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What is cryptocurrency?

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Cryptocurrency is trending globally and for anyone unsure about this phenomenon, it is a digital currency that can be traded anonymously without a middleman. Cryptocurrency uses cryptography to secure transactions and has control of the creation of new units. The original cryptocurrency was Bitcoin which was created by an unknown group or person in 2009 but it wasn’t until 2013 when the global public became aware of this novel form of money. Recently, Cryptocurrency has gained popularity and continues to gain popularity because most major currencies are being paired against Bitcoin on exchanges such as Bittrex and Poloniex. If you are interested in learning more about the world of cryptocurrency as well as the benefits, keep reading.

What is cryptocurrency?

Cryptocurrency is a type of payment that people can exchange online for goods as well as services. Cryptocurrency has turned into a new cultural phenomenon and as a result, many companies have started issuing their currencies, often referred to as tokens. These tokens can be traded by the goods and services provided by the company, almost the same concept as casino chips or arcade tokens. You are required to exchange real money to attain cryptocurrency which will allow you to access these goods and services. For those new to this there is copy trading, sometimes called mirror trading, which is a type of investment strategy that allows investors to copy the trades of other traders.

This can be a great way for investors to learn from more experienced traders, or simply to diversify their portfolio. While many brokers offer crypto copy trading capabilities, not all of them are created equal. It's important to research different brokers and find one that has a wide variety of traders to follow, as well as a good track record. Cryptocurrencies can work because they use an advanced encryption technology called blockchain which is a decentralized technology that manages transactions. The cryptocurrency was created in 2009 after the 2008 global financial crisis and was intended to be a way for people to control their finances themselves without having to depend on banks, governments, and companies that have fees and control measures. The reason for the massive popularity is that people see this as a lucrative investment for the future.

What is a cryptocurrency exchange?

A cryptocurrency exchange is a digital platform that allows people to buy and sell their cryptocurrency. You can use a variety of exchanges to trade one crypto for another one; for example, you can trade Bitcoin for Litecoin which is another form of cryptocurrency. Crypto exchanges that are decentralized are majorly beneficial because this means that there is reduced hacking risk. After all, users aren’t required to transfer their assets to a third party. Market manipulation is also prevented because it allows the peer-to-peer exchange of cryptocurrencies which also protects users from fake trading. There is also privacy which is a huge benefit and overall, this gives people a sense of empowerment and control over their digital assets. To purchase on a crypto exchange, a buyer needs to fund the account which is also referred to as a wallet. You can fund your account with local currency or cryptocurrency. The next step is for the buyer to place an order or “buy”  whichever exchange. Popular cryptocurrency exchanges include Coinbase, Binance, Kraken, Gemini, and Bittrex to name a few. [Additionally, consider Swyftx New Zealand crypto exchange as another option.]

Benefits of buying and investing

Cryptocurrency is considered a smart investment and has made many people very rich. If you want to get involved, it is worth noting that stock trading of companies that are well established is typically not as risky as investing in other forms of cryptocurrencies such as bitcoin. [To learn more about the cryptomarket, check out btc price cad.] When considering the global economy, cryptocurrency offers lower transaction fees for online exchange as well higher levels of protection from identity theft because cryptocurrencies are very secure by nature and use technology such as blockchain which is also highly encrypted. Through cryptocurrency, you are exposed to a wide variety of investment opportunities and the best part is that you have full and direct control over your investments. Cryptocurrency is seen as extremely profitable even though there is risk involved.

Which cryptocurrency is the best?

Everyone is familiar with Bitcoin, however many other popular cryptocurrencies deserve some spotlight, including:

  • Ethereum (ETH): This decentralized software platform enables smart contracts as well as decentralized applications to be developed and run without any interference from a third party. 1 ETH is trading at around $2,900.
  • Litecoin (LTC): Litecoin is one of the first cryptocurrencies that followed Bitcoin and was created by a former Google engineer called Charlie Lee. Litecoin is an open-source global payment that is decentralized and 1 token is valued at $199.
  • Cardano (ADA): Cardano stands out among the crowd of other cryptocurrencies and its blockchain is said to have more value. ADA is still in its early stages which means it isn't too far advanced with regards to decentralization. One Ada trades for roughly $1.00.

These are just the top three, but there are plenty more to invest in. If you’re interested in getting started with crypto, you should know that Telegram has been a hub for cryptocurrency enthusiasts. The platform is a great place to find trading strategies, while users communicate over Telegram to share information.

Cryptocurrency, Bitcoin, Investing, Trading, Benefits, Security, Ethereum, Litecoin, Cardano, Money

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