The covid19 pandemic has plundered and destabilized many businesses around the world. The coronavirus has brought uncertainty, and its negative impact cannot be ignored. No one was ready for this pandemic, and everyone was caught unaware, just like it happened when the world was struck by the Spanish flu, 100 years ago. While things may look bleak, it is a perfect opportunity for investors to venture into other areas. Cryptocurrency is one of the options you can explore to keep making profits online as you wait for things to go back to normal. Here is a simple guide to cryptocurrency worthy to check out from Instant Loan.
What is cryptocurrency?
Cryptocurrency is used online and exchanged to pay for goods and services. They are similar to bitcoin casino chips or arcade tokens. A company creates its token, and they are used to buy their services or products. This trade is done through blockchain technology, a decentralized technology in many computers that records and manages all transactions. The technology has tight security, and traders do not need to meet physically, hence the reason to embrace it now.
The arrival of coronavirus is an opportunity for digital assets to mature and take over. Cryptocurrency is one of the best ways to save business people looking for speed, reliability, and transparency without putting themselves at risk of contracting the deadly virus.
Types of Cryptocurrencies
Currently, there are over 2000 cryptocurrencies available for trading online. By June 2016, the value of cryptocurrencies was estimated to be $246 billion. This was according to the CoinMarketCap, which also ranked Bitcoin as a number on the list of the most popular digital currencies. Traders of these currencies are attracted by several things that include:
- Most people in the digital currency trade believe it will be the ultimate currency in the future. They are rushing to buy them and wait for their value to increase.
- Some traders want to remove the power of managing money from central banks. They believe that these banks decide when to lower money value by causing inflation.
- The technology of digital currency and blockchain is more secure compared to the current standard payment methods.
- The value of cryptocurrencies has been going up consistently. This is appealing to people who want to make a profit in the short-term.
How to Buy Cryptocurrency
Most cryptocurrencies are available for traders worldwide. Getting started is easy, but you need what is referred to as a wallet. This is an app where you keep your currency and use real money to purchase cryptocurrencies such as ethereum and bitcoin.
You must sign up with a cryptocurrency trading exchange platform to buy or sell your cryptocurrencies. This is a legal business in the US, but not allowed in some countries such as China. Despite being a safe business to invest in during this season when things seem to have stalled due to covid19, you must also be careful not to fall in fraudsters’ hands.
How to Make Profit on Cryptocurrency Trade
Cryptocurrency is similar to stock market investment. You can watch the cryptocurrency gain or lose and decide when to make a sale. Here are two main ways that you can use to make some cash in this trade:
Most people are not sure about long-term trading with digital currencies, but it’s an effective way to make good money in this area. If you look at charts since the inception of most of these coins, they have been going up most of the time. There are times your cryptocurrency will fall, but if you make a huge sale when the prices skyrocket, you will make a fortune.
- Trading Volatility
It is no secret; cryptocurrencies are volatile investments. It can be tricky to trade with them within a short time. It is possible to make fortunes or lose vast amounts of money in no time. Even the most established digital currencies can be risky. But, you can rely on them amidst this pandemic and make some money. Just learn to read the technical indicators before you make any step.
Cryptocurrencies can be among the most volatile investments if you watch the short term price action. Fortunes can be made or lost in the often-significant up and down swings of even the most established cryptocurrencies. If you’re an active stocks day trader, you’ll find many of the same technical indicators in cryptocurrencies, although often amplified.
How to trade with cryptocurrency safely
A guide to cryptocurrency is not complete without some tips on how to trade safely. The best time is usually to get started when a company has an ICO. But, you need to know more about the platform you choose to use when trading. Here are a few things you should check:
- Find who owns the cryptocurrency trading company. Avoid it if the owner is not known and stick to those run by reputable persons.
- Check if there are signs investors are working with the company. If seasoned traders trust them, it is a good sin, go ahead and invest.
- Will, the company, allow you to own some stake, or it’s just your tokens and currency? It makes a lot of difference because you will also participate in what the company makes if you get a stake. Buying tokens allows you to use them just like you use chips in poker.
- How long has the product been in the market? Avoid a company that is just starting and looking for ways to raise money and develop its currency.
This pandemic may be what people needed to venture into new territories, including cryptocurrency trading. Currently, this industry is still holding up well amid all the economic chaos. The digital economy is still thriving and is some we can rely on as coronavirus continues to wreak havoc worldwide. You can choose to wallow in losses day in, day, o venture into a new world and be part of what appears like a grand reset where decentralization is against the centralization of currencies.