Cryptocurrency has grown in popularity over the past year. There’s a craze behind the different digital currencies, and the craze is real, as many people have made a small fortune.
As cryptocurrency prices continue to go up, more people are starting to invest in this market. If you’re new to the world of cryptocurrency, you still have time to get in.
You must become familiar with the upcoming cryptocurrency trends to help you invest. Read this guide so you can learn about the top 6 cryptocurrency trends.
1. Watch Out for New Cryptocurrencies to Invest In
It seems like there are tons of different types of cryptocurrencies in the market. If you use an exchange, you may see new cryptocurrencies added to the exchange.
It can be hard to keep up with all the new cryptocurrencies that hit the market. If you’re serious about trading cryptocurrency, you have to stay on top of all the new coins and tokens.
Bitcoin started as a joke to many people when it came out in 2009. Now, Bitcoin trends all the time as it continues to hit all-time highs.
Many cryptocurrencies start like this. By the time you know, a new cryptocurrency can go to the moon.
The key is to do your research, as new cryptocurrencies can have the potential to grow and make you money. You must take the time to track any new crypto as it often carries more craze and has no potential of making you any profit.
2. Bitcoin Dominance Will Increase
Are you a firm believer in the power of Bitcoin? If you’re into investing in Bitcoin, keep doing so. Bitcoin is the king of crypto and it seems like it will continue to be so in the future.
Bitcoin’s dominance will increase. Many entrepreneurs believe that the price of Bitcoin will go up to record highs. It’s currently in a bull market, so the chances that it will go up are high.
Don’t forget that Bitcoin is more stable than other major cryptocurrencies. This is why many investors view it as a safe way to store their value.
3. The Rise of 5G Will Help Transform the Market
As 5G becomes more mainstream, you can expect to see a cryptocurrency transformation. With its implementation, there will be new concepts and services.
This will help to develop new DeFi applications. It will also affect how people build new mining machines. Transaction management will change as the speed will improve the trading of cryptocurrencies.
Today, cryptocurrency investors face certain barriers. The hope is that 5G will set a level playing field for everyone. This network will bring crypto and blockchain to others who didn’t have a chance to access them.
Low latent 5G can provide the speed that helps to improve crypto wallets. Wallet users can expect to see an expansion in operation and functionality.
4. Cryptocurrency Is Catching the Attention of the Government
Cryptocurrency works under blockchain technology. It operates as a decentralized technology that makes it difficult to change or hack. This gives cryptocurrency its appeal.
As it stands, cryptocurrency operates outside the control of the government. The government is now taking notice of cryptocurrency and this technology.
The government believes it can contribute to illegal operations. Soon, the government may start to target the privacy protection that cryptocurrencies offer.
This is causing a lot of cryptocurrency investors to worry. They believe the government’s involvement can change the entire industry.
When one government official made comments about Bitcoin, its price went down. The official’s warning about the legitimacy and stability of Bitcoin caused concerns. This is one of the reasons why you should act now if you’re planning to start investing in cryptocurrency.
5. The Potential of Tax Regulation
Entrepreneurs believe tax regulations on crypto will go into effect if the government can stand to benefit. Some countries do tax crypto as their markets mature.
In this tax season, the IRS decided to include a question on the 1040 form about digital currency. It asks the taxpayer to report any transactions they made in which they had a financial interest.
In the past, taxpayers may have ignored reporting crypto gains. Now, this is a big No-No.
With some of the changes that are now taking place, there’s a sign that tax regulation on crypto is on its way. This is certain to cause an uproar among entrepreneurs who believe this is the government’s way of getting a share of the pie.
6. Cryptocurrencies Will Become More Mainstream
There are a lot of companies that already accept Bitcoin as a form of payment. For Bitcoin investors, this is convenient. It’s a welcomed sign for them to know that Bitcoin is being taken seriously.
Even major credit card companies are trying to get in the game. Visa is one of the credit card companies that is working on ways to support the purchase of Bitcoin.
For anyone who uses Visa to make their purchase, this spells great news. Click the link for more information about Visa’s plan to enable Bitcoin purchases.
Stay on Top of These Cryptocurrency Trends
The world of cryptocurrency will undergo significant changes soon. The 6 cryptocurrency trends you read about in this guide will change how investments are made in Bitcoin and other cryptocurrencies.
If you intend to invest in cryptocurrencies, you have to make sure you stay on top of these trends. These trends will help you predict the crypto industry’s trajectory.
Explore the rest of our blog to read other great articles on everything from finance to management!