CryptoCurrency, as the new business of the new world’s economy.
With the world’s economy crippling as the day goes by, price of dollar hitting high margins, barrels of oil dropping in value, monetary exchange losing its form than ever with the recent pandemic shattering alot of strongholds, it now becomes a thing to ponder on.
What if paper money loses so much value that its exchange value amount to little or nothing? Are the tales of Cryptocurrency going to rule the new economy?
Cryptocurrency is a digital internet-based medium of exchange, traded in virtual coins, wherein individual ownership records are stored in a digital computerized database using a reliable cryptographical analysis to keep transactions secured, control its creation, determine the inflow and outflow of coins and also to verify the individual coin transfer ownership.
It is founded on a decentralized control system which works through a distributed technology also known as the blockchain technology, which acts as a database for the public transaction and also poses as a distributed ledger for documentation and transactional data.
Cryptocurrencies has gained strong influence these days, as they can’t be issued by any central authority and cannot be interfered with or manipulated by any government policy.
They have proved worthy of portability as you don’t need to carry them around as you’ll do to paper money, its divisibility, and transparency.
Blockchain technology is a unique security feature that assures you of safe trading in the crypto world and acts as a decentralized digital register.
It is a distributed ledger technology (DLT) that keeps full track of digital assets and currency and ensures transparency through the chain of clients involved in its mechanism.
Blockchain consists of three essential concepts: blocks, nodes, and miners.
Blocks are files where data related to the crypto network are documented permanently, saved for preferences.
A block takes the responsibility of recording mostly all of the most recent transactions done during each crypto trading. They are like grafted pages of our decentralized ledger.
Miners are the powerhouse of the blockchain.
They play the role of securing the network, processing every crypto transaction, and also to create new blocks when necessary.
Miners achieve this feat of responsibility by solving computational problems giving them the ability to chain different blocks of transactions together.
A node is simply any computer that connects to a cryptocurrency network. The node performs the function of supporting the system.
DIGITAL CURRENCY VS CRYPTOCURRENCY VS VIRTUAL CURRENCY
A Digital Currency (Electronic Currency) is any form of currency that is regulated or unregulated, authorized or unauthorized and usually traded online using electronic wallets.
This includes both virtual currency and cryptocurrency.
Notwithstanding, they often face a flop due to the inadequacy they possess; they don’t operate on a blockchain technology, which leaves them prone to attacks, hacks, and penetration.
Virtual Currencies are a type of digital currency that is solely controlled by its creators and is usually limited to only members of the specific virtual community.
Banks do not issue virtual currency and therefore lack regulation, which shows they are prone to price fluctuations.
A perfect example of virtual currencies are cryptocurrencies.
Cryptocurrency refers to currencies that are work on encrypted algorithms and cryptographic techniques with a strong wall of blockchain technology, which ensures its security and resists counterfeit.
Cryptocurrencies operate without the need of a third party, Central bank or credit card company.
MAJOR CRYPTOCURRENCIES IN THE WORLD
The existence of cryptocurrencies can be traced back to 1983, American cryptographer David Chaum made his first attempt with anonymous electronic money called eCash.
Later, in 1995, the plans for eCash wee implemented through Digicash, but these only were limited to the world of digital currencies.
Different Currencies have been flooding the market, making financial transactions untraceable by any third party (issuing bank and government).
In accumulation, there are approximately 5392 cryptocurrencies traded, with capitalization is $201 billion as of April 22, 2020, with its compiled list on http://www.coinmarketcap.com.
Irrespective of the transparency of the crypto market, scammers have been able to flood the market with fraudulent sites.
It is not all difficult to be able to spot out a fraudulent crypto website as a documented list is available at http://cryptochainuni.com/scam-list.
Features of fake sites;
- Fake ICO.
- Ability to steal people’s identity.
- Illegal exchange.
Top 10 Cryptocurrencies and their value in dollars.
- Bitcoin(BTC) $9626.58USD
- Etherum(ETH) $211.08USD
- XRP(XRP) 0.201173USD
- Tether(USDT) 1.000857USD
- Bitcoin Cash(BCH) 245.82USD
- Bitcoin Sv(BSV) 198.87USD
- Litecoin(LTC) 44.68USD
- EOS(EOS) 2.66202USD
- Binance Coin(BNB) 16.507162USD
- Tezos(XTZ) 2.676158USD
A GLIMPSE THROUGH CRYPTO TRADING
Crypto trading otherwise known as cryptocurrency exchange, is a form of business that is involved with buying, selling, and exchanging flat currency (paper money) for crypto coins.
The basis of crypto trading begins with an adequate of CFD trading.
CFD, an acronym for “Contract for Difference,” is a contract between two parties, the buyer and the seller, which transactions are determined by the difference between the current value of an asset and its value at the contract time.
The concept of CFD trading was originally developed in the early 1990s in London as a medium to trade hedge funds( investment funds that trade in liquid assets) on margin as a type of equity swap.
Institutional traders initially used CFD exchange because of its cost-effective gain and because they require only a small margin.
Trading with cryptocurrency is the act of predicting price falls and rise in crypto markets and cashing into that to your favor.
How Crypto Trading Works
Like every other business in existence, there will always be a line of connection between risk and gain. Your ability to take reasonable risk draws you closer to huge profits. But it’s also important to note; not all risks are worth taking.
Before you start trading in any cryptocurrency, you will need to create an exchange account, store as many crypto coins in that currency as you can in your crypto wallet until you are ready to sell.
I will love to advise you that before venturing into trading with cryptocurrency, understanding the exchange curve will give you a greater advantage in the market.