Another issue that was raised about crypto, as far as cryptocurrency trading is concerned is: “the prices are unpredictable and very volatile.” As this may sound true, it is important to know that the cryptocurrency trading market is quite emerging and consequently i yet to gain popularity and backup. Despite all these setbacks, though, cryptocurrencies offer a special trading avenue for traders who know how to maneuver the markets. Quite alright, risks does exist in the market, but we may ask ourselves what type of cryptocurrency trading is free from risk?
In this piece of article, the main aim is to teacj you what makes cryptocurrencies very attracting to trade and how to trade favorably in the market.
What do you know about Cryptocurrencies?
Cryptocurrencies also known as crypto or coins, are electronic currencies that work as a medium of exchange, which makes use of blockchain technology to send and receive safely made transactions, check the transfer of assets, and generate more crypto tokens. With the use of cryptocurrencies, anyone can send and receive money to anyone in any part of the world within minutes, without the official restrictions that comes with the traditional banks, and also very cheap. To make things easier, the receiving group only requires an nternet-enabled gadget and a cryptocurrency wallet.
As discussed earlier, this could only be made possible by the blockchain which is an open, distributed ledger that takes records, tracks and updates its records as cryptocurrency transactions are carried out. The records this blockchain keeps are tamper-proof, meaning that they cannot be changed, which also means that they exist in perpetuity.
Referring to Wikipedia, the banking began wayback in 2000 BC when merchants and farmers converged to create the trade by barter system. This barter system has since transformed and the present system has been in place since the 14th century. While all those years, banks came up with policies that were not consumer-friendly, opening the sector up to disruption. This is where actually cryptocurrencies came in.
Advantages of cryptocurrencies over the traditional banking system:
1. With cryptocurrencies, the intervention of intermediaries (e.g. bankers, brokers, or financial institutions) are nolonger required before transactions are settled. This unique feature thereby makes transactions faster, cheaper and less vulnerable to human mistakes.
2. The Blockchain technology is decentralizedd in nature meaning that no government organizations can interfer and manipulate jiust like you see in the way traditional banks do. Therefore crypto transactions are not subjrct to scrutiny and account freezing, it is however free.
3. Cryptocurrencies are worldwide, contrary to the fiat currency, it is never mandatory that a real office exists in a place before transactions can be made. In addition, payments can be disbursed out and collected at any time of the day and on any day of the week.
4. Cryptocurrencies may have some minor errors but have it in mind that they have only been around for ten years. On the other hand the traditional banking system has been in existence for centuries and still it is not 100% reliable.