Why do people trade Cryptocurrencies
Cryptocurrencies are a form of a virtual currency, it purpose is to function as a medium of exchange making it the same as regular money in many regards.
The normal fiat currency everyone knows is controlled by the banks and the governments and altogether you have no control on this. This is where cryptocurrencies are different.
They work on the concept that the cryptocurrency is decentralized and works through a blockchain, a public transaction database which functions as a distributed ledger.
The time for cryptocurrenies is NOW
Of course we can go in deep and write a 600 pages book on this. But i expect you do not have the patience for reading that. so let's just say that it is important to know that everyone is using them already. maybe they are not aware of it but they are everywhere and money that goes from your pay-slip to your bank is as virtual as this.
One of the Main difference is that every other cryptocurrency is based on the absolute consensus of all the participants with regard to the legitimacy of the transactions and balances.
2017 was the year of the cryptocurrencies, they went big. At the start of 2017, the market cap of all the cryptos combines stood at already amazing mount of $18 billion. But if we move 12 months forward this amount had surged by over 250,000% to surpass a market capitalization of $520 billion. The most famous Crypto currency Bitcoin took care of around 50% of this growth after that ethereum and Litecoin and then the rest follows Bitcoin.
This went of course with a huge amount of noise, with banks and governments screaming and threatening as they lost some control on their financial situation.
At the same time this growth has attracted many institutional and individual traders and investors.
To just name one of the most famous ones, JP Morgan & Chase bank announced in late 2017 that it would start accepting Bitcoin. Cryptocurrencies had reached a growth stage where traders are actively looking for the best cryptocurrency brokers who will help them make a profit just like it is the case in Forex, Indices, Commodities and stocks trading.
there are a few reasons for this ,
if we look at why trade Cryptocurrency as to why not only forex ? there are a few key differences and these have less to do with the actual trading and more with the conditions of trading
You can trade cryptocurrency from anywhere on this planet and a . A person in France can trade their crypto coins with a person that sits in Chile or Antarctica. Since the price & rates of the cryptocurrency are not related to the country someone is sitting in everyone is able to trade it. The local economy is not related.
It is very volatile. The price moves sometimes faster than on regular forex ad when it moves it is able to move much more then in regular forex. This make sense as in forex the price is related to an economy and for a currency to double or collapse some enormous dramatic events have to be taken place.
It can be traded 24/7. Trading cryptocurrency wholly depends on an individual trader and not on time. This is what sets it apart from for example the stocks that one are able to be traded during normal business hours of the stock exchange.
The market also has shifted that today online you are able to find broker that the only thing they offer for trading are cryptocurrencies. I am not talking about forex brokers offering now Bitcoin , but Cryptocurrencies Broker that offer numerous Crypto's for Trading and thus you as a trader are able to trade so many different pairs and crypto's that everyday at any hours you will be able to find a trading opportunity.
here are 2 of the Best Crypto-currency Broker for your convenience
is a new cryptocurrency friendly CFD investment brokerage that operates under the supervision of Zed Consult Ltd and was introduced to the online marketplace on November 7th, 2017.the offer trading in Numerous cryptocurrencies and you are able to also fund your account in crypto.
Weber finance (https://weberfinance.com)
Why trade Cryptocurrency | and should you start trading too ?
Last words :
for beginners there is the simply logic of learn before you trade, trading brings the risk of losing your investment. so never put more then %5 of your portfolio on one trade and read and learn , many brokers have demo accounts