So, you have been hearing all about the meteoric rise in Bitcoin’s price and you’re probably thinking, “I can make a lot of money with Bitcoin’s spread.”
However, investment involves risk. The old adage is usually, “The more risk you have to take, the more money that you make”.
However, that old adage works as a double-edged sword where because of the volatile market and sector conditions, you can definitely end up losing your investment and your shirt.
Well, there are a plenty of cryptocurrency exchanges that exist solely for you to trade in cryptocurriences and profit from the spread of cryptocurrencies, there’s rarely a day that goes by that those exchanges either have to be shut down either autonomously to correct a bug or unwillingly because the exchanges got hacked.
If you’re looking for a more volatile condition to exchange cryptocurriencies, then by all means you can make use those cryptocurrency exchanges for you to jump into your base currency.
However, understandably, you want to lessen the amount of risk when pursuing your base (crypto)currency.
With that in mind, this is why you should trade with Forex (foreign exchange) markets with Trade X1 so that way, your money can be kept safe from exchanges having technical vulnerabilities that can leave your investment wide open and unprotected.
Right now, the number one cryptocurrency that publicly comes to mind is “Bitcoin, Bitcoin, Bitcoin” and no other cryptocurrency has reached mainstream yet.
Why is Bitcoin so popular (and not because it’s rising in price so you can hold onto it and then sell it when it’s overvalued)?
Bitcoin was popularized because it solves the double spending problem – meaning due to a public ledger on a decentralized network, one Bitcoin doesn’t become two bitcoins.
However, Bitcoin was the first cryptocurrency to arise out of this revelation but it is not without its problems.
Bitcoin, however, is slow in transactions.
This means it can take ten minutes to complete a transaction due to the network being overloaded. Visa, a credit card company, can handle about thousands of transactions per second while Bitcoin can only handle hundreds of transactions per second.
This is why it’s important to look into other cryptocurriencies such as Ethereum.
This cryptocurrency is managed by The Ethereum Foundation and is built on its smart contract protocol – meaning that multiple devices can agree to set agreements without needlessly involving intermediaries.
Thanks to this, there are a lot of ‘sub-currencies’ (Ethereum-based tokens) that are tied to Ethereum use to the Ethereum ‘smart contract’ protocol to fulfill their own mission.
For example, Augur is a prediction-based market that uses a token in order to conduct trades in an exchange-like market in order to fulfill that role.
Ethereum could be the next big cryptocurrency that can shoot up to higher heights like Bitcoin.
IOTA/Problems with Blockchains
Ethereum and Bitcoin are not the only cryptocurrencies that exist. There are other cryptocurrencies that are in existence to fulfill their own missions.
IOTA is developing its rival ‘blockchain-like’ ledger that IoT machines will be able to communicate with each other in a method that is much faster and more efficient than the efficient.
There is also Civic that acts as a way to provide identities to people on the blockchain.
Finding the cryptocurrencies and winning with the spread between the undervalued assets is better than being tied with Bitcoin and its meteoric rise.
Get Started Trading Cryptocurrencies with Trade GBP
Cryptocurrency trading is still volatile but it can be safer if you trade via Forex through FXTrade777.