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Why You Should Buy Cryptocurrency

The cryptocurrency market is extremely volatile. Take any digital asset and check its price chart, and you will see slight fluctuations within one day and sharp chart movements. The fact is that the government or central banks do not control digital assets. Instead, they follow the market laws. Here are some of the factors affecting price crypto:

  • The global economy, crisis
  • The market trend
  • Investors sentiment
  • Inflation
  • Demand and supply
  • Actions of crypto whales who hold most of the digital assets and can manipulate their rates
  • The complexity of mining coins.

Crypto exchanges rates fluctuations allow investors to generate income based on different trading strategies. The most common are daily trading, swing trading, arbitrage, scalping, and buy-and-hold strategies. These trading patterns allow investors to make a profit from buying and selling crypto within one day or in the long term.

Is It a Good Idea to Buy Crypto Now?

The main rule of traders is to buy when everyone is selling and to sell when everyone is buying. During the last collapse in the crypto market in the Spring of 2022, many holders got rid of their coins and left the market. Since the market dropped, it didn’t show a significant increase.

So as the market is in the stagnation stage now, you can take advantage of low crypto rates, buy digital assets, and wait until the situation changes and the market starts moving in another direction. Investing in the most popular assets during the market downtrend can bring fruit to patient investors.

Or you can use a daily trade strategy and generate small portions of income every day. For buying and trading crypto assets, welcome to the WhiteBIT exchange. It offers up-to-trade cryptocurrency exchange rates, low fees, a convenient interface, and a functional wallet. Once you register and verify an account, you can access fiat-crypto trading and unlimited withdrawals.

What is Cryptocurrency and How Does It Work?

The idea of cryptocurrency was discussed back in the 1970s, but the real embodiment it received only in 2009 when Bitcoin emerged. And then, Bitcoin brought us more than 2,000 new crypto coins – altcoins.  The topic of the future of cryptocurrency is very popular among the biggest financial experts in the world, and 80% of them think that this future will be very successful.

Below we will discuss with you the most popular reasons.

Bitcoin is very popular and is considered to be the King of cryptocurrencies. 

We talked with you about the past times of Bitcoin, and now it has the dominant position on the market. It is used by many traders, and this moment makes this coin very volatile and creates price fluctuations.

Cryptocurrency exchanges are ready to change for a better future.

Cryptocurrency exchanges are here to make crypto trading, selling, buying, or holding easier. That is why, because of the high popularity and demand of users, now they have a task to improve their services and security.

Volatility is immortal.

Cryptocurrencies are unstable, you know this. And the biggest reason for this is that many-many people buy and sell them. The crypto market is young, so the volatility is going to increase.

A lot of potential investors.

Now there are plenty of newcomers that want to invest money in cryptocurrency, supporting the above-mentioned volatility.

Unfortunately, many newcomers lose their money because of their lack of experience.

So what is the way to stay on the market and earn?

We recommend such people to start with crypto signals, that are very popular nowadays because they allow people with the lack of experience not only to earn money but to get the additional knowledge.

Safe storages. 

Did you know that the best crypto wallet can be safer than a bank?

Yes, and this is one of the biggest advantages of crypto trading. It is recommended to use hardware wallets, especially if you want to hold big sums of money.

Cryptocurrency is the virtual type of money that, in contrast with fiat money, doesn’t exist physically.

The biggest feature of cryptocurrency is decentralization – the lack of internal or external administration. That is why banks, fiscal, judicial, and public authorities can’t influence transactions made by cryptocurrency users and traders.

The sending of crypto is irreversible – no one can cancel, block, argue, or proceed with the transaction without keys.

You may think here everything is very complicated but it is not. As soon as you understand how this works, the biggest challenge for you will be to get this crypto.

How is it possible to receive cryptocurrency? 

There are several possible ways to get this crypto but all of them are divided into two main ones – to buy it with your fiat money or to earn it. I think that the most interesting thing is the second one, right?

Right.

Cryptocurrency trading is very popular nowadays, and a lot of beginner traders try to do their best to find one more additional way of income.

What are the Reasons for High Crypto Popularity?

Reason 1 – Anonymity

In contrast with usual money like USD or EUR where transactions can be easily tracked, it is impossible to get the information about the owner of the crypto wallet. You can see only the crypto wallet address and the sum on the account.

Reason 2 – Decentralization

Cryptocurrency is an independent monetary unit.

Its emissions are not regulated, and the fund movements on the account can’t be controlled.

Reason 3 – Quantity Limitations

Cryptocurrency is issued at a reduced level, which excludes the inflation risks because of the high activity of the emitter.

Reason 4 – Security

All cryptocurrency websites, platforms, and exchanges must be on top of their security, which is why it is very hard to hack, fake, or make other manipulations with crypto because it is protected.

So, we discussed with you the biggest advantages of cryptocurrency – the modern way of payment. As you can guess, it has some disadvantages as well, and I am not going to hide them from you.

The lack of guarantees 

Every user is personally responsible for his investments. Here are no mechanisms of regulation which is why in the case of theft it is impossible to prove something or get the money back.

The risks of prohibition 

Government structures are very sensitive about cryptocurrency. A lot of countries imposed restrictions on its use, and the violators can receive a fine or even a prison sentence.

So, as you see, nothing is perfect. We discussed with you the methods of receiving the crypto, and how is it possible to spend it.

Let’s start with Bitcoin which made a revolution when it allowed us to proceed with transactions to anyone in the world without any permission.

And now the list of services is wider. The first and most common use is payments, and the list of companies that accept Bitcoin and other coins is big.

And what about common needs? Is it possible to pay for goods or services using crypto?

Actually, yes, but it depends on the country. Developed countries have such systems and they are used like, I don’t know, typical cards.

What is the Future of Cryptocurrency?

You may guess that the progress of cryptocurrency development is very fast, but despite having a high speed, the fortune of cryptos depends on the authorities. Fortunately, a lot of them understand that crypto coins have a big value which is hard to grasp.

European countries such as France and Italy are finding ways to make the use of digital currencies more common in their countries. They believe that this will allow for more investment and faster transfer of currencies among their citizens. However, they are currently coming up with new policies and measures that will make digital currency more accessible to the general public like in the form of a hardware wallet. These countries are also working on security issues so as to prevent money laundering and other illegal activities that can be committed by using cryptocurrencies. When one country creates a working system that covers the transactions and fixes the issues of security. Then that country will create a role model for all others to follow. The acceptance of digital currency worldwide will follow, with countries accepting the change as fast as the falling of dominos. However, all of this is still a maybe, and things can fall through. But, it seems more likely that cryptocurrencies will soon be more accepted throughout the developed countries, at least.

The value of digital currency is based on the demand and supply curve. This means that if more and more people want to make their transactions through bitcoin, its value will increase if fewer people want to hold or use bitcoin, its value decreases. There are a finite amount of digital currencies created, their value and their supply depend upon their demand and their mining.

As more transactions are made, more bitcoins are created to reward the miners. This means that in the long run, we might see a more stable value for digital currencies. But, it all depends on how quickly everyone will adapt to this relatively new form of currency. If future generations are more inclined to use it, then we will see a boom in the market. Moreover, people might ditch traditional currencies altogether at one point and move towards digital currency. The opposite can also occur, future generations might lose trust in the new system, with fewer and fewer people accepting cryptocurrency as payment. Its value may fall so much that people might forget this concept ever existed. So our acceptance is the real basis for the success and failure of this currency.

Originally posted 2022-10-20 16:04:27. Republished by Blog Post Promoter

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