Cryptocurrency is a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.
The value of a single Bitcoin has risen from $1,073.03 on January 1st, 2017 to $62,214. as of October 26th, 2021, and this has increased the popularity and awareness regarding cryptocurrency and its benefits.
The market cap for cryptocurrency is now more than double that of JPMorgan and is approaching Silver market cap according to 8marketcap. In the past month, the combined market capitalization of all cryptocurrencies has skyrocketed from $66 billion on August 1st to over $1 Trillion at the time of this writing.
The total cryptocurrency market capitalization is now bigger than Microsoft and Apple according to Yahoo finance. According to Coinmarketcap , there are now close to 6000 different cryptocurrencies in existence.
Most of these are obscure currencies traded by a couple of thousand investors, speculators, and day traders which makes the market extremely volatile with huge price swings on a daily basis. However, some of them have become household names, given that they skyrocketed in value over the last 12 months. One such currency is Ethereum, which recently was second only to Bitcoin but with significant differences in capitalization and Marketcap.
A common theme in the cryptocurrency community is how this new asset class will revolutionize the world economy by making transactions cheaper for both businesses and consumers. This will spur economic activity, employment, improve the quality of life for people around the world, and will reduce corruption.
The Future Of Cryptocurrency Trading
Cryptocurrency trading is a one-of-a-kind experience. There are no formalities, middlemen, or hidden costs. Market volatility allows you to take long-term positions with short-term trades and also to enjoy high risk/high reward trading opportunities that other types of trading do not provide.
Its unique features make it an ideal investment for both conservative and risk-taking traders.
All the cryptocurrencies are traded against one another, with the exception of Tether(USDT) which is pegged to U.S Dollars at a 1:1 rate. The trading volume for all exchanges combined has recently surpassed that of FOREX, stocks, and global stock markets combined.
The volatility in cryptocurrency prices makes it an ideal market for seasoned traders as well as new investors. Cryptocurrency trading is a 24-hour market and it can be very profitable day trading.
Exchanges like Binance, Poloniex, and Bitfinex allow you to trade Bitcoins, Litecoins, and Ethers on margin, giving you access to increased leverage and more profit opportunities.
Cryptocurrency trading requires skill, discipline, and a deep understanding of candlestick charts. The volatility also makes it much harder to protect your capital from losses as compared to traditional markets.
Investing in cryptocurrency is not for the faint of heart, but if you have the financial means and take an analytical approach it can be extremely lucrative and rewarding.
Security Risks With Investing In Crypto-Currency
There are several security risks that you face while trading in cryptocurrency. Since the market is decentralized, there is no one governing body to protect your funds if an exchange gets hacked or becomes insolvent. Your digital assets on exchanges like Poloniex can be stolen by hackers and government authorities alike due to the lack of a strong legal framework around the industry.
Moreover, if your coins are stored on an exchange, you do not own the private key. So when the time comes to move your coins out of an exchange and onto a wallet, it is extremely risky and should be done with proper research and consideration.
The security risk can be mitigated by trading in well-known cryptocurrencies like Bitcoin and Ether that have a proven track record in the industry.
How Cryptocurrency Will Revolutionize Digital Payment
Cryptocurrencies like Bitcoin, Ether, and Litecoin were created to serve as digital cash. They enable fast, cheap payments directly between two parties without the need for middlemen or expensive transaction fees.
Since its launch in 2009, Bitcoin has become the largest cryptocurrency by market cap and number of transactions. As more merchants accept virtual currencies as a form of payment, it will allow more people to use cryptocurrencies for spending.
The ease and simplicity of transferring money between two parties is a huge bonus to businesses and consumers alike and its market penetration continues to increase every day.
This simplicity also starts being utilized by some other industries like betting platforms. It has been a flux in the numbers of online casinos which accept bitcoin and other cryptocurrencies in recent years. Although not all online casinos succeeded in implementing this new technology, some online casinos nailed this integration pretty well. This is indicated by the emergence of the number of best crypto casinos.
This shifting trend to crypto payment is expected to grow on other platforms and industries as well sooner rather than later. And eventually crypto will become one of the major forms of money alongside current currencies.
Cryptocurrency is a faster, safer, and cheaper alternative to fiat currencies and will revolutionize the way we think about money.
What Industry Is Already Accepting Crypto?
Several big companies have started accepting cryptocurrencies as a form of payment. Number one is electronics retailer giant Newegg, which has partnered with Bitpay to start taking Bitcoin payments. The company was reported to have made $2-3 million in just the first month of acceptance. Another major online retailer Overstock also accepts Bitcoins and is the first U.S retailer to do so.
Large companies are also beginning to accept Bitcoin as a form of payment for services rendered. Square, the mobile payments company headed by Twitter CEO Jack Dorsey just recently announced that it is opening up Bitcoin trading on its Cash App platform.
Cryptocurrency is slowly being integrated into our daily lives and its market growth will propel the industry even further. With more industries accepting cryptocurrency as a form of payment, there should be a huge spike in demand for digital currencies. If you are looking to invest in cryptocurrencies, now might be the right time to start trading. Please do your own due diligence before making any investment decisions.
A Final Thought On Cryptocurrency
The blockchain technology that underpins cryptocurrency is a game-changer for the future of digital payments, and its market growth will revolutionize how we spend money. This new asset class will revolutionize the world economy by making transactions cheaper for both businesses and consumers.
As more industries accept cryptocurrency as payment, this trend will continue to grow exponentially and revolutionize digital payment. It is fair to say that in a couple of years crypto will be the way we all pay for goods and services.