Press Release

All About Cryptocurrency

Cryptocurrencies are decentralized virtual currencies, meaning they are not under the control of financial institutions or governments. You can invest or trade in cryptocurrencies like any other currency. There are several cryptocurrencies and each has its characteristics. Those with significant market capitalization are bitcoin, bitcoin cash, ether, litecoin, and stellar. Cryptocurrencies are known to be an alternative to traditional currencies, even though they were created with the intent of functioning as a payment method. They are accepted by several shops. Cryptocurrencies have much more similarities to commodities, such as gold than forex. Indeed: The trend of cryptocurrencies is not tied to the performance of the economy of a particular country Interest rates and monetary policies do not have an impact on the value of cryptocurrencies Investors prefer to own cryptocurrencies waiting for them to increase in value, then convert them to traditional currencies. Converting in traditional currencies from Cryptocurrencies like Bitcoin can be done easily. From wazirx you can exchange your BTC to INR.

  • What is cryptocurrency trading?

Trading with cryptocurrencies consists of operating on the price movements of cryptocurrencies with a trading account with CFDs, or by buying and selling the underlying currencies on an exchange. CFDs are derivative financial instruments, which allow you to invest in the price trend of cryptocurrencies without having to own the real value of the underlying. You can decide to open a long position (‘buy’) if you think the value of the cryptocurrency will increase, or open a short position (‘sell’) if you think the value will go down. CFDs are leveraged products, so you only need to deposit a small amount of money, the margin, to get maximum exposure in the underlying market. Based on the total size of the open position, your profits or losses could be amplified due to the leverage effect.

  • Buying and selling cryptocurrencies via exchanges

When you buy cryptocurrencies through an exchange, you are actually buying the asset. You will need to open an exchange account, cover the total value of the asset to open a position, and deposit the cryptocurrency tokens in a digital wallet (or ‘wallet’), where you can keep them until you decide to sell them. Exchange accounts have a steep learning curve, which allows you both to understand the criticalities of the technologies involved and to analyze the data in the best possible way. Exchange accounts have a maximum deposit limit and can have high maintenance costs. Cryptocurrency Exchange in India is made easy by wazirx.

  • How do cryptocurrencies work?

The cryptocurrency markets are decentralized, which means that currencies are not issued and are not protected by a central body such as a government or central bank. Cryptocurrencies, on the other hand, are managed by a network of private computers and servers. However, cryptocurrencies can be bought or sold in an exchange account and held in ‘wallets’, or cryptocurrency wallets. Compared to traditional coins, cryptocurrencies have a virtual value for those who own them and are registered in the blockchain, the technology that supports cryptocurrencies. If a user wants to transfer cryptocurrencies to another user, they can make a transaction on the recipient user’s wallet. The transaction ends after verification and registration in the blockchain, through a process known as ‘mining’. In this way, cryptocurrency tokens are also created.

  • What is blockchain?

The blockchain is a shared digital ledger of data. For cryptocurrencies, the blockchain chronologically records each unit of cryptocurrency, which tracks the various transfers from one user to another. The blockchain records transactions within ‘blocks’ of data and each new recorded block is inserted at the beginning of the data chain. Blockchain technology has data protection systems that traditional computer files do not have. A blockchain file is registered on several computers across a network (as opposed to a single location) and is readable by those who are part of the network. This feature makes the collected data transparent and very difficult to alter, free of weak points, and therefore protected from attacks by cyber pirates, or any human and software errors. The blocks are linked together by an encrypted system, the result of complex mathematical calculations and advanced computer science. Any attempt to alter the data blocks the encrypted links between the blocks and they can easily be identified as fraudulent by servers on the network.

  • What moves the cryptocurrency market?

Cryptocurrency markets move, as is the case with other financial markets, based on supply and demand. However, being decentralized, they tend to be free from many of the factors that normally affect the bullish and bearish trends of traditional currencies. Despite the general skepticism surrounding cryptocurrencies, the following factors are the ones that have the greatest impact on their prices:

  • Issue: the number and total value of the issue, cancellation, or loss of cryptocurrencies
  • Market capitalization: the value of all currencies in circulation and users’ perception of future market developments
  • Press release: Opinion on a cryptocurrency and how much media coverage it receives
  • Integration: the measure of the cryptocurrency’s ability to integrate into an existing payment system, such as e-commerce
  • Key Events: Fundamental events such as regulatory updates, security breaches, and economic slowdowns.

Add Comment

Click here to post a comment

Your email address will not be published. Required fields are marked *