Top 6 Cryptocurrency Trends Every Investor And Trader Should Know
Cryptocurrency and trends are basically inseparable. This is not surprising seeing as the industry is a fast moving one with new ideas being initiated and executed almost immediately.
The crypto industry is such that projects can launch and succeed or fail within days. This agile environment is responsible for the trends that we often see in the industry.
Smart investors and traders understand that trends can be extremely profitable if they are able to catch the wave early and ride it to the very end. With the frequently emerging trends in cryptos, you need to be able to spot them early and take maximum advantage.
The ability to identify emerging, breakout and budding trends can mean millions of dollars in your pockets within 12 months.
Top 6 Cryptocurrency Trends
The following are some of the top trends in the cryptocurrency sector in 2018.
Increased Collaboration Across Sectors
Crypto and blockchain are fast breaking barriers, and acting as a melting pot for cross-sectoral investments and projects. More industries are collaborating with each other and developing blockchain based solutions designed to solve their mutual problems.
Many of these solutions were initially created as a reaction to serious efficiency problems, but more companies are becoming more proactive and coming up with the solutions way before the problems become commonplace.
As a result, more companies are proffering truly innovative solutions that companies can use as part of their business processes. An excellent example of this is a solution created by the collaboration between a bank and blockchain company that provides users with faster, cheaper options for international transactions.
Mobile Is Fast Becoming A Priority
One of the biggest trends in the industry is the focus on mobile devices. Already, there are some excellent mobile apps dedicated to providing one crypto based service or the other.
Some of these apps are dedicated portfolio managing apps, with an option of trading the more popular cryptos.
Exchanges too are launching and deploying mobile apps to help people trade on the go. The reality is that mobile based innovations are a daily occurrence in the sector, with more to come.
One of these is the manufacturing blockchain powered mobile phones. Companies like Sirin Labs and HTC are looking to pioneer this tech.
Sirin Labs’ phone is known as FINNEY and will feature a completely embedded cold storage wallet, an internal exchange, and military grade security. HTC’s blockchain phone, Exodus, is designed to run on blockchain tech and will be able to execute transactions on it.
These new innovations will probably become more successful if these first two phones launch successfully and prove that the concept can work.
Proliferation Of Token Based Platforms
Most people are only aware of ethereum as a token for investment or trading. What they don’t know is that it’s an actual platform that serves as an ecosystem for a wide range of tokens.
This platform makes it very easy for developers and individuals to create their own tokens. This is why it’s the platform of choice for people looking to launch ICOs and their own tokens.
While ethereum is the clear leader in this category, we are also seeing the emergency of new token platforms like Tron, EOS and NEO, all of which intend to compete with ethereum for that market share.
Of course, it would take a while to achieve that, but it’s still something to be aware of. Ethereum based tokens though, are some of the more popular tokens in the market today.
Most of their successful tokens are ERC-20 tokens that have been adopted by users. If you’re looking to create your own tokens, you should check out all these platforms, instead of creating your code/project from scratch.
More Testnets Preceding The Launch Of Initial Coin Offerings
Over the last 12-18 months, ICO investors have become smarter and more conservative with their monies. Before that, everyone was getting in on ICOs even without the projects proving that they had a working product or service.
Naturally, millions of people got burnt from participating in those ICOs. There were many impractical and scam ICOs designed to just fleece people of their hard earned money. Thankfully, that era is past now, with more investors waiting to see an actual product before investing.
ICO founders too have adapted and have taken to creating testnets and working prototypes before opening their ICOs to the public. Many of them routinely carry out private tests and ensure the product is working before launching.
With this trend, we expect to see more transparency from ICO founders and teams regarding their projects. Investors will then be able to make smart financial decisions on whether to continue with their investments or not.
More Consensus Types
Because bitcoin is the leading cryptocurrency, it’s only natural that its Proof of Work (PoW) consensus mechanism be considered the default or most effective type. Unfortunately, this hasn’t been the case.
Bitcoin’s current woeful transaction wait times, scalability issues, high transaction fees and the bloat on the network have given rise to a need for alternative and possibly better consensus. Some of these include Proof of Stake (PoS), Proof of Authority (PoA), and Delegated Proof of Stake (dPoS) among others.
Proof of Stake currently looks like the winning alternative. As a result, platforms like ethereum are looking to migrate from their current PoW based consensus to the PoS consensus, thanks to PoS’ faster transaction times, ease of scalability and low transaction fees.
Increased Possibility Of Regulation
Cryptocurrency is centered on deregulation. The whole idea of the crypto sector is a decentralized unregulated financial tool that transcends all borders, financial institutions and governments.
So, no matter what happens, regulation isn’t meant to be a part of crypto. Yet, it appears that we’re gradually moving toward this inevitable end. Governments and financial institutions are advocating for the regulation of cryptos.
Unfortunately, many of the key players in the sector are also calling for it. Quite a few exchanges are in support, while some have even started cooperating with financial institutions like the US IRS.
Countries like China and the US have been seeking crypto regulations and are working assiduously towards its reality. As an investor or trader, you need to be prepared for this eventuality. There’s regulation coming to crypto trading, mining, ICOs and a bunch of other crypto related activities.