Cryptocurrencies can be seen as an alternative to traditional money. Cryptocurrency Market grows every day and this is so great that many stores, companies or outlets accept cryptocurrencies as a form of payment.
Today, more than 11,000 unique cryptocurrencies are traded publicly, according to a market research website called CoinMarketCap.com. Every day, cryptocurrencies continue to proliferate, raising money through initial coin offerings (ICOs).
As of May 27th, 2021, the total value of all cryptocurrencies was more than $1,7 trillion – down from April high of $2.2 trillion, according to the market website, CoinMarketCap. Bitcoin (the most popular digital currency) was pegged at about $735 billion – down from April high of $1.2 trillion.
What is Cryptocurrency
Cryptocurrency or Crypto for short is a digital currency (any form of currency that exists digitally) that can be used to purchase any goods and services.
How Cryptocurrencies Work
Cryptocurrencies work using a new technology called Blockchain. It uses an online ledger with strong cryptography to secure the creation of monetary units and also to verify the transfer of funds. This online ledger or Blockchain is a decentralized technology that spreads across many servers (computers) across the globe that records and manages transactions.
Understanding Cryptocurrency and Cryptocurrency Market?
Cryptocurrency trading is the process of studying and analyzing cryptocurrency price changes through the CFD trading account and buying or selling the underlying coins through an exchange.
The CFDs trading are simply derivatives, that enable one to be able to speculate on cryptocurrency prices and how they change without taking ownership of the underlying coins.
The simple concept is to buy when you think a cryptocurrency will rise in value or sell if you think it’ll fall.
Cryptocurrency to buy, sell in the Cryptocurrency market
When you buy cryptocurrencies, you’re actually purchasing digital coins, but you will need to create what we call an exchange account, put up the full value of the asset to open a position (wallet) mostly using an online app., this is where you’ll store the cryptocurrency tokens (coins) until you’re ready to sell them.
Note that some cryptocurrencies including Bitcoin are available for purchase with U.S. dollars, while others may require payment with Bitcoins or another cryptocurrency.
How exactly does the Cryptocurrency market works?
A cryptocurrency sometimes may go up in value, they’re not always stable. Just like physical currencies, cryptocurrencies generate no cash flow, therefore, for you to profit from investing, someone has to pay more for the currency than you did. This has made some investors to see them as mere speculations (that is, to them, they are not real investments).
Well, unlike traditional currencies, cryptocurrencies exist only as a shared digital record of ownership and are stored on a blockchain.
When one wants to send cryptocurrency (tokens or units) to someone else, he or she is actually sending it to that user’s wallet (online app). The transaction will not be completed yet until it has been verified and successfully added to the blockchain through a process called MINING (how new cryptocurrency tokens are mostly created).
Cryptocurrency mining is the process when a new or recent cryptocurrency transaction is checked and new blocks are added to the blockchain.