What is cryptocurrency?
Cryptocurrency has become the usual subject of conversations when people are talking about finances. It slowly began conquering the world as an alternative way of payment.
When people are talking about cryptocurrencies, the first thing that comes to their mind are bitcoin and Ethereum. But there’s lots of other much more suitable cryptocurrencies. If you are new to investing, it is worth having a look at https://brokertested.com/forex-brokers-india/ to get to know investing options available on the market.
Before talking about types of cryptocurrencies, let’s take a look at what cryptocurrency is at all.
Cryptocurrency is a type of digital money that is saved in special wallets. The cryptocurrency began to be an instrument of exchange with no limits. It is managed by using blockchain technology. The cryptocurrency is totally decentralized and not regulated by any organ.
Being the first cryptocurrency in the world, bitcoin has the status of an individual asset outside the categories.
Ethereum is a token people use for making easy transactions in the Ethereum network.
According to CoinMarketCap – Forbes, there are more than a thousand cryptocurrencies in the world. In addition to bitcoin and Ethereum there are a lot of crypto markets that are as widespread and important as the latter ones.
Important cryptocurrencies other than bitcoin and Ethereum
Dogecoin – There’s an interesting thing about the development of this crypto : James Palmer, the founder of the crypto, created it as a joke. He wanted to show the world how absurd it is to invest the amount of money in such an unstable industry as crypto is.
Despite the idea, dogecoin started to grow and took its place in the market.
According to experts, the price of Dogecoin can grow up to 0.34$ on summer 2022.
Tether – It’s a cryptocurrency that’s value is partly based on US dollar stocks. One of the advantages of tether is the speed of transactions. Due to the fact that the cryptocurrency is supported by a trust that is located in Taiwan, the daily volume of transactions can reach 1.000.000 dollars.
Binance coin (BNB) is the main token in Binance cryptocurrency exchange system. The biggest benefit of BNB is that it can be used both on the exchange itself and in other services outside:
The main benefits are discounts for Binance exchange services and low commission.
Is it safe investing in cryptocurrency?
You can earn a good profit on the cryptocurrency exchange, but as in any other case and in any other area, there is always a risk.
It doesn’t matter what Forex trading instruments you use : precious metals, currency pairs, stock markets or cryptocurrencies. You should be sure of choosing legit brokers.
There are lots of examples of illegal and offshore brokers that cheated many freshmen.
Returning to the risks : if you’re a fresh trader and don’t want to risk a lot of assets you can check out https://brokertested.com/forex-brokers-malaysia/. They are either preferred by new traders or the ones who want to change the strategy.
Conclusion
There are many types of cryptocurrencies on the market and no matter what you choose, there is always a risk. The most important thing is to be patient, don’t take unnecessary risks and pay attention to changes in the exchange.
Author
George Rossi
George is the Chief Market and Broker Analyst at brokertested.com. Prior to being recruited by brokertested.com, I served SVS Securities as Chief Market Analyst for two years. Earlier, he joined Morgan Stanley in Nov 2013 as Research Analyst.
George is a well-rounded financial services professional experienced in fundamental and technical analysis, global macroeconomic research, foreign exchange and commodity markets and an independent trader.
