WHAT IS CRYPTOCURRENCY?
Alot has been said and heard about cryptocurrency but here's the easiest way to think about it.
"CRYPTOCURRENCY is a virtual currency
which operate independently of banks and
government but can still be exchanged or
speculated on just like a physical currency"
There are huge number of cryptocurrency available which offer spread betting and CFD trading on three most popular: bitcoin, bitcoin cash and wherein.
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There are some risk involved in cryptocurrency trading and investing.
Some technologies will fail since cryptocurrencies are basically software created by people or companies. Have in mind that trading cryptocurrency is like trading software stick where some would while some would fail.
It requires technical savvy. In trading of cryptocurrency a bit of technical know-how is required. So it is advisable you stay away from cryptocurrency at least until the start building more user friendly interface.
Since this is an emerging technology, there are still Alot of unknowns with trading at scale and how brokers and the software react to certain event. In order not to lose an investment, it is advisable you don't keep too much of coinage at the brokers. Move them off to your own wallet as soon as possible.
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Though cryptocurrency are based on blockchain technology, they are not all created equal. Here are some differences you need to understand to make informed trading decisions.
- Total supply currently available
- Reputable background of the founder
- Any big investor in the project
- Real world adoption of the technology
- Supply of Currency
- Transaction processing speed
With the understanding of these few characteristics, one should be able to assess the long term viability of these currencies.
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DIFFERENT CRYPTOCURRENCY
World Wide Financial Transaction
- Bitcoin
-Litcoin
-Tether - Ripple
-Stellar Lumen
Specialty Currency
- Game Credit
- Reddcoin
Application Platform
- Ethereum
- Storj
- Slacoin
- Maidsafe
Private Financial Transaction
- Monero
- Dash
- Zcash
Your cryptocurrency can be stores on the blockchain in a "Wallet". It's an address on the blockchain. Each wallet has a public and private address. Public address is the address that people use to send fund to your account and the private wallet address is the password that you use to access and send your fund.
Different types of wallet includes online wallet, mobile wallet, desktop wallet, hardware wallet, hardware device wallet and paper wallet.
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The following can affect the price of cryptocurrency;
- Exchange listing
- Software upgrades
- Public Hype
- Wallet Improvement
- Platform Application
- Government Application
It's a huge investment and great risk but I hope this help in making that decision.