The majority among us will agree to the fact that 2020 has definitely been a tough year. Amidst all sorts of troubles created by the COVID-19 pandemic, there’s only one positive thing that is still flourishing – cryptocurrencies. The financial world has gone through a mess of crazy ups and downs but if you take a look at cryptocurrencies, you’ll find them trending up like never before.
During trying times of volatile change, this seems to be the perfect financial vehicle to opt for in order to protect yourself against an uncertain future. Here are the few cryptocurrency trends to watch out for in 2020.
#1: Constant gaining momentum of cryptocurrencies
Probably the biggest trend in cryptocurrency to watch out for in 2020 is a constant upward direction. Amidst the Coronavirus crisis, this is the way cryptocurrencies are behaving in 2020 and are also going to behave in the near future. Did you know that cryptocurrency is considered to be much more secure than fiat currency? This is because it is private and is not backed by the government or the central bank. It is not even subject to hefty fees that are usually attached by financial institutions to conventional currencies.
#2: Increase in the number of new currencies
Besides the increased popularity of cryptocurrencies, people are gradually beginning to see the looming potential of these currencies in the market and are constantly creating new ones. 2009 had just one cryptocurrency – Bitcoin and now 9 years later, the number jumped to around 2,000! Currently, the number has doubled and there are around 5000 cryptocurrencies in the market.
New cryptocurrencies are appearing every day and the major platforms are adding new currencies all the time. Most of these currencies usually come and go and there are also some biggest hits. Compound, in June 2020, released a new cryptocurrency and this rocketed to a $2 billion valuation.
#3: Day trading of cryptocurrencies
The quarantine and lockdown that has resulted from this worldwide pandemic has led to a host of day traders all over the world. As per the Cove Markets, cryptocurrencies are especially luring to day traders for more than one reason. Traders always have access to markets and hence there are various cryptocurrencies to trade.
The biggest reason behind this staggering popularity is volatility. Day trading is all about gaining small profits within a very short span of time. The way the value of cryptocurrencies fluctuates; there are several opportunities for huge profits appearing within a short span of time. At the same time, there are chances of suffering from huge losses and hence day traders and investors have to be careful. Hence, do your research and choose the right coins.
Hence, cryptocurrencies are anonymous, secure, and free from government and financial regulations. Investors love all these factors about cryptocurrency and so do the criminals and identity thieves. Cryptocurrency has become popular with criminals and other organizations led by terrorists, thanks to the privacy features.