Cryptocurrency has quickly become the hottest topic of discussion, seemingly overnight. The use of social media and the way people consume their news has attributed to crypto gaining so much popularity in such a short time. Older investors were wary of the new technology, while young tech-savvy individuals who understood the potential of the technology found the exponential growth appealing. Cryptocurrency uses blockchain technology, decentralizing the currency and ensuring its safety. Since Bitcoin entered the market, thousands of additional coins have been introduced each with their own appeal to investors.
CFD trading offered by City Index is a great way to earn money on crypto or it can simply be used as a medium of exchange to purchase goods.
The appeal of bitcoin is that there are significantly lower fees. This is when it is compared to traditional banks who rely on service charges to remain profitable, transactions conducted through cryptocurrencies are between individuals without a 3rd party. If one chooses to use a 3rd party service to facilitate their coin transactions, there may be a service charge but nothing to the extent of a large centralized bank. Decentralization is a key aspect of cryptocurrency. The technology works on a peer to peer basis, in other words, the network is managed by itself instead of a central authority. What results is a form of currency that is run and managed by its actual users.
Safety is another appealing aspect of crypto. The digital nature of the currency means it cannot be counterfeited. A huge difference to a credit card transaction, which gives a merchant full access to your credit line and involves a pulling of funds from your account to theirs, crypto transactions involves pushing your funds from one point to another. The crypto holder selects the amount that he wants to send without providing any additional information. Thus, using cryptocurrencies reduces the risk of identity theft and greatly increases the safety of funds.
Having a market leader is a very important aspect for investors, since the market leader will show the direction of a market. This provides clarity and lessens the variables which could affect the price of your particular coin. In cryptocurrency, the market leader is without a doubt Bitcoin, and the market has been shown to pretty much follow the direction that it moves in. Therefore watching bitcoin closely can provide a clear path of the direction you should move in with whatever cryptocurrency you invest in.
Cryptocurrency is a truly universal form of currency, unbound by exchange rates. This shows the potential, which many speculators believe to be the future of international business transactions. Many businesses are purely online and target the international market. The internet has brought down many walls that previously limited businesses to their own country, together with cryptocurrency we may see a truly global marketplace where people conduct business with ease.
We are still in the infancy stages of cryptocurrency, which is exciting enough. Instead of standing by as a spectator you should accept the possibility of cryptocurrency being the new standard in currency. Do your research, set up an account and start making money.