The cryptocurrency market is unstable and unpredictable.

Previous predictions of crypto experts who launched them in 2017, 2018, and even this year 2019 did not come true.

Before the crypto rally season, Bitcoin was expected to drop to $2000, but after the growth many investors loudly declared that Bitcoin is ready to hit new highs.

Expectations were linked to the launch of futures contracts on the Bakkt platform and the arrival of the Bitcoin mining reward split in 2020.

But in fact it turned out that all the predictions were incorrect.

And even the expectations of the anonymous user whose account has the following image:

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Which was error-free in the past, did not materialize and failed to predict this time.

The cryptocurrency market, like other financial markets, is managed by humans and is shrouded in a set of emotions, fears and doubts. In this topic, we will address:

6 concerns for investors in the world of cryptocurrency:

1. Cryptocurrency price volatility:

Despite the large market capitalization of the cryptocurrency market, which is currently less than $200 billion, the cryptocurrency market remains low-liquid, with evidence:

First: Not the entire amount is related to trading operations.

Second: The funds are distributed among the trading platforms, and the trading platforms in turn distribute it to a large number of trading pairs.

The daily trading volume of the largest trading platforms hardly exceeds a billion dollars.

For example, out of $906 million of Binance’s trading volume, Bitcoin accounts for just $300 million, according to the latest CoinMarketCap data.

With such quantities, it became easy to deal with the market.

The second important point is the dependence of alternative cryptocurrencies on the behavior of Bitcoin.

The first cryptocurrency is the main indicator of the market.

Read:Cryptocurrency prices plummet and total market cap drops below $2 trillion

Where and when the bitcoin price goes up the market follows, but when it goes down, it pulls the smaller cryptocurrencies down.

The liquidity of cryptocurrencies is much lower, which makes the fall even stronger.

2. Legal uncertainty:

Only a few countries have decided and defined the legal status of cryptocurrencies, including:

Canada, Japan, Australia and a number of other countries.

Regulations are changed regularly, which is slowing investors to adopt cryptocurrencies and include them in their investment portfolios.

3. Technical failure:

This answer was the most popular among top investors surveyed as part of Binance Research.

Cryptocurrency trading platforms do not have advanced equipment and are not comparable to those used in traditional markets, for example:

Stock market giants Nasdaq and Dow Jones have their servers capable of processing more than a million transactions per second.

Delays in launching orders lead to security vulnerabilities for institutional investors because we are talking about large amounts of investment.

So until trading platforms are able to provide a more transparent and secure product with high speed, most investors will remain in the shadows waiting.

Read:Update: Bitcoin Weekly Analysis and General Market Trend

Among the factors associated with slow transactions are also the Bitcoin and Ethereum network as they do not have the high processing speed, and with the increased load on the network, transactions may stop for several hours or not be processed at all.

This does not allow for a quick response in the event of fundamental changes in the market and can lead to serious losses or loss of profits at best.

4. Privacy:

Trading platforms have been repeatedly accused of leaking users’ personal data.

The identity of the big investors urges the trading platforms to improve their working mechanisms in the aspect of privacy and the need to pay attention to this, and therefore there is a need for a higher level of reliability for storing personal information and the absence of any possible leakage.

5. Market crash:

A negative scenario where Bitcoin could significantly lose its value is not excluded.

Trading platforms and bitcoin mining farms have a role in controlling market prices and can make it worth much less than it is now.

But this scenario is unlikely, because it is not profitable for owners and holders of cryptocurrencies, but investors also do not write off this scenario, and it remains under consideration and causes fear in them.

6. Lack of sufficient liquidity and shortage of trading instruments:

Large investors do not plan to abandon the tools of the stock and currency markets, which crypto trading platforms cannot provide.

The same applies to liquidity, as it increases, so does the usefulness of trading platforms, but until then it is necessary to develop tools that integrate token assets with each other.

The situation will change and the concerns will be dispelled when the current problems in the cryptocurrency market are resolved.

Although there are a lot of issues not discussed in this topic.

There is still a positive trend towards the cryptocurrency market among institutional investors

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