It has been a few days since we entered 2021 and the cryptocurrency market continues its rally. The very first selection of top coins to watch this year is again topped by the most popular and most established cryptocurrency, but while often staying in the shadow of Bitcoin and Ethereum, other projects are also making significant progress by deploying new features.
1. Bitcoin (BTC)
Although we believe Bitcoin does not need much introduction and that all eyes would be on it even if it were not featured on our list, here is a short summary of the history and key characteristics of the first truly decentralized digital currency. The world’s pioneer cryptocurrency was launched by pseudonymous figure named Satoshi Nakamoto in 2009 and has a capped supply of 21 million coins. The decreasing miner block rewards makes the cryptocurrency scarcer with time, ensuring a deflationary nature.
Many Experts predict a very Bullish Performance for Bitcoin in 2021
Bitcoin, whose market capitalization is currently at over $650 billion, representing around 68% of the total cryptocurrency market capitalization, has finished last week off by setting a new ATH of $34.700. The high institutional interest, retail sales waking up and even billionaires entering the space, the price continues and likely will continue to rise. As a consequence of these conditions, Bitcoin is currently trading at above $35,000, near its current ATH price of over $35,600, set in the morning hours of January 6. Furthermore, since the beginning of the rally in Q4 2020 when thigs got interesting for Bitcoin holders, every dip was bought. In addition, pretty much all prominent experts’ price predictions for 2021 are very bullish. While some warn about a severe bearish retracement coming in after 2021, such as the bear markets seen in the previous bearish phases of the market cycle (up to -85% drop in price), they estimate that a drop below $20,000 is highly unlikely ever to occur again.
Person
Prediction (in USD)
Date of prediction
Kevin Svenson
250,000
Jan 2021
Ryan Selkis
100,000
Dec 2020
Andrew Keys
50,000
Dec 2020
Tone Vays
100,000
Dec 2020
Willy Woo @woonomic
Conservative: 200,000 Realistic: 300,000
Dec 2020
Raoul Pal
Conservative: 150,000 Realistic: >250,000
Dec 2020
Philip Swift
100,000
Nov 2020
Tom Fitzpatrick
318,000
Nov 2020
Brian Estes
100,000 – 288,000
Nov 2020
Erik Voorhees
50,000
Apr 2020
Anthony Pompliano
100,000
Nov 2019
Sunny Decree
100,000
Nov 2019
Benjamin Cowen
141,173
Nov 2019
Table 1: List of Bitcoin price predictions of various traders, analysts, and other prominent players. All predictions are for BTC’s value by the end of 2021.
Interestingly, a lot of U.S. citizens that received a $1,200 stimulus check in April 2020 and did not need it to pay the rent, bills and other life costs decided to channel the extra money into cryptocurrency. This decision turned out to be quite lucrative for those who have bought Bitcoin with this airdropped money as the spring’s stimulus is now worth over $5650 if it has been fully used to purchase BTC.
— $1200 Stimulus Is Now Worth (@BitcoinStimulus) January 2, 2021
We wonder how much money from the second stimulus package, which features a $600 check for every eligible citizen, will end up in crypto and how high up can the increased retail interest drive the prices this time?
2. NEM (XEM)
NEM smart asset blockchain platform launched in March 2015. The platform utilizes a pioneering Proof of Importance (POI) consensus algorithm to validate transactions and issue new XEM coins. In addition, NEM is written in Java and allows applications written in any programming language run on its blockchain, which is achieved through APIs. NEM is used by several financial companies in Japan and is the cornerstone of Mijin blockchain.
NEM to Launch Symbol Public Blockchian in February, Opt-in for XYM Distribution only Available until January 9
The NEM team is preparing for the launch of the Symbol public blockchain and the XEM holders have an opportunity to participate in its launch and receive Symbol’s XYM coins when the platform goes live. To be awarded the XYM tokens at a 1:1 ratio against their NEM holdings at the time of the snapshot, the NEM users have to opt-in before January 9. The date and time of the snapshot remains unknown and the minimum balance to be eligible for opt-in is 100 XEM. The ream advises users to opt-in through NEM the desktop wallet or NEM mobile wallet (available for Android only), but several prominent exchanges have already announced they will be supporting the XYM opt-in. More information regarding the Symbol migration and the whole opt-in process can be found here.
3. Aavegotchi (GHST)
Built by Singapore-based Pixelcraft Studios and founded by the popular DeFi protocol Aave, Aavegotchi is a DeFi staked crypto collectibles platform. The value and rarity of the playable digital avatars called Aavegotchis, which exist in the form of ERC721 non fungible tokens, are determined by their collateral stake, traits, and wearables.
Aavegotchis represent a user’s collateral earning yield on Aave and can be minted by staking specific “aTokens” such as aUSDC and aLINK into their gotchi. The playable digital ghosts can be used to enter game battles and be equipped with wearables. However, each gotchi ghost out of the game once its owner chooses to liquidate the underlying stake. The highly anticipated project, which aims to push the adoption of non-fungible tokens (NFT) forward launched its first mainnet on January 4. The launch of the project, which is unique for its combination of crypto collectables (NFTs) and DeFi, was accompanied by several Aavegothchi raffles and NFT Auctions.
With the rise of the internet came the beginning of investing in cryptocurrencies. Now, nearly every significant financial institution is looking towards cryptocurrencies to store value and create new wealth. Suppose you’re someone who is thinking about getting into cryptocurrencies. In that case, there are several avenues that you can take to get started.
With the highly volatile and unpredictable nature of the cryptocurrency marketplace, many investors find it challenging to profit from their investments. This is the main reason why it’s vital to learn more about the ins and outs of the cryptocurrency market and practice before putting your money in the market.
Read more below to learn more about cryptocurrency trading and how you can begin to practice so you’re prepared for the real thing in the future.
What You Need To Know About Trading Cryptocurrency
First, it’s essential to understand that there are different types of trading that people are using to trade cryptocurrencies. Some are scalping, where you trade minimal amounts of a currency pair quickly and easily, buying and selling only at the peak of the price movement.
Cryptocurrencies, like Bitcoin, is currently lucrative for many reasons:
The market is more volatile compared to stock trading
You can trade 24 hours a day, seven days a week
It’s the most liquid form of cryptocurrency
You have multiple trading opportunities within 24 hours.
As trading in the stock market, crypto trading also uses technical indicators and developing trends. It would help if you practiced looking at these indicators and directions before you drive in and invest your money in it.
Where You Can Start Practicing
For first-timers, the amount of information can be overwhelming. To avoid making some mistakes and losing money, you can start by practicing in a crypto trading simulator. People can learn how to invest in Cryptocurrencies without risking too much of their funds.
Most investors find that it’s much easier to make profits if they’ve learned how to analyze the market trends and individual cryptocurrency pairs’ behavior. This is where a Cryptocurrency simulator comes into play. These tools help users test out their trading strategies before risking their own money on the real thing.
One of the significant advantages of a Cryptocurrency simulator is its ability to execute real-time trades. Some programs work by allowing users to enter a value and compare it against the current market data. If the two match up, the trade is carried out as if the value in question has changed in real-time. This helps minimize the risk of human error and the impact of sudden fluctuations in market data.
You can also participate in a crypto trading game. These games are the newest trends in the gaming world, where you’ll be rewarded with cryptocurrencies. You can again try to set up a free account and find how well your strategies are playing out.
Different Strategies You Can Use In Practice
A trading strategy is an extensive plan for your trading activities. Your strategic plan is a framework you create to guide you to reach your trading goals.
One of the significant benefits of creating a trading plan is that it helps mitigate financial risk and reduces the chances of committing mistakes. Although having a trading strategy plan isn’t mandatory, it would be helpful if you’re new to the game and when something unexpected happens in the market.
A comprehensive trading strategy has the following:
Assets you trade
Setup of your portfolio
Tools and indicators
Triggers for entry and exits
Position sizing
Key performance indicators on your portfolio performance
Once you have set up your trading plan, you can now choose the strategies you’re going to use during practice:
Day Trading
As a beginner, you can start monitoring the market during the day when most investors are active. Cryptocurrency day trading is a fast-paced and exciting way to make money. Day trading means the buying and trading of certain assets over the same day.
To make any profit from this method, you need to know the market trends and fluctuations so that you can act accordingly to take advantage of opportunities or prevent losses before they happen. By following some of these techniques, you can increase your chances of success and minimize the risk of losing money.
A significant advantage of investing in Cryptocurrencies is that they can easily be traded in different markets every day. They can also be traded over short and long terms, allowing investors to take advantage of small fluctuations and increases in value.
For example, a profitable opportunity in Cryptocurrency Day Trading is when an investor buys an asset that increases in value during the day and sells it shortly afterward for a profit. This is especially true for digital assets like stocks, which are highly sensitive to any changes in their supply or demand.
Swing Trading
If you want to invest for long-term goals, the swing trading strategy is the one you should try to practice. This strategy involves holding positions in the market for longer than a day but not longer than a few weeks or months.
Expert swing traders try to take advantage of market volatility that takes days or weeks to finish. You can use a combination of technical and fundamental factors to formulate your trading plan. You can also use chart patterns and technical indicators to define your entrance and exit points.
Since it takes longer than a day for the desired trend to play out, swing traders have more time to consider their decisions and don’t buy and sell with the FOMO or fear of missing out mindset. They have enough time to react to how the trade is unfolding, and they can change their strategies in between as well.
Trend Trading
Trend trading is also called position trading strategy. It’s a long-term trading strategy that lets you hold positions for longer periods, like at least a few months. Trend or position traders take advantage of directional trends when deciding when to enter or exit a position.
When you choose this strategy, you will typically use fundamental analysis to consider events that take longer to play out. The market will move in a particular direction most of the time, but there are times when it takes a turn for the worse.
You should also take into account the possibility of a trend reversal. When this happens, you might need to incorporate trend lines, technical indicators, or moving averages to mitigate any financial risks. This strategy is ideal for beginners, and you should practice this to manage risks properly.
Summary
There are many things to learn before investing in cryptocurrency. With various tutorials provided online, beginners can quickly learn how to begin investing in cryptocurrency pairs and gain profitable results. Different tools are also provided to help you track your progress, such as graphs, charts, and notifications.
You can also learn about the basics through tutorials, which further enhance your knowledge about the market and enable you to make better decisions regarding your investments. You can practice everything you’ve learned in a crypto simulator to evaluate how much you know and the best strategies to use to gain more profit.
Bitcoin saw a substantial 25% price surge this week to set a new ATH at $35,868.
Ethereum saw a 58% price hike this week as it reached $1,140.
Bitcoin continued to set a new ATH price today at $35,868 after the cryptocurrency rallied by another 9.2%. The growth of Bitcoin over the past 3-months has been truly extraordinary after the cryptocurrency managed to rise by a robust 225%.
The market cap for the number one ranked cryptocurrency is now at $645 billion, and many expect it to hit $1 trillion by the end of 2021.
Overall, the total crypto market cap is already approaching $1 trillion itself as it currently sits at $958 billion – up almost 10% over the past 24 hours. This is mainly due to the strong BTC increase, but some cryptocurrencies are also surging much higher. For example, ADA surged over 41% today, allowing it to claim the 5th ranking position according to market cap value – pushing Ripple into the 6th position.
Additionally, Ethereum also saw a strong 10% price surge today as the cryptocurrency hits $1,136 today. The price growth of ETH has also been pretty extraordinary as it managed to climb by 58% over the past week, with a further 93% price explosion over the past month.
Let us look at the top 2 coins and provide some strong support and resistance areas moving forward.
Bitcoin Price Analysis
What has been going on?
Looking at the daily chart for BTC above, we can see that the coin has come a long way since the $18,000 low seen in December. It surged higher toward the second half of the month, breaking above the $20,000 level on December 16th and setting fresh ATHs pretty much every day since!
By the end of 2021, Bitcoin had reached as high as $29,000. The coin would continue higher and break $30,000 in the first few days of January. Initially, Bitcoin found resistance at $34,800 (1.414 Fib Extension level). With the 9% price hike today, Bitcoin continued higher above this resistance to set a new ATH at $35,868. It has since dropped back beneath the resistance mentioned above at $34,800, but it is highly likely that BTC might hit $36,000 by the end of the day.
BTC price short term prediction: Bullish
Bitcoin is most certainly bullish right now. The cryptocurrency would now need to drop beneath $24,000 to turn neutral in the short term. It would have to continue beneath $18,000 (December lows) to turn bearish in the short term.
If the sellers do start pushing lower, the first level of support for Bitcoin lies at $34,000. This is followed by support at $32,640 (.236 Fib), $32,000, and $30,625 (.382 Fib). If the bears drive beneath $30,000, additional support is found at $29,000 (.5 Fib Retracement), $27,386 (.618 Fib Retracement), and $26,000.
Where is the resistance toward the upside?
On the other side, once the buyers break back above $34,800, the first level of higher resistance lies at the new ATH price at $25,686. This is followed by resistance at $36,000, $37,292 (1.618 Fib Extension), $38,000, and $38,358 (short term 1.414 fib Extension).
Beyond $39,000, added resistance is found at $39,426 (1.272 Fib Extension), $40,000, and $41,862 (1.414 Fib Extension).
Where are the technical indicators showing?
The RSI is extremely overbought, suggesting that the buyers might be a little overextended and in need of a retracement. Additionally, the Stochastic RSI recently produced a bearish crossover signal, which could suggest an imminent pullback.
Likewise, Ethereum has seen explosive growth since the start of 2021. It pushed higher above $750 at the start of the year and continued to surge higher. Along the way up, it met resistance at $975 (1.272 Fib Extension), $1,042 (1.414 Fib Extension), and $1,100 (yesterday closing price) until reaching the $1,166 high today (1.618 Fib Extension).
We can see that it has dropped lower slightly and is trading at the $1,133 resistance – provided by a bearish .786 Fibonacci Retracement level.
ETH price short term prediction: Bullish
Ethereum is strongly bullish right now. The coin would need to drop back beneath $700 to turn neutral and would have to fall further beneath $500 to be in danger of turning bearish in the short term.
If the sellers push lower, the first level of support lies at $1,100. This is followed by support at $1,042 (1.414 Fib Extension), $1,000 (.236 Fib Retracement), and $975 (1.272 Fib Extension). Beneath $975, support lies at $905 (.382 Fib Retracement), $826 (.5 Fib Retracement), $800, and $750 (.618 Fib Retracement).
Where is the resistance toward the upside?
On the other side, if the buyers climb beyond $1,133 (bearish .786 Fib Retracement), the first level of resistance lies at $1,166. Following this, resistance lies at $1,200, $1,266 (bearish .886 Fib Retracement), $1,295 (1.272 Fib Extension), and $1,300.
If the buyers bring Ethereum above $1,300, resistance is located at $1,358 (1.414 Fib Extension), $1,400, $1,450 (1.618 Fib Extension), $1,500, and $1,550 (1.618 Fib Extension – orange).
Where are the technical indicators showing?
Both the RSI and Stochastic RSI are extremely overbought, suggesting that the buyers might be a little overextended and need a retracement.
Crypto news outlet The Block is reporting that an investor deck from Skybridge Capital reveals the company has already invested $182 million in Bitcoin
According to the slide presentation, the company has also allocated more than $25 million for a new Bitcoin fund
Crypto news publication The Block obtained an investor deck made by Anthony Scaramucci’s Skybridge Capital which reportedly shows that the company has already invested $182 million into Bitcoin. The company is also planning to launch a new Bitcoin fund, and has established companies such as the crypto-friendly bank Silvergate. In another part of the deck, Skybridge reportedly stated it had allocated $25.3 million to the new Bitcoin fund.
Skybridge is the latest institutional player that has entered the cryptocurrency arena. Other players that have made investments in Bitcoin include Tudor Investment Corp, Ruffer and One River Digital Asset Management.
Skybridge thinks that further mass adoption, and that Bitcoin offers several advantages over gold. As the development of the market progresses, more hedge funds and insurance funds will decide to make an allocation of their own.
Bitcoin will revolutionize traditional portfolios
The traditional portfolios are usually comprised of stocks and bonds, but investors are now seeking new opportunities, and Bitcoin has presented itself as an attractive option. Skybridge believes one of the main reasons behind the shift is due to the Federal Reserve’s actions and the policy of negative interest rates.
The pandemic has forced many governments to print money at an accelerated pace and release stimulus packages, and this has served as a catalyst for Bitcoin, an asset that cannot be created arbitrarily.
Institutions can bring unprecedented amounts of capital into the Bitcoin market. As we’ve already seen, the new influx of capital from institutions has made it possible for Bitcoin to smash its previous all-time high of $20,000 and even surpass $30,000 shortly after.
Bittrex will delist three privacy coins on January 15
Bittrex hasn`t announced the reason for the delistings
The price of the privacy coins dropped after the news
On December 29, the Bittrex cryptocurrency announced that it will be delisting the top three privacy coins – Monero, Dash and Zcash – on January 15. Bittrex has determined 30 days for the users to withdraw their delisted coins after the due date. Bittrex stated that the period might be shorter in some cases, and users should take action fast.
The announcement comes shortly after Coinbase and other exchanges decided to delist XRP after the SEC accused Ripple of issuing and selling unregistered securities.
Bittrex didn’t explain why it will be removing the markets
Bittrex didn`t explain anything about the delisting process, but Larry Cermak from The Block guessed that the recent pressure from FATF for anti-money laundering (AML) could be a potential reason.
The FATF considers crypto exchanges as virtual asset service providers or VASPs. The FATF says that these businesses should comply with AML and CTF requirements to prevent their platforms from being used in illegal activities. Privacy coins, which allow users to send transactions without revealing the amounts and addresses involved, have long been a thorn in the side of regulators.
Monero, Zcash, and Dash experienced sharp price drops after the announcement of the news on Friday night. Bittrex published the report via its Twitter account, and the story is still ongoing. The news was shocking for the privacy coins markets. They experienced rapid price drops in the range of 7% to 15%.
US authorities pay special attention to crypto these days. Several new crypto rules have been proposed recently, and some of them could have a massive impact on the cryptocurrency space. Exchanges and crypto exchanges have to respond to the new regulations, resulting in delistings and similar measures.
As Brian Armstrong warned, strict crypto rules will make US investors and traders find services and exchanges outside the USA. Rules that are ill-considered and hasty can face legal challenges – they may have worse consequences in the future. What do you think? Tell us about your thoughts in the comment section.
China’s digital yuan could affect the Biden administration’s positions regarding Bitcoin and cryptocurrency
There’s a crypto intersection for Biden’s administration. On one side, some rogue countries and criminals are using crypto. On the other side, cryptocurrency can be an essential tool for human rights activists and protestors
Biden’s nominees for different seats are not crypto-friendly, and Biden is against encryption
Many people are curious to see how the Biden administration will approach the topic of Bitcoin and cryptocurrency. China’s presence as a geopolitical rival and the emergence of its digital yuan can make the situation more complicated. There are issues like competition with China, improving monetary policy, and digital regulations and rights around the globe related to Bitcoin. Although Biden’s administration might not address Bitcoin directly, there are some relevant issues to consider.
There are various issues facing the Biden administration. China is a rival superpower, and the COVID-19 pandemic has disrupted many lives. At the same time, the Federal Reserve has been printing money faster and faster, resulting in a weaker dollar. These challenges are essential for the next administration, and they will affect the crypto ecosystem indirectly.
The current position of BTC
Right now, some of the most important institutions in the U.S. that are regulate matters that can affect Bitcoin are the OCC, CFTC and the SEC.
Under Jay Clayton, the SEC went after several initial coin offerings (ICOs), accusing the of selling unregistered securities. Right before Clayton left the agency, the SEC announced a bombshell lawsuit against Ripple. The news crashed the price of the XRP cryptocurrency, which the SEC argues is actually a security sold by Ripple.
Even under the Clayton-led SEC, which was quite hostile to many cryptocurrency market players, Bitcoin and Ethereum weren’t treated as securities – this is unlikely to change moving forward.
Biden’s candidates for different seats
There is a crypto intersection for any administration right now. On the one hand, there are rogue countries like North Korea that use crypto for illicit activities, and on the other hand, there are human rights activists and protestors who positively use crypto to raise funds.
When we look at Biden’s candidates and advisors, his opinion towards cryptocurrency and decentralization technologies will become clearer.
A few of his nominees have expressed their views about Bitcoin and crypto, including Janet Yellen, his nominee for the Treasury Department. In the Clinton administration, Yellen was the chair of the Council of Economic Advisers. She is not enthusiastic about Bitcoin, and thinks Bitcoin is mostly used for illegal transactions. In her opinion, Bitcoin consumes a lot of energy, and it is a massive concern regarding cyber criminal activities.
The OCC is a part of the Treasury Department. The Secretary of the Treasury will determine the head of OCC. Currently, Brian Brooks is in that position, and he has an extremely positive attitude on cryptocurrencies. It’s likely that he will be replaced by another person, and they probably won’t be as crypto-friendly.
The office of Foreign Asset Control and FinCEN may restrict some crypto addresses and enforce rules against money laundering. When the Treasury department is headed by a person who is doubtful about crypto, some consequences are unavoidable.
Gary Gensler is another exciting candidate on Biden’s list. In the Obama Administration, he managed the CFTC. He has expressed some statements in favor of Bitcoin previously.
The Biden Administration has many different financial challenges, and they will affect BTC, as well. The most critical factor is Joe Biden himself. He was against encryption when he was in the Senate. He introduced two bills in the Senate that inspired early Bitcoin adopter and cryptographer Hal Finney to work on PGP encryption.
In this personal letter addressed to our community, Binance CEO CZ shares his reflections looking back at 2020 and our goals for the new year, including trends and developments that may define the industry, and areas of focus for 2021. Advancing the industry’s collective mission to further the freedom of money around the world, we aim to ensure the sustainable development and continued growth of the global crypto ecosystem.
In my New Year message last year, I emphasized building foundations for the growth of the global crypto ecosystem for generations to come. In 2020, we worked hard to bring new products, improvements and developments to key ecosystem initiatives. I feel like we are still working on the basement level of a new building, and haven’t even started to build the floors above ground yet. There is still much more work to be done.
The Crypto World After COVID-19
The COVID-19 pandemic has changed the way we live, impacting the well-being of countless individuals and damaging the global economy.
In 2020, worldwide markets faced unprecedented volatility and instability in already-vulnerable economies and countries. With global economic uncertainties, inflation, and traditional assets suffering due to the macroeconomic shock caused by the pandemic, people around the world have increasingly looked to bitcoin and crypto as an alternative asset – in an unprecedented manner. This has driven the crypto market to new heights and poised bitcoin/crypto to enter the mainstream.
This past year, interest in crypto continued to rise amongst traditional investors, and corporate onboarding numbers continued to increase. In 2020, the number of institutional clients we onboarded was 68% higher than in 2019, while new institutional client applications increased 35% quarter-over-quarter, signalling growing institutional interest in crypto. The pandemic also led to drastic macroeconomic changes, such as Quantitative Easing (QE) in almost all countries, which also drives people to crypto. As the new QE money flows into the global market, I think much of it will be converted into one form of cryptocurrency or another. This has corresponded with 2020’s booming crypto futures market that provide the necessary hedging and liquidity opportunities.
The longer-term economic impacts of COVID are unknown. However, as we’re still in the midst of major economic disruptions and historic volatility, I believe bitcoin/crypto will continue to rise and be at the pinnacle of positive change.
Compliance
Our industry is very new and innovative, so inherently, there are more regulations and guidelines needed and under development; similar to how Google and Microsoft persevered during the .com boom. Also, cryptocurrencies cater to a global audience, and because this is such a cutting-edge sector, guidelines in most jurisdictions are still evolving. We believe that ultimately, everyone wants regulation that promotes innovation and an open market. I am optimistic about the positive progress of regulatory frameworks and guidelines around the world, and I believe we will continue to see more clarity on cryptocurrency regulations in the next 12 months.
Compliance is a journey, not a destination – especially in new tech sectors. Responsible players are always working to meet new and changing standards and improve existing practices. We take our compliance standards very seriously, and will continue to heavily invest in this complex and ever-changing environment.
Our goal is to continue adhering to local rules and regulations, which allow us to protect and provide the best services to our users, as well as bring greater adoption. In addition to the many regtech solutions we invest in and compliance partners we work with, we will continue working closely with regulators, complying in the places where we operate as a global decentralized organization, and helping to positively influence regulations that will benefit our industry. We hope to work with more local governments and policymakers in the new year and encourage them to reach out to us to work together.
Decentralized Finance (DeFi) and Binance Smart Chain
This year, we saw the rise of decentralized finance (DeFi) as a compelling use of blockchain technology to spread the freedom of money. Through DeFi, people are given new ways to participate in crypto-fueled financial products and benefit from their gains. The emergence of DeFi also drove more traffic to blockchain networks, and this brings a new set of challenges to developers, like higher network fees and congestion.
To help solve this problem for the crypto community, we worked with the Binance Chain community to launch Binance Smart Chain (BSC) as our contribution to driving more innovation to decentralized solutions such as DeFi and other blockchain-related solutions. BSC offers a high-performance and low-fee blockchain network that’s compatible with the Ethereum Virtual Machine. Now, developers can worry less about costs and focus more on innovating, and we even have rewards for developers.
I think the innovations around liquidity pools and AMM, especially for stablecoin trading, are very interesting. I believe we will see more growth in this area in 2021. DEXs (decentralized exchanges) are also well fitted for listing small and less mature coins, which provides a good validation ground for larger CEXs (centralized exchanges) like Binance.
We have introduced many of these DeFi innovations already on Binance.com, such as interest- and yield-generating products in DeFi Staking and Binance Liquid Swap. We also created the Binance Innovation Zone specifically for listing newer coins, thus providing liquidity for DeFi tokens while protecting less-experienced traders from the risks in trading them.
In 2021, I believe we’ll see more convergence on the product offerings on the CeFi (centralized finance) front. We have already expanded our portfolio of yield-generating products to include Binance Pool (for miners) and Earn products (for all users), which offer high APY in addition to an easy-to-navigate, one-click interface – reducing technical barriers to entry and costs of on-chain gas fees. Fundamentally, both DeFi and CeFi will help grow the industry. Whatever happens, we are ready to support and adopt any new DeFi innovations and trends.
Adoption: Fiat, Payments, Stablecoins, and Traditional Finance
Another important area for us is the continued growth and mainstream adoption of cryptocurrencies. Growth in crypto payments was one of the most obvious use cases we hoped to see more of in 2020, but it’s still far from mass adoption. Existing fiat payment rails are convenient, low cost and well-established, making them difficult to replace in one swift move.
Since last year, we have been building on existing fiat payment rails in order to allow more users around the world to access crypto. This year, we launched 28 fiat channels, covering different payment methods such as credit card, bank transfer and local popular wallets. Some worked out better than others, but we will keep building out our payment rails in order to provide users with the best purchasing experience. Users are now able to purchase crypto in 46 local currencies with our direct channels and we will continue to add more next year until the whole world is covered.
In addition, we launched Binance Card this year, allowing users to spend their crypto directly from their Binance crypto wallets. This offers a much more convenient method of crypto payment and our Binance Card has been hugely popular amongst our users.
I also believe we’ll see cross-border payments with stablecoins continue to increase next year. Cross-border payments using stablecoins or any cryptocurrency are much cheaper and faster than traditional payment methods, arriving in a matter of seconds, compared to cross-border bank transfers that may take days. Traditional cross-border remittance platforms can charge as much as 7% in fees to remit money overseas, while cryptocurrencies only cost pennies to move – and Binance P2P has some of the lowest fees around. I believe we’ll see greater adoption of stablecoins next year because of these factors.
PayPal entering the market is also great for user education and adoption, as is Square’s continued strong growth in the crypto payments space. Stanley Druckenmiller, Paul Tudor Jones, Franklin Templeton and MassMutual, well-known names in the traditional financial space, all made investments in bitcoin or the cryptocurrency industry this year. Hedge funds, mutual funds, and even a 169-year old insurance company investing in the crypto space, are setting a precedent for this industry, and I believe these are hugely positive moves in the right direction. Maybe next year, we’ll start to see Pension Funds and Sovereign Wealth Funds start to deploy a small part of the tens-of-trillions of dollars that they manage into crypto in order to hedge out some of their fiat risk.
Use Cases: BNB and NFTs
There are so many applications and use cases for BNB, from gaming to cross-border remittances, that I personally can’t count or keep tabs on how many now. There is a large, diverse community in the BNB ecosystem that continues to innovate in finding strong use cases. I don’t know what they will come up with next, but I am sure many of them will be very exciting.
Another crypto asset class I’m looking into this year is NFTs. I think we will see increased sophistication and adoption for NFTs in 2021, from virtual items in games to concert tickets. I believe this is an exciting new area yet to be explored and I’m looking forward to seeing how these develop.
Binance Charity
2020 was full of humanitarian challenges with the Australian bushfires, Beirut explosion, and much more, on top of COVID-19. From the start of the virus, our Binance Charity team and supporters fought against COVID-19 alongside frontline healthcare heroes, providing timely support to communities in need.
Through its “Binance for Wuhan” and “Crypto Against COVID” campaign, Binance Charity raisedover $4 million in cryptocurrencies – with three-quarters of the total donated by Binance – which enabled us to distribute more than 2 million pieces of personal protective equipment (PPE) to aid 400+ hospitals in 26+ countries around the world, especially the nations that were affected most by the coronavirus.
In response to the Australia Bushfire Relief, Binance Charity also raised over $2 million aiming at forest rehabilitation and wildlife restoration. Binance Charity also partnered with UNICEF and allocated $10,000 worth of crypto and provided timely support to those in need following the tragic explosion in Beirut this August.
Binance Charity also fundraised $60,000 worth of crypto to Friends of Notre-Dame de Paris to contribute to the restoration of Notre-Dame Cathedral’s Mays, beautiful historical paintings that were damaged in the fire in April 2019.
Always exploring blockchain innovation in charity, the Binance Charity team also led the development of the first blockchain art donation platform, “NFT for Good” – an open platform for global artists to create, sell, auction and donate their NFT blockchain art to NGOs supporting global sustainable development.
During the hard time when the world is facing challenges, Binance Charity will continue its mission of bringing light to the people living in deprived areas in a transparent manner.
Blockchain Research and Development
As we continue to push ahead with crypto, we are also investing significant time and resources to blockchain research. In 2020, we established the Binance China Blockchain Research Institute (BCBRI) with the Linggang Group, with the aim to support blockchain applications in the real world and boost the adoption of blockchain technology. BCBRI has launched blockchain-empowered projects in six cities so far, to further blockchain technology R&D, fintech education including blockchain, AI and big data, and startup incubation. This year alone, we’ve actualized 20+ partnerships and projects with partners such as Amazon Cloud and Stanford University, and will have more developments to share next year.
On Security
Security is a very extensive topic, I think there are a few areas to focus on in 2021:
User Education. I believe more user education is needed across the industry to help people avoid “rug pulls” and scammers. We will continue emphasizing the importance of individuals educating themselves in order to make investment decisions cautiously and responsibly. Research before investing is key. In this area, Binance provides educational materials on Binance Academy, Binance Research, and CoinMarketCap to help investors make informed decisions.
Security Tools. Better tools are needed for regular people to securely hold their own private keys, with proper encrypted backups. Good cyber hygiene is complex and can be intimidating to cryptocurrency newcomers. We have invested heavily in multiple wallet developments to help on this front. Combining security with ease of use will be vital as more people invest in cryptocurrencies.
Security Infrastructure Investments. Centralized exchanges must increase security investments on technologies such as threshold signatures (TSS), to hold users’ funds more securely. Binance has open-sourced our TSS library, and a large number of community developers are contributing to it.
Personal Habits. Security threats and technologies used to defend against them evolve over time, but one thing remains constant: the human element. The human element is the weakest link. Attackers constantly prey on psychological flaws such as the desire for quick information and greed. There are increasingly sophisticated ways of abusing trust, including spear-phishing and social engineering. This can circumvent some of the most fundamental defense mechanisms we have relied on in the crypto ecosystem such as 2FA. At Binance, we continue to strive for zero trust in our enterprise security and trading platform security to protect our users.
Binance Angels Community
Another vital component of Binance success this year has been the incredible support and commitment from our Binance Angels Community. Binance Angels consist of dedicated users who believe in blockchain, crypto, and Binance. Binance Angels are community builders at heart, and they share the same values as Binance – to spread the freedom of money all over the world.
They are as passionate as we are about expanding the adoption of crypto and blockchain in their local communities, and they play a key role in helping us accomplish this mission.
Using their own life and professional experiences, our Binance Angels help us add more value to the Binance ecosystem. Our Binance Angels support and educate our users, help us improve our platform and user experience, and highlight our community’s concerns. They are instrumental in helping us build products and features that our communities want.
We take pride in our Binance Angels community, and the support of our Angels has been critical in ensuring Binance’s success. We currently have 239 Binance Angels who help us support users in more than 40 local communities – and growing! If you’d like to be part of the Binance Angels Community, apply through our Binance Angel Application.
Looking Ahead to 2021
In 2021, we will continue to keep our heads down and build products users love. We will continue to develop and improve services that are beneficial to society and protect our users and the industry. I’m very excited about the new developments and products we have planned for 2021.
On the personal side, my New Year’s resolution for the last 10 years has been getting a six-pack, but I’ve never gotten there. My main hope is just that 2021 will be less crazy than 2020, and that people’s lives continue to improve.
Konstantin Anissimov, Executive Director at CEX.IO
Bitcoin at the turn of the year
Bitcoin has been making headlines for weeks now, as the coin kept breaking all previous records, making new ones, and then it broke them, as well. Its upward surge continues day after day, and is only occasionally interrupted by small corrections before its price surges anew.
In the last week — between December 28th and January 3rd — the coin went from $26,850 to $34,608. In other words, the price increased by around 24%.
The coin’s growth came in a few major surges. The first surge was slow but steady, taking place over several days — December 29th, 30th, and 31st. During these last days of 2020, the BTC price went from $26,400 to $29,800. Everyone was speculating whether or not the coin will have the strength to reach $30k, as the resistance seemed too strong.
The first days of 2021 brought an answer to that question. On January 2nd, BTC price saw its second surge, which took it past $30k, and all the way up to $33.150. The coin also saw a sudden drop during the same day, hitting a new support at $31k, from which it skyrocketed back up to its new record of $34.6k. This happened on January 3rd, and the same day also brought another minor correction. This one was stopped by a support at $32,700.
What has been happening to BTC in the past week?
Apart from adoption speeding up, Bitcoin has seen several major news recently, which continued to attract new investors. For example, the coin’s market cap surpassed the value of Warren Buffett’s Berkshire Hathaway, which was a big deal, given that Buffett called BTC “rat poison squared” a few years back.
Another report states that, according to data 78% of circulating BTC supply still remains dormant, and that only 22% (4.2 million BTC) is in constant circulation.
With that said, some of these coins have been locked up for decades now, and they are under constant supervision. They belong to crypto whales, early investors, and some are even property of Satoshi Nakamoto himself.
Well, a portion of these decade-old dormant BTC coins have just moved yesterday, as the coin’s 12th anniversary came along. Whether the coins were moved to mark the event or to take advantage of the price remains unknown.
The fact that BTC just celebrated its 12th birthday is in itself a major event for the coin which was proclaimed dead hundreds of times over the years. It certainly encourages people into believing in BTC, and its ability to keep going and continue pushing for mass adoption.
And, of course, there is always the fact that BTC went above $30k, only to breach the $34k resistance less than 24 hours later.
Ethereum at the turn of the year
While the movement of Bitcoin is nothing short of extraordinary, it is worth noting that the crypto industry’s second-largest cryptocurrency, Ethereum (ETH), saw some impressive movement, itself.
Ethereum found certain stability in the past week, trading sideways for the most of this period. Between December 28th and January 2nd, ETH mostly saw only the smallest price fluctuations, going between $730 and $750, The coin saw some slightly stronger movement here and there, but on a weekly basis — these days saw almost no significant price action.
This changed this Sunday, January 3rd, when Ethereum suddenly skyrocketed alongside Bitcoin. Bitcoin’s birthday is an important event for the coin, and Ethereum’s price simply decided to follow the surge, leading the coin past $1,000 for the first time in almost three years.
In the last 24 hours, Ethereum saw a 39.7% price surge. Meanwhile, on a weekly basis, the coin is up by 53.22%.
The coin’s market cap sits at $123,8 billion, while its daily trading volume went beyond $57.5 billion — almost half of the coin’s market cap.
Now, Ethereum’s price still has some ways to go in order to hit its old ATH, but it is entirely possible that this will happen in days to come. Meanwhile, if Ethereum’s weekend surge continues at the same rapid pace, this might even happen in the next few hours.
What happened to Ethereum in the last week?
Unlike Bitcoin, Ethereum did not really have any major events tied to its price surge over the past week. The coin is a native crypto of its development platform, and Ethereum’s network is the place where things are happening.
The coin did not see any new groundbreaking events, but that does not matter. Its older events are still groundbreaking enough for the coin’s price surge to be perfectly genuine and expected.
As many are likely aware, Ethereum is still the largest force in the crypto universe regarding smart contracts, dApps, and now DeFi. DeFi explosion is still happening — it is only a bit overshadowed by the surging prices.
But, those who care about crypto applications more than the prices are still making DeFi as important as ever. The other thing is Ethereum 2.0 arrival. This is something that will also take place over a large period of time, but the process of switching from PoW to PoS has started — after years of waiting — and that alone would be enough for ETH price to climb back to its old heights.
Lastly, there is its correlation with BTC, which is far from perfect, but it still helps. These are, after all, the two coins that everyone knows — the two leaders of crypto, and are typically considered safe investments.
What to expect next?
So, what is coming in this next week? So far, it is difficult to say. Strong price surges are usually followed by strong corrections, and after hitting $34k, BTC has already started seeing a price dip. At the time of writing (January 4), the coin has retreated slightly below the $30k level, which is not surprising after such a sudden growth. BTC is doing what it always does — it is looking for a support level that will allow it to recuperate and start growing anew.
In essence, BTC price might continue to surge, with the $35k level being its next major goal. The coin’s new ATH is already only a few hundreds of dollars away from this next milestone, and so it would not be surprising to see a surge that will reach it quite soon. After that, the coin would likely set its sights on $40k, and then $50k, as predicted by some experts throughout the previous year.
As for Ethereum, it is reasonable to expect that the coin will hit a new ATH, provided that the BTC price continues to act as it did thus far. But, investors should also keep vigilant due to the potential for major sell-offs, which could result in a price drop.
Let’s say you’ve made a mistake and sent your BTC to the wrong address. After googling for a solution and reading FAQ sections on Coinbase and blockchain, you will most likely decide that your transaction is lost forever. But, in truth, you still have a time to reverse it: recently Blenderwallet.io (wallet from the creators of the largest bitcoin mixer) added a new feature – “Transaction discarding” based on RBF(Replace By Fee) protocol.
RBF was created to prevent issues with stuck transactions and as a way out for someone who had sent funds to the wrong address or to scammers.
How does it work?
Here you can see a ledger wallet reporting an incoming transaction.
And here you can see what happens if you press “Discard transaction”
Have you ever seen a cancelled transaction in a blockchain?
The feature is only just a click away in the blenderwallet.io interface, so you don’t have to be an expert to manage your funds.
But, like any good technology, RBF has a downside that can be used by dishonest users.
So here’s an important tip: always wait for at least one confirmation of the transaction.
Here are some excerpts from BlenderWallet.io FAQ:
You can discard an unconfirmed outgoing transaction by replacing this transaction with another one, using the RBF mechanism. Your own address becomes the output of a new transaction, so the funds are returned to you, minus the network fee.
You cannot discard a transaction if:
The transaction was not initiated by you, including if the transaction is incoming for you.
It has already been confirmed (has at least one confirmation).
The transaction was not marked with the RBF flag or its amount is not enough to increase the network fee.
Discarding a transaction might not succeed like any other RBF replacement. The initial transaction can be confirmed and the new one be rejected, if, for example, the miner takes the initial transaction into the block before the second appears in the network.
Let us remind you once more – you cannot discard a transaction if it has already been confirmed at least once. You can only discard an unconfirmed outgoing transaction.
We hope this information will help you to manage your funds properly and keep them safe.
