Cryptocurrency Investment 101

Understand the basics of cryptocurrency, including how they are created and utilised.

Cryptocurrency Investment 101

You have probably heard of cryptocurrency trading and how Bitcoin stunned the world when it made headlines for its historical price jump in 2017. People have been investing in cryptocurrency and reaping its returns for years, your neighbour is probably speculating and trading on the crypto market now as we are speaking. 

Then again, crypto trading can be risky as the market has proved to be volatile with sharp market upturns and sudden downturns. The good news is that these risks can be mitigated through meticulous planning and foolproof strategies. Even experts rely on tactics like cryptocurrency arbitrage for positive returns. 

Before we venture into what cryptocurrency arbitrage [Read more about arbitrage here] is, let's first understand the foundation of it all. 

What Is Cryptocurrency? 

Paper currency, or in other words, banknotes, issued by the government and banks play a big role in our everyday transactions and it is tightly scrutinised by them. In comes digital currency, also known as virtual currencies, which are wireless and cashless payments. That means payments are made effortlessly through our smartphones, credit cards, or online transfer without needing to carry a whole stack of money around. 

Cryptocurrency is an important medium for these instantaneous transactions to be made without the involvement of a third party, it is wholly decentralised, making it difficult for hackers to penetrate the system, the main reason why people believe it would become the future of currency. With no institution or any individual controlling it, you are given the freedom to truly control the flow of your assets at any time of the day. 

How Does It Work?

Derived from cryptography, cryptocurrency allows the transaction of tangible and intangible assets to be recorded down digitally using blockchain technology. 

Blockchain technology enables the development of cryptocurrency. Blockchain is made out of blocks containing information of all its transactions and every new transaction made adds a new block into the chain. Blockchain is secure and immutable as tampering with it would require you to rewrite all the previous transactions, which is merely impractical. That removes uncertainties in any transaction, allowing individuals to better identify and track their assets from the beginning to the end-user. 

Smart Contracts

Blockchain gives rise to smart contracts, which are facilitators of any kind of deal between two or more parties. 

Here is how it works: the self-executing contract stores physical (or even non-physical) assets and transactions will only be allowed when certain conditions are met. If not, the contract will cease to exist and no actions will be made. This helps you to avoid fraud as you know who you are dealing with, save time, cost, and the environment (yay for paperless contract!).

There are many types of cryptocurrencies, one of the most infamous cryptocurrencies known out there would be Bitcoin created by Satoshi Nakamoto back in 2009 and it remains as one of the highest cryptocurrency by market cap. As of today, there are more than 4,600 cryptocurrencies available, and seeing how lucrative the industry is, new competitors are constantly entering the market.

Cryptocurrency Is A Rising Trend

While Covid-19 has made cryptocurrency the current investment trend again, big companies (and even charities like UNICEF) are warming up to cryptocurrency to allow currency exchange amid the world pandemic. Many countries are also approving crypto exchanges as it creates new business opportunities and helps improve countries' economic growth. 

There is no doubt that cryptocurrency has outpaced traditional investments and opened a floodgate for limitless earning opportunities. Find out more on how you can gain profit through the most used cryptocurrency strategies here

Risk-free arbitrage trading

Arbitrage trading can be zero-risk with Altimates leading you through the way. In your perilous journey to reap a fortune, let Altimates be the one to guide you forward. 

To find out more about arbitrage and Altimates, check out the links below: