Statistics point to the growth of the crypto market lately. With the expansion of the market, new traders are taking interest in cryptocurrency. Several new cryptocurrencies have been introduced. In this article, all the factors that a trader should keep in mind this year while investing will be elaborated upon.
Introduction: Crypto has once again made it to the headlines. With the 1.5 billion USD investment made by Tesla CEO Elon Musk, people are talking about Bitcoin once again. Will it set a new template to be followed by other leading Multinational corporations across the world? It can be assumed that if few of America’s foremost firms invest a percentage of their total asset into the crypto market, the changes it could bring into the global economy would be immense. Bitcoin, which has recently touched upon the 50,000 USD mark this year, the most expensive and also the first cryptocurrency ever, might even cross the 100,000 USD mark very soon! So what can be the reason behind crypto’s popularity among not only big corporations and billionaires but also new and amateur traders? What makes crypto market investment such a profitable venture? Let us move ahead to know more about the prospect of the crypto market.
The Crypto Market
Ever since its conceptualization as a peer-to-peer transaction system in 2008 by a person (or a group of persons) under the pseudonym Satoshi Nakamoto, Bitcoin has come so far. A currency that had an initial value nothing more than a few cents, experienced its record-breaking bull run in the year 2017 when the value of a single Bitcoin rose from 5000 USD to 20,000 USD in just two months! People who invested few dollars became millionaires. Since then the crypto market has grown considerably. Several new cryptocurrencies have been introduced to the market which promises to take forward the idea of the decentralized digital currency. For amateur traders, crypto is a promising asset that will help to maximize return on investment. Today there are around 4000 cryptocurrencies available to trade-in. Here are a few of the popular currencies.
Ethereum: this currency uses a blockchain technology that does not require any third-party regulation or service charge for the transaction. The smart contract technology that it uses allows the development of decentralized applications and crypto wallets on its blockchain which will accommodate new traders.
Litecoin: this is considered to be a BETA version of the popular Bitcoin. It has similar blockchain protocols that are used in Bitcoin and a lot of other applications. It promises to lower the transaction time across borders.
IOST- although the blockchain protocol used here is similar to that of Ethereum, it is considered much faster than most cryptos. The ecosystem of the IOST will allow the development of dAPPs and crypto wallets for new traders and crypto owners.
Algorand- One of the fastest and most efficient currencies for transactions, Algorand has the potential to compute blocks and complete transactions within seconds.
Cosmos- This cryptocurrency uses multiple autonomous blockchains. It uses a modular framework the aim of which is to make the blockchain protocol less complicated.
Binance Coin: This cryptocurrency is used to carry all the transactions of the Binance exchange. Although introduced as a token within the Ethereum network, Binance has its own network now.
With so many cryptocurrencies available today new traders might be puzzled while making the right trading decisions. How can one choose the right currency out of so many currencies to make the most out of their investment? To solve this problem developers across the world have developed several algorithm-based trading bot applications.
Applications like Bitcoin Digital login are based on algorithms that are created to scan the market for certain parameters or market trends that will trigger the preferred trading option at right time. Once the trader has a trading strategy they can look for the right application to execute and implement their strategy at right time to maximize gain and reduce the chance of loss.
The perks of using trading software are that you are exempted from having to constantly check on the constantly changing market trends so that you do not miss out on the right window. However, no trading application can ensure a 100% return. You can always shift to manual if the automating trade function is not working for you.
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