Cryptocurrency investing in 2018, so far, is not for the faint of the heart. The crypto market started the year with a sharp retracement (crash), which led to a decline of 50% in most Top Cryptocurrencies. For some Cryptocurrencies with smaller market caps, the damage was much more significant.

Does that mean the cryptocurrency bull market is over? What exactly is happening in this volatile market after the spectacular run last year? And what are some of the key factors cryptocurrency investors need to know in order to succeed when investing in cryptocurrencies in 2018?

Cryptocurrency investing in 2018: Ongoing trends in cryptocurrency markets

After the strong performance towards the end of last year, cryptocurrencies started a sharp retrace that scared of many investors. Many theories and reasons are provided by different sources:

  • A bearish outlook from Banks and the Media:
    Most media outlets are talking about the eminent end of Cryptocurrency soon. Some analysts and prominent bankers are predicting values as low as $0 USD for Bitcoin.
  • Cryptocurrency regulation:
    Regulating cryptocurrencies is also another hot topic nowadays that seems to be putting pressure on the cryptocurrency market. Countries across the globe such as India, UAE, the US, France and South Korea are exploring how they will handle cryptocurrency regulation. For many analysts, the drop in cryptocurrency prices early 2018 could be attributed to traders and investors’ concerns around these regulations.
  • Hacking and security risks:
    Hacking and security risks have been a weight on cryptocurrency prices since inception and for good reason. The end of December, Tether announced that $30 million worth of cryptocurrency was stolen by hackers. During the same month, NiceHash’ CEO announced a $60 million cryptocurrency hack.

    • What’s happening in the cryptocurrency market, and its impact on cryptocurrency investing in 2018

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