Do you want to choose a less risky and more profitable cryptocurrency out of the many available ones? Then the information about the trends in 2023 is more relevant than ever before.
I am sorry to disappoint you if you were sure that trends are only for the fashion industry. The trend is the main tool and helper of every cryptocurrency player. In this article, you will get to know what trends are and what you should pay attention to in the year 2023 in order not only to have fun but also to make money.
It will also be useful for you to learn more about crypto projects. For example, you can read about Blocto here https://chainbroker.io/projects/blocto/. There are other projects on Chain Broker’s website that deserve attention.
What Is a Trend?
The trend is the direction of the price of the subject. And depending on the line of trend, there are three different types of trends:
- Uptrend. This is a sequence of higher peaks and troughs. This means that each local increase is higher than the previous one.
- Downward. It’s the opposite. The peaks tend to be lower.
- Side. It can also be called a channel. That is when the price does not have a clear direction. It is a good assistant for traders because usually after such a calm the prices jump strongly and you can make a good profit.
You can go to a trader, or you can do it on your own by gathering information about it. This means that you can make several successful trades if you know when the price of crypto goes up and when it goes down.
How to determine the trend?
The methods traders use to determine the type of trend:
- Analysis of performance indicators. The important criteria are the positive results of the enterprise, the stability of the development of the industry, and the rise of the global or local economy.
- Technical analysis. Here, trend lines and trend indicators are helpful. Trend lines are used to identify upward trends, downward trends, and sideways trends. And with the help of indicators, we can determine the strength and reversal of the trend, local price highs and lows, and the price trend. There are several types of indicators. Each of them has its function.
- Volumetric analysis. As a trend develops, we may observe a steady increase in volume or price. On the other hand, a sharp increase in price or decrease in volume may indicate the end of a trend.
Ideally, it is better to use a combination of methods to determine the trend. This will give you a more complete picture.
Top Trends in Cryptocurrency in 2023
Finally, we come to the most important and exciting topic of this article. This information will benefit not only traders but also those players who have decided to find out for themselves. So, below are the main trends at the moment.
DEX Development Leap
Today, more and more users prefer decentralized exchanges over centralized ones. Why is that? The answer is simple. Anonymity and security. Decentralized exchanges do not have control over transactions and do not store players’ funds on platforms. In other words, trading is done using smart contracts. This is a contract between two sides. When it’s completed, the funds are transferred to the account of the executor of the order.
Also, the main advantage is that the funds are not kept on the platform. This means that traders’ funds are in their accounts and they are not at risk of losing their funds because of hacking into the platform. In conclusion, decentralization is not so much about the anonymity of transactions, but rather about the security of the trader.
Play to Earn and Metaverse
Another major trend of 2023, will last more than a year. This sector represents access to blockchain games. Why is it popular? It is because the time of “play to earn” has arrived. Now more and more people want to create their virtual worlds. They want to develop them and earn money. How can you earn money in such a game? There are rewards for completing tasks and quests in the game. For example, you get tokens or coins, and you already have the right to exchange them for real money. Of course, the cryptocurrency market is a very unstable thing. But if you like this way of earning on crypto, then it’s worth the risk.
Strengthening Strict Attitudes Towards Cryptocurrencies
Regulators are more focused on how to protect crypto investors from such hacking and abuse situations after the FTX collapse. That is, to get rid of the problems and reduce the risks as much as possible, they plan to introduce stricter rules for cryptocurrency companies. With such rules, regulators will try to ensure the safety of investors, make cryptocurrencies transparent, and control the reserves and funds in the accounts of centralized platforms. You will know what changes the increased regulation will bring in the future. In the meantime, stay tuned to the exchange of your choice.
The number of crypto traders is growing every year. And this is despite the restrictions that appear and fraud among some companies. Many organizations are testing and implementing smart contracts. They develop loyalty programs based on NFT. Cryptographic features are gradually being introduced in social networks. And millions of new players will enter the exchange if even a small percentage of users of these social networks become interested in cryptocurrencies. We can only hope that the development of cryptocurrency exchanges will be a continuous process and that this will not be the last innovation their users will encounter.
Cryptocurrency is a complex process that needs to be well understood before investing. It is a regularly changing creature whose changes depend less on the developers and more on the users and the government. But even government restrictions don’t stop companies from evolving.
On the contrary, they find ways to meet the needs of their players. They are trying to make the transaction process safer and more interesting. For example, by adding a gaming component or cryptographic features to social networks. By the way, many game fans are rushing into the virtual worlds of cryptocurrency to get two things they need: a game and earning money.
If you wanted to experiment with crypto, you chose the right time. While there is still a Bear period and prices are not rising, you have the opportunity to buy the currency you are interested in. As the exchange is completely non-profit, the Bear period may be replaced by a Bull period and prices will rise again. Seize the moment.
Also Read: A Guide for Buying Your First Cryptocurrency