5 Things you should know about Cryptocurrency
Towards the end of 2017, Bitcoin and other cryptocurrencies became one of the hottest topics all around the globe. From being a concept only known to tech experts and early adopters, cryptocurrencies have become a common subject of conversations in workplaces and even in the neighborhood. Several news programs and publications are also including cryptocurrencies in their regular headlines as part of the recent hype.
Even with the sudden rise in popularity of cryptocurrencies, many people are still not aware of the real value of these digital assets. It will take several weeks for an average person to master the concept of cryptocurrencies, but we have listed below some of the basic things that you should know before investing or trading on them. Read more about the five most important things to add to your knowledge and start exploring the great potential of cryptocurrencies.
Cryptocurrencies run on blockchain platforms.
few exceptions, most cryptocurrencies operate on blockchain platforms. These networks run on their own without the need for a centralized authority to manage the transfers. Transactions are purely peer-to-peer (no middlemen or regulatory body) and are confirmed in blocks. These blocks contain a list of transactions and are recorded permanently by the participants either through mining, staking, or a combination of both.
There are many other cryptocurrencies other than Bitcoin.
Bitcoin may be the most popular and highest valued (in terms of total market capitalization) cryptocurrency out there, but there are still other cryptocurrencies which are more advanced in technology compared to Bitcoin. Today, there are already more than 1500 different cryptocurrencies and the list is still expanding. Each one of these coins and tokens has their own purposes and strong points. Most of them are created as a way to replace cash, while others are based on smart contracts and have their own working products.
The prices of cryptocurrencies are extremely volatile.
One thing that you should be aware of when trading or investing in cryptocurrencies is the high volatility of the assets. Bitcoin, which is considered as one of the relatively stable coins, is seven times more volatile than gold and eight times more volatile than the stock market. With the massive price movements, short-term trading can be a lucrative sideline for cryptocurrency traders. Find an automated trading program that can generate passive income for you. Read more about the Crypto CFD Trader’s review for more information on this one of a kind trading program.
They can be used to improve payment systems.
The majority of cryptocurrencies are developed to improve the way we transfer our funds and pay for our goods and services. Besides the speed of transactions, transferring cryptocurrencies is cheap and you can send money from any country to another at any time, with just a working internet connection.
There are mixed perceptions on cryptocurrencies.
While cryptocurrencies have shown its resiliency time and time again, there are still many non-believers that think that they will crash at some point in time. Nevertheless, the entry of institutional money from the Wall Street and even the participation of multinational companies that are now accepting Bitcoin payments have proven that cryptocurrencies are here to stay and that this is just the start of something better in the world of finance.