CryptoCurrencies TradingCryptocurrencies is the Big thing at the moment.
It will be hard to not have heard about Bitcoin, Litecoin and Ethereum. The markets of these cryptocoins have gone through the roof and those that were early to get in are reaping now the fruits.But in order for you to do the same you need a little bit more information
Cryptography has everything to do with coding to keep data secure. This term is not something new. The cryptocurrency is a virtual or better said digital asset that utilizes cryptography as its security measure. That makes it thus saver and makes it very hard to impossible counterfeit unlike regular bills and coins.
and the most known of the first cryptocurrencies that were launched and opened the way for Crypto Currencies Trading on other cryptocoins. It was launched in 2009 by Satoshi Nakamoto, a pseudonym that could be a person or a group , there has been some debate about this and every now and then this story pops back up.
The system was open source and peer to peer. The most important aspect of this is that theres no central agency (like the government) that regulates or issues these cryptocurrencies or CryptoCurrencies Trading in general
The same fact made it also somewhat perfect for the business that were trying to keep their delaing off the books and unknown to the goverments and banks.
The difference being that cryptocurrencies have ICOs, initial coin offerings, and any entity or group is able to launch it as an investment, while regular companies have IPOs, or initial public offerings.
The Atlantic lays bare the actual problem with not having a central authority regulating these currencies. Because there are no checks and balances the way there are with IPOs, there are many scammers out there looking for fast cash. So, This brings me to the points that if you plan to invest in a cryptocoin and want to do some cryptocurrency Trading you better make sure that it is a save and sound currency with a good reputation.
What about for example CryptoCurrencies Trading in Bitcoin or Ethereum? . Are they smart investments? Since both are very popular, and areactually used as currency.
Some are, some might be and some are not.
Not the answer you were looking for ? look at it from this way
While there are people that state that investing in general is just gambling this is not really the case. Investment that are long-term. And broad investments are very different from active trading and more speculative investment, in the short term format it can go either way , like forex or retail commodity trading and cryptocurrencies trading falls into that category.
With active short term trading, you are predicting in a short term what the coin will do. This has been for many an amazing income when it comes to bitcoin , but keep in mind where there are winners there losers.
Since the prices go up and down so fast as in forex , you are able to buy bitcoin and lose money , there is no sure thing .
the price of these cryptocurrencies often swings from one extreme to another. For example inone day in June, the price of Ethereum plummeted from $US319 to $US0.1o.
This does not mean that you have to run now as the price recovered and then some. It just means that you have to be aware of the market like any day trading requires. This is not like buying Bitcoin forgetting about it and then just cash in and buy a car. You have to educate yourself, find the right broker and watch the markets and news for developments.
But as a price goes down it also can go up tremendously. This creates thou the fear of a bubble which will make the price eventually crash. People that cashed out before a crash are the lucky or well, educated ones and make enormous amounts of money.
So be aware of the risks but if you were not interested you would not be reading this. There sis money to be made in cryptocurrency trading.
That was my little moment of doom , now lets looks how it actually works
All cryptocurrencies follow the same general system.
It starts by a cryptocurrency choosing a base unit and how much that particular unit is worth when compared to other currencies (often, the U.S. dollar is used as a baseline).this would be the ICOs.
Here everyone goes about it a bit different and this often will already indicate what kind and how success full the crypto coin will be.
Keep in mind that there are sometimes very smart people behind it that try to push the envelope of what is done till that moment but in the end, the unitin one way or another relates to the value of other established currency, which is the format all currencies are following
Units of the new cryptocurrency are then created. When a transaction is made the units are carefully formed and preserved through algorithmic encryption, then linked together in enormous chains of data (term is blockchains) , where the currency can be tracked and exchanged.
This is not enough thou, as this is not secure enough it needs more information to keep it save. The currency units need to be timestamped and properly processed to make them more stable and harder to copy.
This can be done by a third party developer, but today most of the cryptocurrencies rather crowdsource the process to those with the correct hardware and software to mine the cryptocurrency.
This in essentially verifies the transaction and build its position online. This entire process is most of the times called the consensus protocols, there are some variations of this due to other currencies.
This it will make the currency very hard to duplicate and this forger it. Some say that it can be done but in general a good crypto currency has this part covered as it would be in most cases be simpler to just print fake bills.
Since the coins are only digital ( regardless of the nice bitcoin pictures ) there are some serious implications.
When last checked there are more than a thousand different cryptocurrencies and more are popping up every month.
Some of these are to be taken very serious and those in general are the ones we are looking at when talking about cryptocurrencies trading in general.
Others are more for fun experiments or for other reasons (that you have to ask those developers).
Besides Bitcoin (who remains the big leader of the pack) there are a few crypto currencies out there that you should take notice of if you are interested in cryptocurrencies trading online. I can mention them all but that would not really help you.
The main ones that I expect to become larger stronger and more mainstream or already are those things are, the litecoin, Dash, Ripple and last but not least Ethereum.
Since many of the uses are still in the shadow it is perceived as a way to stay under the radar for less kosher deals, it needs to become a legit means of payment for everyday life and business to succeed.
Japan makes waves in this direction allowing micropayments in supermarkets with some crypto currencies.
2.The pass-through problem.
Investors, that can be even you and me, need to hold onto and invest these currencies long-term if they are going to become a real force.
As long as they are used by companies as well as regular people to switch between other currencies but for the reason to only avoid paying the exchange rates it will not achieve the right reputation, this also reflects back on point one.
3. Continues Stability.
They need to be more save then regular currencies and remain this for a longer period of time. When Ethereum,was hacked which made a damage of around 50 million dollars. It hurt then entire Cryptocurrency world.
The cryptocurrency will have to be fully trusted to see real mainstream use which is currently still not the case. On the other hand, as long as governments keep on printing money whenever they need some regular currencies are not a better option just less volatile in most cases.
The thing is thou that crypto currencies will never go away, it simple cannot be erased or ignored anymore, the banks start to fear as they are losing business and some smart countries like some Scandinavian ones are integrating some cryptocurrencies in their society making it more mainstream and accepted.
In some years to come I expect that we would know any better and the trading would be like trading EUR US is now. That said Cryptocurrencies trading is exciting and with the right education, the right broker and exchange can be very profitable.
Enjoy but be smart careful and educated. Dont trade with funds you cannot spare and follow the markets.
Originally posted here:
Cryptocurrencies trading | your guide in the world of trading …
- Cryptocurrency Exchange Says It Can't Access $190 Million ... - February 5th, 2019
- What's the Best Cryptocurrency to Invest in Today? - January 9th, 2019
- Cryptocurrency Trading Easy tips to get started | AvaTrade - January 9th, 2019
- Thailand Issues 4 Cryptocurrency Licenses, Rejects 2 ... - January 9th, 2019
- NASDAQ, Fidelity Invest in New Cryptocurrency Exchange ... - January 9th, 2019
- Cryptocurrency News | Cryptocurrency News | Blockchain ... - January 9th, 2019
- Differences Between Cryptocurrency Coins and Tokens - January 9th, 2019
- Cryptocurrency Charts - January 8th, 2019
- What is cryptocurrency? - cointelegraph.com - January 4th, 2019
- Blockchain Will Survive A Cryptocurrency Apocalypse - January 1st, 2019
- Cryptocurrency - Simple English Wikipedia, the free encyclopedia - December 25th, 2018
- Is Cryptocurrency Dead for Good? | Investopedia - December 6th, 2018
- Cryptocurrency scammers dupe Singaporeans out of $78,000 in ... - December 6th, 2018
- Invest in Cryptocurrency With Spare Change - Black Enterprise - November 28th, 2018
- What is Mining Cryptocurrency? What you need to know... - November 26th, 2018
- Saudi Arabia Will Launch Its Own Cryptocurrency in 2019 ... - November 23rd, 2018
- Bitcoin and Other Cryptocurrency Prices Are Crashing Again ... - November 17th, 2018
- Homepage - Cryptocurrency Army - November 14th, 2018
- Cryptocurrency - Simple English Wikipedia, the free ... - November 14th, 2018
- How To Create Your Own Cryptocurrency - fastcompany.com - November 14th, 2018
- Cryptocurrency price plunge worse than bursting of dotcom ... - September 18th, 2018
- Iran, North Korea and Venezuela turning to cryptocurrency ... - September 12th, 2018
- SEC halts trading in two cryptocurrency products, citing ... - September 12th, 2018
- Cryptocurrency News, ICO Reviews & Blockchain Updates ... - September 9th, 2018
- Cryptocurrency "miners," utilities look for ways to get along ... - August 29th, 2018
- Cryptocurrency: Virtual money, real power, and the fight ... - August 28th, 2018
- Pornhub Now Accepts PumaPay Cryptocurrency - August 27th, 2018
- NK hackers target Mac users with trojan cryptocurrency app ... - August 27th, 2018
- Cryptocurrency: The unlucky investors who got in at the wrong ... - August 26th, 2018
- cryptocurrency coins Archives - The Industry Spread - August 26th, 2018
- cryptocurrency Archives - Page 6 of 6 - The Industry Spread - August 26th, 2018
- Cryptocurrency investment in SMSF - hallandwilcox.com.au - August 26th, 2018
- How To Choose The Best Cryptocurrency Wallet - Crypto News AU - August 26th, 2018
- Courses | Cryptocurrency Australia - August 26th, 2018
- What Every Investor Should Know Before Buying Cryptocurrency ... - August 26th, 2018
- The biggest cryptocurrency hack in the history of blockchain - August 26th, 2018
- After the Bitcoin Boom: Hard Lessons for Cryptocurrency ... - August 21st, 2018
- Cryptocurrency Rankings | CryptoSlate - August 14th, 2018
- Bitcoin price falls after SEC postpones key ETF decision - August 12th, 2018
- Brokers Cryptocurrency Deals Are Focus of SEC Review ... - August 7th, 2018
- 7 Cryptocurrency Predictions for the Rest of 2018 - August 7th, 2018
- Have a Cryptocurrency Company? Bermuda, Malta or Gibraltar ... - July 31st, 2018
- Bitcoin price live: Latest updates as cryptocurrency ... - July 22nd, 2018
- 2018 Bahamas Blockchain & Cryptocurrency Conference - July 16th, 2018
- Best Cryptocurrency Trading Platform 2018 | Top Crypto ... - July 13th, 2018
- Cryptocurrency: Advantages And Disadvantages Explained - July 12th, 2018
- ATB Coin - The fastest and most secure payment system - June 19th, 2018
- An Illustrated Glossary of Cryptocurrency Slang (Infographic) - June 19th, 2018
- Apollo All-in-One Cryptocurrency - June 3rd, 2018
- Cryptocurrency News, ICO Database, Coin Rankings and ... - May 25th, 2018
- CoinLib - Cryptocurrency prices now - May 21st, 2018
- Cryptocurrency Market Capitalizations | CoinMarketCap - May 4th, 2018
- CryptoCurrency Market , Coin Prices & Charts, Crypto ... - April 28th, 2018
- Nasdaq open to cryptocurrency exchange in future, says CEO - April 27th, 2018
- The 4 Top Cryptocurrency Mining Stocks -- The Motley Fool - April 27th, 2018
- One in five financial institutions consider cryptocurrency ... - April 27th, 2018
- New hacks siphon private cryptocurrency keys from ... - April 27th, 2018
- What Is Cryptocurrency? - dummies - April 21st, 2018
- Cryptocurrency Market Surges to $365 Billion, Start of a ... - April 21st, 2018
- BTCMANAGER | Bitcoin, Blockchain & Cryptocurrency News - April 16th, 2018
- How to keep your cryptocurrency safe - CNET - April 11th, 2018
- How do I report Cryptocurrency Mining income? - TurboTax ... - April 4th, 2018
- When do you report Cryptocurrency investments? - TurboTax ... - April 4th, 2018
- Trading Cryptocurrency in 2018: The Definitive Guide - March 14th, 2018
- How would one operate a Cryptocurrency Mining Pool and ... - March 13th, 2018
- Coinbase cryptocurrency index fund - Business Insider - March 10th, 2018
- Cryptosomniac | Cryptocurrency Price Tracker - Bitcoin & Eth ... - February 24th, 2018
- Cryptocurrencies News & Prices | Markets Insider - February 22nd, 2018
- I started cryptocurrency mining at the end of 2017 and was ... - February 20th, 2018
- Cryptocurrency News - Bitcoin, Ethereum, NEO, ICO startups - February 8th, 2018
- 7 Best Cryptocurrency Exchanges to Buy/Sell Any ... - February 8th, 2018
- Electroneum. The Mobile Cryptocurrency. - February 8th, 2018
- Robinhood trading app introduces cryptocurrency - money.cnn.com - January 28th, 2018
- Robinhood adds zero-fee cryptocurrency trading and tracking ... - January 28th, 2018
- Cryptocurrency Price Prediction, Comparison, Analysis - January 22nd, 2018
- South Korea's major cryptocurrency exchanges ... - reuters.com - January 13th, 2018
- Bitcoin-crazy South Korea may face a ban on cryptocurrency ... - January 13th, 2018
- Cryptocurrency - IC Markets - January 13th, 2018
- Kodak launches cryptocurrency, stock pops 125% - Jan. 9, 2018 - January 10th, 2018
- The cryptocurrency bubble is strangling innovation | TechCrunch - January 9th, 2018