Cryptocurrencies, the digital currency created 10 years ago with the founding of Bitcoin, has created shockwaves in the market and a new way to think of money. While the technology has brought us the blockchain and is changing how we transfer money, vote, and do a slew of activities, for many people, cryptocurrencies are just one more interesting investment opportunity.
Cryptocurrency is virtual and based on cryptography, which helps protect owners from hacking and theft of the coins. The blockchain, which can be considered like a long ledger, keeps track of transactions. Transactions are validated by miners, using powerful computers to solve difficult problems. Once validated, another block is added to the blockchain.
Different form traditional money, cryptos are not stored in people’s purses and wallets, but in virtual wallets. Likewise, they are exchanged not in banks but in virtual exchanges. Their prices change significantly and rapidly, as a rule, with Bitcoin’s huge 2017 increase followed by a drop and a flattening out in 2018 one example. Following the release of bitcoin, many other crypto currencies have entered the field, some successfully, some with a short projectory that couldn’t be sustained. Today there are over 2500 unique cryptos. Besides Bitcoin, which has maintained its place at the top of the cryptocurrency list, some of the other most popular names include Ripple, Ethereum, Litecoin, , Dash, Bitcoin Cash, Iota and Neo.
Like the traditional currencies, the US dollar (USD) and Great Britain pound (GBP), cryptocurrencies are also recognized by codes. Bitcoin, for example, is BTC, Ethereum is ETH and Ripple is XRP, for example.
Bitcoin was the first cryptocurrency, founded by a mysterious-named entity known as Satoshi Nakamoto. Still today no one knows who the founder was. Bitcoin was created so people could buy and sell goods and services like they do with fiat money but with greater transparency no middlemen such as a bank.
In addition to Bitcoin, there are several popular altcoins, that is cryptos that came after Bitcoin. Here is a short list of others to consider.
It can be said that cryptocurrencies are mostly volatile, though some of the larger coins have had periods of greater stability in price. Perhaps it is their volatility, however, that makes them an attractive asset for some traders.
Cryptocurrencies are an innovative technology and an interesting asset. Young, they are changing the way people are thinking about and using money. But because they require, if you buy them outright, a lot of specific knowledge as well as an exchange and wallet, cryptocurrency trading in CFDs might be a another way to explore cryptos without all the hassles.
Trading crypto CFDs at Oinvest gives you a wide array of cryptos to choose from as well as 24/5 trading, an excellent learning center, courteous and professional customer support staff and, should you choose to invest in other assets, a full range of CFDs on indices, stocks, commodities and forex.