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Cryptocurrencies are raging in the market and it is not for no reason. They are digital currencies with which one can make purchases. They can also be traded like other fiat currencies. Cryptocurrencies are digital currencies which run on a decentralised digital ledger technology which codifies and records every transaction as a block added in front of a chain. This is known as the blockchain technology and is central to the operation of the cryptocurrency market.
Bitcoin was the first cryptocurrency to be introduced in the market in 2009 by the enigmatic and pseudonymous individual or group Satoshi Nakamoto and still is the most popular one. Now there exists a plethora of cryptocurrencies available in the market such as Ethereum, Ripple, Bitcoin Cash, and more. There is no central authority that provides a legal framework or regulatory measure for the cryptocurrencies. This makes cryptocurrencies virtually immune from any sort of intervention by any government or third party. This also makes cryptocurrencies a preferred media of fund transfer for several illegal activities on the internet and even money laundering. Thus the decentralised nature of cryptocurrencies serves as an advantage as well a disadvantage for the reputation of cryptocurrencies. However this does not stop cryptocurrencies from being a reliable asset for online trading.
How do crypto markets work
Cryptocurrency markets are decentralised in nature which implies that they are not regulated by any government or central authority, rather they run on a dispersed network of computers. Cryptocurrencies can be exchanged via transactions and stored in digital wallets. Cryptocurrencies exist only as a shared virtual register of ownership stored on a blockchain. When a transaction is made a cryptocurrency unit goes from the wallet of the sender to the wallet of the recipient. The transaction is not fortified until and unless it is verified and added to the blockchain through mining which is a rewarding process.
A blockchain is an open and shared digital register of recorded data. Blockchain is the record of transaction history for every unit of cryptocurrency, which demonstrates how the ownership of a cryptocurrency unit has changed over a period of time. Blockchain records every transaction in a block and adds new blocks in front of the chain. Blockchains run on network consensus. This means that a blockchain file is stored across several computers in a network within which the file is open and can be read by everyone. This makes it both transparent and difficult to hack. Blocks are linked together by cryptography which is complex mathematics and computer science that protects each unique code from fraudulent activities online.
Trading in the crypto market.
While digital trading had already been around for quite sometime now which allowed traders to trade on international fiat currencies and standard assets like gold, silver, and platinum, cryptocurrency trading has further propagated the process of digitization of trading.
Cryptocurrency trading refers to the act of speculating on the price movements of various cryptocurrencies through a contract for difference (CFD) trading account or buying and selling the underlying assets through exchange. In CFD trading one deposits a small amount known as the margin to gain complete exposure to the underlying crypto market.
If you think that the value of a cryptocurrency is going to rise you can go long or if you think that it is going to fall you can go short. On the other hand if you are buying and selling cryptocurrency via exchange you will be actually purchasing the underlying cryptocurrency unit and own its value. Your motive is to buy the assets at a lower price and sell them at a higher price to derive maximum profit.
Cryptocurrency trading with Crypto Genius
There are a lot of cryptocurrency trading platforms which helps you churn out profits from the cryptocurrency market. This review of advfn.com is one of them. It is a crypto trading platform which lets you trade in both manual and automated mode.
While the manual trading mode requires you to have some knowledge of the market and make the trading decisions yourselves, the automated trading mode functions on a trading robot which scrutinizes the crypto market and fetches the best deals for you based on your trading profile.
One can start trading with Crypto Genius in just three simple steps which are registration, investment and trading. You can register yourself on the platform by feeding certain basic information about yourself. The process is simple, quick and does not require any sensitive information. Following this you need to make an initial investment of $250, after which you can start trading on the platform.
Conclusion: However it is common for seasoned traders to go for manual trading, automated trading is suggested for novices as it involves less risk and is much easier to navigate.