Crypto trading 101 everything you need to know about cryptocurrecies in 2020

Everything you need to know about Cryptocurrencies

Everything you need to know about Cryptocurrencies in 2020

Crypto Trading 101

Cryptocurrencies have become extremely popular within the few years of its introduction as a form of exchange to conduct financial transactions on the internet. The returns from trading in them can be astonishingly gratifying. Hence, you should desire to learn trading in them.

In this guide, you are going to learn:

  1. Cryptocurrencies: History and how it all got started

  2. Fundamentals of Cryptocurrencies 

  3. Crypto Trading Strategies 

  4. Setting up your Bitcoin Wallet 

  5. Risk Mitigation: How to Secure your Bitcoin 

  6. The Changing Value of Cryptocurrencies

  7. The Future of Cryptocurrency

  8. Conclusion

 

Introduction

Cryptocurrencies have grown to become extremely popular within the few years of their existence. Also known as digital assets, they are virtual currencies based on the security system of cryptography, making them very safe to hold and almost impossible to fake. The major cryptocurrencies are Litecoin,(LTC), Ethereum (ETH), Ripple (XRP), Stellar Lumen (XLM) and last but not least Bitcoin (BTC) which is unarguably the most commonly used of the cryptocurrencies These assets are already becoming a global phenomenon that has intrigued the imagination of many people. You should learn about them, too.

As of today, major companies of the world are beginning to accept them for various transactions that have been hitherto carried out by traditional method of payment. Many major retailers and services now accept different cryptocurrencies as a means of payment. There is no iota of doubt that this trend will continue for a foreseeable period of time. In fact, it is becoming difficult to see any major companies of the world that have not made significant steps to include cryptocurrencies in their financial operations. A recent survey in the US has revealed that almost 40% of small-medium businesses accept Bitcoin. Even, giants such as Wikipedia, Microsoft, Expedia, and AT&T now accept Bitcoin, too for various financial purposes.

Some of these businesses and tech companies have even taken “the cryptocurrency rush” further by not merely adopting the already existing ones, but by also making efforts to develop their own. Amazon, for example, has successfully developed all capabilities to launch its own cryptocurrency. Facebook shook the world too when it announced in June 2019 that it would be launching a cryptocurrency project called Libra. These are indicators of the social acceptance cryptocurrencies is currently enjoying.

 

Libra Digital Cryptocurrency

 

Even, the social media giant seems to be far more ambitious with cryptocurrencies than you would think. The company’s plan is to create a global financial system that will be based on them. While that has irked the authorities, the overall potentials of the cryptocurrency space cannot be denied. The most impressive feature of these precious assets is that it is largely and theoretically free of any central governmental control and interference. And by all realities, these special classes of asset appear to have come to stay with us and will into time hold significant influence on the global economy.

The sole aim of this guide is to open your eyes to the potentials of Cryptocurrency and to open your mind to the revolution that is already taking place and ultimately to immerse you into the world of crypto. In this guide, we will be talking about everything crypto. You will be taken through all the information you need to know about them. And if you can diligently study this guide, you will definitely have no need to study any other guide in order to start trading in cryptocurrencies. However, before you get involved in crypto trading, you should first know how it all got started. 

 

History of cryptocurrency and how it all got started

Cryptocurrencies: History and how it all got started

Satoshi Nakamoto is widely known in the world as the creator of Bitcoin. Before he announced Bitcoin which he said he developed as “A Peer-to-Peer Electronic Cash System” in late 2008, the world has been enmeshed in a crushing economic gloom when everything was in utter doubt. The economic condition was so vicious and a harsh that its impacts are still being felt today. Its impacts are not only exclusive to the financial sector; it even sparked loss of lives and properties. Financial entities that had been seen as unshakeable and trustworthy for generations began to bear the brunt of this gloom in no small measure. Everything was in total disarray and the world was seriously looking for new solutions. Then Satoshi Nkamoto surprisingly came through with Bitcoin like a magic bullet to save the world from the crushing gloom. It is really tempting to say that if there had been cryptocurrencies before economic gloom, the situation would have been avoided or become less devastating. Though his innovation then was very unrecognized as a revolutionary new form of currency, it has gone ahead to prove itself as the most remarkable financial innovation of the 21st century. It may even not be ridiculous to proclaim Bitcoin as greatest innovation the economic world has ever witnessed. This is not far-fetched because of the pride of place it holds in the economic world as many people, economies, and companies all over the world have accepted it as an alternative legal form of exchange.

Satoshi Nakamoto’s invention of Bitcoin came through from a white-paper he released in 2008 which was titled Bitcoin: A Peer-to-Peer Electronic Cash System. This paper was not the usual unduly long paper of speculations. It was just a nine-paged paper (including references). This paper and subsequent development on the ideas it contained have proved to be the most defining phenomenon of the 21st century.  Surprisingly, it was never Nakamoto’s initial intention to invent a new form of currency. Cryptocurrency emerged as a side product of another invention. It seems he wanted to fill in the gap by creating digital cash that many people failed to create before. Although there had been several attempts by others to create digital cash, but they regrettably ended in utter failure. A unique feature of Nakamoto’s invention resides in the fact that he was able to build a highly decentralized digital cash system which has no external arbiter or regulator who might fail the system unexpectedly. This cash system became the birth of Bitcoin. Bitcoin’s success has gone far from what could have been imagined by its inventor. It wouldn’t have been the inventor’s thought that Bitcoin would have the power to successfully revolutionize the world’s financial system.

 However, Cryptocurrency was initially seen as a complete oddity that did not deserve curious attention of the general public. It was then a phenomenon that was only of interest to tech specialists and other eclectic curious minds. In fact, some years ago, the operational methods and technicalities of cryptocurrencies were not given any serious economic attention by many people who heard of it. Afterwards, Bitcoin became an exclusive circle of enthusiasts at first, just like a club that people wanted to join. It was initially introduced to a very small group of people notably experts in cryptography and “tech nerds” who were obsessed with the concept of individual liberty it offers. But, today, Bitcoin has been a household name that every individual wants to be associated with. Cryptocurrencies have not only redefined the global economic system but also have used its transformative power to change the optics of financial transactions.  

Moreover, cryptocurrencies have drawn an enormous amount of attention to blockchain, which is the technology on which it is built. It’s an online platform that acts as an intermediary between buyers and sellers. Transactions that are executed on it are documented into blocks which spread across the entire chain. Each block in the chain contains information that cannot be altered. Trust is created by the technology itself by the way it provides total transparency. Blockchain was originally developed as a sort of “online storage room” for Bitcoin – something that would record transactions and avoid the possibility of the currency being used inappropriately. In other word, it is an integrated system in which record of transaction in crypto currencies are maintained across several computers that are linked in peer-to-peer network. The records on blockchain are not open to any form of modification. By its design, all the records between the parties involved are verifiable and permanent. Blockchain eliminates the possibility of any unwanted double payments. It is what allows the much talked-about cryptocurrency’s decentralization. Hence, Bitcoin is the driver of crypto trading.

The year 2013 can be rightly referred to as the “Year of Bitcoin”. For it is in this year that Bitcoin transformed itself from obscurity into prominence. Its prominence has made Cryptocurrencies to become a great threat to the existing financial system. It is changing at a very ferocious pace that many financial institutions cannot conveniently cope with it but have to concede defeat and come to terms with it otherwise they will become worthless in no time. Cryptocurrency is rapidly evolving as a giant sector. It has already stirred the most significant revolution in finance, investment, economics, wealth and social architecture in the history of the world. The good news is that cryptocurrencies are open to everyone. What is even more awesome about cryptocurrencies is that you can use them to buy anything in the world and you can even receive payment in them. Although it has had its own share of ups and downs, the public enthusiasm for it has ever for once waned. Currently, Bitcoin has a market value of over $123 billion and each unit sells around $10500 depending on the vitality of the market.

 

Fundamentals of Cryptocurrencies

Fundamentals of Cryptocurrencies 

The internet serves as the bedrock of every form of online activity whether trading or networking or creating portfolio for professional recognition. For any of these activities, the internet is first fundamental element (though it is often taken for granted). The Internet has brought us a highly revolutionized financial world that was never envisaged by the earlier economic thinkers. Since the Internet was first invented in 1969, the half a century that has gone by no doubt witnessed a lot of inventions which are solely enhanced by the internet. The internet has infiltrated every fiber of our being and has also become an inextricable part of our lives. Many of us can live without our acquaintances, but not without access to the Internet! The Internet connects people wirelessly and instantly through emails, social media, online businesses, and many more. The extent of the social and financial engagements we are forging through the Internet reveal just how much we rely on it in every aspect of our lives. Our reliance on the internet has also been enhancing the powers of cryptocurrency.

The benefits of the Internet are clear. For many people across the world, the hassle of going to the bank in person to make transactions has been replaced online banking services. All that can be done in the bank is now very much possible to be done online. Not only that we also now buy and sell merchandise online with increasing frequency and convenience. And instead of picking up the telephone and calling restaurants to place our orders, we can now browse menus and make orders all on the internet. Despite these benefits of the internet which have spurred an unimaginable increase in online financial activities, there are unmet demands for better security and efficiency. Cryptocurrency was created for this purpose. It not only provides better security, but it is also very accessible and is easier to use. We don’t need to reveal our identities when we make purchases using cryptocurrencies. As a matter of fact, we can choose to remain anonymous through all the transaction activities.

Although the concept of cryptocurrency is very complex to many traders, a good knowledge of its fundamentals will definitely make you to trade in it like a Pro regardless of when you started it. Having a working knowledge of the fundamentals will definitely make trading in cryptocurrencies a lot easier for you whenever you finally decide to set your foot in and start trading. The fundamentals of cryptocurrencies are basically the units of measurement, stores of value and medium of exchange.

• Units of measurement 

Cryptocurrencies have units of measurement just as there are units of measurement for the traditional monies. Here, Bitcoin will be used as a guide to explain the units of measurement in cryptocurrencies. 1 Bitcoin can be broken down into smaller units just like 1-dollar note can be broken down into 100 pennies. The first and the most used unit of Bitcoin measurement is a single BTC. 1 BTC can be divided into smaller units. This can be done all the way down to eight decimal places, or 0.00000001 BTC. Also, the smallest unit of Bitcoin measurement is named after, Satoshi Nakamoto. The second smallest Bitcoin unit, Finney, is named after Hal Finney, one of the first Bitcoin pioneers, who interacted with Satoshi Nakamoto.

• Stores of value 

Something is considered to be store of value if everybody convincingly believes in its potentials to be valuable for a long period of time. The most popular store of value is gold. But Bitcoin is a good store of value too. Some people like David Orban have even considered it as better than gold because of it unmatched attributes. It is though very notorious for its volatility; it still keeps its potential of being a good store of value. That it cannot be affected by any external issues is its true store of value. 

• Mediums of exchange 

Bitcoin since its introduction has evolved to be a very convenient medium of exchange. The peer to peer payment system introduced by Bitcoin has eliminated any need for supervisory authority such as government or central Bank. In cryptocurrency, you can conveniently swap currencies. In other words, you can exchange cryptocurrencies you have for the cryptocurrencies that you want. For example, you have ETH but you want to BTC, you can conveniently convert the ETH you have to the BTC you want. 

These fundamentals of Cryptocurrencies must have shown you that since the inception of Bitcoin, its growth has been so phenomenal. And it boldly appears that no other asset will be to challenge the prospects and potentials of Bitcoin.

 

Crypto Trading Strategies

Crypto Trading Strategies 

Trading in cryptocurrencies is not as esoteric as many people think it is. Although, it is an advanced stage of cryptocurrency knowledge, it is not reserve exclusively for the professionals alone. Just like the traditional arts of buying and selling, you can easily trade in cryptocurrencies. All you need to do is to create an account in a cryptocurrency exchange and buy the cryptocurrencies of your choice. You can simply do this by just placing your order to buy or sell. Some of the very popular cryptocurrency trading sites are Shapeshift, Coinbase, Gemini, Poloniex etc. These exchanges also allow you to create dynamic sells and buy order for automating the process of trading. 

• Why Cryptocurrency Trading? 

Besides the utmost convenience trading in cryptocurrencies offers, the fact that it is breaking all barriers in the financial world is another good reason to trade in cryptocurrencies. Cryptocurrencies offer:

1) Low risk of disruption.

The only way cryptocurrency trading can be disrupted is only if the internet is disrupted. Remember, cryptocurrencies are digital assets which rely heavily on the internet. The great advantage here is that it is practically impossible for the internet to be shut down.

2) Portability.

Cryptocurrencies being digital assets are very portable and convenient to use. Unlike other forms of exchange that require physical presence, cryptocurrencies can be easily transferred from one account to another using gadgets such as tablets, computers and even smartphones. All that is needed for this is a good internet connection.

3) Better storage value.

Cryptocurrencies have betterment storage value than many other forms of exchange. As explained earlier, an asset is judged to have good value of storage if is able to maintain relatively unchanged level of utility and satisfaction over time. Cryptocurrencies storage value is evident in the fact that it can maintain purchasing power over time.

Cryptocurrencies also have intrinsic values. Besides the fact that they have changed the nature of making transactions online, they are also being accepted in more and more markets.

4) Independence from Government Control. 

 Other currencies value often fluctuates according to pronouncements of central authority or regulator. This is not possible for cryptocurrencies as they are autonomous from any external control or regulatory bodies. They cannot be interfered or tampered with by any regulatory bodies.

5) Impossible to Fake.

The blockchain technology makes it largely impossible to fake any transaction in cryptocurrencies. There cannot be any counterfeit version of cryptocurrencies because they are underpinned by the blockchain technology which keeps data and financial records permanent in an unalterable nature. As a matter of fact, cryptocurrency model  is highly secure and will simply refuse to work if fraud is detected or transactions cannot be verified. Hence, fraudulent activities have no place in cryptocurrency trading. 

 

• Major Cryptocurrency Exchanges 

You would definitely need to trade your cryptocurrencies ostensibly for cash. There are hundreds of exchanges where you can trade your cryptocurrencies. It is advisable you should have at least ten exchanges in which you can trade in. 

Three steps you should take whenever you want to select the right exchanges for your cryptocurrencies: First you should use the ones that allow you to keep your coins wherever you please. Secondly, you should choose the ones that are quick with withdrawal. Thirdly, and the most important step is to select an exchange that you know what sort of crypto it sells and what it accepts in return: is it another cryptocurrency, Euros, or the U.S. Dollar? It is fairly easy to find an exchange that deals in Bitcoin as there are many of them, and they are all easy to find. 

However, you have to put some factors into consideration before you select your exchanges. 

  1. Reputation is key. Evaluate the reputation of the exchanges in which you want to trade. Be sure to investigate all of the exchange’s security protocols and be mindful of hysterical reviews about them which may give overblown review of an exchange. 
  2. The next consideration is volume. The more volume, the better likelihood you have to capture returns by trading. Volume deals with numbers, therefore, study the volume on that exchange the day, week and month before.
  3. Usability.

 If the exchange is tough to use, or tough for you to use, discard it. Find an exchange where trades can be placed easily and where the trading environment can be easily navigated. 

The followings are major exchanges you should consider. (They are listed no particular order of preference) 

  1. Abucoins 
  2. Allcoin
  3. AEX
  4. Altcoin trader 
  5. Coinbase
  6. Binance
  7. BitFlip 
  8. Gemini
  9. Shapeshift
  10. IDEX
  11. OEX
  12. OKcoin
  13. Paymium
  14. RightBTC
  15. Kraken 
  16. Zebpay
  17. Poloniex
  18. Tidebit
  19. Rippex

 

• Descriptions of some Exchanges

 

Gemini cryptocurrency exchange company

Gemini

It is one of best cryptocurrencies exchanges around. It is very easy to use with sophisticated tools for trader. Its highpoint is that it keeps most of its coinage in cold storage; that must ring to your ears that it is extremely safe. 

 

Coinbase cryptocurrency exchange company

Coinbase 

It is very popular among cryptocurrency traders. It is trusted by millions of users all over the world, including beginners. Users find it very easy to use especially in buying, selling or storage of currencies. You can buy bitcoin, Ethereum and Litecoin at ease. Its digital wallet also runs on Android or iOS. 

 

Kraken Bitcoin cryptocurrency exchange company

Kraken 

Kraken is  a massive and  reputable bitcoin  exchange, with significant  volume in euros, yen, dollars,  Canadian dollars and the British pound. This opens up some fascinating opportunities for sophisticated traders. Kraken also lets you trade in a ton of altcoin, among them Ether, Ripple, Monero, Ethereum Classic, Litecoin, Dogecoin and Zcash.  

Nevertheless, it is very important for you to do a personal evaluation of any of these exchanges before you decide to trade with them. Additionally, always keep it in mind that there is no central authority that regulates cryptocurrency exchanges. Therefore, you should be very conscious of your actions and inactions. You can also trade manually or use program trading and even use artificial intelligence for trading. 

 

Setting up your Bitcoin Wallet

You must have become familiar with the fact that cryptocurrencies operate in a highly decentralized system. This means it is not controlled by any central authority. Hence there is no central bank for cryptocurrencies. What is available instead is widely known as Wallet. The wallet we meant here is different from the one you can put in your pocket. The wallet we are referring to here is a kind of mailbox that holds the coins that you receive as messages. Wallet is your personal bank which has an IP address containing your public “key” and other identification. It is this wallet that allows you to send and receive Bitcoins, and to document each transaction. It monitors every transaction and categorizes each transaction as either outgoing or incoming. This entails that it is your duty to maintain your own wallet and safeguard it from ‘robbery’. 

Wallet can either be offline or online (cloud) offline storage is substantially more secure than leaving your coins in the cloud, especially if the service providers are on the weak side. But remember: This is not because the base technology is flawed. To the contrary, the cryptocurrency model is highly secure and simply does not work if fraud is detected or transactions cannot be verified. That said, though, your keys can be stolen, and that is a threat that must be constantly guarded against. The gist is this: regardless of which wallet you use, losing your private keys can lead to irreplaceable loss

There are two types of wallet services in cryptocurrency. Wallets types can be either software or hardware. 

• Software Wallet 

Software wallet is in two categories: Desktop Wallet or Web Wallet. Some people also refer to use these wallets as cold storage and hot storage respectively. Desktop wallet is always directly installed on your computer while Web Wallet is created online for you as an online wallet. To many cryptocurrency owners, having desktop wallet installed on your computer poses lesser risk that having a web wallet which is somewhat centralized. Web wallet is centralized because it is often provided by a third party. Some popular online wallet services are Coin payments, Bitgo, Blockchain, Green address etc. Desktop wallet on the other hand is always reliable. Green Address and Exodus are popular examples of desktop wallets.

• Exodus    

It is a software which runs only on desktop. It stores Bitcoin, Litecoin, ether, dogecoin, dash.   It is a wallet with a great backup guide. You can get it on App Store, Google Play. It is also designed for users of multiple coins. Exodus allows users to trade altcoins for bitcoins and vice versa without leaving the wallet. According to Exodus itself, it is “All-in-one app to secure, manage and exchange blockchain assets. Exodus is the first desktop multi-asset wallet with Shape Shift built in.” 

 Additionally, Exodus appears to be among the few wallet-based platforms which has a built-in internal exchange. This feature has received commendations from various quarters especially from traders who specialize in instant and day trading. This exchange works for each of the top five digital currencies, and the prices are usually adjusted in real time basis.

• Hardware Wallet 

In some quarters, this is also referred to as cold storage. For serious traders in cryptocurrencies, hardware wallet is the best option out there because it is secure and very fast. Hardware wallet has the same functionalities as flash drive or USB-type device. You need to connect them with your computer any time you want to make transactions. Hardware wallets are very secure because all the transactions you make do not take place on the computer you are using. Instead, they all take place in the hardware wallet itself. For every transaction, the wallet sends an acknowledgment message to the computer through a special interface that the transaction has been carried out. Hardware wallets provide great functionality and security, but they go for a fairly high price. They are often lightweight, so you don’t need to be bothered about their portability. These features make them very easy to handle. Ledger Nano, Trezor, KeepKey are popular examples of hardware wallet. 

• Ledger Nano

It is hardware type of wallet. It is a compact USB device which is based on a smart card. It is about the size of a small flash drive, with a weight of less than six grams. The screen is protected by a movable cover. It supports multiple cryptocurrencies and can run third-party applications. In case of loss of assets, recovery is very easy on it. It costs about $200 in different retail stores. You can purchase it from electronics retailer or online merchants like Amazon. 

 It uses the nano in it to create a second layer of security which aims to eliminate a number of pathways for potential hackers. 

From the Manufacturer: It supports multiple currencies such Bitcoin, Ethereum, Litecoin, Dogecoin, Zcash and Dash. It can hold different assets and spend them from the same hardware wallet. It is compatible with Electrum, Copay, Mycelium, GreenBits and MyEtherWallet.  Its simplicity includes Plug and play! It has easy on-device configuration. PIN protection. It has paper wallet backup for immediate recovery of your assets in case of loss or destruction of the device. 

Its security: Your private keys are secured inside a strongly isolated environment (secure encrypted chip) locked by a PIN code and are never exposed to the host computer. It also checks transactions on the OLED display and confirm using the physical buttons (anti-malware second factor). It has alternative PIN for plausible deniability, passphrase compatibility. 

It also supports multiple third-party applications. And it has a magnetic USB cable which protects port from dirt, lint, and damage over time with use. Quick magnetic connection means no fumbling, scratching, or bending.

 

How to Secure your Bitcoin

Risk Mitigation: How to Secure your Bitcoin

A cryptocurrency wallet is where you store your cryptocurrencies. The fact that they are digital assets makes it a compulsory obligation for you to take steps to make the wallet practically impossible to steal or hack. The wallet is a digital storage facility which has many functions. For example, the Bitcoin wallet is used to make transactions with Bitcoin. 

Software Bitcoin wallets are often targets for hackers while hardware Bitcoin wallets are prone to be stolen. This shows that both variants of cryptocurrency storage facility have attendant risk. It is your responsibility to ensure that they are well protected from unscrupulous individuals. 

Always get two-factor authentication (2FA) for all accounts. Ordinary, Bitcoin has both public and private keys which are double encryption that helps users of Bitcoin to remain anonymous in their transactions. Your private keys are your unique access to your cryptocurrencies, and if you by any chance lose or forget them, you should say goodbye to your cryptocurrencies. Therefore, you need to recognize the importance of protecting your wallet using a two-factor authentication. Two-factor authentication provides unprecedented benefits to your details as it always requires second form of identification before you access your storage. It is generally known as SMS-2FA and it significantly decreases the probability that a hacker can impersonate you and gain access to the sensitive resources on your wallet. Therefore, you really need 2FA for your wallet. 

• Stay clean and free of viruses 

Virus often disrupts your computer operation. A virus not only has power to corrupt and delete data on a computer, it also has high tendency to destroy your wallet. So you should make your computer free of virus. 

• Don’t get phished

Phishing is a very deceptive message that wants you to disclose your vital personal information. Phishers see email as their soft target. Therefore, avoid clicking any link from an unsolicited email. Since email users are not protected from phishing, don’t mix your everyday email with cryptocurrency. Use unique emails for every cryptocurrency exchange.

 

The Changing Value of Cryptocurrency

The Changing Value of Cryptocurrency

Of course, Bitcoin has experienced extreme fluctuations in its value over the years; the public enthusiasm for it has never waned. Overall users of cryptocurrencies have increased from around were only about 30,000 just a few years ago to over 1.3 million. Bitcoin and Ethereum which are the dominant cryptocurrencies have already gained wider public acceptance in many economic spheres. For example, in June 2018, an informal statement was made at Yahoo Finance’s “All Markets Summit Crypto,” by the SEC’s director of finance about the status of cryptocurrencies in the economic world. He aptly confessed that the SEC would not classify Bitcoin or Ethereum as a security anymore. Rather, both cryptocurrencies function more like commodities such as gold, silver, or oil. 

Despite the constant fluctuations in the cryptocurrency market, significant evidence abounds that the public is increasingly accepting of cryptocurrency as a viable medium of exchange. People have extreme confidence in cryptocurrency and are comfortable with it. This is because the overall amount of a cryptocurrency is always fixed. And if the rule demand-supply works effectively in the market for these cryptocurrencies, more investment will always come in and there will be phenomenal increase in cryptocurrency trading. 

Although, the market sometimes sees the value of cryptocurrency as very uncertain, it is not peculiar to cryptocurrency alone. The same situation happens to gold and diamonds. There is no doubt that as time goes by; the public will continue to develop better understandings of exchange platforms for cryptocurrencies. And they will appreciate the fact that the extreme up-and-down fluctuation in cryptocurrency trading prices reflects the confidence that people hold in these currencies.

 

The Future of Cryptocurrency

The Future of Cryptocurrency

“We always overestimate the change that will occur in the next two years and underestimate the change that will occur in the next ten. Don’t let yourself be lulled into inaction.” – Bill Gates 

For a concerned person, the future of cryptocurrency is not too hard to predict if its numerous phenomenal attributes are appreciably considered. Many financial activities and transactions that are happening online are being anchored on the powers of cryptocurrency. It has really made remarkable changes to the financial world as every transaction through it has become very easier and hassle-free. Cryptocurrency has also made transactions through it very cost-effective. The traditional middlemen has long been cut out, smart contracts can be broken using peer to peer method, many merchandises can be conveniently purchased with cryptocurrency and many other benefits that are too strong to resist. 

The future of cryptocurrency is very rosy if not for anything else but for the cost-effectiveness it is bringing us. I strongly believe cryptocurrency continue to play bigger and bigger roles in all manners of economic scenarios. It will stir up a massive economic revolution which will emphasize its majesty as a perfect alternative payment system. There is high likelihood that Bitcoin will become the universal currency by which people can be paid anywhere they work in the world. This will take no time to come to fruition.

Additionally, a whole new financial ecosystem will be built and centered on blockchain because of its remarkable attributes. The failings of central banks and the unstable government policies are really destroying people’s wealth. People are now realizing the spate of lie and deceptions that surrounds every economic policy of the government. For example, the failures and inefficiencies of major financial institutions of the world in which they rip off their customers using the name of commission as an excuse will quickly spur this new financial ecosystem. In no time, the cryptocurrency will become the norm in the financial world.

It is apposite at this juncture to state in clear terms the four possible future scenarios for cryptocurrency. The future of cryptocurrencies may entail the following: 

  1. Global central banks will issue their own digital currencies. The Federal Reserve could issue its own digital currency, as well.
  2. Large companies such as Amazon, Walmart, and Starbucks will issue their own digital coins as a way to establish trust and loyalty with customers, and to provide better service.
  3. Retail giants will begin accepting crypto and in doing so will elevate Bitcoin, Ethereum, or another cryptocurrency above all others. The winner of this contest will offer safety, soundness, and utility.
  4. Trust will be lost in government-backed fiat currencies, and a cryptocurrency future will come about by default. There may be a special likelihood of this in places like Venezuela, but it could also happen in countries like the US, where federal deficits are spiralling.

We all wait earnestly for these future scenarios to come into fruition.

 

Conclusion

Cryptocurrency is offering you an incredible opportunity to get involved in this crypto revolution of wealth and finance that is already disrupting the traditional conventions of wealth, savings and even the definitions of money, currency and power. The uses cryptocurrencies are being put are growing at an exponential rate. They offer a secure form of transferring and recording ownership of your assets and they function completely and independently of government. Right now, there is a widespread desire among many people to own and mine cryptocurrencies. 

This guide has exhaustively explored every aspect of cryptocurrency that it promised in its opening paragraphs. The bucks now stop with you to keep your mind open and take the leap of faith by launching yourself into the crypto world.  

– Francois Oosthuizen

[Content verified at time of publishing and may change without notice]

 


 

Learn the fundamentals of Bitcoin trading with our courses.

 


 

DISCLAIMER & NOTICE

The information is for educational purposes only and not financial- and or investment advice. Trading can be very risky. Never trade with money you cannot afford to lose. Always seek the advice of our preferred regulated FSCA Broker and or a regulated FSCA Financial Advisor.

 


Computer vector created by macrovector – www.freepik.com