Finance

Crypto Trading and The Secrets for It

A cryptocurrency is a digital currency that does not exist in the form of coins or notes, but only as pure book money. Cryptocurrencies differ in their characteristics and the projects behind them. At least since this year, they are experiencing their breakthrough in the financial world. In the meantime, professional investors are active in this area because they have high growth rates and yield opportunities.

For private investors who want to participate in the boom, however, it is very difficult to get an overview of the world of crypto currencies. After all, more than 1,300 crypto currencies are publicly traded. Behind it are sometimes very interesting projects, but unfortunately also some scams. For investors who want to invest part of their assets in this highly speculative and volatile segment, it is worth taking a look at the most important cryptocurrencies. If you wish to know How To Trade Cryptocurrencies then you will need to know the followings now.

Bitcoin

Bitcoin is the pioneer of cryptocurrencies. In 2008, the digital currency was launched. The inventor hides behind the pseudonym Satoshi Nakamoto. So far it is unclear who exactly laid the foundation for Bitcoin. Bitcoin is a peer-to-peer network (P2P) based on blockchain technology.

All payments with Bitcoin are completely digital, encrypted and without intermediaries. Each transaction is recorded in the blockchain and can therefore be traced back. The Blockchain is a distributed data structure (English: “distributed ledger”) – in simple terms a kind of digital cash book, which is used as proof that a transaction has actually taken place.

Since 2009, Bitcoin (BTC) has been publicly traded and has made a price development that is second to none. For a long time the price fluctuated around the $ 100 mark until the breakthrough came in November 2013 and BTC rose to over $ 800. Then it went downhill again, but 1 BTC never fell below the 200 dollar mark. It took until January 2017 until Bitcoin cracked the $ 1000 threshold.

Ethereum

This year, Initial Coin Offerings (ICOs) have caused quite a stir . It’s a new form of startup funding, especially for Startup, whose business model is based on cryptocurrency or blockchain. In June and July 2017 alone, ICOs raised more venture capital for early-stage startups than classic VC funds, according to investment bank Goldman Sachs.

And here Ethereum comes into play, because most ICOs are handled through the Ethereum Blockchain. Ethereum is a distributed data structure that enables the creation, administration and execution of so-called decentralized applications (abbreviated Dapps) in a separate blockchain.

 

Ethereum uses the cryptocurrency ether (ETH) as a means of payment for processing transactions. Ethereum has also made known the principle of smart contracts. These are automated contracts that self-fulfill when a predefined condition is met. Mostly, this is a predetermined amount of ether that must be paid for the contract to be fulfilled.

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