The year 2022 wasn’t great for cryptocurrency. It was marked by bankruptcies, some controversies, and some cryptos becoming completely worthless. Many investors were caught off-guard by the events of 2022, and you don’t want that to happen to you. This article will take a look at 9 of the most important things you should know about crypto in 2023 to make this year better!
One of the biggest perks of cryptocurrency is the fact that there’s very little regulation. Experts agree that 2023 will be the year when regulatory bodies are going to insist on harsh regulations, and the crypto community will fight against them. The crypto community will try and keep crypto decentralized as much as possible.
Cryptocurrency has always been marked by its volatility. In 2022, for example, more than 70% of the value of Bitcoin was lost. According to various experts, the trend of validity will continue in 2023. Some believe that cryptocurrencies will reach new all-time high levels, but this will likely not be without some rocky roads along the way.
3. Growth in 2023
Even though cryptocurrency is volatile, there’s no denying that it’s grown substantially over the last few years. In fact, upon closer analysis, you’ll see steady growth year after year. All the experts agree that this trend will continue in 2023, even after having such a bad year in 2022.
The biggest growth will be in currencies like Bitcoin and Ethereum, which have shown the most growth over the last few years. If you take a look at online institutions, there is a growing number of establishments offering cryptocurrency payment methods for various transactions, and this trend will continue to grow.
Even during the lowest times for crypto in 2022, there were still plenty of investments in NFT funding. This likely means that, regardless of the risk, brands will continue to make NFT investments.
5. The End of Bitcoin?
With Bitcoin losing so much of its value in 2023, it may seem like it could be the end for this currency. Experts agree, however, that this won’t be the case. A prediction of 500 million people worldwide will own Bitcoin by the end part of 2023, pushing up the value of the token.
6. A Move to Decentralized Finance
Decentralized Finance (DeFi) and b (DAO) will see the biggest growth in the crypto markets. These aim to create a financial platform without the middleman.
At the end of 2022, there was a lot of skepticism surrounding traditional financial markets, and some predicted an economic crash imminent in 2023. Because of this, many people are starting to move to DeFi and DOA for security.
7. Meme Coins Are Bust
Dogecoin, which is based on the Shiba Inu meme, climbed substantially in its initial phases but lost most of its value. Similarly, Squid, which is based on the popular Netflix show Squid Game, jumped up to 75,000 times its initial value in less than one week but disappeared quickly thereafter. If you’re investing in crypto, meme coins aren’t the place to risk your money.
While entrepreneurs like Elon Musk and Jack Dorsey remain skeptical, there’s a call for the decentralization of social media platforms and other aspects of the internet, along with the incorporation of blockchain and the use of NFTs.
9. Ether Is Where It’s At
In 2021, Ether outperformed Bitcoin. In the same year, Bitcoin climbed 66%, while Ether climbed 418%. Experts agree that this will likely happen again in 2023, largely based on the popularity of NFTs, although it’s hard to predict how much Ether will outperform Bitcoin.
Keep in mind that trading with crypto is a game of patience. This is a long-term investment, especially due to its volatility. To be truly lucrative, you have to ride the waves as they come.
Predictions for the future are largely based on what happened in the past. These 10 aspects are important to keep in mind when you’re trading cryptocurrency, whether you’ve been in the market for a while, or just starting out.