If you have been following the crypto guest post space for a while, you are surely aware of the bubble we are currently in. The prices of crypto assets have skyrocketed this year and many analysts believe that it is only a matter of time before they come back down to earth.

You may be wondering how this could affect your investing strategy. The truth is, nobody knows what will happen next.

1. Liquidity of your crypto assets

Most crypto-asset investors have more faith in the power of blockchain technology than in the strength and reliability of the seo market. This means that you may be looking to hold onto your assets even if the market price goes down.

You might seriously be considering holding instead of making a profit, but this strategy isn’t foolproof. The prices of crypto assets are extremely volatile and it is impossible to say whether they will go up or down in the short run. You may be stuck holding a bag full of worthless coins as a result.

2. Tax implications

A lot of you are also thinking about whether you would be making a profit if you sell these tokens, but this is not all there is to it. Selling crypto assets involves a legal transaction that could require compliance with various tax laws.

For instance, if you sell coins on an exchange where your country has no regulation, then you may face huge fines. Some countries, like China, even go as far to say that it could be considered a crime to engage in crypto transactions. This makes it hard for crypto investors in those nations (and other jurisdictions) to sell their assets and make a profit.

3. Lack of liquidity

Even if you manage to avoid the above problems, there is still a limit to how much you can flip your tokens. You might be able to sell some at a profit, but not all of it. The truth is that most trading platforms are restricted in terms of the amount of tokens that they allow exchange for each transaction.

In most cases, this means that you will have to hold onto your coins for at least several days before you can make any transactions with them. This makes it hard for traders with less time-on-their-hands to perform day trades in crypto assets.

4. Lack of regulation

It is impossible to get clarity on how crypto assets will be regulated in most countries. This has created a lot of confusion among the investing public and many people are still trying to figure out the best way to play it. Know about the site detail here.

There is this idea that because most coins are traded on decentralized exchanges, then there is no way for governments to regulate them. However, this is not entirely true. Most stock markets work in a similar manner and they have been regulated since their inception.

In fact, the U.S has already put out an official statement about regulating initial coin offerings (ICO) as securities and ICO tokens as securities. The SEC is currently making a list of issuers that fall under its jurisdiction. Moreover, it has put out a warning to people who are trying to sell fraudulent tokens on the market.

The fact that a lot of ICO tokens are being listed on centralized exchanges only serves to raise the chances of these tokens being regulated as securities in the future.

5. Lack of security

There is little doubt that most ICO tokens do not contain any legal guarantees (i.e.- patents, licenses or trademarks). This makes you take your investment with more caution and you may avoid investing in any token marketing that is having an ICO right now.

6. Exhaustion of investment options

You are already aware that most cryptocurrency exchanges have a limited amount of tokens that can be traded on their platforms. This means that when some new tokens are listed for trading, the prices usually go up. It’s not a far-fetched idea to think that these token trading platforms are creating a lot of marketing hype for their own benefit, i.e., for attracting new business.

This means that a lot of investors are making huge profits in the short term only to sell as soon as prices become too high and they trigger an alarm in the system. Many analysts have identified a bubble in this pattern and say that it can only end badly for those who are buying tokens now.

It doesn’t mean that you should stop investing in ICO tokens altogether, but prepare yourself for the worst. This means that you have to understand the risks involved in any token you are willing to invest in.

7. Exhaustion of investment options (part II)

There is another reason why many investors are choosing to stay away from ICOs right now. They prioritize short-term gains over long term profits, but they don’t always get what they want as a result.

This is because most ICO projects are successful only in the short run and most of them have failed as well. Many of these ICOs have been launched by startups that have no idea how to make money in the long run.

This is why many people are now choosing to buy tokens from well-established coins instead. This has given rise to some problems as well, i.e., the breakdown of certain marketplaces and disruptions for some exchanges like Binance, one of the largest cryptocurrency exchanges in the world.

However, even if this happens, it will not affect your investments because you can still trade your tokens on decentralized exchanges.

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