How Will Bitcoin ETFs Affect The Price Of Cryptocurrencies?

What does ETF approval mean for investors?

The approval of 11 Bitcoin ETFs introduces a paradigm shift in crypto investment. For the first time, investors can gain exposure to Bitcoin through a regulated financial product, a move that bridges the gap between traditional finance and the burgeoning world of cryptocurrencies. This accessibility is a significant stride forward, offering a safer and more familiar entry point for institutional and retail investors alike.

However, there are cons to consider. The introduction of an ETF could lead to increased market volatility, as large inflows and outflows of funds become more commonplace. Additionally, the ETF's reliance on the underlying Bitcoin market means that investors are still subject to the inherent risks and fluctuations of the cryptocurrency market.

The approval of the Bitcoin ETF signifies a major endorsement of cryptocurrencies by a leading regulatory authority. It's a signal to the market that digital assets are becoming a more accepted part of the financial system. This validation is likely to spur further innovations and investments in the crypto space, potentially leading to more stability and growth for cryptocurrencies. Find out what a Bitcoin Spot ETF is and how it works in the TU article.

Best cryptocurrency exchanges

1

9.4/10

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Your capital is at risk.

Minimum deposit:

$1

Review

The Binance exchange is one of the largest cryptocurrency exchanges in the world with its headquarters in Hong Kong. According to the CoinMarketCap cryptocurrency portal, Binance holds the top spot in terms of aggregate indicators of the platform's daily turnover, the number of novices and active users, liquidity, and web traffic (ranking, queries, statistics in search engines, etc.). The exchange is also a cryptocurrency startup that has its own “native asset” used in the Binance ecosystem as the “basis gas” (payment internal unit). More about Binance Card

Pros/Cons

•low commissions due to liquidity and trading volumes.

•high platform performance;

•proprietary BNB Coin which allows Binance to reduce the commission size;

•a proprietary cold wallet guarantees the security of your crypto assets by storing them.

•complex verification procedure;

•the exchange is not licensed by a regulator;

•The platform can go offline without warning;

•there are complaints about the technical functionality of the platform;

•there is an intricate mechanism for calculating commissions and rewards (grid system Maker/Taker).

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2

9.2/10

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Your capital is at risk.

Minimum deposit:

₮1

Review

The BitGet crypto exchange provides traders with the opportunity to trade in spot, futures, and cryptocurrency. Cryptocurrency is used exclusively as instruments at the exchange: BTC (₿), LTC (Ł) ETH (Ξ), USDT (₮) and others. Trades are carried out on the crypto exchange’s own platform, which is available as a web terminal and an application for mobile devices. BitGet's fees are lower than its competitors in the market, with maker fees of 0.02% and takers of 0.06%. The commission can also be paid with bonus funds that each BitGet client receives upon registration, verification, and a trading account replenishment. There are no fees for maintaining an account, but a commission is charged upon withdrawal, the amount of which depends on the cryptocurrency in which the withdrawal is made. For investors, BitGet offers its own service for copying trades, and it is available at the exchange and at an affiliate program. Novice traders can use demo accounts to hone their trading skills, but there are no educational materials on the website. The BitGet cryptocurrency exchange provides services on an international level and cooperates with traders from different countries.

Pros/Cons

•availability of demo accounts;

•convenient ways to contact the support service;

•a wide range of cryptocurrencies for account replenishment;

•service of copying trades for receiving passive income;

•ability to reduce commissions using credits earned in the bonus program;

•ability to engage in algorithmic trading;

•the exchange uses hot and cold cryptocurrency wallets to store client funds.

•Deposits and withdrawals in fiat currencies are not available.

•There are no educational materials for novice traders on the exchange website.

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Top 5 crypto to consider buying after bitcoin ETF approval

Top 5 crypto to consider buying after bitcoin ETF approval

1. Bitcoin (BTC): As the flagship cryptocurrency, Bitcoin remains a top choice for investors, especially following the ETF approval.

2. Ethereum (ETH): Ethereum, known for its smart contract capabilities, stands as a strong contender.

3. Polygon (MATIC): Working in tandem with Ethereum, Polygon offers a solution to Ethereum's scalability issues.

4. Filecoin (FIL): Filecoin presents an intriguing option for those interested in the intersection of cryptocurrency and emerging technologies like decentralized storage and AI.

5. Seedify (SFUND): Seedify offers an exciting albeit riskier investment. As a blockchain gaming and NFT platform, it represents a niche yet rapidly growing sector within the blockchain space.

Bitcoin

Investing in Bitcoin is akin to holding a piece of digital gold. Its first-mover advantage has secured its position as the most recognized and widely accepted digital currency globally. With the recent approval of the Bitcoin ETF, Bitcoin's appeal has broadened, attracting institutional investors and legitimizing its place in diversified investment portfolios.

The underlying blockchain technology of Bitcoin offers a high level of security and transparency, making it a resilient choice against market volatility. Its capped supply at 21 million coins also introduces a scarcity factor, which can potentially drive value appreciation over time.

Moreover, as more businesses and financial institutions adopt Bitcoin for transactions and as a store of value, its utility and demand are likely to increase, further cementing its status as a foundational asset in the crypto world.

Ethereum

Ethereum stands out not just as a cryptocurrency but as a platform for decentralized applications (dApps) and smart contracts, setting it apart in the blockchain space. The investment appeal of Ethereum lies in its foundational role in the world of decentralized finance (DeFi) and non-fungible tokens (NFTs), areas experiencing rapid growth and innovation.

For investors, Ethereum represents not just a cryptocurrency investment but a stake in a diverse ecosystem of applications, making it a strategic choice for those looking to tap into the potential of blockchain technology beyond mere currency.

Polygon

Polygon (formerly known as Matic Network) is an attractive investment for its unique value proposition in the Ethereum ecosystem. It solves a critical issue: Ethereum's scalability. By providing a side-chain scaling solution, Polygon enables faster and cheaper transactions on the Ethereum network, which is essential for the usability and adoption of Ethereum-based dApps and smart contracts.

As the Ethereum network continues to grow, the demand for efficient scaling solutions like Polygon is expected to increase, potentially boosting its value. Polygon's ability to work seamlessly with Ethereum while providing an enhanced user experience makes it a compelling choice for investors looking to benefit from Ethereum's growth while mitigating some of its limitations.

Filecoin

Investing in Filecoin offers a unique opportunity in the cryptocurrency market, particularly for those interested in the burgeoning field of decentralized storage solutions. Filecoin's network provides a secure, efficient, and decentralized storage option, which is increasingly vital in an era where data is king. The platform incentivizes users to rent out their unused storage, creating a market-driven and cost-effective storage solution.

The potential for Filecoin extends beyond just storage. It's poised to play a significant role in the infrastructure needed for decentralized applications, especially in the realm of decentralized AI.

For investors, Filecoin represents an entry into a niche yet essential segment of the blockchain ecosystem, offering exposure to the growing synergy between blockchain technology and data storage demands.

Seedify Fund

Seedify Fund presents an intriguing investment option for those looking to dive into the world of blockchain gaming and NFTs. As an incubator and launchpad, Seedify Fund provides support and funding for blockchain game and NFT projects, placing it at the forefront of this rapidly expanding sector. Investing in Seedify Fund means getting exposure to a diversified portfolio of early-stage projects in the blockchain gaming space, a sector that's witnessing exponential growth.

The appeal of Seedify Fund lies in its potential to tap into the lucrative and dynamic market of gaming and digital collectibles, which are increasingly incorporating blockchain technology for added security and uniqueness.

How to Buy Crypto?

Entering the world of cryptocurrency trading is more accessible than ever. The first step is selecting a reliable and user-friendly trading platform. It's crucial to choose a platform that aligns with your needs in terms of security, transaction fees, and ease of use.

A comprehensive list of the top free crypto trading platforms can be found in our article 9 Best No Fee Crypto Exchanges for 2024.

Once you've chosen a platform, the next steps typically involve creating an account, completing necessary identity verifications for security purposes, and funding your account. This can usually be done through bank transfers, credit cards, or even PayPal in some cases.

To start, many platforms offer educational resources and demo accounts, allowing you to practice trading without financial risk.