With the digital world comes digital currencies and trading methods. Cryptocurrency is simply a virtual or digital currency which exploits cryptography for its security. Because of this feature, it becomes difficult to counterfeit this form of currency. Cryptocurrency is in most cases a decentralized system based on blockchain technology. It is organic in nature and therefore, is not issued by any central authority thereby making it free of government interference and regulation.
The first form of cryptocurrency was “Bitcoin” which still remains the most popular and widely used form of cryptocurrency. In the today’s online trading, there are diverse alternate cryptocurrencies, some of which are Bitcoin clones while others are normal forks (a radical change to the protocol that validates previously invalidated blocks or transactions). Some, however, split off from the already existing forms of cryptocurrency.
In essence, cryptocurrency may be considered to be a system that accepts secure payment for online transactions which are normally denominated in the form of virtual tokens. Crypto, in blockchain, therefore, is the employment of various cryptographic techniques and automated algorithms in blockchain. Today, there are numerous cryptocurrencies with an aggregate market value of about $200 billion with Bitcoin representing 50 percent of this value.
On the other hand, online trading simply is the buying and selling of internet-based products through an online platform. The platforms are essentially provided by online brokers who make them available to individuals willing to make money from them. Today, there are numerous internet-based markets and platforms available for online traders. In online trading, in order for you to trade, you must use an online broker which replaces the human broker. Even in cryptocurrency and forex, the largely popular forms of online trading, you will still use real money in order to trade.
You will need to make your first investment using a few dollars before you can access the platform to trade yourself. In the case of Bitcoins, for instance, you will need to purchase some amount of Bitcoin using real money, which you will thereafter use to place trading. While most online trading brokers offer advice from live brokers and broker-assisted trades, some brokerages do not offer this service.
In most cases, it is better to use a broker who can help you through to understand how to successfully trade and in the end, make more returns than losses. It is also worth understanding that not all brokers are genuine or legitimate; the internet is a world of things, so be careful and do not be a victim of a scam.
Top emerging cryptocurrencies in online trading
While Bitcoin has over the last decade been the largest form of cryptocurrency, there are other emerging cryptocurrencies which will soon be a great deal. The following cryptocurrencies are what to watch for by online traders and brokers.
After Bitcoin, Ethereum has always captured the eyes of online traders. It placed second after Bitcoin for at least a year. What makes this currency even better is the ability of its blockchain technology to allow for currency and non-currency use.
Monero is another virtual currency that strives to unseat Bitcoin. It is a private coin, which largely distinguishes it from other forms of blockchain technology.
The cryptocurrency has succeeded in making a name for itself through blockchain and its Lumens coin. Its speed is one of the factors that makes it revered by most traders.
Finally, cryptocurrency is something that is here to stay. It has come and soon, who knows, it will replace the hard currency. However, what makes it unfavorable is its instability; a great disadvantage. Note that there are many more cryptocurrencies other than the above-named ones. But before you trade online, ensure you are using a genuine platform.