Crypto currencies, despite being banned in countries like Nigeria, China and several others, continue to attract interest in investors who buy, hold and sell with the optimism of making a profit.
The biggest crytocurrency Bitcoin is valued at nearly $60,000. Presently the value of the crypto market is worth more than $3 Trillion. Here are seven things to know about cryptocurrency;
- Cryptocurrency is a form of payment that can be exchanged for goods and services . Many companies have issued their own currencies which are often called tokens. Cryptocurrency works using a technology called Blockchain. Blockchain is a decentralised technology spread across many computers that manages and records transactions.
2. There are more than 14,500 different cryptocurrencies that are traded publicly as of November 30, 2021 valued at over 3trillion dollars . The most popular of them is bitcoin.
3. Cryptocurrencies are popular because;
I. Cryptocurrency is seen as the currency for the future so there’s a rush to purchase now before the value increases beyond it’s present value
II. Cryptocurrency removes Central banks from the monetary system as it is not issued or control by a single central financial authority/.
4. The crypto-currency market is usually available 24/7 because there is no centralised governance of the market. Although, there may be downtime when there is an infrastructural update.
5. When you buy cryptocurrencies, you will need to buy and sell in via an exchange which requires you to create an exchange account and install the cryptocurrency in your own digital wallet. This process could be time consuming and restrictive.
6. The primary reason why cryptocurrencies are ideal for trading is because of the fluctuations. There are cases where you’ll make more profits due to the price when you bought the cryptocurrency, and you experienced an increase in the long run (that means you are making profit) . Also, the opportunities to buy cryptocurrencies when they are cheaper or at the prices that are convenient for you to sell off when you realise they increased in value makes cryptocurrency ideal for trading.
7. Countries that have banned the use of cryptocurrencies include; Nigeria, Nepal, China, Vietnam, Colombia, Russia, Ecuador, Bolivia, Algeria, Egypt and Indonesia.
