Since its discovery in 2009, Bitcoin has become a worldwide phenomenon that inspired countless of crypto coins in different forms to follow. Bitcoin has become the forerunner of a new generation of cryptocurrency or digital currency. Cryptocurrency functions on blockchain technology that includes digital ledgers to confirm and verify transactions.
Throughout the years, the cryptocurrency phenomenon has experienced both highs and lows in regards to its value, security features, and return of income or ROI levels. Many of which are listed in sites like the Coin offering. If you are interested in investing crypto coins in 2019 or are still wondering whether it’s worth pursuing, read to find out more about them.
Here are some trends to expect this year:
1. Increased Demand for Security Token Offerings
Throughout the years of its existence, countless of institutional investors have expressed their favor and distaste for crypto coins. Whether it’s due to lack of centralized distribution or the fact that cryptocurrencies attract a lot of fraudulent scams, many experts have made an investment in making sure these factors no longer become a problem for traditional traders.
A big part of the financial technology industry are the company projects and digital innovations. Initial Coin Offering or ICO is one of the ways you can fund a company akin to an Initial Public Offering or IPO. ICOs give out cryptocurrency or their own company’s currency or coin, in exchange for monetary support in their projects.
In 2019, with financial regulators endorsing the focus on Security Token Offerings, this can result in an increased number of institutionalized investors to take interest in the cryptocurrency market. Security Token Offerings or STOs are said to take over while sharing similar in function, these two offerings also share varying differences which include:
- STOs being backed by company shares, dividends, and investor benefits
- STOs needing to be regulated by the Securities and Exchange Commission or SEC for traders in the United States
- STOs have limited exchange platforms for SEC compared to ICOs
- STO as a solution to ICOs since the latter is becoming more susceptible to scams
While both ICOs and STOs have advantages and disadvantages, the necessity for security has increased over the years since the number of ICO scams has increased gradually especially in 2017. Considering that STOs are recognized by financial regulations, it’s only a matter of time until they completely replace ICOs as better investments for everyone involved. In 2019, more people are looking into STOs.
2. Increased interest in Ripple
Unlike other crypto coins like Bitcoin and Ethereum, Ripple or XRP is a coin that also functions as a payment system that can be used by financial institutions like banks to transfer funds locally and internationally. Additionally, this crypto coin/payment system hybrid does not require third parties to verify which allows easier peer-to-peer transactions.
Ripple products like xRapid and RippleNet are going to play key roles in its value in 2019. Since Ripple is getting more active with partnerships and institutions, it will gain traction in the coming year. The demand for Ripple will surely increase, making it one of the predicted best coins to invest in this year.
3. Increased number of educational resources
Aside from security measures, countless experts may invest in providing more educational resource materials for the masses in an effort to bring in more budding investors in the market. With various of channels become readily available, expect an increasing number of webinars, online seminars, and easy-to-follow tutorials for young adults who are slowly gaining interest in the cryptocurrency industry.
Additionally, users can also expect communication platforms, increasing online communities, and the development of several new mobile trading platforms which allow traders to manage their account and keep in touch with the market on-the-go.
4. Low price volatility
In 2017, Bitcoin suffered a price volatility when its price dropped dramatically low and then soared to great heights within a matter of weeks. Considering that many investors have lost a significant amount of profit within that period, it’s safe to say that the year following after the crash left some investors feeling jaded.
However, since 2018, the changes of prices between crypto coins were subtle and not as volatile as the year prior, signalling that Bitcoin as well as other crypto coins has since stabilized after several institutions have accepted it as a form of payment. In 2019, investors can expect the same subtle changes but this time with less volatility than before since various measures are being implemented to secure investors from fraudulent activity.
5. The rise of stable coins
Stablecoins are digital coins that can be used as hedging tools against the potential decline of an underlying cryptocurrency. Generally speaking, they are dubbed to a fiat currency as a representation and are used to stabilize the potential volatility these assets present by backing it up with real assets. Some of which include:
- Bank account statements
- Foreign currencies
- Sometimes precious metals like gold
While stable coins are not crypto coins themselves, they can serve as a bridge between crypto and fiat currency by acting as a collateral that cushions tense market conditions. Considering that there are still problems in tokenizing digital coins, stable coins will work as a buffer which can potentially lead to something greater.
6. Increased investment in blockchain technology
With several security changes currently on the way, companies as well as other coin generators will need to invest in vast technological innovations to improve their blockchain technologies. This is to ensure that each transaction as well as the coin’s overall history remains transparent but become less susceptible to fraud and third-party tampering.
With so many ideas being tossed around, expect hybrid coins to emerge which may include the fundamentals of blockchain technology but with stricter regulation principles. To make sure that you are making the most out of your investment, consider researching on up-and-coming STOs this year while also at least including some of the most popular coins in your wallet.
Throughout the years, cryptocurrency has brought both opportunities and risks that investors may encounter. However, since 2018, proposals have been made to ensure that investing in cryptocurrencies becomes safer for everyone involved. This includes adding laws, regulation, and other measures to prevent fraud. While the year is just starting, there is no doubt that 2019 will bring more opportunities than ever. Nevertheless, investors are still encouraged to research their potential coins just to be safe.