In 2020, the world experienced one of the biggest crises in the last 50 years, but cryptocurrency market players have seen the increase and confirmed the prospects for crypto. Bitcoin once again reached record highs, so virtual money is only gaining momentum and preparing to become a significant part of the global economy at the level of ordinary currencies.

Introduction

Based on the market capitalization of cryptocurrencies, leading cryptocurrencies have been identified – they currently account for 80% of the global cryptocurrency market. These include Bitcoin, Ethereum, Ripple, Bitcoin Cash, Cardano, Litecoin, and NEM. By now, the markets have also established key market infrastructure players, namely miners, full nodes, exchanges, wallets, and payment companies, that formed the foundation of the cryptocurrency market and now contribute to the development of the market of almost every cryptocurrency.

Crypto infrastructure

Each of the leading cryptocurrencies offers an analysis of main market indicators: market share and its change over the year, the degree of influence of cryptocurrency on the general market of cryptocurrencies, price dynamics, and their volatility. The infrastructure of the market of each cryptocurrency is assessed based on indicators of infrastructure reliability and its trading opportunities. The study showed high growth rates of bitcoin and a number of significant altcoins over the past year, which had a positive effect on the state of the general cryptocurrency market. Almost every cryptocurrency has shown positive trends. Bitcoin and Ethereum are financially risky in terms of volatility but still very attractive for millions of users. In addition, Ethereum has the most reliable infrastructure, and bitcoin is the most equipped with exchanges and wallets. Cardano currency showed the highest growth rates in a short period of time.

Why does the crypto industry grow?

In general, these phenomena are positive predictors for the cryptocurrency industry. The capitalization of the cryptocurrency market is growing steadily. Since the beginning of the first cryptocurrency, the global crypto market has grown significantly, and many participants are looking for benefits in this industry. The scope of their application ranges from fast and safe completion of payments to exchange operations, investments, the realization of smart contracts and the decentralized computing platform, and many other things. 

The scale of growth of the cryptocurrency industry does not go unnoticed by either government agencies or commercial or ordinary users. One of the pressing issues is to define what the cryptocurrency industry is in its entirety and how it fits into the existing framework of the world system.

Cryptocurrency markets are characterized by high volatility, so the choice of optimal risk management strategy is noticeably complicated, as, after all, the range of market risks is quite broad – from insignificant to catastrophic. This choice depends on many factors, including the ability to anticipate future changes in cryptocurrency prices on the market. Market participants must determine for themselves the level of risk they are willing to take a profit, whereas success in achieving this goal depends to a large extent on a management strategy.

The global cryptocurrency market has a great future. The latter offers high growth rates of bitcoin and a number of significant altcoins, the growing number of organizations and companies willing to use cryptocurrencies in their activities, and the growing popularity of cryptocurrencies among ordinary users. All these phenomena are positive predictors for the cryptocurrency industry.