For those who want to receive multiple profits on the latest technologies
The emergence of cryptocurrencies formed a new market, which opened new investment opportunities.
Cryptocurrency is digital money created on software platforms. The database where the crypto currency is stored is based on blockchain technology. Unlike traditional databases stored in one place, the blockchain databases are distributed to thousands of computers around the world. Information on them is encrypted and broken into blocks, so it is impossible to crack, delete or make changes.
The most common and promising crypto currency at the moment:
- Ethereum Classic
- Dash and NEM
All cryptocurrencies are based on blockchain technology, but there are differences between them. Their understanding will help to assess the long-term prospects of each currency and make reliable trading decisions. The important characteristics are:
- Transaction processing speed
- Total currency amount
- Presence or absence of restrictions on the total amount of currency
- The introduction of technology in the real world
- Major investors’ participation in the project
Initially, the Crypto currency is created with the help of mining – a complex electronic technology. You can convert it into real money only on exchanges where it is sold, bought and exchanged for other cryptocurrencies, and for ordinary money. The process of cryptocurrency trading is not different from other trading activities. Cryptocurrency is the same exchange-traded asset as others are.
The main feature of the cryptocurrency is its significantly higher volatility. Their rate can grow by hundreds of percent per year, which is almost impossible for ordinary currencies and stocks. For example, in November 2014 Bitcoin cost less than $ 400, and in November 2017, its rate broke through the mark of $ 11,000.
That’s why the client can earn a lot more and faster on the course than on our traditional assets. But high profitability is always accompanied by increased risk.
In addition, the market of cryptocurrency is more difficult to analyze and forecast.