HFM information and reviews
HFM
96%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
Vantage information and reviews
Vantage
85%
MultiBank Group information and reviews
MultiBank Group
84%

All you need to know about cryptocurrency


Cryptocurrency or crypto for short is decentralized digital money, which was designed by Satoshi Nakamoto in 2009 to be free from government control, as a solution for personal financial independence. Cryptocurrencies are generated by their own blockchains like Bitcoin and Litecoin. On the other hand, tokens are issued within smart contracts running blockchain such as Ethereum.

The most familiar versions of crypto out of a large variety, which exceeds more than 2000 types, are Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Ripple (XRP). Bitcoin is considered to be the leader with its market cap and volume of $580 Billion and $78 Billion, respectively.  Cryptocurrencies have expanded dramatically after the launch of bitcoin over a decade ago. It became more popular, its value started to rise, and made steady progress throughout the middle of the decade. 

What is the History of Cryptocurrency? 

The market of cryptocurrency is based on supply and demand; thus, it fluctuates widely. For instance, Bitcoin has experienced rapid spikes in December 2017 at $20K. In the very next month, it fell in value to $7K, and the next year to $3K. Most recently, on December 16, 2020, Bitcoin has broken a very strong resistance point to reach $20,600 for the first time ever. It gained in a year more than 180%. As of now, BTC has managed to reach a record high of $35K.  

Many economists and financial experts expect that the later spike is unlike the one which occurred in 2017. This is because the recent rise was driven by institutional buying rather than individual traders and speculators. Additionally, it was said due to the decreases in mining bitcoin, as the supply of Bitcoin is shrinking every year. 

Cryptocurrencies Market Cap and Volume

As the chart below shows, the total market cap for the whole crypto market is $860 billion. Bitcoin consists of around 60% of the market cap. The volume of cryptocurrency is increasing dramatically. Therefore, it is important to mention the weird relationship between the market cap and volume, which is not perfectly linear like the traditional stock market. This interesting relationship may be justified by the inefficiency and the immaturity of the cryptocurrency market and might be modified accordingly with time. 

How to Buy or Trade Cryptocurrencies? 

Dealing in cryptocurrencies can be directly through an exchange or a forex broker. The exchange agency will give you the chance to buy and directly sell the coin physically, by creating an exchange account, and waiting for the token to rise in value to sell.  

While in forex, cryptocurrencies are obtained through CFDs (Contracts for Differences). INGOT Brokers offers Bitcoin Cash, Bitcoin, Ethereum, Litecoin, and Ripple which are the leaders in the market. Traders can always trade cryptocurrency by opening an account, and a partial contract can be bought and sold for speculation purposes. 

To sum up

Cryptocurrency is still new to the market and contains high-risk exposure. However, it is still exciting for traders for the quick spikes and slides, which adds a new element to currency trading. Remember, being aware of the market events affecting the blockchain and the other similar cryptos correlation are important for your trading success.  


RELATED

Scalping as a trading style

A wide selection of financial and analytical tools allows the trader to put into practice any trading ideas. Moreover, ready-made and effective trading strategies...

What are Interest Rates and How to Calculate Them?

Every country around the world strives to create the best economic conditions and provide financial security to their citizens. However, the unpredictable nature of the global...

How to Amplify Earning With Margin Trading?

Leverage is the practice of using an amount of debt or borrowed capital to take a position in an investment, finance a project, or fund a business and...

What is a Decentralised Autonomous Organisation (DAO)?

DAO is the new buzzword in the array of crypto offerings aiming to disrupt the traditional models of collaboration and organisation. A DAO can be used to create...

How to identify breakout stocks

As we all know, the price movement of any asset is determined by supply and demand. Demand and supply for an asset depend on many factors, which can be divided into three broad categories...

Swing Trading: a Trading Style for Professionals

The classification of traders might seem sketchy. However, there is a clear division between them based on the period of holding an open position...

Unlocking Opportunities in Global Commodity Markets with FXTM’s Advanced CFD Trading

Step into the world of global commodities trading with FXTM, where we offer a gateway to diverse investment opportunities through advanced CFD trading. Experience the flexibility and potential of trading...

The Dynamics of Commodity Trading: An In-depth Look

From the very clothes on your back to the coffee you sipped this morning, commodities influence our daily lives. This vast market encompasses a wide variety of goods...

Currency Pairs and Stocks: A Comparative Analysis

Currency pairs and stocks are the most popular assets for day trading, long-term, and medium-term investing. The daily turnover volume on Forex exceeds $5 trillion...

Blockchain Beyond Cryptocurrencies

Blockchain has become one of the most influential technologies after being one of the key elements supporting digital currencies. It is the technology...

Understanding Forex Hedging: A Comprehensive Guide

Forex hedging is a risk management strategy that aims to reduce or eliminate the potential risks associated with financial transactions. It has evolved into a profitable trading strategy for some traders...

Cryptocurrency Post Apocalypse

At the junction of 2018 and 2019, bitcoin's price was at the bottom - the asset was trading at 3200 dollars. This was the price level of mid-2017...

NEO Price Prediction: Invest or Skip?

NEO is not the most popular cryptocurrency compared to Bitcoin, Ethereum, Tether, and Ripple. Currently, it's ranked only 26 by CoinMarketCap...

Chainlink: Is It on Track for a Bull Rally?

If you have recently watched the crypto charts, you can see the growing popularity of many coins, including Chainlink (LINK). And while so many assets are on the bull run...

Fundamental Forex Factors

When it comes to forecasting forex rates, the science of fundamental analysis involves taking into account a variety of relevant economic and political factors for one currency relative to the other currency in each currency pair considered...

How to Get into Online Metal Trading?

The most popular precious metals in metals trading are gold and silver. The latter is strongly linked to the main currencies and the world economy as a whole. Precious metals...

The Modern Day Trader's Guide: Understanding Time Commitment and Strategies in 2024

As the curtain closes on 2023, with the S&P 500 signaling a moderate gain, the focus shifts to the landscape of day trading in 2024. Day trading, a practice where traders capitalize on intraday...

Discovering Cryptocurrency Margin Trading

Margin Trading has become a popular term across many different trading markets, and in recent times it has become very highly regarded in the emerging cryptocurrency...

Crypto CFDs: A Guide to a Safer Cryptocurrency Trading Approach

The unprecedented rise of cryptocurrencies has grabbed the attention of both novice and seasoned investors. While many venture into direct trading of cryptocurrencies...

Deepen your Understanding of Crypto Trading

Cryptocurrency trading, or more briefly crypto trading, is simply the exchange of cryptocurrencies. Just like in Forex, you can buy and sell one cryptocurrency for a fiat currency...

XM information and reviews
XM
82%
FP Markets information and reviews
FP Markets
81%
FXTM information and reviews
FXTM
80%
AMarkets information and reviews
AMarkets
79%
Octa information and reviews
Octa
79%
BlackBull information and reviews
BlackBull
78%

© 2006-2024 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.