A cryptocurrency is a digital asset designed for use as a medium of exchange. The cryptography of blockchain technology is used to secure transactions, control additional units’ supply, and confirm transfers. In short, the cryptocurrency is a decentralized electronic currency.
Cryptocurrency is stored in a ‘wallet,’ which can have different forms. For example, Bitcoin can be stored in an online or offline e-wallet.
Bitcoin was the first cryptocurrency introduced in 2009 by an individual or group under the pseudonym Satoshi Nakamoto. Since then, it has paved the way for many other cryptocurrencies. Bitcoin shaped the market as we know it today. Few years after the Bitcoin was introduced and gained in popularity, further cryptocurrencies appeared. These are known as ‘Altcoins.’ Altcoins are cryptocurrencies that are considered an alternative to Bitcoin.
Altcoins can differ from Bitcoin in many ways. Some may have a different economic model, while others use different underlying algorithms or block size. Some cryptocurrencies offer a more adaptable programming language. Thus, applications can be built on the blockchain. Some altcoins offer nothing of value, and all cryptocurrencies require considerable research before trading. Many believe that the value of Altcoins is derived from the projects behind the cryptocurrency.
Cryptocurrencies have become popular with traders and have become an asset class in their own right. Their volatility offers traders a variety of opportunities to profit—what better time than now to learn about this new phenomenon.
Cryptocurrencies are a product of digital society, and just like the digital society, they run 24/7. At any time of the week, you can trade cryptocurrencies. Unlike stocks and commodities, the crypto-currency market is not traded on a regulated exchange. Instead, cryptocurrencies can be traded at any time of day on many crypto exchanges such as Binance, Bitfinex, or Coinbase Pro.
Although cryptocurrency is traded around the clock, some hours are considered peak hours. However, this loose rule of thumb does not always work. Since the US, Russia, and the UK are the three largest crypto-trading countries, it is not surprising that the American and European market hours are probably the peak times for cryptocurrency. The Asian market hours can also be very volatile for cryptocurrency, even on weekends. It is not unusual to see large movements in cryptocurrency rates on Sunday night (GMT). This can be disadvantageous for people trading in the European time zones.
The peculiarity of cryptocurrency exchanges is the extent that price disparity can reach between each exchange. For example, there were moments when Bitcoin had up to $500 price difference on different exchanges. The reasons for this disparity are related to the differences in the exchanges’ liquidity and, often, the geographical location of these exchanges. Price disparity becomes more noticeable immediately after large movements in the crypto-currency rate.
Except for Bitcoin, there are numerous other popular cryptocurrencies. These include (but are not limited to): Bitcoin Cash, Ripple, TRON, Ethereum, Litecoin, XEM, Bitcoin Gold, Stellar, NEO, EOS, Steem, and Quantum. All of these are a popular choice for those considering crypto trading.
The most popular cryptocurrencies are Bitcoin, Ethereum, Ripple, and Litecoin. Below is more information about cryptocurrencies that have not been considered so far.
Ethereum is an open platform that enables developers to create and implement distributed applications (dApps). Ethereum can best be imagined as a programmable Bitcoin. Ethereum allows participants to run decentralized blockchain applications, so-called Smart Contracts. Smart Contracts are highly secure and run with a perfect digital history, making them auditable, reliable, and unstoppable. These Smart Contracts can be programmed without the risk of downtime, censorship, or abuse. Ethereum is the second-largest cryptocurrency by market capitalization.
Litecoin is a former spin-off of Bitcoin, which was developed by Charlie Lee in 2011. It is almost identical in terms of the underlying technology of Bitcoin. Litecoin was intended for immediate and very cost-effective peer-to-peer payments. It is among the top 5 largest cryptocurrencies by market capitalization.
Ripple is a real-time payment system and currency exchange network developed by Ripple Labs. It uses its native currency, XRP, for transaction processing. Ripple is a system for the digital exchange of many different assets. This is its difference from crypto-currencies such as Bitcoin, which was primarily developed as a digital asset used as a medium of exchange.
You can do so on the growing platform of Okex! Especially for beginners, the platform offers one of the best user experiences worldwide. Pass Lv.2 Verification and finish trading tasks, you’ll get $50 in free Bitcoin.
Always remember that trading cryptocurrencies are associated with high risks due to the high volatility.
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