Despite all the negative headlines, cryptocurrencies remain popular assets among both institutions and retail traders. 2021 has been another record-breaking year for the industry, as digital asset adoption accelerated even further. As the year comes to a close, the big question remains whether the market can be resilient in 2022, given elevated valuations were not supported in the past, on the back of increasing uncertainty and volatility.
2021 – a year for new milestones in the crypto space
Bitcoin is trading above $63,000 at the time of writing, after recently reaching new all-time highs. Some optimistic projections point to a new milestone close to $100,000 by year-end, a possible scenario given seasonality favors the crypto market during November and December.
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Ether remains the second-biggest cryptocurrency in the world and now that it trades above $4,400, investors and traders still show trust in the project. Positive developments can be spotted across the broad altcoins market. The aggregate crypto market capitalization exceeds $2.6 trillion today, and projects like Solana, SHIBA INU, Terra, or Uniswap are now holding large market shares.
2022 – can the market continue higher?
The current positive sentiment is elevating expectations among retail traders for the rest of the year and for 2022, but as the past has shown, this is a very volatile industry and the possibility of a sharp pullback should not be overlooked. Since Bitcoin was established, the market has been edging higher in 4-years cycles, something that might not change.
That is why crypto has been a leading asset group in 2020 and 2021, but that might also be why 2022 could see diminishing returns and weakening momentum.
Cryptos favored by a more diverse trading infrastructure
It has never been so affordable to take advantage of cryptocurrency prices. Derivatives supported by large brokerages such as TRADE.com provide traders with CFDs tracking the underlying assets. It is possible to use advanced trading software and fast execution, two critical requirements in one of the most volatile markets today.
With this broker, spreads are tight and the overall costs are advantageous. Actually, TRADE.com’s fees are very competitive, something traders should keep an eye on, especially as it covers CFDs on cryptocurrencies like Bitcoin, Ether, Bitcoin Cash, and Litecoin.
WebTrader is a trading platform designed by TRADE.com, providing professional fund management, and efficient trading tools such as Trading Central and Events & Trade. Using it, customers have access to over 2,100 CFDs and can manage their accounts without any installation required.
Trading crypto CFDs with TRADE.com is safe and regulated, given the broker has multi-jurisdictional regulatory compliance. That is a major competitive advantage, now that popular cryptocurrency exchanges continue to operate off-shore.
Digital assets are part of the financial future and the wider public needs to have access to it, without any security or trust concerns. With TRADE.com that can be achieved, regardless of whether cryptocurrencies continue to go up. The upside bias is vulnerable when the market takes a downside turn, which is why with CFDs, it is possible to short-sell when the bearish sentiment prevails.