CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76.09% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

The vast majority of retail investor accounts lose money when trading CFDs.
76.09% of retail investor accounts lose money when trading CFDs with this provider.

A Year in Review: 2021 Hailed Crypto

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Author: Leon Marshall
Over the course of almost a year, the crypto market’s capitalization has more than doubled – from $776 billion to $1.56 trillion.

2021 is cryptosive

Over the course of almost a year, the crypto market’s capitalization has more than doubled – from $776 billion to $1.56 trillion. Even with market crashes, the year-to-date ROI is 101%;other major asset classes have not been able to match the crypto market in terms of growth rate. Another year has passed, and at this point, there is no question crypto is a bull market. 

Bitcoin and crypto on the loose and adopted

The first months of 2021 showed that Bitcoin is here to stay, as it was already heading even deeper into corporate land. Institutional investors have been capitalizing on BTC since the middle of last year. Major players such as Tesla, NEXON, Seetee AS, Aker AS, and  Meituhave become more involved in crypto, dedicating waterfalls of cash into getting coins. But that’s not all, as both private and public companies and hedge funds have been tapping into its supply. To that end, El Salvador became the first country to make Bitcoin legal tender in September. Ukraine and Bulgaria’s governments have followed through as well, with the latter being proclaimed as the second-largest holder after Satoshi Nakamoto in 2017.

Tesla itself later decided to sell $101 million’s worth of BTC due to the carbon footprint left by the proof-of-work protocol-based blockchain.

Until now, no major financial firms were seriously into crypto payments, but that is on its way to changing as well. Although the ‘bubble’ economy of crypto came by a few years back, sentiment has now changed. JP Morgan went from calling Bitcoin a fraud to planning a BTC fund. PayPal had previously announced it would allow crypto purchases and now it is even offering a crypto checkout service. Card conglomerates Visa and Mastercard have followed suit, announcing their own integrations with crypto. As demand increases, so do business opportunities.

The era of DeFi and NFTs has begun

Decentralized finance has been even more active this year than ever before, expanding its market cap from $15.89 billion to $56 billion – that’s over 250% growth just in the first half of the year. DeFi’s role as an alternative to traditional finance has not gone unnoticed, and it has continued to grow despite Ethereum’s scalability struggles. When Eth 2.0 is online, though, it should boost the sector’s performance even further.

With all of that happening, NFTs have also gained a spotlight. Both individuals and organizations are minting their own non-fungible tokens and spreading them out. Just like anyone who wants to have their own place, NFTs are a way to be the owner of a unique digital content piece that can come in any form. This technology’s development in the future is no doubt set to push the industry even further.

A festivity of projects

Blockchains, such as Decentraland, that rely on NFTs, dApps, and freedom in content creation and distribution have been emerging.

Solutions to the scalability trilemma with additional features like accessibility and ease of use have entered the top performers – as is the case with Solana. Energy-efficient alternatives to the proof-of-work protocol like Cardano are also aiming high and making their way ahead of the curve. Other approaches are more neutral – Polkadot and Avalanche, which have set themselves the goal of connecting blockchains into a single framework without affecting their operation. Even meme coins have taken a new stance with fresh entries that are standing their ground.

In the upcoming year, many other competitors will likely be entering the crypto market. Traders need to capitalize by being on top of the latest news while managing their portfolios with an appropriate strategy to minimize losses.

To prepare for what is to come, the most certain way is to pick a crypto exchange or brokerage that can provide you with the services and functionalities you need. Eightcap’s award-winning support service can boost your knowledge of classic platforms like MT4 and its descendant MT5. Enter the markets at low spreads and enjoy trading over 250+ crypto derivatives today.