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July 21, 2021

3 Prevailing Cryptocurrency Trends in 2021



Crypto investors keep an eye on the ongoing trends in the market. These trends decide whether they should invest in a specific token or not. The crypto industry is quite volatile, thus making it tough for investors to put all their money in one coin. They have to diversify their portfolio so that they can at least make up with some other token if they incur losses in one coin.



With so many currencies coming into the picture, a newbie investor would find it confusing where to start. According to experts, the best way to survive in the crypto industry is to follow the prevailing trends. Gone are the days when you had to study the market first before investing. Now, you have to follow what veteran investors are doing and then get some knowledge about different currencies and their potential. Therefore, if you are new to this industry, here are a few trends you should pay close attention to.

1. Tax regulations on cryptocurrencies

As cryptocurrencies are becoming popular in many countries, governments are eyeing on revising their tax regulations for the crypto industry. And it's completely normal since you already pay taxes in whatever industry you go to. Whether you are buying food from the supermarket or clothes from an online store, you end up paying a small percentage of tax in every transaction.

Some countries have already levied crypto taxes in the form of transaction or swapping services. Jesus Is Alive tokens, for example, levies a 5% fee for every liquidity pairing on Pancake Swap. This currency allows you to hold the tokens, stake them, and earn more JIA tokens in the long run. But every transaction will come with a 5% liquidity pairing fee.

2. Improvement of risk assessment models

What do the experts have to say about the potential of different currencies? Are they always right with their predictions? What if they are not? Whom do you trust?

These are questions that flood your mind when you first take baby steps into the crypto industry. The anxiousness of not losing your money is so intense that you watch your back a hundred times. And that's where risk assessment models come to your rescue. They give you an idea about how the market will work for the day, week, and month. You can accordingly make decisions of whether or not to invest in a specific coin.

But these models are not always accurate like the predictions of experts. However, things have changed in 2021, thanks to the growing implementation of AI in the crypto industry. Artificial intelligence has the potential to crawl through millions of data and provide accurate reports of market conditions.

3. Transaction costs will change

As already mentioned, investors can expect to pay taxes for every crypto transaction. Additionally, the respective crypto company or exchange may impose additional transaction charges. They will eventually make each transaction slightly more expensive than before.

Keep these trends in mind before you invest in any virtual currency as they can have a massive impact on your investment decisions. Assess the pros and cons of investing in different coins before pooling your money into one or multiple tokens.



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