regulation by the state can have negative effects.

Boom in other cryptocurrencies

Experts forecast that other currencies will get ahead of bitcoin in the current year, and their forecasts are gradually coming true. Above all, this increase concerns Ethereum and Ripple, which can be followed by the rest of digital means of payment.

Financial institutions will use cryptocurrencies

According to specialists,this year, institutional investors will enter the market of cryptocurrencies. Among them are asset managers, pension funds, and other financial institutions. At the end of 2017, bitcoin futures were already launched on the CBOE and CME Group crypto exchanges. Many market players believe that other cryptocurrencies derivatives may appear this summer.

Regulators will be launching of cryptocurrencies and developing blockchain

At present, a number of states are already engaged in the development of the blockchain technology and the launch of their own digital money. They include Russia with plans to launch cryptoruble, China, and Venezuela, hoping that its cryptocurrency El Petro will be approved.

The ICO market expects changes

Specialists believe that changes in the market of ICO (initial coin offering) will affect new projects: before investing, investors will examine them more closely. In this segment there is growing demand for carefully developed projects, which were created by a group of professionals and not hastily made by enthusiasts. Experts suppose that in the near future the market of ICO will be flooded with major investment memorandums corresponding to the requests of regulators and the cryptocurrency market.

Financing of major blockchain startups will change

Experts are certain that the financial structure of leading blockchain startups is going to change. In future, it will be close to the traditional venture structure. According to experts, in such a situation, at the stage of presale, funds will be attracted for a product development, and ICO will be conducted by the time of its market entry.

States will make their stances on cryptosphere clear

In 2017, the authorities in a number of countries found it difficult to express their attitude to cryptocurrencies. As a rule, it varied from absolute acceptance to the strongest negative. At the present time, most states are developing new legislation providing for the legal regulation of cryptocurrencies. New legal rules concern trade infrastructure connected with digital funds, as well as mining and ICO conducting.