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How to Approach the Crypto Market in 2023

If you’re looking to trade cryptocurrency, you have lots to learn, and with 2023 fast approaching, the world of crypto is changing. New alterations to the market are happening all the time, and with the rise of NFT, we are going to see some new big players next year. Here are some of the main changes we expect to see and some coins that seem to be making increases.

How to Approach the Crypto Market in 2023

Regulations

Regulations around the world are tightening for crypto companies. There will be an increase in strength during 2023-2024 as a result of this trend. Europe will enforce MiCA - Markets in Crypto-Assets regulations, for example.

Crypto-assets are excluded from existing rules under the Markets in Crypto-Assets regulation. Furthermore, it aims to establish a uniform regulatory framework for all crypto projects in the EU. In addition, laws will pass in states such as Hong Kong, Panama, Seychelles, and others in which crypto projects were previously exempt from regulation. Central Bank Digital Currency (CBDC) will also accelerate this process with mass implementation by various countries.

Litigation

In addition, there will be an influx of cryptocurrency litigation in 2023 and 2024. Law enforcement agencies will be noticeably more active during this time. Evidence of this is in the latest case against Tornado Cash, where law enforcement is expanding its reach. Tornado Cash is a decentralized crypto-mixer without any clear owner. Previously the service was being used to launder stolen funds from powerful hacks. Thus, raising concerns among users and regulators.

According to the Office of Foreign Asset Control’s (OFAC) most current guidance regarding virtual currency, every business type that interfaces with the crypto industry should develop a sanctions compliance program using common risks. This program should see regular updates. Depending on a company's specific risks, compliance programs should ideally comprise sanctions lists, geographical screens, and other necessary measures.

Tornado Cash's misconduct has put decentralized projects in jeopardy. Speculation is that in 2023-2024, developing software with the intention to break regulations will be prosecutable by law enforcement agencies. Many platforms that are adopting decentralization are still following anonymity standards, which could be detrimental in the long run.

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Anonymity

Furthermore, 2023-2024 will be the years in which anonymity will be fought. With the full implementation of CBDC, the process will accelerate. It's unfortunate that everything leads to the conclusion that anonymity always results in crime. We may even see the creation of legal doctrine from this over time.

Technological Developments

With the technological advances in Decentralized Finance (DEFI), the NFT market, and new solutions for anti-money laundering (AML), Know your Customer (KYC), and cyber security, we are on the brink of a new era for crypto projects. There is a good chance that DEFI markets, Decentralized Exchange (DEX) updates, and NFT marketplaces will be even more perfect in 2023-2024.

The most important thing is to form a strong connection with the banking industry. We will see new, progressive exchanges that use cutting-edge technology. These will have cryptocurrency bank classifications. Projects in classic Fintech without cryptocurrencies on their platforms will likely not survive the competition. The classical Fintech and crypto industries are likely to be the target of many mergers and acquisitions in 2023-2024. Crypto-banking giants may well expand their market dozens of times if the giants of the crypto industry are the giants of the crypto-banking industry.

Binance

The Best Cryptocurrency to Invest in 2023

With the vast array of digital tokens on the market, it can be tough to pick which cryptocurrency is right for you to invest in. If you're new to investing in crypto, read about some of the reliable projects below before making your decision.

1. Bitcoin

If you're new to the cryptocurrency market, it's likely that you'll want to invest in Bitcoin in 2023. Bitcoin is the world's first cryptocurrency and still has the longest track record in this space. Excluding highly popular stablecoins like Tether, Bitcoin also boasts the largest trading volumes. Moreover, holding Bitcoin should be relatively safe as it carries the largest market capitalization of any cryptocurrency.

2. XRP

XRP, launched in 2012, is a cryptocurrency with a successful history. Many banks and other large financial institutions use it to execute cross-border transactions. Ripple and XRP are different from other, older systems because they allow for cheap transfers that happen nearly immediately. No matter what type of currency you're using.

3. BNB

BNB is a newer cryptocurrency, only having been founded in 2017. But, it's still one of the best to invest in today. Being backed by Binance, the world's largest exchange, plays a big role in this. BNB is a cryptocurrency that ranks in the top five for market capitalization. The primary use for BNB tokens is on the Binance Smart Chain. There are thousands of projects on this blockchain. In addition, traders use BNB to reduce exchange commissions by 25% when using the Binance platform.

4. Ethereum

In 2015, Ethereum came onto the scene and its value has risen by 28,000%. With Ethereum, developers can launch smart contracts and decentralized applications. Not only is Ethereum the second-largest cryptocurrency based on market capitalization, but it is also the preferred blockchain protocol for many other successful projects.

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