reasons to trade crypto in 2020

Top 4 Reasons to Trade Cryptocurrencies in 2020

Although the cryptocurrency has still improvements to make, 2020 will be another year full of opportunities for people that will have the courage to invest. In case you are not yet sure that this year will provide plenty of new chances to get involved in cryptocurrencies, we’ve assembled a list of 4 reasons why you should do it.

#1 Volatility

Judging by the performance of the past 6 weeks, 2020 will be another very active year on the cryptocurrencies. There could be some downsides for trading altcoins, related to volatility, but we know that this is when opportunities emerge. Derivatives based on cryptocurrencies continue to show and even though Bitcoin is the only favored right now, Ether derivatives are poised to show up during H1 of this year. This means more institutions will be involved, contributing to growth and liquidity.

#2 New opportunities

Bitcoin halving, Ethereum 2.0 implementation, new altcoins to be launched, promising projects that have not yet reached their true potential, and these are just a few of the many opportunities that could show up. We must not forget, though, that cryptocurrencies are still highly speculative instruments, meaning they could be subject to sudden price increases or drops. However, if you know how to exchange crypto efficiently, you will be able to profit from short-term market moves and anticipate when the market is about to turn in the other direction.

#3 Regulation

Although institutions had been reticent to get involved in the cryptocurrency market due to regulatory concerns, things could take a more positive turn, given that governments around the world had already announced steps to regulate the industry. Things seem to be taking a positive direction, given that the market had already started a new expansion process, so public institutions will be more motivated to come out with clear rules for the market.

#4 High potential for growth

The cryptocurrency market is less than 12 years old, meaning the good things are due to show up in the future. Same as the internet, it could take at least 20 years until we see the true potential of the industry. In the meantime, we know for sure that the financial industry moves towards digitalization and cryptocurrencies might have a chance to prove their efficiency. In their current shape, though, it’s very unlikely, but the industry’s willingness to adapt is obvious. Potential is there, but people will need to find ways to exploit it and generate concrete economic advantages.