2023 is an exciting year for cryptocurrency exchanges!
As the industry continues to gain more traction and the digital asset market matures, experts forecast we can expect to see a variety of advancements in the crypto trading world this coming year.
According to research, nearly 10% of the global GDP will be stored on blockchain platforms by 2025.
One major area of growth for crypto exchanges in 2023 will be increased regulation. Countries all over the world are beginning to acknowledge cryptocurrencies as viable assets, and thus, regulatory frameworks are being put into place to ensure proper oversight of digital asset transactions.
These regulations will help protect investors from fraudulent activities and money laundering, making cryptocurrencies even safer to use and trade.
For example, U.S. government will likely continue its litigation in 2023, and “we will see additional crypto-related sanctions guidance, enforcement actions and designations in the near term,”
Another development we can anticipate in 2023 is enhanced security measures. As cyber-attacks become increasingly sophisticated and common, it’s vital that crypto exchanges have robust security protocols in place to prevent users’ funds from falling falling prey to bad actors. We should expect to see new tools like two-factor authentication, biometrics, and encryption systems becoming more commonplace on major exchange platforms this coming year.
Additionally, users can look forward to improved user experience on crypto exchanges in 2023. Platforms are investing heavily in user interface design – aiming for easier navigation around their sites and better customer support services. This means a smoother transacting process with fewer technical glitches along the way – a win-win situation for all. Check out BlockSentry, an accounting portal that works great for both traders and exchanges alike!
Now, let’s talk about digital wallets. In the next three years, digital wallets are expected to become an even more important part of our lives with a new level of convenience and security. The increased adoption of digital wallets will also lead to more widespread accessibility (accessibility to digital assets…cryptocurrency) for those who may not be able to access other types of payments.
As more merchants and financial institutions realize the potential of digital wallets, we’ll see a surge in their integration into services. This includes both online services as well as brick-and-mortar stores where customers can pay with their mobile device.
Data privacy is another key area that should see progress over the next few years regarding cryptocurrency digital wallets. Since these products are often used by people who value their personal information highly, developers must take extra measures to ensure that data is kept safe from malicious actors. Expect privacy-focused initiatives such as zero-knowledge proofs and end-to-end encryption protocols for wallet transactions in the near future.
We can expect a surge of innovation related to digital wallets. There will be more options available than ever before, allowing users to store their cryptocurrencies securely and conveniently. As new projects emerge and gain traction, we will likely see more established companies offering their own wallet solutions as well.
Finally, it’s important to note that cryptocurrency mining relies heavily on advances in technology. Thanks to ongoing research and development efforts, we can expect to see more efficient and powerful hardware available for miners in 2023.
This includes things like GPU-based ASICs (Application-Specific Integrated Circuits) as well as new types of specialized processors built for cryptocurrency mining. These advances will allow miners to increase their hash rate and thus mine more efficiently.
Regarding software developments, we can also expect to see improvements in the algorithms used by miners. Algorithms like Proof of Work (PoW) are constantly being tweaked and improved upon, so they are faster and more secure than ever before.
This will make it easier for miners to process transactions faster while also allowing them to keep up with new developments in the industry such as second layer solutions like Lightning Network or payment channels.
Additionally, blockchain networks are constantly evolving and adapting to changes in the market environment; this could have an effect on how profitable it is to mine certain coins over others. For example, Ethereum is currently transitioning from its PoW consensus algorithm to a Proof of Stake (PoS) consensus mechanism known as Casper FFG which could lead to greater rewards for Ethereum miners if successful.
As such, it’s important that miners stay abreast of changes within their chosen network so they can adjust their strategy accordingly.
Now that you have a general understanding of what to expect in 2023, it is important you have a trusted software system for trading and taxes.
With BlockSentry, crypto traders and investors can save time and resources while keeping their finances organized. By automating the import of payments, trade history, and more from wallets and exchanges, users can quickly get an overview of their holdings in one place. This clear view of transactions streamlines the tax reporting process with automated forms like US 8949 and international equivalents.
Not only does BlockSentry make tax reporting easier, but it also works as a great tool to keep an eye on trading activity. It’s easy to stay informed with up-to-date transaction data from all sources in one platform.
Pro tip: BlockSentry works great in the hands of a knowledgeable CPA – make sure to ask your accountant.
Schedule your free demo with BlockSentry to see the platform in action, or get started for free here.