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9 Cryptocurrency trends to guide your investment strategy in 2019

The Bitcoin Whitepaper he turned 10 in 2018 and the revolution he brought has come a long way.

The concept of blockchain applied to finance has challenged central banks. Currently, banks control the world economy and can make money rain on who they want, where they want and when they want.

Blockchain and cryptocurrencies are creating a transparent distribution of money with fixed bidding, free from the economic manipulation of a few people at the helm of power.

This challenge to the status quo is not expected to be met by the operators of the current system. Everyone wants technological progress, but nobody wants to have less power than they had before progress.

This is one of the basic elements that block the adoption of cryptocurrencies by traditional financial institutions. In fact, this antagonism has helped trigger the trend of bears in the cryptic sector in 2018.

In fact, some encryption projects have been evaluated beyond the reasonable market valuation during the upward trend in 2017. However, the market has been trapped in a trap when most of the people who buy cryptocurrencies did it to earn money.

The downward trend of 2018 has shaken many people from the market. Some people have taken the opportunity to become smarter and to know more on what this new sector is. We are now witnessing a growing use of the term "buidl", which is a variant of hodl but means doing something to grow and develop the blockchain ecosystem.

Before seeing the trends that seem promising for 2019, let's consider the trends we all expected in 2018 and the reality that resulted.

Takeaways From 2018 Trends: Our Predictions and Reality

Our article from the beginning of 2018 we explained the trends we thought would develop in the course of the year. And while none of us was prepared for how intense this bear market would be, it's interesting to look at where we thought the crypt was headed.

Dapp platforms

The first trend mentioned concerned the platforms at first. We have witnessed the launch of some of the blockchain platforms with the potential to be "Ethereum assassins", such as Tron and EOS. The prediction stressed that it is still too early for the success of dapps, and indeed many of them will not work, but the underlying platforms will continue to function.

It is noteworthy that, while we expected ETH, NEO and EOS as active platforms in early 2018, the dynamic progress observed with Tron's main network, resulting dapps migrating to Tron from Ethereum, he slipped from us on the sides.

ICO missing

The second trend was the ICO mania, which had a fascinating trajectory over the course of the year.

ICOs have cooled, particularly in the second half of the year, due to the regulations of government agencies such as the SEC and the CFTC. These regulations are meant to protect investors from fraud, but they make things difficult for many cryptographic projects.

The predominance of Ethereum (as the first platform) for most of the year and the rejection of regulators was expected, with 70% of all the ICOs launched on Ethereum that led to the peak of the ETH price.

The ICOs on other platforms are also expected to increase, as well as the need to look at other fundraising media, such as the ICO pre-fund.

Debate on scalability

The third trend is the debate on scalability, which has continued to give its best in 2018.

With the bear market, questions have begun to crop up if these cryptographic projects are capable of what they claim. As expected, the Lightning Network had the spotlight, growing at a significant rate.

Other blockchains are also unveiling their scale plans, including sharding and the Update of Constantinople for Ethereum.

Security token offers

The fourth trend in security tokens did not really take off because regulatory compliance took much longer than expected.

Instead, we have seen stablecoins steal the show because the price volatility has made people craving cryptocurrencies with a stable value.

Ease of purchase of digital resources

The fifth expected trend was that the purchase of digital resources would become significantly simpler.

This really happened in the course of 2018, with platforms like Cashapp that allow people to buy bitcoins and even the "conservative" Coinbase that adds cryptocurrencies like 0x and BAT to their exchange, with plans to add even more.

In addition, some institutional investors have entered the OTC market, and there are more financial products linked to Bitcoin (like Bitcoin Futures) unlike before.

9 Forecast on cryptocurrencies for 2019

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<p>In general, the market has been very slow in 2018.</p>
<p><strong>Bitcoin</strong>, known to be very volatile, has shown some planarity periods during 2018, where the price of Bitcoin has barely changed for 12 hours or more.</p>
<p>The downward trend in the market has also hindered adoption, as there has been a great deal of bitterness towards cryptocurrencies on the part of people who have suffered serious losses.</p>
<p>There is a clear cause of this recent trend of bears that hit the market, which makes it difficult to predict what the market will bring back.</p>
<p>Knowing this, it is important to consider some trends that could gain traction in 2019.</p>
<h2><strong>Tendency n. 1: the trend of trading with cryptographic margin will decline</strong></h2>
<p>The trend of crypto trading has already suffered a severe blow in this 2018 bear market, with a lot of people losing a lot of money. Some traders have kept their earnings in Bitcoin, forgetting that Bitcoin is prone to a price drop, leaving many only a fraction of the value they have bought for.</p>
<p>In addition, many of those who cashed had to pay income tax on their earnings, leaving them to wonder why they bothered to invest in the first place.</p>
<p>This has greatly discouraged the trend of trading.</p>
<p>However, this does not mean the end of encryption. Some will continue to trade, having become wiser by market fluctuations; others will relegate trading when it is absolutely necessary.</p>
<p>This will result in tough competition between cryptographic exchanges as they seek to capture a significant slice of the market.</p>
<p>The usual volume of fiat and fiat-to-crypto exchange encryption may increase, but crypto-encrypted exchanges are unlikely to increase in volume and may experience lower trading volumes for most of the exchange. year.</p>
<p>If institutional investors (like the contemporaries of Yale, who has already invested in the cryptography industry) will come into play during 2019, they certainly will not keep their earnings in the crypt.</p>
<p>Thus, it is highly unlikely that they will trade or invest in any currency that does not trade directly with Fiat.</p>
<h2><strong>Tendency n. 2: price volatility will be low</strong></h2>
<p>In 2017, Bitcoin experienced strong price volatility that affected the entire cryptic industry.</p>
<p>In 2018, price volatility was thinner. Changes in prices over short periods of time were not significant. There were times when there were big price changes within 24 hours, but they were rather few.</p>
<p>This trend seems to be positioned to continue in 2019, as we will probably see greater price stability in the encrypted world than in previous years.</p>
<p>This is a good sign for institutional investors as they are more comfortable with steady growth than rapid fluctuations. Moreover, this is also good for user adoption, which is indeed the backbone of the growth of the industry.</p>
<h2><strong>Tendency n. 3: more institutional investors will arrive slowly throughout the year</strong></h2>
<p>Institutional investors are more careful not to lose money than they are willing to make money. Many of them take due diligence very seriously and are very gradual and cautious in their approach to investment.</p>
<p>Just like Anthony Pompliano, Morgan Creek's CEO tweeted:</p>
<blockquote class=

6 / Crypto investors ask "how much can we do?" and institutional investors ask "how much can we lose?"

In addition, institutional managers do not get any profit: there is no way for them to take more risks. He can lose his job if he loses $$ tho.

This is an important distinction

– Pomp 🌪 (@APPLANT) June 16, 2018

It will probably take years before the institutional money completely settles in the cryptic market, but the process is ready to see some momentum in 2019, driven by developments like the Bakken Bitcoin Futures.

There are signs already suggesting the gradual entry of institutional investors. Several financial companies are inventing various financial products for Bitcoin and other cryptocurrencies to facilitate investment by the institutions. This should not be considered as an automatic forerunner of an upward race, as they can sometimes short-circuit.

Tendency n. 4: news and events will stop being a big market

Trading news has been a lucrative adventure on the encrypted markets. Whenever there is speculation about a major event or news, the market usually responds.

The idea is to buy when the item starts and sell when the news is out, if the news or the event is good. For a bad news or an event, the goal is to sell soon and (maybe) buy again when the price has hit the bottom.

This trend may not be completely canceled in 2019, but it will be drastically reduced. The reason for this is because the market is wider.

Many speculative traders have already been burned in many trades. The majority of those who still possess significant amounts of cryptocurrency may not be willing to negotiate on the basis of news.

Moreover, observing the lesson from the trend of the 2018 bear, many experienced traders would be skeptical to negotiate on the basis of news and rumors. And new inexperienced traders will hardly get into encryption after the bloodbath experience in 2018.

Trend # 5: There will not be any massive travel

The market has yet to recover from the bear market. There were supports for Bitcoin at around $ 12k, $ 9k, $ 6.5k, $ 5k, $ 4k, $ 3.5k and they were all broken. Many have underestimated the low level of Bitcoin.

The bear market is not finished until the price goes up and refuses to go back down to where it was.

The slopes do not rise only after the strong tendencies of the bear market. As the famous saying of Wall Street recites, the bear leaps out the window but the bull climbs up the stairs. This means that bear markets are sudden while bull runs are gradual.

The massive bull run experienced in 2017 was an accumulation that was long.

However, there should be small bull runs within the year. They could be based on Bitcoin's ETF approvals or other bullish news, or they could be completely spontaneous.

Tendency n. 6: other projects will throw the towel

News of cryptography projects that call it cease has increased.

Recently, Basecoin has thrown in the towel and plans to return money to investors. This is due to regulatory requirements, as the currency will of course be classified as security. This is just one example of a budding project that went under, and it's far from the last we'll hear about.

Many projects have started ambitiously without a reality check, and now the bear market is slowly suffocating. Some are probably waiting for others, so they will not be the first to step down, but others will close before the bear trend changes. Some who are already trading exchanges, in 2019, will make minimal or no progress due to the injuries suffered.

A larger number of projects will throw in the towel as a result of the high regulatory compliance that applies to the classification as a security token and the lack of funds.

It is important to note that some will be saved by VC, some of which are already available raise money to help some cryptographic projects remain afloat.

Trend # 7: scalability will still be a problem

Scalability is still a problem in cryptocurrencies today, as they have not reached such speed as to make them valid competitors for centralized companies that deal with the transfer of funds.

For example, Ethereum is still stuck at 15 transactions per second. It is highly unlikely that Ethereum can be completely downsized in 2019, although it is expected that there will be a clear scheme and timing for its downsizing through sharding and Casper protocol.

It would be wise to give the platforms first a year more to understand a real solution to downsizing. Meanwhile, it is expected that the Lightning network will grow more and could reach full adoption in the course of the year.

Trend # 8: serious efforts towards a state cryptocurrency

The regulatory framework for cryptocurrencies is already taking shape in many parts of the world. This will lead to a gradual maturity of the cryptic industry.

However, the fascination of governments for industry could lead to serious efforts to establish various state cryptocurrencies. Russia already has expressed interest in the launch of their state cryptocurrency, the Cryptoruble, in 2019. And there is also the suspected cryptocurrency supported by the Venezuelan government, the Petro.

A full state cryptocurrency may not happen in 2019, but there will be serious efforts directed towards it. The launch of a state cryptocurrency will likely trigger a rush to the cryptography market, as more people will be forced to become active in cryptographic space.

Trend # 9: The Rise of Security Tokens

Once the regulatory framework has been clarified, cryptographic space will become useful for launching security tokens.

Security tokens have been slow in obtaining traction in crypto space due to regulatory uncertainty. However, studies have suggested security token offers are better fundraising models than the obsolete ODA and, once the uncertainties are resolved, in 2019 it could trigger an increase in security tokens.

Security tokens are by nature more favorable to cryptic investors, as purchased tokens are supported by an effective holding in the token-selling company. This is different from the current traditional tokens where tokens are a form of currency or carry a form of utility, and are not supported by any participation in the issuing company.

The crucial part of increasing security tokens is the battle of blockchain platforms. Some security tokens will be created on their own platforms, but most will use existing platforms. While the best platforms could enjoy a piece of the trend, a platform will probably stand out as the winner of the battle.

It is too early to hypothesize which platform will win such a battle.

Conclusion

2019 should be an exciting year for cryptocurrencies. The emphasis of the year will be on the construction and development of the industry to gain back the hype and rating that has enjoyed at the height of the market.

It is expected that the year 2019 will end with a higher evaluation of the encrypted market compared to the year in which it started. However, the difference in the assessment may not be much, and it may take a while before returning to the highs we saw in December 2017.

Every year in the field of cryptography brings at least an unexpected trend.

2019 will not be any different, as it is likely that the sector will evolve into an area to which little or no attention is currently being given. It could be in the mining sector, an exchange function, a different classification of coins, another use case for blockchain platforms, a type of viral will, or a blockchain narrative that triggers adoption.

What is certain is that the Crypto developments in 2019 It will certainly be exciting to watch.

These are informed forecasts based on our perceptions of the market, but they are only opinions – and as we have seen, the market has its own mind.

2019 requires cautious optimism; always remember to do your research.

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