Cryptocurrency can be defined as virtual cash based on the internet’s medium of exchange. It makes use of the functions of cryptography to conduct a safe and smooth transaction. Cryptography is a secure way of protecting information by the use of codes allowing for only the intended parties to process the information. In this case, the same function is used for securing currency. Hence, making it cryptocurrency.
Not just being secure, cryptocurrency is completely transparent. Cryptocurrency is built on block chain technology which means the currency is well established, circulated in a decentralized manner and in a liquid form. All of this while maintaining transparency.
Important Segment of Cryptocurrency : Online Trading The online trading segment is a key feature of Cryptocurrency. In simple words, online trading in cryptocurrency can be defined as an act of theorizing the fluctuations in the market of cryptocurrency and then either buying or selling the coins based on the fluctuations through an exchange.
The online trading segment is a key feature of Cryptocurrency. In simple words, online trading in cryptocurrency can be defined as an act of theorizing the fluctuations in the market of cryptocurrency and then either buying or selling the coins based on the fluctuations through an exchange.
This can be done via a CFD account. A CFD account expanded as Contract for Difference is nothing but a contract between two parties involved in the trading which is typically a buyer and a seller. As per this contract, the buyer is to pay to the seller the difference amount of a commodity. This means that the buyer will be paying an amount that is the difference between the current value of that commodity and the value of the commodity at the time of the contract.
The benefit of online trading in cryptocurrency is that based on the fluctuations in the market, the cash out can be made at any point in time. If it is theorized that a cryptocurrency is bound to raise in its value, it is worth persisting with it for the long term. Whereas, if the perception is that the cryptocurrency will fall in its value, a cash out can be made to reap rewards instantly.
There are a lot of benefits that come with Cryptocurrency in this ever digitalising world. Some of them are
● Cryptocurrency doesn't have extra transaction fees compared to credit cards
● It also cuts out on the bank charges when the cryptocurrency is not exchanged
● The decentralized nature of cryptocurrency means there is no central controlling body
● No external interference because of the adoption of the block chain methodology
● The trading is purely done between a seller and a buyer with minimal fees
● Use of private and public keys ensures that the transaction is secure and transparent to the two parties
A gentleman named Sean Wright has made an incredible profit through the online trading of Cryptocurrency
Sean has a modest job as a teacher in his local school. Through his friend John, he gets to know of Cryptocurrency and its benefits which then prompts Sean to invest $8000 to purchase 4 bitcoins at $2000 per bitcoin. He monitors the fluctuations in the market and when the time was right, Sean sells 4 of his bitcoins at $3000 per bitcoin. This brings him a total of $12000 which means Sean has made a profit of $4000 on top of his $8000 investment.