What are the future trends of cryptocurrencies affecting trade and investments in 2021?

The cryptocurrency domain is growing exponentially with a total market capitalization of all cryptocurrencies exceeding $2.5 trillion, and the trends keep on changing. With Blockchain development skyrocketing, new cryptocurrencies will be launched in the coming years. It can be estimated that the total number of crypto users across the globe will successfully cross the mark of 300 million.

Will cryptocurrencies flourish in 2021, and beyond?

Apart from being highly volatile, cryptocurrencies have a potential future and there are higher chances that these virtual assets might find a way to become an effective means of payments for different types of purchases. Investment and Cryptocurrency trading in Kolkata is gaining pace and this form of trade and investment has the potential to have a big impact on the industry. However, the crypto industry is still developing and evolving at the same time, which is why it can be a bit difficult to predict much about the possibilities.

With crypto transactions gaining momentum, it is important to understand the socio-economic factors that intensified the adoption of cryptocurrencies across the world. Governments of different countries are likely to treat cryptocurrencies as an asset class, which will bring in the opportunity to get tax returns on crypto assets as well. After the crypto regulations are set in, there will be more transparency accountability on crypto trading platforms, which will help in monitoring cross-border transactions.

Popular crypto trends to continue in 2021 and beyond are –

·         Financial institutions adopting virtual assets

Despite the fundamental risks associated with cryptocurrencies, growth of the currency has grown three-folds. Different financial institutions are planning to do everything to allocate this virtual asset. For the adoption of the digital assets, new infrastructure is being built which will help the investors make most of the institutional-level custody services.

·         Increase in volume of stablecoins

In 2021 volume of stablecoins in circulation was increased by over 500% and the Dollar controlled stablecoins will rise along with Tether and USDC leading the market. Till date, stablecoins are holding ground firmly and are one of the trendy coins in the crypto ecosystem. There are several advantages of investing in Stablecoins, which is why more and more investors are in them to stay away from market volatility.

·         Change in transaction costs

This is an interesting trend to keep tab of in 2021, and it will be happening the multidirectional way. Due to innovative designs, Ether exchanges will get less costly, but Bitcoin exchanges might be ascending on costs. This change can influence the interest of traders in virtual assets at an astonishing rate.

·         Tax regulations

There can be introduction of tax regulations and these regulations might scale up due to increased adoption of cryptocurrencies from different countries across the planet. However, crypto regulations are quite ambiguous, but in 2021 there can be standard crypto regulations implemented which will be instated to govern cryptocurrency transactions and other investment activities.

The above were the top happening trends for crypto in 2021, and the regulatory bodies and crypto organizations are working in tandem to exploit the benefits that crypto has brought in. According to a Cryptocurrency exchange development service provider, cryptocurrencies are developing at a staggering rate and are acknowledged across the globe for the positive outcomes of every trade and investment with cryptocurrencies.