SHOULD YOU TRADE CRYPTOCURRENCY?
“Starting a new currency is easy, anyone can do it. The trick is getting people to accept it”
- Adam B. Levine
SHOULD YOU TRADE CRYPTOCURRENCY?
Cryptocurrency Basics
The recent spike in cryptocurrencies prices and trading volume suggests an increasing interest from investors who want to take part in this monetary revolution.
The revolution started 10 years ago with the launch of the Bitcoin (BTC), the first, biggest and most important cryptocurrency
“Bitcoin was created to serve a highly political intent, a free and uncensored network where all can participate with equal access.”
- Amir Taaki
HOW CAN I BUY OR SELL CRYPTOCURRENCY?
Ways To Become a Cryptocurrency Trader
The two most popular ways to take advantage of the crypto-currency market are:
1.Trading coins through an exchange
To own crypto-currencies, you first need to find an exchange you can trust, one that’s available in your country, and that offers a payment method for buying cryptocurrencies. There are different types of wallets, they can be gathered into two main groups: “cold” and “hot” wallets. The main difference is whether or not they are connected to the Internet. While “hot” wallets are connected to the net, “cold” wallets are not.
Cryptocurrency buyers and owners are often seen as soft and easy targets for hackers, as virtual currencies transactions are final, there is no anti-fraud protection, nor is it possible to reverse the charges offered by financial institutions in case of problems
When held on digital services, cryptocurrencies are vulnerable to cyber-thieves. Hackers usually target crypto exchanges to drain their crypto wallets (hence the reason why you shouldn’t keep your cryptos online in an exchange). In addition, as the crypto-world is quite new, it isn’t a regulated industry like normal currency.
2.CFDs (Contract For Difference)
Once you’ve bought your virtual currencies, you have to put them into a “wallet”, a program that can contain them. Most exchanges have their own “wallet” that clients can use, but it is widely recommended that you use a wallet that only you have access to and fully control. Trade cryptos via a CFD broker. Each way has its own advantages and disadvantages.
Products like CFDs (Contract For Difference) through a regulated broker can be an interesting option for you to make a profit from the crypto-market. Whith a CFD you do not actuall own the coin, therefore there is no risk of it being hacked or stolen from a digital walllet.
A CFD is a financial contract you enter into with the broker you’re using. This contract allows you to benefit from a rise (or fall) in the price of an asset, as you will exchange the difference between the opening and the closing price of your trading positions with your broker. Using CFDs is only a good option if you want to take advantage of short-term crypto-currencies price movements
Interesting Facts About Crytpo
Who Owns Bitcoin?
We all know that the creation of Bitcoin is credited to Satoshi Nakamoto, no one knows if this is a single person or a name given to a group. The mysterious Satoshi Nakamoto never claimed the ownership of the original code, which means that it belongs to everyone… and single individual.
Bitcoin Pizza?
In 2010, a Bitcoin developer paid 10,000 BTC for two pizzas he ordered from Papa John’s. At the height of Bitcoin’s boom, that amount would have been worth $179m!
Crypto Whoopsie!
James Howells of Newport, Wales threw away a hard drive containing bitcoins worth a ridiculous $75m.
China Mines
China remains the most popular blockchain when it comes to cryptocurrency mining, maintaining around 75% of the Bitcoin mining network.
How much Bitcoin Is There?
The total supply of Bitcoin is already known. In 2140, all 21 million units will have finally been mined.
