Cryptocurrency trading platform - Ethereum, Tron, Bitcoin Trade
What is cryptocurrency?
Cryptocurrency is a type of digital currency that can only be used on the internet. It does not have a paper form, and it's worth is unaffected by the state. In most cases, a middleman - a bank - is required to transfer money from one person to another. In the case of cryptocurrency, the bank is not involved in the transaction. This article will help you to select the way of buying and trading cryptocurrency.
Cryptocurrency is based on the blockchain technology, which is a series of linked data blocks. They're used to send digital money from one person to another without the necessity of a middleman. The first digital token, Bitcoin, was introduced in 2009, and the number of cryptocurrencies has risen since then.
The next section will discuss how a cryptocurrency works, what factors influence its price, how to obtain and utilize crypto.
Cryptocurrency : how does it work?
How do people make digital money?
There are several ways to get cryptocurrency:
• Mining. That is, getting rewarded for combining transactions into blocks and calculating the right key to seal the block. You can do this with your own equipment, or you can use someone else's, which is leased and can even be located on another continent. This type of mining is called cloud mining. Most of the existing currencies can be mined.
• Cryptocurrency exchange or digital wallet. Another option is to buy the desired cryptocurrency in the exchanger, which appeared on the network in sufficient numbers. We are talking about cryptocurrency wallets such as: Iq Wallet, Coinpayments and Trezor. With them you can buy, store and exchange crypto.
• Staking. It is a form of passive income in which users hold currencies on the blockchain using the Proof of Stake (PoS) algorithm and ensure that it functions. This provides them the legal right to profit. Only PoS-based coins, such as EOS, Tezos, TRON, and Cosmos, have this capability. Ethereum, the largest altcoin by market capitalization, intends to convert to the PoS algorithm in the future.
Is it possible to get digital money without spending real money?
There is another way to get coins - it does not involve any material costs, but it will take a lot of time. The options are many, from playing slot machines, to running social networking projects in the right language. You can also get free coins as a result of a hardfork - splitting the original chain of currencies into two new ones. However, it is worth noting that experts recommend the use of proven platforms and methods!
Cryptocurrency trading: what you need to know before getting started?
Trading is more risky than holding, but it can bring great profits.
Steps to take to start trading cryptocurrency:
- An overview of market terminology, types, and the history of the most popular cryptocurrencies.
- To buy cryptocurrencies, select a cryptocurrency trading platform. It's a good idea to sign up for multiple huge platforms with a good reputation for trustworthy brokers.
- Examine the brokerage platforms, trading terminals and do an assessment of the opportunities presented by the various options and functionalities.
- Selecting specific cryptocurrencies to deal with based on a preliminary examination of the rate dynamics of each of the category's major assets.
- Opening an order and limiting losses to determine the optimal timing to enter the market.
- Following rate changes and waiting for the best opportunity to finish the purchase.
- Making a profit by closing a position at a profitable point.
Types of cryptocurrency trading
• Traditional online trading on specialized cryptocurrency platforms. In this case, the usual trading methods are used, taking into account the peculiarities of this asset mentioned above.
Exchange arbitrage. Quite complicated way of earning, suitable only for experienced traders, who can quickly estimate and react to the current situation. The essence of the method is to gain income from the difference in the exchange rates of cryptocurrencies on different exchanges. The fact is that today this market has a wide range of quotes, which are not regulated by centralized banking institutions.
• Crypto derivatives. Today, this sector has the opportunity to work with - futures, contracts with which are also concluded according to the traditional schemes.
Which virtual currency should you invest in while trading?
You should invest in a digital currency that satisfies your requirements, as well as what you hope to gain from it. Of course, it should be a cryptocurrency with no reservations regarding its future possibilities.
To begin with, cryptocurrencies must be straightforward and easy to understand, with exchange and withdrawal processes that are not resource-intensive, or time-consuming. That implies the project should not only be forward-thinking, but also include the use of cutting-edge technologies and creative solutions. A project that provides or will provide an excellent opportunity to earn money in the near future.
The most promising tokens in 2022: Uniswap (UNI) (Ethereum platform), Chainlink (LINK) (Ethereum platform), FTX Token (FTT), Aave (AAVE), The Graph (GRT), DAO Maker (DAO), SHIBA INU (SHIB), Thorchain.
Here are the most popular cryptocurrencies to watch out for for investors in 2022.
Uniswap is an Ethereum-based decentralized exchange technology, specifically an automated liquidity protocol. Making transactions here does not necessitate the use of an order book or a centralized party. Uniswap allows users to trade without the use of middlemen while preserving a high level of decentralization and censorship resistance.Uniswap is a free and open source program. You may check it out for yourself on the Uniswap GitHub page.But how can you trade if you don't have an order book? Liquidity suppliers build liquidity pools, which is how Uniswap works. This method uses a decentralized pricing technique to smooth out the order book's depth.There is no listing because the Uniswap protocol is decentralized. In fact, any ERC-20 coin can be produced if traders have access to a liquidity pool. As a result, there are simply no listing fees on Uniswap. In a sense, the Uniswap protocol exists as a "public good".
The Uniswap protocol was created by Hayden Adams in 2018. But the technology behind its implementation was first described by Ethereum co-founder Vitalik Buterin.
Today Chainlink is one of the most popular cryptocurrency projects. This decentralized oracle service provides external data to Ethereum smart contracts, that is, it connects blockchains to the real world.
Chainlink is a blockchain-based decentralized oracle network that allows smart contracts to connect to external data sources, including APIs, back-end systems and other types of external data channels. The LINK - ERC-20 token - is used to pay for the operation of this service.
Chainlink uses a network of nodes to ensure the reliability and validity of the data sent to smart contracts.
For example, a smart contract needs data from the real world and sends a request. The Chainlink protocol registers this request and forwards it to its nodes to accept their "bids.
An important advantage of Chainlink is that it can verify data from multiple sources. Thanks to its internal reputation system, Chainlink determines with high accuracy which sources are trustworthy and which are not. This greatly improves the accuracy of the results and protects smart contracts from all kinds of attacks.
The year 2021 has been quite a good year for bitcoin. The coin, which turned 13 years old on January 3, has a total market capitalisation of about $900 billion. It accounts for about 40% of the value of the cryptocurrency market. The digital currency has increased by almost 70% since the beginning of 2021. Bitcoin has had stunning ups and downs throughout the year: at the end of January it was worth about $30,000, in mid-April it was worth $63,000, then bounced back to $30,000 in July and in November it broke a record of $67,500.
According to Kraken CEO Jesse Powell, people should think of Bitcoin as a five-year investment. "It goes up and down day to day, week to week. You don't want to trade it short," he said. Goldman Sachs predicts the price of Bitcoin will reach just over $100k when its market share increases to 50%.
Buying and trading cryptocurrency on IQ Option: the advantages
To start trading cryptocurrencies in South Africa you can use the one of the reputed international brokers, IQ Option, which has started its operations in 2013 and in a short period of time has become one of the leaders among the companies providing binary options trading services in the CIS countries and around the world. Today, it is one of the most popular platforms for making money through trading, providing clients with access to forex markets, cryptocurrencies, binary options, CFDs, etc. Today, thanks to the invariably high quality of service, advantageous terms of cooperation and professional technical support managers, the number of IQ Option clients all over the world is only increasing.
Working with the company is profitable, as it offers numerous traders the opportunity to generate income by trading in the forex, cryptocurrency, options and CFD markets. Particular attention is paid to following modern trends in trading: the trading platform is updated, which is one of the best such solutions on the market, available convenient mobile applications, secure cryptocurrency wallet, etc.
The company does not stand still, it is constantly developing and offering its clients new opportunities: for example, earning money by investing in one of the popular trading assets - cryptocurrency, etc. One of its innovations in binary trading is Digital Options. It is a very interesting tool with the possibility to work with several strike prices with different payout percentages (can reach up to 900%) and an option to sell an option early, which will allow the client of the company to earn a decent income. In addition to the lucrative bonuses and promotions, tournaments are also available with real money winnings without investing your capital to participate in them.
The leading broker offers its users profitable trading in foreign currencies on one of the largest and most liquid financial markets - forex. Herewith, cooperation with IQ Option is an opportunity to earn steady income from Forex, on the best conditions: traders have a wide range of profitable assets, tight spreads, fast order execution, no commissions, slippage, possibility of hedging, free demo account and fast system transactions. Today this is one of the most ideal trading conditions on the market.
All the main work takes place in the perfect platform, which is a proprietary development of the broker IQ Option, which makes trading comfortable and convenient. You can change the terminal background and charts, add indicators and graphical elements for advanced technical analysis, use several charts at the same time, close several deals quickly with one button, use the multiplier to increase your earnings, learn the history of quotes, set stop-losses and take-profits.
The functional IQ Option terminal is available on various devices, including the possibility to download a free mobile application, which ensures constant access to the market no matter where you are. The broker's informative website enables you to improve your skills by studying how to trade cryptocurrency with high-quality training materials. There's live chat for communicating traders and an economic calendar. To make forex trading for the broker's clients even more profitable, users will receive comprehensive professional support: volatility signals, current market news, promotions, newsletters, etc.
To test all the features of the platform and evaluate the benefits, you can register right now. Have a successful trading!