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5 Crypto Trends for 2023

Disclaimer: The text below is a press release and is not part of editorial content.

2022 has been a tough year for crypto, with the implosion of Terra Luna, Bitcoin losing half of its value and, of course, the collapse of FTX, which has repercussions for the whole world. ‘industry.

Analysts are divided about Bitcoin’s chances of recovery in 2023, but new blockchain-based coins and technological innovations are entering the market at an incredible rate and the crypto space will continue to grow in new directions.

Let’s take a look at some of the trends that are expected to dominate the market in the coming year.

1. Increased Crypto Regulation

There have been many more calls recently for tougher crypto regulation and they are louder than ever. These voices are now coming from all corners of the financial, judicial and government arenas, as well as consumer rights advocates, largely in direct response to the FTX debacle, which occurred due to overwhelming failures in the management , insufficient reserves and the limited scope of audits. As a result, in 2023 we are likely to see greater oversight, with tighter regulations in the crypto market and tougher enforcement in jurisdictions around the world.

2. More Central Bank Digital Currencies (CBDCs)

CBDCs have steadily grown in popularity, since the introduction of the Bahamian sand dollar in 2020 and the pilot launch of the Chinese digital yuan this time last year, which already has millions of users as well as billions of transaction volumes and is already available. in more than 20 major cities.

Expectations are high for the introduction of the CBDCs GBP, USD and EUR in 2023. Indeed, in Brussels at the beginning of November, Christine Lagarde President of the ECB, in a speech at the High Level Conference on the Digital Eurodeclared: “Our work on exploring the underlying rationale, potential benefits and risks, and fundamental design principles of a digital euro has progressed well. It’s not a race, but in fact, the Eurozone is at a relatively advanced stage in exploring a central bank digital currency (CBDC). »

3. Growth in Stablecoin investments

These have been turbulent times for crypto investments and one consequence of this in 2023 will likely be a focus on stablecoins as an increasing number of crypto investors seek a safe haven from the market volatility of cryptography. Stable coins are considered safer because they hold reserve assets as collateral and are pegged to currencies like the US dollar or the price of a commodity like gold. They can also use an algorithm to control the offer.

4. An increase in crypto arbitrage bot trading

Arbitrage is considered an exceptionally low-risk, automated investment strategy capable of generating consistent income regardless of the direction the market is moving, making it the perfect choice in today’s crypto climate.

It works by taking advantage of temporary price disparities between exchanges, which occur with equal regularity in bull and bear markets. An algorithm will scan multiple exchanges simultaneously, looking for instances where an asset is available at different prices at the same time. He will then buy the asset at the lower price and resell at the higher with a profit.

Mike Myers, Marketing Director of ArbiSmart (RBIS)popular EU authorized automated crypto-arbitrage platform, says: “Investors want predictability and profitability, and that’s what the right arbitrage service can provide. ArbiSmart offers up to 147% APY and lets you calculate the exact amount you will win, before making a deposit. It’s no surprise that with exorbitant returns, minimal exposure, and safe and stable passive profit arbitrage, it’s poised to become the fastest growing investment strategy of 2023.”

5. Rapid developments in DeFi

Decentralized finance, or DeFi for short, refers to a financial space that is not controlled by any single entity, without government interference or an intermediary bank, and all transactions are executed, using smart contracts in a public ledger.

The technology has taken off with new innovative features and applications all the time, but it is still in its infancy in many ways and decentralized financial products such as staking, loans, swaps, LPs and money farming yield, will see a dramatic increase in user penetration.

Additionally, we will also see many other twists on existing DeFi services, in the coming year. For example, in the first half of 2023, the ArbiSmart project mentioned above will add a DeFi protocol, with a yield production service with never-before-seen gamification features. The yield farmer will be able to use ArbiSmart NFTs with various game features to increase their profits through staking.

All of these trends for 2023 prove that even though crypto has had a tough 2022, the industry is constantly growing and evolving and the year ahead is going to present new, innovative and lucrative opportunities for seasoned investors and newcomers alike. the world of digital currency.

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