5 Major Cryptocurrency Trends That You Should Be Aware Of

Introduction

Since cryptocurrencies are performing very well, traditional investors also want to add them to the portfolio. Although crypto is becoming increasingly popular and many people are aggressively investing in them, they need to know about the crypto trends.

The year 2020 was very tough for stock investors because of the pandemic. However, some notable cryptocurrencies performed excellently, and the growth is still on the rise. The following trends will help you decide what you should do and not to do while investing in cryptos.

Top Five Crypto Trends for 2021

Whether you are new to the cryptos or a seasoned trader, the we7.com is suitable for everyone. The following crypto trends you should look for in 2021.

1.    Regulations for Crypto

Crypto regulations are still unclear in many countries. Since the crypto market is growing, the government and central banks of different nations are trying to regulate them. They are aiming to reduce illegal transactions occurring in the crypto space.

Apart from that, governments also want to regulate crypto exchanges. Moreover, they want to bring more crypto-related services that can secure the digital assets of the users.

2.    PayPal’s Impact on Cryptocurrencies

You must have known that PayPal announced the adoption of cryptocurrencies in its platform in 2021. It has significantly increased the value of cryptocurrencies, which will be traded in PayPal’s network.

Bitcoin, Ethereum, Litecoin, and Bitcoin Cash are the four cryptocurrencies that will be used in PayPal’s platform. Users can buy, sell, and store these cryptocurrencies from their PayPal account. More importantly, the holdings will be protected if there is any technical fault or unauthorized access. So, it’s an excellent opportunity for PayPal users.

3.    Ethereum Will Be More Active

You must have known the utility that Ethereum is providing to the world. Along with smart contracts, it’s also going to provide several applications, and one of them is the implication of DeFi and NFTs.

This is the best Blockchain platform that has many potential applications for developing decentralized apps and software’s. So, tech companies, banks, and many other firms will work with Ethereum for their upcoming decentralized projects. It shows that 2021 will be the year for Ethereum, and you need to keep an eye on this crypto asset.

4.    The Dominance of Stable Coins

Although investing in regular cryptocurrencies can yield high profits, the magnitude of loss is also high. So, small and large investors who want to stay on the safe side are investing in stable coins. One of the best things about stable coins is that they are less volatile and less risky than normal cryptocurrencies.

According to a recent report by Blockchain Capital, stable coin circulation has grown up to 500%. Since they are backed by some tangible assets, the demand for these virtual currencies is high. More importantly, Blockchain Capital has also reported that stablecoins, which are backed by the dollar, may surpass $150million by the end of 2021.

5.    Ripple Will Go Through Uncertainty

If you are for some time in the crypto market, you must have known about the Ripple lawsuit. The SEC filed a case against the two-key people behind Ripple Inc. Well, what it means for a crypto trader?

Since Ripple holds more than 50% of the cryptocurrency XRP, crypto traders should be careful while investing in it. More importantly, many crypto exchanges have also banned XRP from their platform. There is no certainty of what will happen until the case is resolved.

Final Thoughts

The year 2020 has taught us that you can never become certain about investments. However, it’s essential to have a plan that can guide you through your investing journey in a better way. If you don’t have a plan, you may make impulsive decisions that can take away all your money from the crypto account. So, consider the above crypto trends while you are preparing your crypto trading plan.

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