HFM information and reviews
HFM
96%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
XM information and reviews
XM
86%
Exness information and reviews
Exness
86%

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.  

#source


RELATED

NFTs and Tokenization of the Economy

Non-Fungible Tokens (NFTs) are the new hype in the digital world. These tokens are digital representations of value created using blockchain technology...

What Is Cosmos Crypto?

Scalability and interoperability have been two significant problems for the blockchain world. There are a handful of options for interoperable blockchain networks...

Step-by-step guide about bitcoin trading

When Satoshi Nakamoto created bitcoin in 2009, nobody taught it would be a worthy coin, let alone being recognized and accepted as a means of transaction worldwide...

Artificial Intelligence and Machine Learning in Trading

Over the past 60 years, AI and machine learning have made a breathtaking jump from science fiction to the real world. Though these technologies are still...

Small-caps and large-caps. What’s the difference for those who buy them?

Shorthand for "market capitalization", the term market cap refers to the total value of all a company’s shares of stock. One can calculate it by multiplying...

TOP 10 Gold-Backed Cryptocurrencies

Cryptocurrency, being a relatively new asset, has many people interested, but it can also be used for just pure speculation. Digitizing ownership of gold is an area of interest that...

What is tokenomics? Understanding the token economy

With thousands of cryptocurrencies available, traders are beginning to think to themselves "What makes one crypto more valuable than another?" Tokenomics will help make sense of this.

NFP trading: understanding the effects of the Nonfarm Payroll

Professional traders often consider economic announcements as a reliable indicator of coming price action, and one of the biggest reports that capture traders' attention is the NFP...

Maximizing Returns with USDT Staking: A Comprehensive Guide

In the dynamic world of cryptocurrency, staking has emerged as a popular way to earn passive income. Among the various digital currencies available for staking...

Investment Time Horizon: Definition And Its Role In Investing

Beginning investors who come to the stock market are inevitably confronted with terminology that is new to them. An accurate understanding of this vocabulary makes it possible...

Dash Coin: Overview and Main Features

At one point, investments in Dash were highly profitable. Many traders received significant gains from the Dash cryptocurrency when the price action surpassed a $1,500...

IOTA: Will It Transform IoT and Rise?

From smartwatches and home appliances to self-driving cars, the ecosystem IoT (Internet of Things) has grown to cover all kinds of devices. That said, we expect...

Banking Forex: advantages and disadvantages

Without exaggeration, currency pairs can be called the most popular financial instrument. The instability of the exchange rate, combined with the high threshold of credit...

How Is the Bitcoin Price Determined?

To be a profitable trader of Bitcoin (BTC), you need to understand what determines the Bitcoin price. The markets are much like many others, as they need to consider the supply and demand and adoption issues when it comes to BTC...

Security Tokens Versus Utility Tokens: Which Is Better?

The cryptocurrency industry is vast and diverse. There are DeFi tokens, non-fungible tokens (NFTs), Bitcoin, altcoins, and much more. The categories of crypto assets...

Different ways of investing in gold in these modern times

Gold is a bright, yellow, malleable and ductile metal found in nature. It is usually found in rock veins, gold nuggets, grains, electrum or alluvial gold...

Trading Guide to TSLA: NASDAQ - All You Need to Know About Tesla

Tesla is regarded as one of the most visionary and innovative tech companies of our time. Here’s everything you need to know about TSLA, including company history...

What You Need To Know About Market Rallies

Usually, the word "rally" is associated with racing. But it has another meaning besides the competition. In stock trading, the notion of a rally is used to refer to a period during...

How to Trade Cryptocurrency Like a Boss

In 2009, bitcoin was relatively worthless, and as such, nobody was interested in knowing how to trade bitcoin. But a decade down memory lane, cryptocurrency is...

Coronavirus COVID-19 pandemic possible scenarios

Epidemiologists at the University of Minnesota continue to do their research on Coronavirus COVID-19. They recently published a report in which they...

Vantage information and reviews
Vantage
85%
FP Markets information and reviews
FP Markets
81%
IronFX information and reviews
IronFX
77%
T4Trade information and reviews
T4Trade
76%
Just2Trade information and reviews
Just2Trade
76%
FXNovus information and reviews
FXNovus
75%

© 2006-2025 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.