Trends that are Shaping the Cryptocurrency Market

Trends that are shaping the cryptocurrency market
Trends that are shaping the cryptocurrency market

One of the most common interests among those looking for a free trading course is to learn more about how the cryptocurrency market worksThis financial asset has been in fashion for a few years and, although some do not see its future very clear, it is undeniable that today it is giving much to talk about and is attracting the attention of experts and fans.

2020 and 2021 are being years in which, as a consequence of the pandemic, changes in market behavior and uncertainty are part of the new normal. Here we tell you how the situation is shaping the market for criptomonedas and you should pay attention if you want that these are part of your investment portfolio.

Quarantine and fear of contagion have caused the use of cash to plummet

Social distancing, the need to minimize contact and the fear of getting infected have meant that many of us have introduced significant changes in our lifestyles. When buying more online, when paying in stores with a debit/credit card or Bizum and even when avoiding taking money from the ATM so as not to have to touch the screens, the consequence that began at the beginning of the pandemic and is still continuing is that of that the use of cash falls and electronic transactions rise.

This new trend in the way of paying for products or services is a great opportunity for cryptocurrencies, whose real applications will multiply in the future, so that its profile would have an increasingly less speculative character. The greater the number of businesses and businesses that decide to accept cryptocurrencies as a means of payment, the greater their demand will be. In our online trading courses  we deal with the topic of virtual currencies and how this trend will benefit the value of their price .

Cryptocurrencies are no longer a niche asset

It is no longer just a few geeks who bet on investing in virtual currencies and using them for their online transactions. Its use is becoming more widespread and governments are creating more efficient regulations that, among other things, prevent its use for illicit activities, such as money laundering.

Another important piece of information that may make you think that the market will continue to grow and develop is the strong investments of the Chinese government in blockchain within its technological investment portfolio. Investment in virtual currencies as safe-haven assets for Latin American countries is also relevant.

The creation of digital currencies by countries and large corporations

China, the most populous country in the world and one of the most powerful economies, is known to have started to develop its own digital asset. In response, other countries have joined the debate and raised the need to create a central bank that regulates the use of national cryptocurrencies.

If this were the case, this would serve to remove entry barriers, such as those that Facebook’s pound has had to face.

Following the investigation opened by the European Union regarding the threats it posed to its monetary policy, it has suffered the loss of some of its most relevant support.

The improvement in privacy of blockchain technology 

In 2019 there have been numerous scandals due to the inappropriate use of user data by multinational companies such as Google or Facebook. On the other hand, the European Union itself has started a campaign in which it seeks to create a legal framework that improves users’ control over their information.

All these events have made us more aware of the importance of the data we share. This makes blockchain technology more valuable, since it allows transactions with greater privacy.

As you can see, observing these and other trends in the cryptocurrency market, you will be able to better understand how it evolves. However, if you want to know how to trade them safely, a  trading course can teach you to analyze the market in order to invest safely.