Cryptocurrencies have been around us for such a long time that we’re already used to their virtual, i.e., cryptic existence. The things around them are almost the same as they were about ten years ago. They still aren’t issued by any government or distributed and controlled by the banks.
But what changed for sure is that the crypto market grows and changes constantly. While Bitcoin is still the most popular and most valuable currency, there are many other currencies like Ethereum, Litecoin, Tether, etc. Some say that thousands of cryptos appear daily, but many simply “die” in the process.
Also, the Bitcoin price fluctuates daily, making it pretty volatile, but still the most wanted among them all. Surely, the other currencies are volatile, too, but not as much as BTC.
Another important thing is trading.
So, let’s remind you a few things before taking a look at how trading has changed through the years.
What is Crypto Trading (in a Nutshell)?
Let’s imagine that the whole market is a digital marketplace to buy and sell cryptocurrencies. The action of trading cryptocurrencies for other cryptocurrencies, fiat currencies, and values is known as crypto trading. People use platforms known as exchanges to convert their crypto assets to real money and withdraw them.
In general, trading is buying cryptos at their lowest and trying to sell them at high price values.
But that also means the trader should follow the trends, speculations, news, technical analyses, and their own gut.
The key thing to remember is that the crypto prices swing daily, making the market pretty volatile. In many countries, cryptocurrencies aren’t regulated because no central authority controls this financial ecosystem. And finally, new systems like the “Immediate Edge” App appear daily, making it difficult to keep track of the events.
How Things Changed in Crypto Trading in the Last Decade?
The last decade was literally wild for cryptocurrencies. The prices changed from the lowest to the highest, and we developed complex ecosystems. The whole market is still evolving.
As we said, that makes it difficult for crypto enthusiasts to track the progress and make informed decisions. But we must note that there are so many investors and traders who are highly dedicated to earning money at the right moment by selling their crypto assets through exchanges.
From Simple Speculation to Diverse Ecosystem
Initially, Bitcoin dominated this market, but now, we have a whole DeFi system (decentralized finance system) that is based on blockchain. In the past, people were making decisions based on price speculations.
But the DeFi growth and development created ideal conditions for new blockchain applications, protocols, and platforms that make trading easier for everyone.
As expected, the market expanded, and the number of cryptocurrencies is growing every day. Sadly, some cryptocurrencies disappear as they appear because the competition is huge, and sometimes it’s not possible to keep the step up with the giants.
Mature Infrastructure and Tools
The market expansion means the infrastructure must be better so the crypto traders can be protected from suspicious activities.
Many trading platforms appeared, but not most of them were good or worth downloading. Some of them had security issues, and they also “died” the same way as the least popular cryptocurrencies. But today’s trading platforms are advanced and well-maintained, so the risks for cyber attacks are really low.
Investment options also changed. Options like derivatives, margin trading, and lending protocols have emerged, offering various risk-reward profiles and attracting institutional investors.
Also, many decisions traders make are made based on data and analysis. So, the crypto market is not a mystery anymore, especially when plenty of people already understand the technical insights and indicators.
Regulatory Shifts and Institutional Recognition
When cryptocurrencies appeared, they weren’t regulated. But there are some frameworks that may include crypto regulations as much as possible. Still, the market evolves daily, which means it’s not quite possible to immediately come up with a solution and bring legitimacy to the industry.
Some traditional financial institutions monitor trends and the market so they can use the concepts and offer similar services to users. That means they recognize the potential and probably will find a way to make the crypto money part of the traditional economy.
Emerging Trends and Challenges
Things won’t go easy for the institutions that want to recognize cryptocurrencies. The owners and founders aren’t ready to uncover the secrets behind their success, so some central banks decided to launch pilot projects related to government-backed digital currencies. They expect integration with existing cryptocurrencies, but we still need to see if it would be successful as a project or idea.
Surely, there are always some ways to make the market scalable and sustainable, removing all the concerns related to scams and security.
Trading is a huge part of the crypto market, so it’s expected that things should be done to protect the traders and make the whole idea around cryptocurrencies easier to digest for everyone.
Final Thoughts
As we already said, the past decade was wild for crypto trading. So many exchanges and trading platforms appeared and disappeared from the market. Volatility is still the same, but the crypto industry is more diverse and never stops developing.
So, what does it mean for today’s traders?
Here’s a simple summary of what we know so far:
- Bitcoin is still the most popular, but also the most volatile cryptocurrencies
- Some trends disappear as quickly as they appeared in first place
- You must choose a trusted trading platform that keeps your assets secure
- Always trade when you think it’s best for you
- Keep up with the news and industry trends
- Always check on what the biggest names in the industry are doing
- Choose currencies that you understand so trading can be easier for you
- Things are changing at a rapid speed, so sometimes you’ll miss important things
Also, as a trader, you need to embrace sophisticated tools and accept the fact that institutional involvement will probably happen sooner than we expect.
It doesn’t mean a lot, but security concerns and mainstream adoption will become common for the market, not an exception, as we are used to now.