You have probably heard about it or have already thought about buying "cryptos". In any case, it is worthwhile learning a little more about it.
For simplicity's sake, it can be said that cryptocurrencies are electronic currencies. Used initially for speculative purposes, they are accepted as a mean of payment by a growing number of providers (primarily bitcoin). But bitcoin is far from the only cryptocurrency. For example, have you ever heard of Ether or Litecoin? New cryptocurrencies are coming to the market almost every day. That's why you must inform yourself before buying any of them, seek financial advice if necessary.
Bitcoin and others, what distinguishes cryptocurrencies?
Bitcoin is the best known and most widely used cryptocurrency. It is also the one with the largest market capitalization. Bitcoin has been developed with the aim of building an independent financial system and enabling particularly advantageous, fast and transparent payments. It is therefore conceived as a currency.
Ethereum, a competitor of Bitcoin and ether emitter, is an online platform designed to create a new structure for the Internet and a new type of payment traffic. In addition to ether and bitcoin, there are now more than 1,200 other cryptocurrencies. Some of these cryptos, use smart contracts and other very new technologies (we will explain this in future articles).
A cryptocurrency is a virtual currency, it does not exist in the form of cash. Cryptocurrencies are not attached to a central bank as is the case for "classic money", or "FIAT". The value of a cryptocurrency is based only on the current demand and is very volatile. For example, the value of bitcoin can increase or decrease by more than 10% or several thousand Euros in one day.
Turning to the cryptocurrency sector in 2018 may be particularly attractive for a trader. Whether he wants to invest in the short term as well as the medium or long term. Cryptocurrencies are very popular and have shown incredible growth in 2017. Investing in Bitcoin and other cryptocurrencies this year is a possibility to consider. You would need to do extensive research or turn to a financial adviser. With the explosion of Cryptocurrencies, scams and fake coins are also emerging. As with any other type of investments, we urge you to be careful and always have your financial stability in mind.
Digital currencies form a market for hundreds of billions of dollars to date. Some traders, especially professional investors, see the cryptocurrency market reaching more than $ 1 trillion in 2018 or in the years to come. The growth of this market shows the interest of traders for cryptocurrencies and goes hand in hand with the explosion of their values. This market is strongly bullish in every aspect and traders know how to profit from the volatility of cryptocurrencies!
Due to this boom, and following the same structure as foreign exchange, you can also find cryptocurrency exchanges. You can purchase the most known cryptos and then convert them into FIAT or other less known Cryptos.
Moreover, in the case you are not sure in what to invest, we have good news. Fund managers have also created crypto-only funds. If you want to invest in more than one crypto, and lack the experience or knowledge to do so, this is a great option. It is very important though, to be careful with the funds you might choose. You will not be holding the key to your Cryptos. That could incur on unexpected losses (or disappearance of your coins).
We have seen throughout 2017, a multitude of cryptocurrencies have emerged, in the good sense of the word and therefore in the upper graphs. This allowed seeing their values sometimes multiplied by more than 1,000% and thus offered investors returns beyond standard.
The crypto-currencies have achieved the unthinkable in 2017 and some traders have earned a lot of money. We use the term Cryptocurrency Millionaires to name those new investors that bought cryptos when their value was no higher than some cents. For example, investors in Bitcoin have been able to take part in increasing the value of this cryptocurrency, at the beginning of 2017 one Bitcoin was only worth $950 and the price of Bitcoin reached $ 20,000 at its highest level at the end of the year!
The Litecoin which has experienced a crazy growth of 2500%. It is also an example of an asset that literally exploded in 2017. In other words, the trend of cryptocurrencies is strongly bullish. There is a good chance that spectacular movements that took place in 2017, occur again in 2018. It would be a shame to miss it, especially since professional traders are betting on an exponential profit in the near future!
Understandably, cryptocurrencies are in a strong uptrend for most of them. Thus, speculating upwards on these markets seems like the best thing to do as a trader. For this, applying a trading strategy on cryptocurrencies can be very interesting. Trading strategies are perfectly suited to this type of market and anyone with access to a trading platform can easily replicate it.