In the recent years, there has been so much fuss about cryptocurrencies. Cryptocurrencies are simply internet-based digital currencies that leverage cryptographical functions to complete financial transactions. They use blockchain technology to achieve transparency, decentralization, and immutability. One common feature about cryptocurrencies that even those with little knowledge about these virtual currencies know is that central authorities cannot control them.
The decentralized nature of blockchains makes cryptocurrencies immune to traditional government control and interference. This currency can be sent directly between two people with minimal transfer fees. This makes cryptocurrencies trading overpass the traditional fees charged by financial institutions. To make it easy the understanding of cryptocurrencies, below are crucial defining properties of a cryptocurrency.
There are several cryptocurrencies available currently. However, for most of them, there is a limited supply. For instance, since the inception of Bitcoin, the supply is decreasing with time and is expected to reach its final volume by 2140. All cryptocurrencies regulate their supply through a token schedule in the form of a code. This implies that the total supply of a particular cryptocurrency can be calculated at any given moment.
Once a cryptocurrency transaction is confirmed, reversing it is impossible. This is probably because of the procedures involved in transferring the cryptocurrencies. The transfer mechanism is a one-way route that even the founders cannot reverse.
Being pseudonymous is probably what made cryptocurrencies a favorite for individuals who don’t like their financial transactions supervised. With cryptocoins, your transactions and accounts are not connected to real-world identities. The cryptocoins are received and sent through addresses, which are random chains of about 30 characters. Whereas it is possible to analyze the flow of transactions, it is not possible to connect the address to a real-world user identity.
Fast and global
Cryptocurrencies transactions are completed instantly they are made. Since they are entrenched within a global network of computers, there is no difference in time taken for various physical locations. For instance, it will take the same time to send a cryptocoin to your neighbor and to another person on the far end of the globe.
Cryptocurrencies are probably the most secure digital currencies. This is because they are locked in a public-key cryptography system. Only the owner with a private key can send a transaction from his/her account. This is aided by the strong cryptography system and magical numbers, which make it difficult to hack the scheme.
Interested persons don’t need any permission to use cryptocurrencies. They are more or less like software that anybody can download. Once installed, you can send, receive or buy cryptocurrency with no gatekeepers.
As mentioned, there are various cryptocoins currently available. Each cryptocurrency has a slightly different function and make-up. Some of the popular coins include;
Bitcoin is the original and widely used cryptocurrency. Currently, there are slightly more than 16.8 million Bitcoin tokens circulating against the capped limit of 21 million. The market capitalization of Bitcoin varies from day to day, but initially hit a record high of $200 billion.
Ethereum is more of a decentralized app provider. It was initially developed as a supercomputer to eliminate the need of third-party firms such as Apple in the development of mobile and PC applications. Ether was developed as payment and costs for programs in Ethereum.
Widely known as “Bitcoin’s little sibling,” Litecoin resembles Bitcoin in various ways. This peer-to-peer cryptocoin offers faster transaction speeds and has a significantly higher token limit of 84 million. However, it has a memory-intensive mining process and a small market cap.
Bitcoin Cash is an offshoot of Bitcoin that was launched in 2017. Nonetheless, it has gained immense popularity and recently is one of the most traded cryptocurrency. Currently, the amount of Bitcoin Cash and Bitcoin are approximately the same. Notably, the main difference between Bitcoin and Bitcoin Cash is that Bitcoin Cash offers 8MB block size while Bitcoin has only 1MB. This translates to fast processing fees but memory intensive.
Ripple was designed to provide blockchain solutions to banks as a centralized transaction medium. It enabled the exchange between real currencies and cryptocurrencies. The cryptocoin uses XRP currency, where a real-world currency is converted into XRP, sent vial ripple network and then converted back into real money. It is fast, more reliable and less volatile compared to other cryptocurrencies.
Dash is an altcoin forked from Bitcoin. It is an open-source cryptocoin that is run by a subset of users called masternodes. Like other cryptocurrencies, it permits fast transactions that are untraceable. Dash has a cap of 18 million and currently has approximately 7.85 million in circulation.
Cryptocurrencies trading simply involves trading digital currencies. In this case, the traders speculate the price movements of cryptocurrencies and trade for a favorable price condition. Traders can buy cryptocurrency and sell through various exchanges. Traders should have an exchange account and a wallet to store the cryptocurrency tokens until they find suitable conditions to sell their cryptocoins. Note that various exchanges have different policies and purchasing limits. Therefore, as a trader, make sure that you research and read the fine prints of various exchanges to find one that is suitable and offers flexible options for your trade.
Since the cryptocurrency industry is decentralized, traders will not enjoy the support of central authorities. The trading process is completely decentralized and runs through several computers globally. As mentioned before, you can still buy and sell cryptocurrencies through exchanges. All you need to do is to set up a wallet and find an exchange platform.
With the wallet, you can buy some tangible cryptocurrency of choice into your wallet and get ready to exchange with other cryptocurrencies in the market. Note that the cryptocurrency market is very volatile, and market prices change in an instant. Digital records of your cryptocurrencies will be kept on the blockchain. As a trader, you will use your digital wallet to send any amount of units to another trader. The transaction becomes complete once it is verified and included in the blockchain.
To begin trading, you should open up an account buy the base currency, which is Bitcoin, using your domestic currency. All traders must buy the base currency to enter into the world of cryptocurrencies trading. The base currency is common, and all other cryptocoins are quoted against it. In the exchange platform, you will find more than 1,200 digital currencies. However, all can only be bought using the base currency, which is Bitcoin. You cannot use your domestic currency to purchase any other cryptocurrency. Simply put, Bitcoin is the gateway to crypto trading.
With all the above outlined, you certainly have a general idea of what cryptocurrencies are and how to trade them. Well, if you are ready, you should begin the process by registering to a good cryptocurrency trading company like XTRgate. We should provide expert solutions to all traders globally. Below are the reasons why you should consider trading cryptocurrencies with us.
Versatile assets to trade with
We offer a wide array of cryptocurrency assets you can trade with. We boast of unlimited trading options that ascertain that our traders never lack anything. Just to mention, our assets include the following;
A common concern with digital currencies are cases of fraud. Well, this is why we have zero tolerance for any forms of financial frauds, money laundering, terrorist activities, and identity theft. From the point you sign up with us, we safeguard your private information with the utmost confidentiality. Our high-end encryption techniques eliminate the chances of insecurity and fraud. To secure your details to the fullest, we ask for the following information during signup;
All these details are kept in a safe network that you only can access. Besides, sensitive information about our clients is encrypted using secure socket layer technology. We regularly subject our platform to security scans to check for vulnerable security loopholes.
Opening an account with our platform is very easy. Your account will be ready at the end of the following three steps.
We understand that our customers' trading needs vary. This is why we have five various account types. Based on your needs, you can sign up with the Platinum, Gold, Silver, Bronze or Basic account. Regardless of the levels, all the accounts have basic features that facilitate trading. The basics include daily market review, educational center. Pro webinars and 24/6 available support.
Cryptocurrency trading can be challenging, especially for beginners. That said, we strive to provide a fast and professional support team to help customers who could be stuck somewhere. You can contact the support team through live chat, which is mostly used by most customers and very convenient. You can as well leverage the email and phone numbers provided. Prompt customer service ensures that customers meet their trading goals.
With cryptocurrencies trading, it is possible to become successful or make loses. All this depends on how you make your trade decisions. If you are new to trading, check out the following trading rules that you should know as a beginner.
Cryptocurrencies trading is still a viable and profitable business. However, it requires that you make the right decisions. For novice crypto traders, take time to learn the various aspects of crypto trading. With a better understanding, you can make sound investments that are profitable. For easy trading with ascertained security, consider trading your cryptocoins with us.
Dear visitor, Unfortunately, we do not accept traders from United States.