What Are the Top Cryptocurrency Trends of 2018?

The Top Cryptocurrency Trends of 2018

Cryptocurrency has been one of the most talked about topics in the financial world in recent years, and 2018 has been no exception. As an expert in this field, I am here to share with you some of the topcryptocurrency trendsof 2018, and what they mean for investors and traders.

1. Increased institutional interest

One of the biggest trends of 2018 has been the increased interest frominstitutional investorsin the cryptocurrency market. This has been driven by a number of factors, including the growing acceptance of cryptocurrency as a legitimate asset class, the rise of regulated cryptocurrency exchanges, and the launch of new investment vehicles such as Bitcoin futures contracts.

2. Growing use ofstablecoins

Another trend that has emerged in 2018 is the growing use of stablecoins. These are cryptocurrencies that are designed to maintain a stable value, often by being pegged to a fiat currency such as the US dollar. Stablecoins offer some of the benefits of cryptocurrencies, such as fast and low-cost transactions, while avoiding the volatility that can make other cryptocurrencies a risky investment.

3. Increasedregulatory scrutiny

As the cryptocurrency market has grown, it has come under increasing regulatory scrutiny. Governments and financial regulators around the world are grappling with how to regulate this new asset class, with some countries taking a more cautious approach than others. This regulatory uncertainty has caused some investors and traders to be cautious about entering the market.

4. Emergence ofdecentralized exchanges

Decentralized exchanges (DEXs) have also emerged as a trend in 2018. These are exchanges that operate on a blockchain, allowing users to trade cryptocurrencies without the need for a central authority. DEXs offer some advantages over centralized exchanges, such as greater security and privacy, but they are still in the early stages of development and have yet to gain widespread adoption.

5. Increased competition among exchanges

The cryptocurrency exchange market has become increasingly competitive in 2018, with new exchanges launching and existing exchanges expanding their offerings. Some of the largest exchanges, such as Binance and Coinbase, have seen their trading volumes surge in 2018, while others have struggled to keep up. Investors and traders should carefully consider the reputation, security, and fees of any exchange they use.

Tips for cryptocurrency trading

If you are considering investing in cryptocurrency, there are a few important factors to keep in mind. Firstly, it is important to do your own research and understand the risks involved. Cryptocurrency is a highly volatile asset class, and prices can fluctuate rapidly. Secondly, it is important to choose a reputable exchange that offers secure storage for your coins. Finally, you should consider diversifying your portfolio to reduce your risk exposure.

In conclusion, the cryptocurrency market has seen a number of trends emerge in 2018, from increased institutional interest to the growing use of stablecoins. While there are risks involved in investing in cryptocurrency, there are also opportunities for those who are willing to do their research and take a cautious approach.