How does the cryptocurrency market work?
Cryptocurrencies are considered to have a reputation as an asset that anyone can easily capitalize on. The rapid growth of crypto assets looks extremely attractive to people who are afraid of missing out on their chance to get rich. But a desire to buy digital money is half the battle; to keep yourself afloat on the crypto market is a much more difficult task.
What is cryptocurrency?
To begin with, accounting for a cryptocurrency is called a blockchain. It is maintained collectively by all network participants who have this currency. Each cryptocurrency is programmed and identified using a complex code. Bitcoin is not the only cryptocurrency, but the first in history and the most popular. Unofficially, Bitcoin is already called “digital gold”. Blockchain (the technology, bitcoin is based on) has a significant impact on the modern conception of digital assets security. The turnover of transactions in cryptocurrencies can reach billions of dollars, but so far, investors and common users are just beginning to explore this field.
Exchanging, buying, and trading cryptocurrency on bit4you has its advantages:
- You can use free demo mode with $100 000 virtual money on your wallet to try trading strategies and choose your best and the most profitable.
- High security and protection of your account via bank verification.
- the educational section where you find a lot of useful information about the crypto market, digital assets, how they work, and various trading and investment strategies in real-time.
- Trade under 0% fees and commission. Withdraw your money anywhere.
- We provide daily information about market status, news of the crypto world, graphs, indicators, and notifications where it’s better to buy or sell your crypto assets.
In addition to Bitcoin, there is a whole group of so-called “altcoins” strategies growing. Among the leading altcoins are Litecoin, Ripple, Etherium, and Dash. You can read in detail about them in the bit4you educational section.
How to trade cryptocurrency?
- Register a bitcoin wallet, buy a cryptocurrency for fiat money and then exchange Bitcoin for altcoins on the cryptocurrency exchange platform.
- Exchange platforms provide high security of your funds and digital assets, so it is considered to be the most suitable service for investing.
- bit4you uses bank verification to keep your crypto coins safe.
Factorsaffecting the value of cryptocurrencies?
The cryptocurrency market is developing rapidly, new currencies constantly appear and old ones disappear. The cryptocurrency market attracts users with the opportunity to protect themselves from the devaluation of fiat money. Currently, more and more stores are accepting Bitcoin and other cryptocurrencies as payment methods. In some countries, crypto coins began to be used almost anywhere. Many factors can affect the rise or fall of a cryptocurrency:
- growth of the crypto can be driven by strong demand, while speculative buying of cryptocurrencies affects supply;
- the fall of the cryptocurrency can be caused by negative news background and rumors or actions of state bodies.
However, despite the amount of capital, a trader can find a suitable cryptocurrency and purchase it, relying on its growth in the future. Trading cryptocurrency, it is very important to follow the news of both the market in general and a specific digital asset. As in trading other assets, it is essential to be guided by technical and fundamental analysis.
Valentina BEREZA, Team bit4you