When we talk about the cryptocurrency market, we should also focus on the best crypto trends that take place each year. Every new year there are different crypto trends to follow and that we should definitely pay close attention to.
A few years ago, we had the trend of privacy coins, then exchange coins, then DeFi coins, and so on. Understanding which is going to be the next trend is difficult. However, we are able to enter the market at the early stages of the following crypto trend.
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Crypto Trends to Follow Next Year
There were and there will be different cryptocurrency trends to follow in the future. Understanding which will be a future trend is something difficult to do. The following are just some examples of how different crypto trends have developed over the last few years.
You would find these trends useful to understand which future crypto trends to follow you can trade. At the same time, if you enter these trends relatively early, you would be able to generate profits if the market confirms the bullish momentum.
Exchange Tokens
One of the trends that we have seen was the one related to exchange tokens. Exchange tokens make reference to tokens that are native to crypto exchanges such as Binance Coin (BNB) or KuCoin Shares (KCS).
This trend appeared in 2018 and kept in 2019. Having a part of your portfolio in exchange tokens could have been a good idea. Nowadays, Binance Coin and KuCoin Shares, among others, are recognized currencies among the top 100.
Exchange tokens and their expansion have also been linked to the success of the underlying platform. Although not all the coins have succeeded as Binance Coin, they have been profitable for a long period of time.
DeFi Tokens
Decentralized Finance (DeFi) tokens have also been another trend in the cryptocurrency market. These tokens were created by DeFi platforms and investing in them early could have been a very positive thing for portfolio diversification.
Coins such as Uniswap (UNI) or PancakeSwap (CAKE), have expanded at very fast rates and reached massively high market valuations. Although there have been new coins created by DeFi platforms, entering in the early days of the space could have been a game-changer for many investors.
Nowadays, these are established tokens and they could continue growing as new users enter the DeFi market. Understanding future trends and investing in them early is key to success.
Privacy Coins
Privacy coins, as the name suggests, are those virtual currencies that aim at protecting users’ privacy when they send or receive transfers. Privacy coins became very useful a few years ago and they played a very important role in the cryptocurrency market.
Monero (XMR), ZCash (ZEC), Bitcoin Private (BTCP), PVIX and many other coins became very popular for several months. Nonetheless, not all of them expanded and remained at the top of the market. Only a few of them were able to keep until today as useful privacy tokens. Monero is one of these coins.
Network Tokens
Network tokens make reference to coins that are linked to blockchain networks. For example, we can think of Ethereum (ETH), NEO, Cardano (ADA), and recently Binance Coin (BNB), among others.
Some other coins were Tron (TRX) and EOS. Although some of them reached massively high prices, then they fell and lost their position in the market. It is also very important to know when to leave the market before it is too late.
Despite that, most of these network virtual currencies are still among the largest in the world. Few networks have fallen and disappeared from the top 100. The most prominent ones remain active.
Other Possibilities
There are many other possibilities. As we have seen in these examples, it is very important to enter early and leave the market as soon as the trend matures to avoid losses. Another trend has been one related to gaming tokens such as TETHA (TETHA) and Verasity (VRA). Both of these coins massively surged.
Understanding which will be future trends is definitely important if we want to generate income and make a profitable investment. In the coming years, there could be many other trends that would allow us to get exposure to virtual currencies.
