Cryptocurrency is a digital (asset) currency that does not exist in any tangible form but instead exists entirely in software. It has become popular to trade cryptocurrency because the value of the coins has fluctuated drastically over the last year or so. This article will help you to get initiated with trading cryptocurrency and will give you an idea of how it works.
There are several types of crypto assets out there – you might know them, cryptocurrencies. You've probably saw of a few – Bitcoin, Litecoin, Ripple and Mana have all been mentioned in the news recently. But what exactly is it?
Well, let's start from the basic, the word 'cryptocurrency'. The first part of the word, 'crypto', denotes 'hidden' or 'secret', representing the security technology used to record the details of the owner and payments.
The second part of the word, 'currency,' gives us the reason cryptocurrencies were designed in the first place: a type of electronic (digital) cash.
But cryptocurrencies aren't like the cash we usually carry in our wallets. They exist electronically on the internet and use a peer-to-peer system. There is no central authority to manage the system or step in if something goes unnoticed or wrong.
Some people find this intriguing because they think they have more control over their funds, but there are significant risks. With no central authority watching over, no one is responsible for helping you get your money back if your funds are stolen.
Cryptocurrency is a digital, decentralized currency. It is not supported by any authority or backed by physical assets but instead relies on cryptography to validate transactions. It is no surprise that cryptocurrencies are all the rage these days. One of the most popular cryptocurrencies in existence today is Bitcoin. The reason why so many people are involved with cryptocurrency is that, at its core, it's based on the fundamentals of "trustless" transactions. With this type of transaction, you don't need to trust anyone to act in good faith because the system automates the entire process.
The crypto market is an unregulated, decentralized global market that operates 24 hours a day, 7 days a week. The market never closes, and new trades never stop. Unlike traditional markets, the crypto market never closes, meaning that it doesn't have any holiday or weekend closures. It's also borderless and accessible to anyone around the world with an internet connection.
Moreover, Cryptocurrencies are highly volatile. It also means one can make a fortune overnight while trading. If an investor intends to invest in cryptocurrencies, he can easily make money through research and a proper strategy.
Further, the Crypto market is trending, and it gives high returns within a matter of days. One can expect more than a 100 per cent rise in the value of a coin if the sentiments are optimistic about that crypto coin.
However, it is advised to do proper research before investing in cryptocurrency. Some coins are unstable and can't withstand the market fluctuations, so make sure that your investment must be done on that cryptocurrency that can withstand the market crashes.
There is a plethora of cryptocurrency exchanges. These exchanges allow people to trade cryptocurrencies for other types of digital and traditional currencies. Note that you will be required to open an account and verify your identity with these providers. It would be best if you also found a cryptocurrency wallet before sending any money over.
However, to easily trade cryptocurrencies, you can opt for a globally regulated broker like CapitalXtend. Here, you can find intelligent tools to carry out your crypto trading and your funds, which remain hackproof due to the company's safe and intelligent protection services.
There is one blog post here for anyone who needs a comprehensive guide on cryptocurrency. It gives information about the trends in the market, significant cryptocurrencies, and their use cases.
Bitcoin is the most popular cryptocurrency. It had a market cap of $288 billion at the end of 2017 (over 80% of the total cryptocurrency market). It had an all-time high of $20,089 in December 2017.
Since then, Bitcoin has dropped significantly in value and had a market cap of $68 billion at the end of 2018. Other major cryptocurrencies are Ethereum, Ripple, Bitcoin Cash, and Litecoin (Ripple recently had a surge in popularity due to its partnerships with many banks).
Apart from Bitcoin, other Altcoins are grabbing bullish investors' attention. After the announcement of Metaverse, the most anticipated currencies like MANA are already gaining traction in the market.
Ethereum is the most widely preferred altcoin after Bitcoin. It is the world's second-largest cryptocurrency. Some investors often see it as a blue-chip stock as it can withstand market fluctuations.
Solana is one of the most significant contenders of 2021, and there are expectations that this coin will touch the apex in 2022. Solana has boomed from $1.40 to its current $183.10, a 13000% gain.
Forex trading is a vast area of opportunities, and cryptocurrency is one of the aspects of the Forex market where amateur traders and expert ones are trying their fortune. Digital assets are the future of the economy, and somewhere soon, they will be accepted globally. The awareness about cryptocurrency and blockchain developments and introductions of new platforms to utilize that cryptocurrency is already burgeoning the market.
However, governments need to take measures to sustain this cryptocurrency as a reliable method of exchange. It can only be done if these cryptocurrencies are made to be hackproof, free from theft or any kind of mistake. With the emergence of new technology, the new altcoins are showing much prominent possibility of being the currency of the next generation.
Moreover, these days crypto punks (a kind of digital art made of NFT pixels) are in trend. These NFT's are cryptographically secured tokens with the history of current and previous owners stored in the blockchain.
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