What We Have Covered in This Article
- 1 What is Cryptocurrency easy explanation?
- 2 Why is it good to invest in Cryptocurrency?
- 3 How to Buy Cryptocurrency and Make Purchases
- 4 What is the Strongest Cryptocurrency?
- 5 Other Trending and Growing Crypto Currencies
- 6 Final Verdict
Last Updated on August 23, 2021 by Editor Futurescope
For avid investors, Cryptocurrency trading is undoubtedly on everyone’s mind. While some may fear the risk of venturing into this unknown territory, many have taken the bull by the horns and made massive investments in the market. If you, like many, are somewhat timid and eager to invest with a high probable return, this article is sure to equip you with the knowledge you need.
Not only will you learn the current gold standard for crypto trade, but you will also know whether the investment is worth it. Since this digital currency is a probable currency of the future, analyzing Cryptocurrencies and investing might just be the wisest thing you will ever do!
What is Cryptocurrency easy explanation?
Simply put, Cryptocurrencies secure online trading, protecting online traders or brokers in their day-to-day business dealings. Individuals and companies, to trade stocks or securities for profit, usually use this unregulated currency. Its digital ledger has strong cryptography, which mitigates the risk of buying and selling goods and services online.
A Cryptocurrency uses a decentralized technology called Blockchain to work and can be stored on a phone or computer. Blockchain processes manage and record all transactions done and are spread across many computers. Many companies issue a personalized cryptocurrency, sometimes referred to as tokens, which clients can exchange for the goods or services they offer.
To, date there are over 6700 publicly traded cryptocurrencies worth over $1.6 trillion and the number is still on the rise. It is gaining popularity with many choosing to use it to purchase items as large as houses or plots.
Why is it good to invest in Cryptocurrency?
Despite its price volatility, many believe that cryptocurrency is the ‘currency of the future’. To make a profit, one can hold onto tokens and trading them at a time when there is a marked increase in value. Factors such as market speculation can treble the value of purchased tokens making one richer in an instant.
However, a sharp decrease in token value can also occur. Thus, this has led some to conclude that while the likelihood of making a profit is high, it is a risky investment.
How to Buy Cryptocurrency and Make Purchases
As long as you have the funds and know what you want, the process of cryptocurrency purchase is relatively easy, safe, and fast. It also has a negligible transfer cost which is nearly 0%. This is more attractive than bank transfers, which usually attract an average charge of 11%.
To use this payment method:
- First, you need to get a wallet or digital coin purse. This online application holds your money or currency. The great thing about this wallet is it allows you to remain anonymous, as it is difficult to establish the owner of a purse.
- Once you have your wallet you can start trading. You only create your account on the exchange. Some cryptocurrencies like Bitcoin allow you to simply exchange real currency, US dollars, for the crypto form and make your desired purchase. For others, you need to first buy a specific cryptocurrency then use it to buy the one you want.
To make your Cryptocurrency purchase or exchange, you can use online brokers like Coinbase, eToro, Robinhood, SoFi Active investing, TradeStation and Webull.
What is the Strongest Cryptocurrency?
Several factors determine the strength of a Cryptocurrency. These include the market forces of demand and supply, availability, financial crisis, and power of the media. Below are 4 Cryptocurrencies that may currently just rank among the strongest on the market.
Bitcoin was the first Cryptocurrency to hit the markets. Created in 2008, Bitcoin grew over the years to dominate the Cryptocurrency market. All other currencies created after it is Alternative coins (Altcoins). Over the years the number of businesses accepting bitcoin has grown drastically with over 5 457 bitcoin ATMs being installed.
There are more than 18 654 900 Bitcoins at the moment and the number continues to change every 10 minutes. To date, the Bitcoin market capital is over $969 billion.
Currently, the Bitcoin market price is $59 016.73.
Of late, the value of Bitcoins is rising steadily. It may arguably be the most stable and safest cryptocurrency investment on the market.
Market curve history
From the time that Bitcoin was established as a cryptocurrency, its value as compared to the USD has grown drastically. From 2009 to 2011, it saw marginal growth with its value only going up to $1.00. In 2013, a sharp increase in the Bitcoin value was noted with it reaching $1 242 by November 2013.
In April 2014, a cryptocurrency crisis caused the bitcoin value to fall too low as $340 but by 2017 it had risen to an all-time high of over $1290. By Dec 2017 prices were rising by almost 5% every 24hours until they reached a value of$19783.06.
However, from the 22nd of December 2017, the value began to drop and by the 7th of December 2018, they reached almost $3300. The Bitcoin value was at a low for 15 months before it began to rise again.
A 50% dip was again seen in early 2020 at the onset of the Covid 19 pandemic but by July 2020 the Bitcoin had recovered. Prices continued to rise with only a 26% fall in January 2021.
After Elton Musk and Telsa announced Bitcoin investments and payment acceptance in February 2021, a large increase in the value of Bitcoin occurred. To date, Bitcoin has a value of over $50 000, and market analysts predict that the figure will still go up!
After Bitcoin, this is the second-largest and strongest cryptocurrency. Its first release was on the 30th of July 2015 and its more stable release on the 1st of January 2020. It has been on the market for just over 5 years. By the end of 2017, there was more than 96 million Ether in the market and from then about 5 new ether are created every 15 seconds.
Ether Market Capitalization currently stands at about $222.3billion. While this figure is notably lower than that of Bitcoin, it is still on the rise with many investors making it a preferred alternative.
Currently, the Ether market price stands at $1 832.42.
Currently, ether has an approximate 1.57% increase, which is a low but steady increase.
Market curve history
From the time it was first established in August 2015, hardly any price growth was noted until December 2016 when it was at about $8.01. The steady growth of Ether was observed until it reached $888.40 in February 2018.
However, a sharp decrease in value occurred from then to mid-2018 where it dropped to about $107.57 before its value began to rise again. A sharp increase occurred in December 2020, when its value went up to $746.06. Ether is now increasing in value at a low but steady rate, with slight dips from then to date.
Tether Crypto tokens are issued by Tether Limited and its trade was first enabled on Bitfinex in January 2015. Like Ether, it too has been on the market for more than 5 years.
Currently, its Market Capitalisation is $33.1billion.
Its market price is $0.9998.
Market Trend and trend History
An outstanding growth of the Tethers was noted from January 2017 to September 2018. They grew from $10 million to 2.8 Billion. A fall in Tether’s price to $0.88 was noted and it was caused by a perceived credit risk which caused people to trade Tether for Bitcoin. This caused Bitcoin price to rise while the opposite happened to Tether price.
The Binance coin is still relatively new on the market and was created in July 2017. It has gained the reputation of one of the most fast-growing cryptocurrencies.
Its market capitalization currently stands at $30.5billion.
The current market price is just over $274.38.
Market Trend and curve history
The Binance coin has a healthy growth trend. After being introduced in 2017, by 2018 it already dominated the market as the largest trading volume Crypto exchange worldwide. It had a market Capitalization of $1.3 billion.
Other Trending and Growing Crypto Currencies
Compiled below are other top Cryptocurrency that may catch your attention. While they are relatively new and arguably less stable than Bitcoin, some may be worthy investments.
Market Capital: $28.3 billion
Market price: $1.42
Market Capital: $28.1 billion
Market price: $36.39
Market Capital: $24.4 billion
Market price: $0.4771
Market Capital: $15 billion
Market price: $207.41
Market Capital: $13.3 billion
Market price: $29.99
Market Capital: $30.60
Market price: $539.40
Market Capital: $13.1billion
Market price: $539.40