Trends to Watch in Crypto for 2021 and Beyond

News | July 8, 2021 By:

If you’re new to crypto, then you’re probably wondering what the heck is going on in 2021. It seems like the rise of major cryptocurrencies and new digital asset systems are changing the way we look at finances as we know it. For the most part, we know that crypto is no longer a trend itself. The market is here to stay, but the latest trends within crypto are well worth watching.

When we think about trends in crypto, a few key themes are important to watch. From the newly popular NFT craze to regulations and new forms of investing, it’s important to keep a watchful eye on the major upgrades, expansions, and even downfalls expected to come to crypto in 2021. Even if you’re a little unsure of what cryptocurrencies are, these will help ease you into this wild financial world.  Here are the top trends to watch for this year and beyond.

The Rise of NFTs and a Big Push for Crypto

NFTs, or Non Fungible Tokens, are a huge craze in the world of arts collecting. From actual digital artworks to albums and video game characters, there are a ton of new NFT opportunities in which to invest. The interesting intersection here is that almost all NFT trading is taking place within the crypto market.

Bitcoin and other popular cryptocurrencies are often mistaken for being NFTs themselves, but that’s not how it works. The easy explanation for NFTs is that these works are part of the Ethereum blockchain (which we’ll discuss later) and serve as certifiable ownership claims over digital works of art. In theory, these will open up a new market for the arts within the expanded digital space. Keep an eye out on how these crypto-adjacent assets grow in 2021.

Get to Know Stablecoins

Stablecoins, or cryptocurrencies tied to the value of another resource like gold or a national currency like the US Dollar are growing too. While these are not going to yield the wild gains of an up-and-coming cryptocurrency, they can be wildly advantageous over the long run. Plus, they come with less volatility than other cryptocurrencies because they correspond to a more stable, reliable asset. 

Investing in these might be a good idea if you’re looking to diversify your portfolio within the crypto market but hoping to find less risk. In the world of crypto, however, there’s always a little bit of mystery involved in your returns!

ETH and Ethereum Will Be Bitcoin Hot

In 2021, the crypto making the most headlines that’s NOT Bitcoin is certainly Ether. That’s because it’s the native crypto of Ethereum, a major blockchain that’s responsible for both DeFi and the NFT market. The major work to expand Ethereum is already underway and a lot of people are predicting that ETH could reach all time highs this year. What do we need to see for that to happen?

Well for starters, it’s going to likely have a lot to do how long it takes for the upgrade of Eth2 to finish. When things run smoothly, the market tends to favor Ether in a big way. It’s still a fraction of Bitcoin’s value, but hitting a surge of over $2,000 is not out of the picture. The diehard ETH fans will tell you that they don’t want to stop at that value, with some predicting something near $9,000 being possible in the future. Getting in now could mean huge things for your financial future, so don’t sleep on Ethereum and its progress in 2021.

Regulation is On the Way

There’s very little doubt in people’s minds that regulation is coming to the world of cryptocurrency sometime in 2021. The U.S. Treasury is especially interested in finding a way for the IRS to monitor crypto more closely. 

Other countries like India could outright ban trading of cryptocurrency, as indicated by some lawmakers’ wishes in these nations. While we have no clue what will come to the market in terms of new rules and restrictions, we know the talk around new regulations is too strong to ignore. Be sure to follow the latest news in your country and ensure you’re keeping up with new expectations for trading. 

Be Ready for Anything

As anyone relatively in the know when it comes to cryptocurrency can tell you, trends are usually here and gone before we know it. The real trick to working within the world of crypto successfully is being ready for anything. 

Sure, we know what’s gaining traction and what experts are predicting. The fact of the matter is that many predictions about crypto turn out to be wrong. Almost 95% of predictions about end of year price changes end up being incorrect. That doesn’t mean to avoid the crypto markets. All it indicates is that smart investors will know to roll with the punches rather than guess when they’re coming. That goes for striking gold as well.

The best way to master the world of cryptocurrency is to keep up to date on all the trends you can. Crypto is very much the future of money, so watch closely and follow the latest trends to find major success in 2021 and beyond.