Cryptocurrencies are a payment tool in the first place. That is money, even if not issued by central banks and private banks such as Euros, dollars or yen. In reality today within the world of cryptocurrencies Cardano Exchange there is practically everything, from first generation ones, such as Bitcoin, which only serve as a medium of exchange, to those that can instead implement on their networks even self-executing contracts, such as Ethereum.
Without forgetting those created to solve specific problems, such as Monero, focused on absolute anonymity, or Bitcoin Cash, created to support as many transactions per second as possible.
- Investing in Cryptocurrencies
Investing in Cryptocurrencies is identical to investing in Forex. We are focusing on the growth or otherwise of the value of a currency, however “virtual” it may be.
Of course, there are important differences in what happens in the world of classic currencies and in that of cryptocurrencies, differences that it will be necessary to analyze to decide if, how and when to invest in cryptocurrencies.
- Cryptocurrencies are volatile
Classic currencies are too, but the combination of the absence of a central bank and poor overall liquidity makes them particularly difficult to tame.
- Cryptocurrencies are almost all anti-inflationary
You cannot freely print Bitcoin or Ethereum, as is the case, for example, with dollars or euros. Which means not only that the growth of the cryptocurrency money supply proceed very slowly and cannot be manipulated. It also means that almost all cryptocurrencies, sooner or later, will reach the maximum circulation possible. Which should, at least theoretically, make the most widely used cryptocurrencies highly sought after.
- Cryptocurrencies are very different from each other
Although on this topic, for investment purposes, it will certainly be appropriate to refer to specific in-depth analyzes.
Investing in cryptocurrencies is an investment, apparently bizarre, absolutely identical to the others. You buy cryptocurrencies or the contracts that represent them like CFDs and then go and resell them when the price is higher.
A trade that can be tested with CFD brokers who also offer cryptocurrencies, such as eToro, a broker that offers a professional investment environment even to those who invest a few hundred euros.
A broker that also offers the possibility of investing with virtual capital, to test freely without necessarily having to pay real capital.
Trading cryptocurrency
Cryptocurrency trading is the activity of buying and selling cryptocurrencies, which typically takes place through a broker. Brokers are intermediaries that typically allow you to buy contracts that are worth as much as a certain amount of the cryptocurrency you want to buy.