Bitcoin, the most popular and most valuable cryptocurrency of them all caused ripples back in December 2017 when its trade value surged past the $20,000 mark. Thousands, perhaps millions, of investors poured over $6.2 billion in different crypto startups hopping to ride the bull and make their fortune too.
Contrary to their expectations, 2018 and 2019 wasn’t so kind on the crypto boom. Even though other currencies like Ethereum, Ripple and Litecoin remained relatively stable, Bitcoin tanked and then settled rather comfortable in the sub $10k range.
The sheer rollercoaster Bitcoin investors were forced to ride left many wondering what the future of cryptocurrency trading would be like and whether it is still safe ground for shrewd investors who don’t mind taking the risk.
Cryptocurrency will still get a wide following in 2020
Even though more and more people will be cautious when buying any type of cryptocurrency, it will still play a vital role in the 2020 digital economy. This is partly due to the fact that there is still a wide range users whose activities will retain its relevance.
For instance, gamers and gaming companies will still be willing to make transactions in crypto. To them, cryptocurrency is the most logical evolution in their ecosystem, an extension of the virtual money they’ve been used to since the era of online multiplayer gaming came around.
This will create a real economical purpose for cryptocurrency hence improving its stability and trading worth in 2019.
Economic powerhouses no longer want to kill crypto
Even though most government central banks were sceptical about cryptocurrency a while ago, most are starting to mellow up and even embrace the idea. China, for instance, is already working on a stable government-backed digital currency to counter the existing volatile cryptocurrency it deemed too risky for its citizens.
The US, on the other hand, seems comfortable with its ‘let’s wait and see’ approach. American legislators will still watch at a safe distance, not banning or openly endorsing cryptocurrency. This is understandable since the stakes are quite high and a wrong move could prove catastrophic.
Without the explicit directive to ban or endorse crypto in many economic jurisdictions, the market will remain open to enterprising entrepreneurs who continue trading making the future of cryptocurrency even brighter.
Measures will be installed to make cryptocurrency more stable
The biggest issue that made cryptocurrency, Bitcoin to be specific, hard to trade was its volatility. The latest move into stablecoins will iron out this crease by tying the cryptocurrency into a realistic asset, for instance the Euro or Sterling Pound.
Tying cryptocurrency to a real-life asset will introduce another value control variable hence doing away with unpredictability and the ability of single entities to influence the currency’s value.
Will putting money in cryptocurrency be worth It?
Up to now, cryptocurrency investments have been a mainstay for daredevil investors who are willing to tread the edge, risking all they got for the massive profits successful crypto traders end up bagging. The fact is those days are gone. It will be very hard to see the fairy tale Bull Run we saw Bitcoin pull back in 2017.
However, all cryptocurrencies will still remain to be a worthy investment opportunity since their value will never hold still. Case in point, Litecoin, Ethereum and Ripple still won people profits even though they did not make massive price fluctuations like Bitcoin. This, in essence, made these cryptos a great trading opportunity to the patient traders who are willing to read the market and invest in bulk.
Apart from the settling maturity in the cryptocurrency world, major economies have its citizens looking into cryptocurrency as a way to put away their excess money into assets that can hold value no matter what is happening to their local economies. This concept will keep on improving with time and will be adopted across the world as long as governments don’t actively create legislation to outlaw cryptocurrency and blockchain technology.
Even though the prices might level out, it will still be an untamed frontier as long as the cryptocurrency value is dictated by demand and supply rather than a given economy’s performance. It will, to some extent, be like trading forex only that traders will have fewer clues to use when deciding to buy or sell their points.
Trading cryptocurrency will be more than buying the actual currency
So far, the majority of cryptocurrency traders bought or mined the actual coins before selling them. This is bound to change this coming year going forward. Instead of buying and storing actual cryptocurrency in digital wallets, investors will buy positions on trading platforms.
A quick glimpse at the eToro platform review reveals what the future of trading crypto will be like. No one will have to purchase actual coins to be in business. More and more people will welcome this chance since it is simpler and similar to trading forex or other indices on online trading platforms. No one will have to worry about hackers or wait for the currencies to gain to make money.
You might not make a fast fortune from a little deposit by trading cryptocurrency in 2020 like the early adopters did. However, shrewd traders with the right capital and the time to weather the mild ups and downs of cryptocurrency will still make their profits making it a worthy trading venture just like anyone who invests in currencies from different countries.