Crypto currency – Best for Digital Trading

In 2009, a mysterious character man named “Satoshi Nakamoto” created Bitcoin, whose identity is still unknown, had just laid the foundations of cryptocurrency: a fully digital and decentralized currency.

It is also a way to convert currency completely digitally without going through banks or traditional institutions.

Faced with the economic crises experienced by many countries worldwide, crypto also appears as an alternative to traditional currencies. In Greece, Bitcoin has been a resounding success for the people.

The benefits of cryptocurrency

Cryptocurrency offers several advantages over traditional currencies, transfers, and even banking. Here are a few.

Previously, only cash offered such anonymity. Another major advantage is decentralization. Cryptocurrency holders access their funds through a virtual wallet. It is also used to receive or send funds.

Each wallet is linked to an address, and a secret key allows access to it. It is also possible to store the funds on an exchange-type platform, but this practice can be risky.

Cryptocurrency is based on a blockchain (chain of blocks) of which a copy is recorded on each “node” of the network. A node is a computer on which the chain ledger is stored locally and synchronizes with other connected machines. Thus, unlike the banking system, money is not stored centrally.

Therefore, cryptocurrencies are less likely to be seized, nor are they at risk of being impacted by hardware failure or disaster such as fire.

Therefore, this crypto enjoys a status similar to gold, silver, or other rare precious metals and has traditionally been used as currency throughout history. Unlike the Dollar or the Euro, its value will never decrease due to inflation.

“Smart Contracts” are another strong point of certain cryptocurrencies, like Ethereum. These programs exist on the blockchain and can manage transactions and many other use cases, some of which have not yet been imagined.

Finally, cryptocurrency transfer costs are often lower than those of traditional currencies. Ripple, for example, is very fast and inexpensive to transfer, which strongly favors its adoption by financial institutions.

Are cryptocurrencies a good investment?

For many experts, cryptocurrencies do not represent a real investment. Although the value may increase, it is more speculative in their eyes.

The only way to generate profit is for someone to pay more for that currency than you paid. Thus, digital currency perfectly exemplifies the “greater fool” investment theory. Buying crypto cannot be compared to investing in a well-run business, increasing value over time with turnover.

Many experts recommend budding investors stay away from these resources. For example, Warren Buffett compares cryptocurrency to paper checks. According to Scott Jason Cooper, “this is a very efficient way to transfer money anonymously. Checks can also transfer money, but they are not worth money.

Knowing that Bitcoin or another crypto could be worth more in the future, owners are less inclined to spend it today. Therefore, it is not a viable resource as a currency.

Read the white paper.

The white paper for any crypto project consists of a guide or report that tells you everything you need to know about the currency in question. It details the philosophy behind crypto and how it works.

Reading the white paper offers two benefits: first, you will become familiar with the intricacies of a specific cryptocurrency; second, you will be able to determine the interest of a project based on its white paper. If it’s poorly written, you’ll know the project isn’t worth investing in.

For example, the Coin whitepaper and roadmap mention a new religion and aspects unrelated to cryptos. Although the DogeCoin appeals to some investors because of its charitable contributions, a good long-term investment will never depend on a fad.

Stick to your trading strategy

Your crypto trading strategy should include the following:

  • Analysis data
  • Market analysis
  • Risk mapping

A trading strategy keeps you focused and only targets trades that match your plans. Change it only if you have found a better trading method.

A cryptocurrency trading strategy aligns your plan with your market engagement. You evolve in a controlled environment and obtain measured results. This way, you can predict your potential results.