cryptocurrency trading

Recently, we hear a lot of terms such as: cryptocurrency trading, investing in cryptocurrencies or names such as the digital currency Bitcoin... So what is all that? What are digital currencies? And what can you do with it? Is Bitcoin the only digital currency in the world? We will answer all these questions in today's article, so keep reading to the end! What are digital currencies? Cryptocurrency is a crypto-virtual currency that enables you to purchase goods and services online. It uses a digital online ledger with strong encryption to ensure and protect online financial transactions. The growing interest in these virtual currencies comes as a result of what is known as "digital currency trading", in which these currencies are bought and sold to achieve real financial profits from them. Also Read: The Complete Guide to Opening a Business Without Any Money! What is the difference between cryptocurrency and blockchain When we hear the word “digital currencies” we may immediately think of the word “blockchain”, as many think that both terms express the same thing, but this is not true. As we have already explained above, digital currencies are cryptocurrencies that are used to purchase goods and services, while Blockchain is the technology or technology behind it. It is a decentralized technology that incorporates encrypted records spread across many high-speed and capable computers, which manage all transactions made between clients within this network. Hmmm... It sounds complicated, doesn't it? Well, take a look at this short video that simplifies the principle of how blockchain technology works: the most important difference between digital currency and blockchain technology is that cryptocurrency is a part or branch of blockchain technology. Types of digital currencies and their prices Some believe that there is only one type of digital currency, which is Bitcoin. However, that is not true. According to CoinMarketCap.com, there are more than 6,700 digital currencies that are publicly traded and dealt with, and the cryptocurrency market is still witnessing an increasing growth every day. At a time when Bitcoin is the most popular and most valuable digital currency, there are many companies that have started issuing their own digital currency, which you can use to purchase services and products from this particular company. It's like those points that you earn when you buy merchandise from a certain site, which you can later exchange for real money that you use to buy products from the same site (and not any other site). Here is a list of the most famous types of digital currencies and their prices, where the bitcoin is topping the list and its price or market value is approximately $969 billion. Bitcoin: The market capitalization is $969.9 billion. Ethereum: With a market capitalization of $222.3 billion. Tether: $33.1 billion. Binance Coin: $30.5 billion. Cardano: $28.3 billion. Polkadot: $28.1 billion. XRP: $24.4 billion. Litecoin: $15 billion. Chainlink: It has a value of $13.3 billion. Bitcoin Cash: $13.1 billion. The importance and advantages of digital currencies Digital currencies have gained the attention and support of many people around the world for many reasons, including the following: 1- A potential future currency Many supporters of digital currencies believe that the latter, especially Bitcoin, will become the official currency in the future, and for this reason they are quick to buy it Now before it increases in value and price. But is this really what will happen? We will answer that in the next section on investing in cryptocurrencies! 2- The decentralization feature of the digital currency is not linked to any central authority or entity such as banks, for example, and therefore digital financial transactions in this case do not need an intermediary in order to carry out them, which eliminates transaction fees, which is something that many supporters of encrypted digital currencies like. Also Read: How to Open a Successful E-Commerce Business? 3- Security and the difficulty of forgery and counterfeiting As we have already explained above, digital currencies depend on blockchain technology in their work, as this decentralized technology in recording and transferring financial transactions is one of the most secure methods of payment and transfer of funds, as the blockchain network cannot be easily hacked It is impossible to falsify or counterfeit. This makes cryptocurrency a preferred option for many. Investing in cryptocurrencies Perhaps you are now wondering about the topic of cryptocurrency trading, and you may be thinking to yourself: Is investing in cryptocurrencies a wise choice? In fact, although the price of digital currencies may rise in the future, these investors see that this is nothing more than just assumptions. Why? This is because digital currencies are like real currencies, they do not create any cash, and in order to make a profit from it, you must find someone who is willing to pay an amount more than what you paid to buy this digital currency.
Therefore, investing in digital currencies is different from investing in a real, well-studied project whose value increases over time and with the increase in the value of cash flow and the profits that it achieves.