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What is Cryptocurrency - Cryptocurrency Infographic
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What is cryptocurrency
Cryptocurrency is decentralized digital money based on blockchain technology. The distinguishing feature of cryptocurrencies is that they are not issued by any central authority, making them theoretically immune to government interference or manipulation. (yet we have Russia Ukraine war at our hands and cryptocurrencies are being influenced wildey).
How to trade cryptocurrencies
The cryptocurrency market can be confusing for both novice and experienced traders due to the sheer amount of processes. We have broken it down into simple steps to help you better understand the cryptocurrency trading and how to trade it:
1. Open a Cryptocurrency Brokerage Account
2. Fund your account (from the series of captain obvious )
3. Choose a platform to trade on
- Years of activity
- Supported Cryptocurrencies
- Fees
- Deposit methods
- Liquidity
- User reviews
4. Choose crypto to invest in
5. Choose a cryptocurrency trading strategy
6. Consider bot trading
7. Store your cryptocurrency
Top 10 Cryptocurrencies
There are thousands of different cryptocurrencies that can confuse you when you are just getting started with the world of cryptocurrencies. To help you figure it out, here are the top 10 cryptocurrencies based on their market cap or the total value of all coins currently in circulation.
Top 10 Cryptocurrencies
1. Bitcoin
2. Ethereum
3. Tether
4. Binance Coin
5. U.S. Dollar Coin
6. XRP
7. Terra
8. Cardano
9. Solana
10. Avalanche
Popular Cryptocurrency Exchanges
To choose the best exchange for your needs, it is important to understand the types of exchanges.
Popular Cryptocurrency Exchanges
Centralized Exchange
The first and most common type of exchange is the central exchange. Popular exchanges falling into this category are:
- Coinbase
- Binance
- Huobi Global
- Kraken
- Bithumb
- Gemini
These exchanges are private companies that offer platforms for trading cryptocurrencies. These exchanges require registration and identification, known as the "know your customer" rule.
Decentralized Exchange
Decentralized exchanges work in the same way as Bitcoin. A decentralized exchange does not have a central point of control. It is similar to a server, except that each computer on a server is scattered around the world, and each computer that forms part of that server is controlled by a different person.
If one of these computers goes down, the network will not be affected, as many other computers will continue to work on the network.
The first and most common type of exchange is the decentralized exchange.
- Uniswap
- Tokenlon
- PancakeSwap
- 1inch Liquidity Protocol
- Raydium
- Sushiswap
Cryptocurrency Trading Hours
The crypto market is open 24 hours a day, 7 days a week, but trades are more likely to be executed when the activity level is at its highest, which most often happens between 8:00 am and 4:00 pm local time.
It's also important to stay up to date with news and events that affect the crypto market, whether it's halving, legal changes, or celebrity endorsements. Due to these influential announcements, the price of the cryptocurrency may fluctuate, which may provide trading opportunities.
Cryptocurrency Trading Hours
Can you Trade Crypto on Weekends
Traders can trade cryptocurrencies 24/7. And yet, there are fewer people trading on the weekends than on weekdays. This means that any major cryptocurrency sell-off can drastically change the market.
Advantages of cryptocurrencies
Trading cryptocurrency is quite tricky, from the perspective of unpredictability, but there are also many advantages. Let’s take a look at cryptocurrency trading Pros and sum it up:
Advantages
- Cryptocurrencies promise to facilitate the transfer of funds directly between two parties without the need for a trusted third party such as a bank or credit card company. These transfers are secured using public and private keys, as well as various forms of reward systems such as proof of work or proof of stake.
- Since cryptocurrencies do not use third-party intermediaries, cryptocurrency transfers between the two parties to the transaction are faster compared to standard money transfers.
- Cryptocurrency investments can generate profits. And as of December 2021 Cryptocurrency skyrocketed in value reaching almost $2 trillion.
- Cryptocurrencies such as bitcoin serve as intermediate currencies to facilitate money transfers across borders. Thus, the fiat currency is converted to bitcoin and then transferred across borders, and subsequently converted to the destination fiat currency. This method simplifies the money transfer process and makes it cheaper.
