How Far Can Crypto Go?

By the end of 2020, amid a global economic downturn and signs of hope with a Coronavirus vaccine, cryptocurrencies were looming on the horizon with an escalation in their prices. Bitcoin crossed the $20,000 barrier at the end of 2020, and now in 2021 it has broken the $46,000 barrier as well. This has made the beginning of 2021 the best start for Bitcoin and other cryptocurrencies to date.

Elon Musk even tweeted that Bitcoin is the future of currencies on earth, and that Tesla has already bought 10% of the value of shares in Bitcoin, planning to accept Bitcoin as payment.

Bitcoin has sparked the interest of investors and Fortune 500 companies in cryptocurrencies trading, with the main ones being Bitcoin and Ethereum, as a means to achieving crazy gains. The question remains: How much further can cryptocurrencies go in 2021?

We have all seen what Bitcoin is capable of in less than 3 months, passing the barrier of $45,000. Ethereum as well has jumped from $450 at the end of 2020 to over $1700 currently in 2021.

DeFi is the future

DeFi projects are the largest field in cryptocurrency economy as of now, exhibiting the potential of effectively moving from the current financial system to a digital one. With the proven success of DeFi as a financial services system and as smart contracts, it is inevitable that the financial transformation is going to come as soon as possible.

DeFi started in 2020 with a total value of $683.35 million and is now up to $67.11 billion. Can you imagine these crazy growth dimensions?

DeFi aims at providing smart solutions, which the traditional financial system isn’t able to, through multiple apps and projects related to investment, lending, insurance, etc. It is only a matter of time until government and private institutions start supporting these financial bodies and legalizing the digital transition process.

It is expected that once investment funds are approved for cryptocurrency ETFs, they will be considered a new start for cryptocurrencies, as many investors will inevitably begin to participate in this trade venue. Thus, a significant rise in the prices of cryptocurrencies and greater support for them is also expected in 2021.

What about ETH in 2021?

ETH started 2021 at about $740, and is now crossing the $1,600 barrier, still on an upward trend.

This is very promising for Ethereum, as it is the primary platform for smart contracts and the base for dapps, so its continued rise is highly anticipated, especially with the launch of ETH V2.0.

What about Bitcoin in 2021?

Bitcoin started the year 2021 with a fabulous price of $40,000. The currency has received support from major investors, such as Tesla’s founder Elon Musk.

Major financial providers such as Square, PayPal, Master Card and Visa are already working on adding payment options via cryptocurrencies, which is driving the digital transformation forward strongly.

By the end of 2021, a significant rise in Bitcoin’s value is expected, especially if investment funds for cryptocurrency ETFs are approved, which will allow major investors to enter the world of crypto currencies.

As a new trader, what is the best way for you to enter cryptocurrencies?

You must first spend some time to learn how to identify and understand the nature of cryptocurrencies, the basics of DeFi, and the ideal solutions provided by these projects – as well as other new concepts that you should be aware of. Cryptocurrencies and DeFi are on the rise, so now is the time to catch up with this wave.

Also, CFDs are useful tools for beginners who can start with an average amount of capital.

The year 2021 may witness astonishing development in crypto currencies and DeFi, as well as provide ideal solutions for the transformation of the financial system into a digital one. You will surely witness this, so spare no time to learn and take advantage of it.

Related Posts

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.