Cryptocurrency is the latest trend the news, blogs and financial sites, it’s definitely not difficult to understand the reason behind it. This instrument has affected global banking systems and industries. The four main types of cryptocurrency are Bitcoin, Litecoin, Ripple, and Ethereum. Unlike the traditional currencies, they can’t be manipulated by the governments. Whereas, many banks consider this type of currency as a risk to their monetary systems. Well, their main worry is that it will decrease the ability of banks and the governments in their part to influence the economy.
The first known cryptocurrency was Bitcoin which appeared in 2009. The question is who invented it? No one on our planet knows that. After the recognition of Bitcoin among the people, the other types of decentralized cryptocurrencies came up on a rapid rate. Due to the gain in power and popularity among the public might make them more superior than the traditional currencies around the world. But when you trade cryptocurrency contract of difference (CFD), the trader invests in the price of it without actually buying them up. Instead of having an E-Wallet, get yourself a ‘buy’ or ‘sell’ deal by a trading platform, by taking the advantage of changes in prices.
- On the trade of the cryptocurrency CFD using leverage can boost up your trading power as it enables you to open large deals with a much smaller investment. But also at the time of doing this, you also tend to increase the risk.
- When you trade them, the traders usually tend to download E-Wallets through which he can manage all the deals but they are not safe, by giving the hackers a possibility to hack in and steal their bitcoins, etc. Beware from such attacks.
- Many of these currencies are extremely volatile and have given the traders numerous opportunities. For example, In the early months of 2017, Bitcoin increased to 340%, Ripple increased to 3500% and more. Despite these types of examples, this currency excites to people in the market.
These currencies are decentralized and not manipulated by the bank. This means that a small change in the bank’s data or policy or the price of traditional currencies is unlikely to have a direct impact on their price. For example, in September 2017, China made the ICOs illegal and made comments to crackdown the cryptocurrency in their country, considering the influence of Asian as a superpower, the market reacted and led to a fall in the price of the Bitcoin.
The major reason being that crypto currencies are not connected to any economy around the world, they purpose more challenges to traditional currency analysis. There is no doubt that this currency is exciting and has the potential to change the global financial market. With its profits like no expiration date and good leverage, cryptocurrency is the best place to invest in.
