Cryptocurrency World: Trends And Predictions In 2021

There are three eras of currencies: Commodity based, politically based, and now math based. Therefore, everyone ponders markets to be quite predictive. Folks with great passions, folks who accomplish great deeds, folks who possess strong feelings, even folks with more incredible minds and a strong personality depend and are always curious about market trends and predictions. We are inconsistent creatures. Perhaps it is the pressure of the past that compels us to predict and forecast. To summarize, monetary motivation is like a double-edged sword for us.

Every industry in the market is building its goals based on predictions, and the crypto industry is not an exception. Predictions are made only after analyzing the past. So, let’s go back a little.

Sneak Peek Into 2020

It has been a tumultuous year. We have seen several critical developments in crypto: the halving of bitcoin, liquidity mining, the explosive introduction of various cryptocurrencies, and robust tools on a different cryptocurrency exchange Softwares—everything, irrespective of the pandemic.

Precisely, it can be said that 2020 has laid the milestone in the crypto industry. Abundant tech interventions and up-gradation took place. Trending businesses like DeFi have showcased explosive growth with its various applications, interoperability tools, birth of many cryptocurrency exchanges, the Ethereum 2.0 update, and many more.

In terms of monetary examination, the price of Bitcoin was 7K in March but jumped to 19K in December. It was unbelievable and unexpected!

So, If you are a cryptopreneur, then you could say that it has been a hell of a rollercoaster ride—the most fortunate year for the crypto industry. The excitement level is high. What’s 2021 holding for us? Let’s find out!

Trendy Pieces Of Stuff In 2021

Crypto Staking

Crypto Staking is a kind of consensus mechanism in which crypto transactions are verified and secured. It helps crypto users to protect the network with minimum energy consumption and set up.

Let’s take an example: Crypto Ethereum Staking involves locking up an amount of cryptocurrency in a wallet to participate in a blockchain’s functions for specific rewards. Everyone has the liberty to participate in the staking process of a blockchain platform under proof-of-stake consensus. There are several variations in a proof-of-stake that allows people to participate in staking.

Options Trading

Options Trading is a type of contract agreement that permits users to trade assets with a predetermined time and money for the future. It is attracting a lot more traders nowadays. Lionized exchanges like Binance and BitMex have started proffering option trading for attracting users.

It is classified as American options and European options. American option permits users to execute the agreement from time to time before the expiry date. European options let traders enforce trading agreements only on the expiration date.

Futures Trading

Traders fix a specific date and price for trading, but with a twist. Here, the users are obligated to proceed with trading. The risk is more as compared to options trading but is a more popular one in the industry.

Decentralized Finance (DeFi)

DeFi or Decentralized Finance is an envelope term referred to several financial applications in cryptocurrency or blockchain gearing towards the hampering of financial intermediaries.

It is a unique unlocked replacement of all the traditional financial services. Some of the popular DeFi DApps are:

Uniswap
Compound
Aave
Instdapp
Synthetix

Atomic Swap

Blockchain-based atomic swaps allow traders to exchange digital currencies directly without third parties using a private wallet. To increase the decentralized exchange platform’s efficiency, the adoption of atomic swap is highly mandatory at this stage, where this platform has been highly trusted.

Crypto Market Predictions For 2021

Participation Of Institutional Investors

It’s been predicted that institutional investors are highly interested in the crypto market, which will lead to investment. They always invest in bulk, followed by individual investors. Due to this, there will be an increase in trade volume and a significant impact on the market.

Bitcoin Exchange Trading Fund

It is a kind of alternative present for buying and selling, where investors can modify their investment without owning the actual asset.

Explosion Of Stablecoins

Stablecoins are an efficient substitute to the volatile cryptocurrency market as they provide certainty of returns to the investors. They are of different types like crypto-collateralized, fiat-collateralized, commodity-collateralized, and seigniorage-shared collateralized. Stablecoins have a $30.9 billion market cap and $139.05 billion trading volume now.

Cryptocurrency Taxation And Regulation

The taxation and regulation policies for the crypto industry will be more intense and profound. Countries not having underlying regulations for it will have to do it. Countries like India are planning to collect tax for cryptocurrency investment from 2021.

Birth Of New Cryptocurrency Exchanges

2020 has witnessed the Birth of many cryptocurrency exchanges and will be the same for 2021. Popular e-commerce giants like Amazon have already started accepting bitcoin as the payment method.

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Cryptocurrency World: Trends And Predictions In 2021

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