TechGYD | The Current Scenario of Cryptocurrency Trading

Cryptocurrencies are digital currencies which are created virtually and managed through an advanced technique by the name of cryptography. Till the year of 2009, cryptocurrency was just an academic concept that had potential but nobody knew whether it would be viable in the real world. But in 2009 the first cryptocurrency, Bitcoin was formed and since then it has managed to capture significant attention from media and investors which has led to it becoming the hottest cryptocurrency on the market. Apart from Bitcoin there are a number of other cryptocurrencies that are doing the rounds over the internet.

The highly volatile nature of cryptocurrencies makes them somewhat of a gamble but the truth is, if one uses the cryptocurrencies wisely enough, they are worth millions. There are crypto engine online software that facilitate the trade in cryptocurrencies. 

Understanding cryptocurrency

To know anything about cryptocurrenies, one should know that they are decentralized currencies. They use the peer-to-peer technology which is responsible for all its functioning, like issuance of the currency, processing of transactions and most importantly, the verification process. All these are carried out by the network responsible for the currencies. Because of this independence from interference from any government or organization or institution, no type of outside manipulation or interference can affect cryptocurrencies. But the flipside to this seemingly incredible system is that because of no solid backing from any of the stalwart organizations, the value of cryptocurrencies are notoriously unpredictable.

These characteristics of cryptocurrencies make them a wholly different entity than fiat currencies. Fiat currencies of each country are governed by a national bank that regulates the release and amount of currency that is to be floated in the market. Bitcoin on the other hand has no such upper limit and at present is being mined at a rate of 25 coins per ten minutes. Other cryptocurrencies have a slightly lower rate of mining. 

A number of crypto engines have come up online that help you deal with cryptocurrencies. Crypto Engine is one such website which deals with cryptocurrencies. It is one of the most reputed and trustworthy sites you would find online that deals with cryptocurrencies. And the easy and user friendly interface only adds to its charm.

Advantages of cryptocurrency trading

1. Considerably lower transaction fee: Anybody who has even a little bit of knowledge about the trading world, knows that the transaction fees are something which in spite of being seemingly insignificant bog down multi-million dollar deals and hamper important trades. Cryptocurrency is totally free of this unnecessary headache. Yes, there is a transaction fee associated with cryptocurrencies, but the amount is downright negligible when compared to other fiat currency transfer fees. The reason behind this is that, cryptocurrency has no transference fee, it is only when it is being converted into fiat currency that the negligible transfer fee is required. So if you are looking to conduct a transference online solely through cryptocurrency then you do not incur any transaction fee at all. 
2. Impossible to counterfeit: This is the biggest advantage of cryptocurrencies. Not only are they generated through cryptography, they are also sealed and secured through cryptographic techniques. So unlike fiat currencies, it is impossible to counterfeit. This ensures that nobody would ever incur a loss in cryptocurrency due to counterfeiting. This gives an unprecedented solace to traders who had to always be on the lookout for counterfeit fiat currencies. 
3. Smooth cross-border transactions: Cryptocurrency is not just a trend or a fashion statement that it is just there and has no value whatsoever. It is actually quite the contrary, as cryptocurrency can be used to seamlessly travel all across the world without having to worry about the amount of money being deducted from your wallet due to changing currencies. All you need to do is exchange your cryptocurrency for the currency of the country and you are good to go.

Disadvantages of cryptocurrencies:

1. Highly volatile: Cryptocurrencies are notorious for their highly volatile nature as their price can fluctuate by more than fifty percent over the course of a single hour. This is the primary reason why most traders are apprehensive of cryptocurrencies. Unlike fiat currencies, which are insured by the local authorities in one way or the other, cryptocurrencies have no institutional backing and is entirely dependent on the number of people willing to invest. So if the value of a currency suddenly falls, then there is no failsafe. 
2. No uniform laws: The reason why the world runs smoothly on fiat currency is that all the nations across the world have almost uniform laws regarding them. But the stance of nations on cryptocurrencies vary highly which makes it non-reliable. 

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