Cryptocurrency Trends and Market Predictions 2021

Cryptocurrency Trends and Market Predictions 2021

Future Predictions are the most anticipated topic at the very end of the year. Every industry from startups to enterprises build goals and organize business plans for the upcoming year by using these predictions as the foundation and Crypto Industry is no longer the expectation! 

Philosophers say, "Don't Look back" but the business person needs to look back to learn things!

Let's go back!

2020 - The Preview

The World has wide hope and big plans for the year 2020 but unfortunately the pandemic occurs, Many business hit the hay, Global Economy has shaken but the Crypto Industry has standed alone as the rising star in the market. Developing countries like India started accepting cryptocurrencies and the size of the market got elongated which made Cryptocurrency Exchanges enlarge their pocket as  the trade volume and the number of users keep on increasing. 

2020 actually laid a milestone in the Crypto Industry, Numerous tech Intervention and updation took place. So many blockchain applications went live, Trending business like Decentralized Finance (Defi) have stepped in with the huge hope for the future, so many cryptocurrency exchanges were born, Ethereum 2.0 update and a lot more,

When it comes to price, The price of bitcoin in the month of march 2020 is around 7K USD but in the month of December it flies to 19K USD. What a growth? 

As the whole, we could say that 2020 is the most fortunate year for Cryptopreneurs and industry, so what about 2021? Let dig in

Cryptocurrency Industry Trends  and Predictions 2021

How the upcoming year would be  is actually predicted and measured with the parameters of growth of the current year. Here are some of the trends predicted in the future.

Crypto Staking

Crypto Staking is the act of holding Cryptocurrencies in the Crypto wallet for a certain time and the person who holds the virtual currencies will get rewards. It is the kind of process where a user can earn more cryptos with their own 
cryptos.

The Reward is given to the validator by considering factors like the total number of coins stacked, time duration, inflation rate, kind of coin stacked, etc.

Some of the crypto coins that staked popularly are

  • Tezos
  • Algorand
  • Synthetic
  • Decred
  • Cosmos,etc

Currently Popular Crypto Exchanges like Binance, Coinbase, Okex are supporting crypto staking.

Options Trading

Options trading is now getting popular among traders, popular crypto exchanges like Binance, BitMex, started providing this derivative trading feature to grab more traders to their platform.

Options Trading is the kind of contact agreement that allows traders to buy/sell assets with a predetermined price and the fixed time in the future. 

options trading is classified as American options and European options. American option allows users to execute the agreement at the time of before the expiry date. European options let traders to execute an agreement only on the expiry date.

Futures Trading

Futures trading are no different then options, Traders need to fix the date and predetermined price for trading but here, the user is obligated to proceed with trading. The Risk associated with the futures trading is more than the risk in the options trading yet this one of the popular derivative trading features.

Crypto Exchanges like Binance, Okex, Huobi and kraken support future trading

Decentralized Finance (Defi)

We can say it aloud that, one day Decentralized Finance would perfectly replace the traditional finance system. It has turned out to be the hottest topic of Fintech industries.

Decentralized Finance, Defi is the common representative term for all kinds of financial activities that took place in smart contract. Defi let the financial market be more transparent and accessible so that handling of loans, insurance, saving could be easier.

Some of the popular Defi Dapps are

  • Compound, which is the lending and borrowing app 
  • Uniswap - Defi based Crypto Exchange
  • MakerDAO - Decentralized Reserve Bank
  • Augur - Market Prediction
  • Synthetix - Synthetic Assets 

Atomic Swap

Atomic Swap is the kind of technology that runs in the backend of smart contract which enables exchange of one crypto for another crypto without the intervention of any intermiators like cryptocurrency exchanges. 

Day by the the number of virtual currencies keep on increasing by considering that atomic swap would also be the trend in the year 2021 

Cryptocurrency Market Predictions 2021

Institutional Investors Participation

There is a huge possibility that institutions would invest in cryptocurrencies ever before. Institutional investors obviously invest in bulk than the individual investors that significantly increases the trade volume and surely make it own impact on the market.

Bitcoin ETF (Exchange Trading Fund)

Bitcoin ETF is the kind of investment that lets investors to modify their investments without owning the actual asset.It simple terms, ETF is the kind of alternative for buying and selling assets.

Stablecoins Stands Up

Stablecoin are the kind of digital tokens which have encrypted with the value of certain fiat currency. statistics says that the  stablecoins usage is increse in Asia and America. Now USDT (Tether) is the most popular stable coin. In the future, more stable coins will take birth and used widely

Cryptocurrency Taxation and Regulation

The Taxation and legalization for the Crypto Industry will be more profound and streamlined. countries which do not have certain regulations and taxation for cryptocurrencies will lay a protocol for it. India is planning to collect tax for cryptocurrency investment which would be laid in 2021.

Birth of New Cryptocurrency Exchanges

As Cryptocurrency Exchanges remain the open choice for traders to get their desired currencies.In the future, we expect a lot more new cryptocurrency exchanges.

Many Cryptopreneurs wanted to kick start their own Crypto Exchange but they afraid of the cost and development methodology, By making use of Cryptocurrency Exchange Software, one can kick start the business instantly and easily
Wide Adoption of Crypto Payment Method

Popular e-commerce platforms like amazon already started accepting bitcoin as the payment method, In the future, due to the wide adoption of cryptocurrencies, Cryptocurrency Payment gateway would be integrated in most of the e-commerce sites.

Top Cryptocurrencies to invest in 2021

Statistics says, around 5K Cryptocurrencies are in existence, this count would double up in the upcoming days. Many cryptos come and go but traders relay on their favourite virtual currencies. Here is the list of Top Cryptocurrencies to invest in 2021

1.Bitcoin
2.Ethereum
3.Ripple
4.Litecoin
5.TRON
6.Bitcoin Cash 

Conclusion

2020 is just an amazing year for Crypto Industry, Hope that 2021 will bring more fortune than the year 2020. Move with hope! 

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About Dheivanai

Greetings! This is Dheivanai! My love for writing transformed me as a blogger and the Passion for Crypto industry turned me as a business advisor at bitdeal. Crazy towards digging deep and analyze the new trends in the Cryptocurrency and Blockchain Industry. Follow us to read interesting and existing blogs! Stay tuned, Stay updated!

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