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What Should Crypto Traders Be Ready for in 2021?


What Should Crypto Traders Be Ready for in 2021?

There is still much to explore in the staying power of cryptocurrency. While its previous peak in 2017 made waves, it slightly went off the radar for a few years since then; until 2020. The shift towards the further digital transformation of business processes due to the global pandemic has renewed interest in it, peeking up to 63% gains in November according to InvestorPlace.

Decreases and Increases in Bitcoin Price

Experts point out that the volatility of cryptocurrency is comparable to the gold rush back in the 1850s. There’s really no telling what’s going to happen next. The main difference, however, is there was a lack of data sharing and analysis back then. Today, we have various platforms and tools to monitor and examine the current activity in real-time.

For instance, we know through CNBC updates that Bitcoin hit a record high of above $23,000 this December and that most of the investors are not solely made up of retail investors anymore but billionaires and other investing experts and pioneers like Stanley Druckenmiller and Paul Tudor Jones.

Viral Cryptocurrencies in 2020

Here is a quick look at the cryptos that ran viral this year:

Bitcoin (BTC). Bitcoin remains to be at the top of the game and is still rising. Investing analysts expect that it will still continue to dominate the market in the years to come.

Ethereum blockchain network’s native cryptocurrency probably still has a long way to go before it reaches Bitcoin’s level of recognition and reputation. However, we certainly believe that this standing won’t be for long given its current high demand. Its secret lies behind its flexible and widely customizable applications.

Ripple (XRP). Finally, there’s XRP, another leading cryptocurrency tied in second place with ETH. Again, it is currently in high demand thanks to its popularity amongst leading financial institutions.

Why Some Cryptos Succeed and Others Don’t

There are undoubtedly other cryptocurrencies that are on the rise much like the ones aforementioned. However, there is still a considerable number that fails. In fact, there are currently almost 2000 entries listed as “dead coins” at Coinopsy.

They have also listed some of the possible reasons behind their demise. Among the leading reasons are:

The lack of reputation. While there are benefits to having the support of “big finance”, this transition also has a major downside.

They can potentially cripple cryptocurrencies from humble beginnings, especially those lacking renowned developers to back them up.

The lack of resources. We’re not entirely surprised why bigger financial institutions are thriving. Sometimes, they simply have the resources to invest in the needed infrastructure to make a cryptocurrency operational.

Even basic services or financial products like a cryptocurrency loan will already need a lot of financial capital to launch. This is also the reason why a lot of cryptos are simply left abandoned or neglected.

The abundance of schemes. Finally, the lack of resources probably won’t be an issue if there are more investors to start with.

Unfortunately, there is still a (rather well-founded) stigma against cryptocurrencies. In fact, just last year there were executives running a Nevada-based firm who was charged for running an $11 million Ponzi scheme.

What We Can Expect in 2021

We are expecting a very good outlook next year, though.

The added interest and the support of big finance can pave the way for stricter regulations that will benefit both investors and developers (regardless of the scale).

It will also encourage more clients that can hopefully sustain even smaller institutions.

Classic Cryptos vs Prospect Tokens

Another factor that we also expect to change next year is people’s lack of understanding of these new forms of currency. For instance, cryptos, altcoins, and tokens are often used interchangeably despite their differences (that further adds to the confusion between these terms).

In a nutshell, cryptocurrency is digital currency while altcoins are independent cryptocurrencies that are recognized as an alternative to the classic currency, Bitcoin (hence the name). Lastly, tokens are an entirely different form of currency altogether. Think of a token as a unit of value within a certain organization that is also supported by a blockchain.

Considering tokens as an investment is a good idea if you want to maximize your earning potential. Think of them as similar to reward points that have various functions. For instance, they can be made to offer security, a form of ownership, or provide extra services.


Cryptocurrency is still in its infancy. Tokenization is even more so. We can still expect a lot of improvement in the system.

However, understanding how digital currencies work certainly holds a lot of insight into how the landscape of the global economy and investing will inevitably shift in the future. And who knows? Maybe this future might not be too far off. Maybe this significant shift happens in 2021.


Lidia D. Staron is the Head of Content at As a financial advisor and former financial planner at an insurance company, she knows that life is full of major events and challenges. She enjoys helping people navigate through important financial decisions while avoiding common mistakes.


Top 5 Tips for Successful Online Stock Trading

Many people consider online trading to achieve financial freedom or have a secondary source of income. However, stock trading is a volatile field that you need to be armed with adequate information to succeed. The information you have will guide your decision and preserve you when it gets tough.

With the level of risk involved in online trading, it is good to learn everything you can. The knowledge will go a long way to guide you and help you err on the side of caution as you trade. We have compiled tried and tested strategies that will guide you towards investing successfully in the stock market.

1. Have a Trading Plan

We can define a trading plan as a blueprint that indicates the money management system for a trader alongside the entry and exit point.

Trading does not come naturally. A blueprint is vital for guidance. It is only your passion to make money and the hard work that comes with it that could be natural for some people. Even with the right skills, one needs to build it via learning and some behaviors.

A trading plan serves as the manual for trading. This is one of the things that differentiate a professional investor from another. It is essential to have an open mind and develop the knowledge that contributes to the overall success. The trading plan does not have to be rigid; in time, one can adjust it based on experience as you trade.

The trading plan takes the guesswork out of the game. It sets out the goal and the strategy you want to use to achieve them. It also spells out your acceptable risk level. With your trading plan, making a decision will be comfortable while trading. Every trading plan needs to have a means of entry and how you will get into a market. It should spell out the indicators and the characteristics of the pricing action to attract you towards a trade. In the same way, it will guide you when to exit.

2. Always Learn From the Markets

With the risk involved in trading, you need to arm yourself with the necessary knowledge. This means that you should find a lesson from each process. You cannot fully understand and predict the market and everything that comes with it. As a result, make it a habit to keep learning.

Politics, elections, world reports, pandemics, economic trends, news events, etc., can influence the market. The market system is pretty volatile and dynamic. A good understanding of the past and present market gives traders a good insight into what the future holds.

With research and insights from the Forex blog, you will understand the facts and interpret various economic reports.

3. Always Have a Stop Loss

Unless you are not willing to accept reality, the loss is inevitable in stock trading. The silver lining, however, is that you can control how much you lose. This is where a stop loss comes in.

A stop loss is like a particular risk value that each trader is willing to accommodate with every trade. It can either be a dollar amount or a specific percentage. The idea is to shield you from excessive risk in the trade. A stop loss is good psychologically as it allows you to accept that you will not lose more than what you set.

While we desire to exit all trade with a profit, this is far from the truth. Consider a stop loss as your imaginary personal protective equipment to mitigate risks. Make sure you always use a stop loss, even if you feel you are a professional trader. If you lose a trading section and exit with a stop loss, the loss will be within reasonable limits.

4. Gradually Build Up Positions

As a trader, your superpower is time. To be successful in trading, your aim for buying stock is a reward. The reward can come through any means like dividends, share price appreciation, etc., which could take a long time. With this, here are two buying tricks that can shield you from the uncertainty of the market.

Dollar-cost average:

This involves a regular investment of a fixed amount of money like weekly or monthly. When the stock price is down, this amount will purchase more shares, and fewer when the price rises. The central idea is to even-out the average price you give out.

Buy “the basket”:

It might be challenging to predict which company will benefit you in the long run. In this case, you buy all of them. This gives you a stake in all players, benefitting from any that generates profits. Besides, the gains from the profit can help you cushion out any loss. With this strategy, you get to identify promising companies and focus on them if you want.

5. Know and Understand Yourself

Market beating strategies and your personality are two different entities. As a result, you should take the time to understand yourself. Understanding yourself involves what triggers you to make decisions and your biases.

Indiscipline and lack of patience are two attitudes one needs to deal with to be a successful trader. The first couple of years as a trader will be a steep learning curve. The various market conditions that influence trading will not come at you in a month or a year. It takes a long time. Expect to make mistakes and learn from them during the early days. At times, trading might require the patience and discipline to do nothing.

One also needs to come to terms with the fact that it is essential to have what it takes to succeed with trading. It is necessary to understand whether one is willing to give what it takes to succeed and how it fits the overall goal. There are many resources online with advice on how to trade alongside the characteristics essential to thrive. Many of those resources agree that a positive mental attitude will position you for fantastic opportunities when trading.


These are vital trading rules that can guide you on the side of caution while trading. Be sure to understand them and how they work together. This way, they can help you establish a successful trading strategy. Trading is hard work that requires discipline, patience, and tenacity. Going through these tips will allow you to increase your chances of success in the field.


Congress Passes Bipartisan Legislation Requiring Chinese and Other Firms Listed on US exchanges to meet US Audit Standards

In near lightning speed, Congress now has passed, and the President is expected to imminently sign into law, the Holding Foreign Companies Accountable Act (HFCAA), a bipartisan piece of legislation that, while applicable more broadly, is directed at the audit practices of Chinese companies, especially those owned or controlled by the Chinese government, and establishes a process to delist from US exchanges those companies that do not meet certain US audit standards.

This legislation follows on the heels of the Trump Administration’s action last week to bar US persons from investing in publicly traded securities of Chinese firms determined by the US government to be owned or controlled by the Chinese military. Unlike this more limited investment prohibition, which was established by Executive Order and can be revoked by the new Administration by executive action, the HFCAA is binding legislation that President-elect Biden would have no authority to waive.

Thus, the legislation mandates the process for delisting and directs the US Securities and Exchange Commission (SEC), an independent agency, to implement the listing ban.

HFCAA requirements

The HFCAA, which was first introduced in the Senate in May 2020, passed the Senate by unanimous consent that same month and was just passed in the US House of Representatives by voice vote on December 2, 2020. It now goes to President Trump’s desk to be signed into law.

Specifically, by its terms, the HFCAA establishes that an issuer’s securities will be banned from trading on US national securities exchanges in the event that, for three consecutive years, the issuer utilized a registered public accounting firm that has a branch or office located in a foreign jurisdiction that the US Public Company Accounting Oversight Board (PCAOB) is unable to inspect or investigate completely because of a position taken by an authority in the foreign jurisdiction. Each year in which this occurs is referred to a “non-inspection” year.

The SEC has the authority to eliminate an initial ban if the issuer certifies that it has retained a registered public accounting firm that the PCAOB has inspected, but the SEC may also reinstitute the ban in the event the issuer experiences a subsequent non-inspection year. A reinstituted ban lasts for at least five years, after which the SEC may end the ban if the issuer certifies that it will retain a registered public accounting firm that the PCAOB is able to inspect.

The HFCAA also has important disclosure obligations for issuers that experience non-inspection years. Specifically, among other things, in each non-inspection year the foreign issuer would be required to disclose to the SEC:

-The percentage of the shares of the issuer owned by governmental entities in the foreign jurisdiction in which in the issuer is incorporated or organized;

-Whether governmental entities in the applicable foreign jurisdiction with respect to that registered public accounting firm have a controlling financial interest with respect to the issuer;

-The name of each official of the Chinese Communist Party who is a member of the board of directors of (1) the issuer, or (2) the operating entity with respect to the issuer; and

-Whether the issuer’s articles of incorporation (or equivalent organizing document) contains any charter of the Chinese Communist Party, including the text of any such charter.

The SEC is required to promulgate regulations implementing the HFCAA within 90 days of enactment.

The HFCAA in context

The HFCAA has enjoyed bipartisan support and little organized opposition since it was introduced in the Senate in May 2020. Its passage and impending enactment is the culmination of ongoing public debate in the United States on whether to delist from US exchanges Chinese companies—especially those owned or controlled by the Chinese government—with audit practices that do not meet US standards.

In December 2018, the SEC and the PCAOB, which oversees the auditing of public companies, issued a joint warning to investors about the challenges US regulators face when seeking to conduct oversight of US-listed companies whose operations are based in China and Hong Kong. Chinese law requires that records remain in China, and the Communist Party restricts access to typical accounting information on the grounds of national security and state secrecy.1 In February 2020, the SEC released a statement regarding the difficulties that US regulators face when auditing US-listed companies based in China, and said that US investors and the US capital markets have become generally more exposed to companies with significant operations in China.2

Thereafter, in February 2019, the US-China Economic and Security Review Commission identified 156 Chinese companies—including 11 state-owned enterprises—listed on three of the largest US exchanges with a combined market capitalization of $1.2 trillion.

Subsequently, in July 2020, the Presidential Working Group (PWG) on Financial Markets, at the direction of President Trump, completed its examination of measures to protect US investors and recommended policies consistent with those contained in the Senate and House versions of the HFCAA.3  The PWG was chaired by the US Secretary of the Treasury Steven Mnuchin, and included the Chairman of the Board of Governors of the Federal Reserve System Jerome Powell, the Chairman of the SEC Jay Clayton, and the Chairman of the US Commodity Futures Trading Commission Heath P. Tarbert. The PWG ultimately recommended Chinese companies be delisted beginning in 2022 unless US regulators can obtain access to their audits.

The American Securities Association, a securities advocacy group, also issued a report in August 2020 recommending that Chinese firms failing to comply with SEC audit requirements be forced to deregister within six months—a considerably shorter time frame than the three years set forth in HFCAA.

Potential impact of the HFCAA and what comes next

Under the HFCAA, as noted above, any foreign issuers would be delisted from US exchanges if, for three consecutive years, it utilizes a registered public accounting firm with an office or branch in its jurisdiction to conduct its audit and the issuer refuses inspection of the audit report based on the law of said jurisdiction. Additionally, for each “non-inspection year” identified by the SEC, the foreign issuer would be required to submit additional disclosures.

While covering all foreign issuers of securities traded on US exchanges, the HFCAA in fact is directed to Chinese companies listed on US exchanges that utilize auditing firms not subject to standards established by the PCAOB.  For example, SEC Chairman Jay Clayton has stated that “[t]he [HFCAA] is a legislative attempt to get China to comply with the oversight requirements” and that “[t]he status quo is not acceptable.” 4

While some might view this measure as spillover into the financial sector of the ongoing US-Chinese economic and trade tensions, other observers have noted that it is hard to argue with the logic that firms listed on major US exchanges, which are afforded access to the most liquid capital markets in the world, should without exception be subject to transparent and robust audit disciplines compliant with western standards.

Implementation issues

The SEC is required to promulgate implementing regulations within 90 days after enactment, and it is possible the SEC will attempt to push out proposed regulations before President Trump leaves office on January 20, 2021. Any such proposed regulations must go through a public comment period before final regulations are issued and implemented, however. Thus, it is also possible that the latter part of the rulemaking process would occur during the incoming Biden Administration.

As noted at the outset, the HFCAA mandates the delisting process and only affords the SEC the authority to establish rules to implement this process and provide the details of obligatory reporting by covered companies. Moreover, the SEC, as an independent agency, is not directly subject to oversight by the new Administration on its implementation of the HFCAA.

Nevertheless, there is the prospect that some greater flexibility can be injected into the delisting process. In this regard, US news outlets have recently reported that the SEC is also working on a separate proposal that would allow Chinese auditors to comply with the US inspection requirement without violating its own jurisdiction’s laws by permitting the companies to get a second review of their books by an accounting firm based in a country where auditors comply with PCAOB oversight.5  Such a rule would take weeks or months to finalize.

Moreover, it is possible that there could be some negotiations between the US and China over applicable accounting standards for Chinese issuers that meet PCAOB standards. Whether such negotiations occur, however, remains to be seen.


By Jeffrey P. Bialos, Ginger T. Faulk, Mark D. Herlach and Nicholas T. Hillman at Eversheds Sutherland. Republished with permission.