Trading on the forex market was once just for those on Wall Street and Brokers, but with the invention of the internet and technological advancements, cryptocurrency and buying and selling has become more accessible than ever. With a number of businesses and individuals making investments in this digital currency every day there are a number of 2020 trends that you should be looking out for. In this article, we will be providing you with insight into the cryptocurrency trends of 2020.
Decentralized Finances
One of the main benefits of Forex trading is that they are decentralized. At this time, decentralized finance projects are worth a vast amount of money, therefore there are many people looking to capitalize on this new form of finance. This is a trend that is set to revolutionize fintech with the potential of changing attitudes and behaviors in the future. This has also led to a number of financial firms during to crypto as it provides a better financial solution for many.
Live Trading Made Simple
In addition to the trend of decentralized finances, there is also the trend of trading platforms. These platforms are created with the intention of removing the element of risk. A number of platforms allow beginners to practice with dummy accounts to learn the market before trying their hand at live Forex trading and trading in cryptocurrencies. Though this is a process that does take time, generation Z is the age group that is mostly benefitting from this. This is also set to change as more and more platforms begin to implement artificial intelligence to aid in transactions.
Artificial intelligence in Crypto Trading
Generation Z is looking for a number of elements when choosing to trade online as they value their privacy and are looking to invest their money wisely. Because of this, dummy accounts and trading platforms are having to cater more to a group of tech-savvy investors. This is great for those trading on the Forex market as technological advancements are being made to ensure the best possible outcome, but with the implementation of artificial intelligence and deep learning algorithms, could this be hindering our investments rather than aiding them?
Many industry experts believe that whilst Ai and algorithms are helpful, it is advised to use them sparingly as the market is still vastly unpredictable and this can hinder investments. By using these as a guide as well as conducting your own research into the Forex market, you are more likely to make a well-rounded decision on the investment you are looking to make.
The Launch Of Libra
In June 2019 Facebook announced that they would be launching their very own cryptocurrency known as Libra, however, this was not well received by many who believe that the social media platform is already far too influential within its field. However, this was met by some who believe that the overall model of Libra makes it more stable than currencies such as Bitcoin.
But this announcement has also been met with a large amount of political backlash most notably from European countries that are skeptical of the practicality and ethics of Facebook’s currency. This, therefore, has bought attention to the regulations surrounding such digital currency and may even lead to a trend of sanctions on the industry that could harm the growth of online currencies such as this.
Ethereum 2.0
The final trend that is set to change crypto in 2020 is the introduction of Ethereum 2.0. Back when Ethereum launched in 2015 there was a plan to launch it in 4 clear stages. These four stages are as follows:
Frontier: The first build at launch
Homestead: This was a phase of building that took us into 2018.
Metropolis: This is the phase we are in at present and consists of two major changes in the form of Byzantium and Constantinople
Serenity: This is the final stage that takes us to Ethereum 2.0 a faster running software that is more secure and faster. This is in three phases that will range between 2019 – 2021 and will have a number of other solutions worked alongside them to create the final changes to Ethereum. This will mean the POS chain as well as other important features allowing the network to process a number of transactions all at once. These upgrades will, therefore, help to streamline processes and speed up cryptocurrency as a whole.
This is an ongoing trend that is likely to occur on Bitcoin and a number of other digital currencies as the need for increased security and faster transaction processing becomes more prominent. This is needed within the realm of digital currency as this then encourages competition to provide the best possible network to increase efficiency.
With this in mind, there are a number of trends that are set to completely revolutionize the industry in 2020 and could aid in the integration of these digital currencies into our everyday lives, meaning this is an interesting time for the community whether you are using digital currency at this time or not.
