The world is growing larger by the day and new forms of technological advancement are on the rise. Part of the piece on this technology is the blockchain industry. The first child of blockchain is the cryptocurrency, which came officially into existence in 2009. For over 10 years now, the powerful intrusion of technology into the financial world is no longer news. Back in 2009 at the emergence of bitcoin, a significant part of the world was taking the invention as a joke. Little did the whole world know that cryptocurrency had come to stay.
Cryptocurrency is a digital currency that is mined technologically through a series of algorithms or programming. So, as simple and most basic, it is safe to say that airtime recharge pins, gift cards and many others are all forms of digital money. In basic terms, money can be categorized into two forms which are digital money and fiat. Examples of fiat can be US dollars, Great British Pounds, etc. It's just that cryptocurrency has its basic differences from those initially mentioned in that money is generated through powerful coding in the blockchain industry. Just for example, Bitcoin, Ethereum, Bitcoin Cash and so many more. At the moment, there are more than 1 million cryptocurrencies globally and everyone can create their own crypto too.
Just as fiat money is centralized, cryptocurrency is not centralized but instead decentralized. This means that no particular government controls its prices or values. In essence, the value of this kind of currency is basically determined by its users and traders. You can easily convert crypto to fiat or in the form of Dollars or any other currency globally. Most people have also come to know crypto as a digital gold and are highly regarded as assets that can be stored online with powerful technological encryption.
In looking to trade in the crypto space, there are several ways to trade this digital gold. You can make a huge fortune out of the crypto world. The good news is that everyone is waking up globally to the realization of this piece and is taking their slices accordingly. You can start trading crypto in the most elementary form, such, such as buying and selling, which is basically done by peer-to-peer (p2p). This means you simply find someone who is willing to sell their crypto, say for example bitcoin and then you buy it. Then after a watchful eye seeing that it has appreciated you simply find another person who wants to buy and you sell off.
Much as this seems quite simple, it can be demanding in that you might not find a ready buyer or seller who may trust you. But there are platforms open for this possibility of buying and selling. This can be easily enabled by simply signing up on platforms like Coinbase and many other platforms available online. It also starts with owning your account, either signing up straightaway in the blockchain and owning your account address or many other platforms.
One other elementary way to trade bitcoin or crypto is to buy in bulk and store in Cold Storage. Cold storage is a platform storage facility in terms of wallet that cannot be affected by the current activities in the crypto market. On the other hand, Hot Storage is a wallet storage facility within blockchain platforms that’s actively affected by current activities in the market. For instance, if you buy $10,000 worth of cryptocurrency and you store it in a cold storage today and tomorrow morning the price of that same value of the crypto you bought drops to $8,000, it means this drop will not affect your $10,000 value of crypto you bought. On the other hand, if stored in the Hot Storage, your money will be actively affected and so drops to $8,000 indeed.
Apart from the above elementary ways of trading cryptocurrency, there are more advanced ways of trading also. You can trade cryptocurrency with forex brokers. That particular cryptocurrency is listed on trading platforms as assets to be publicly traded. More so, there are platforms online strictly dedicated to trading crypto only. In this case, one crypto is paired against another. For instance, BTC/ETH (BTC stands for Bitcoin and ETH stands for Ethereum.