There’s too much news and movements happening in the world of cryptocurrency, so much so that even active traders and investors find it overwhelming sometimes. From price volatility to new ICOs coming out, keeping track of day-to-day developments can be a challenge. For new traders and investors, these can cause intimidation that may be hard to overcome and eventually hinder their start in the industry.
However, keeping up with what’s going on in the crypto world of cryptocurrencies is one of the best ways to make smarter choices. More information also gives you an edge in conversations with fellow traders and even with people not involved in crypto. It’s a lot of work, but you can make it easier by creating a simple system and making it a habit.
Cryptocurrency Trends Active Traders Should Watch Out For
One of the things you should note of is the crypto trends shaping the industry. By doing so, you’ll know which coins are rising and which are dipping – and whether these fluctuations are caused by industry shifts or artificial pump-and-dump schemes.
If you’re an active crypto trader, you should always be looking out for new trends and happenings to make better decisions and manage risks.
1. Low chance of price instability
Bitcoin’s price crash in 2017 caused some serious impact on the whole crypto industry. Fortunately, the price recovered in 2018, and changes over short periods of time were more subtle. This is expected to carry over this 2019, which would be favorable not only for investors—as no one likes sharp fluctuations when it comes to financial investments—but also for user adoption, as well.
2. A change in perception towards news and events as market movers
The market is quick to react whenever the media put out speculations about the next big (or bad) thing in crypto. People would buy when rumors begin, then sell when the good news is out for better returns. In the case of bad news, people would sell early and perhaps buy again once the price has reached its lowest.
But, since the market has increased over the years, this trend would likely die down. Speculative traders have been burnt in trades inspired by this trend and would possibly avoid making the same mistake, while those who still own significant amounts of altcoins and seasoned traders may not be willing to make a move just based off what they saw on the news, especially after the bear trend in 2018.
3. State cryptocurrency and regulations
Crypto regulation is slowly taking shape in most parts of the world, and will hopefully lead to the gradual maturity of the industry. Some governments are making serious efforts to establish their own state cryptocurrencies, like Russia, which has already expressed interest in launching their state cryptocurrency Cryptoruble.
In addition, the Ohio government has started accepting crypto as tax payments, which may push other state governments to do so, too. The expected rise in state crypto would likely trigger a bull run, as more people would become active in the crypto space.
Along with this is the new efforts in defining digital currency regulations. For instance, the US Securities and Exchange Commission has recently been investigating illegal ICOs and scammers, which could mean that the agency is close to coming up with regulations for crypto.
4. Rise of security tokens
Studies have suggested that security token offerings are better fundraising models than ICO because actual stakes back the tokens from the company carrying out the sale. This resulted in some ICOs adopting the term “security token.” Once the regulation is clarified, the crypto space will become conducive for launching security tokens, triggering its rise.
5. Crypto to launch on stock markets
With regulations on the horizon and prices becoming more stable, cryptocurrencies are becoming more attractive for financial institutions. Recent developments indicate growing confidence, with NASDAQ working with the US Commodity Futures Trading Commission for the launch of Bitcoin futures this year.
6. Increased demand for blockchain specialists
Various industries are looking into blockchain technology as a solution to some of their corporate challenges, but this would entail specialists who can develop, diversify, support, and promote blockchain. This proves that blockchain has reached the point when its growth would depend on skilled and experienced professionals. For instance, in Austria, the Austrian Blockchain Center has expressed plans to open the largest blockchain competence center in the world.
Stay Up-to-Date for Smarter Decisions
Much like other financial institutions, digital currencies have inherent risks and will always experience instability, no matter how great or insignificant. However, you can always avoid making costly financial mistakes. With information available 24/7 at the palm of your hands, there is no excuse for you to not learn more about digital currencies before diving right in.
Meanwhile, companies and institutions, as well as the government, should take the necessary steps to make next-gen currencies like Noah Coin more reliable and secured so that the market will have more confidence and trust with it.