Investing In Cryptocurrrency
The Cryptocurrency Challenge
The future of Cryptocurrencies looks bright especially with the Bitcoin and Ethereum gaining higher values.
These currencies are revolutionizing the way we think about government currency which have central authority whereas cryptocurrencies are secure because they anonymize digital transactions and cannot be counterfeited.
Cryptocurrency is a digital currency based on blockchain which is associated with the internet that uses cryptography, the process of converting legible information into an almost untrackable digital code, to track purchases and transfers. The flow of this digital currency depends entirely on market demand.
Mobile technology in this increasingly developing world makes cryptocurrency highly accessible to everyone. This new currency makes you the owner of your funds, with no third party involvement. You drive the account the way you want to. You can change the terms of your cryptocurrency as per your convenience.
Crypto Boom — Risks Involved
With cryptocurrency being accessible to everyone, people still need to be educated as to how it should be used.
This digital currency is not much different from other commodities, prices are determined basis laws of supply and demand. Cryptocurrency market prices are often highly volatile. Trading and investing in cryptocurrency may have the potential for a big payday but then trading in it is a very new market. It requires specialized knowledge that may be inscrutable to the uninitiated.
With so many cryptocurrencies coming out every new day not all of these will be highly lucrative like the Bitcoin. Because these transactions are highly digitized and irreversible there is very less scope of making a mistake while doing a transaction.
Acceptance plays a major role for the functioning of the crypto market, masses have yet to start accepting cryptocurrency as a form of payment for goods and services.
Overall, cryptocurrencies have a long way to go before they can replace credit cards and traditional currencies as a tool for global commerce.
The excitement around Bitcoin’s price escalation and futures trading has gathered interest amongst new users; people who knew nothing about cryptocurrency a month ago are striving to learn everything they can to begin investing.
As we enter a new year let us take a look at some other cryptocurrencies worth watching.
It is the second-largest cryptocurrency in terms of market cap behind bitcoin. Currently one Ethereum is priced at $1,101.5.
With a market cap of $95.45 billion, one Ripple is currently priced at $1.43.
Also known as Bitcoin-Lite the Litecoin which has a market cap of $10.6 billion is currently priced at $194.85.
Finally, like bitcoin, all of these cryptocurrencies are subject to massive amounts of potential price volatility in both directions. After massive run-ups in 2017, the chances of corrections for any or all of these cryptocurrencies are high.
Going by the current trend, cryptocurrencies are here to stay but how many of them will emerge bosses amid the growing competition within the space will only be revealed with time.
© 2018 Tanya Sawhney