Complete guide on the best digital currencies to invest in 2020
Whoever has not heard or clashed with the noise of digital currencies in the money market, or heard from his friends or news, and social networking sites about the best digital currencies for investment, everyone talks about them constantly and wants to take a share of their profits!
This article will focus on 3 main points:
1- How to trade digital currencies
2- The best digital currencies for investment
3- Reasons why you should consider CFD trading
You will explore: the best cryptocurrencies for 2020 (not just Bitcoin), explaining how to buy bitcoin, LiteCoin trading, Ethereum investment, Ripple, and much more!
What are digital currencies?
Digital currencies are a type of "digital asset" or "cryptocurrency". It does not exist in physical form (as is the case with traditional currencies such as the dollar and the euro). Digital currencies are not regulated or managed by any financial authorities or banks in the same way that a conventional currency works, but they are mostly subject to self-regulation, through the use of different cryptographic techniques. Moreover, this process is run online, as users in connected networks provide verification that transactions can occur.
What we now know as digital currencies (cryptocurrencies) arose in 2009, and it all began with the launch of Bitcoin, the first digital currency. Bitcoin was originally suggested as an electronic payment system based on the cipher manual. The crypto guide came from the emerging technology in the blockchain - a type of digital signature that provides mathematical evidence describing the entire transaction history of each bitcoin.
This public domain chain allows Peer-To-Peer transactions, without any need to assign a third party to the payment processing task. The lack of any type of third party operating in a supervisory role means that Bitcoin is a decentralized digital currency. In 2009, some market commentators dismissed this new digital currency as just a fad, as a transitional response to the mortgage crisis that brought back the global economy in 2008.
But given that Bitcoin has increased in value and reliability over the years, interest in this new type of digital currency - and the technology framework on which it is based - has flourished. As more investors embraced bitcoin over the years, its value has increased, which in turn has increased interest in this class of asset. This led to an amazing increase in value and fluctuations.
As a result of all this, a large number of alternative cryptocurrencies have reached the stage (and in some cases departed with the same speed), based on blockchain innovation or similar concepts. In early 2016, the total value of all digital currencies was estimated at around $ 8 billion; by March 2017, that number had risen to about $ 25 billion.
2017 has proven to be a great year for Bitcoin and the crypto market in general. Since it never exceeded $ 1,000 before 2013, Bitcoin exceeded more than $ 6000 in October of 2017, and by early December it rose over $ 10,000. By the end of that month, it had reached a record $ 19,783! Fast ahead of CME and CBOE futures in cryptocurrency.
The launch of these Bitcoin contracts on the major exchanges ushered in a new era, which provided the first opportunity to trade cryptocurrencies on organized platforms in the United States - but it also coincided with a marked decrease in the value of Bitcoin.
Although bitcoin futures volumes have grown steadily in the months following its launch - providing greater and greater liquidity to traders - Bitcoin has fallen in a steady downward trend. By February 2018, the price of bitcoin had fallen below $ 6,500. By December 2018, this value had decreased to less than $ 3,500.
Also in December, the market value of the cryptocurrency market fell from just under $ 180 billion to $ 152 billion over a 24-hour period, as many onlookers compared the big crash to the famous dot com collapse in the early 2000s.
The best digital currencies to invest in 2020
Bitcoin was the oldest cryptocurrency and the first digital currency, reaching more than two years before the second cryptocurrency, Namecoin. Bitcoin's success has led to a massive spread in digital currencies in recent years, and today there are hundreds of cryptocurrencies. One of the most interesting aspects of these new digital currencies is the lack of control by any monopolistic central body. Traditional banknotes are subject to central banks that may operate independently of the national government, or at the request of the government.
The Federal Reserve (Fed) has the ability to increase supply in US dollars, for example. The degree of decentralization can vary from one cryptocurrency to another - as we will see - but in general, there is no central authority that plays a similar role for the central bank in relation to digital currencies. We will now look at four other major digital currencies available.
Ethereum is the largest competitor of Bitcoin, based on the percentage share of the total market value of the cryptocurrencies. Other important players in this field are Bitcoin Cash, Litecoin and Ripple, to name a few. Digital currencies are quoted against the US dollar (USD) or the euro (EUR) - two of the most used currencies in the world.
Trade digital currencies and symbols
The following list shows you the symbols used to represent these major digital currencies against the US Dollar:
*-Bitcoin against the dollar - Symbol: BTC / USD
*-Impact against the Dollar - Symbol: ETH / USD
*-Bitcoin Cash vs. Dollar - Symbol: BCH / USD
*-Light Queen versus the Dollar - Symbol: LTC / USD
*-Ripple against the dollar - Symbol: XRP / USD
Likewise, the list below shows the symbols of the major digital currencies against the euro:
*-Bitcoin vs. the euro - Symbol: BTC / EUR
*-Impact against the Euro - Symbol: ETH / EUR
*-Bitcoin Cash vs. Euro - Symbol: BCH / EUR
*-Light Queen versus the Euro - Symbol: LTC / EUR
*-Ripple against the euro - Symbol: XRP / EUR
Digital currency trading is an easy way to maximize your profits
Cryptocurrencies are made possible by the emerging technology in the blockchain - the public registry that holds all transactions (or similar consensus record systems). From the start, the potential of both this new type of asset and technology in general, has generated interest in the professional community.
In recent years, cryptocurrencies have begun to attract attention from a much wider audience, as bitcoins have been accepted as a method of payment in more and more places. Cryptocurrencies are also beginning to generate a lot of interest as an alternative investment. Much of this is due to the headlines resulting from the huge jumps in the Bitcoin value. Bitcoin started in 2017 with a value of about $ 1,000, and increased to more than $ 19,000 by December of the same year. And today is 14/01/2020 at 8684.51 USD.
This new asset space gained more credibility when it launched existing exchanges such as CBOE and CME to trade Bitcoin futures. A lot of people acquire exposure to cryptocurrencies by simply putting money in them, i.e. buying the actual cryptocurrency. There are downsides to this, including: the processing time to buy a cryptocurrency is slower than the spot implementations that normalize the traditional Forex trade (FX); it is also disorganized, and there have been some frightening stories of Bitcoin wallets and atrium at risk.
Trade and invest in alternative digital currencies
Here are 5 alternative digital currencies that may be important to look at, to give you an overview of the digital currency market as a whole and not to adhere to one currency, the digital currency market has many investment opportunities and Admiral Markets provides them to you all if you have a passion for pursuing it!
The best crypto investment # 1: bitcoin
Bitcoin is trading in a bullish pattern in early 2020, where the price of bitcoin opened on 01/01/2020 at 8142 USD and over two weeks it rose more than 560 USD at 8712, trying to reach its levels for the month of October last year above the 10,000 dollars it seems and As if it crosses the falling trend line in the second half of last year. Will this be the beginning of a bullish momentum for Bitcoin and seeing price recovery in January! Bitcoin fell by about $ 6,630 in the last 6 months of last year, which means that it lost about 52% of its price at its highest levels. The price of bitcoin now at this moment is 8719.90 USD, continuing to build upward momentum to offset some losses. Do you think Bitcoin price will recover in 2020 to its previous levels?
Best Cryptocurrencies for Investing # 2: Bitcoin Cash
Bitcoin Cash is what is known as altcoin - a virtual currency that
basically works the same way as Bitcoin.
In fact, Bitcoin Cash is just a bit of Bitcoin, resulting from a fork in the blockchain. Branching is actually a difference in the transaction history into two separate and incompatible series, each of which is governed by a different set of rules. The spinal fork arose in Bitcoin that created Bitcoin Cash from the bottleneck within the Bitcoin network, due to the size of the blocks in the Blockchain.
This capacity constraints caused the problem of higher fees and delays in transactions, and a segment of the Bitcoin community has sought to increase the size of each block in order to improve this scalability problem. Another section of society wanted to keep things the same, and in August 2017, the blockchain split. Bitcoin Cash adopted larger blocks in a new branch of the blockchain, and the main Bitcoin continued with the original series.
Best Investment Digital Currencies # 3: LightCoin
Litecoin started in 2011, when it was created by Charles Lee, while he was still a Google employee. Litecoin was, for a time, the second largest cryptocurrency, earning a reputation as silver in Bitcoin gold. It has been shaded in recent years by the latest digital eclipse on it, although the primary goal of Litecoin was to provide an alternative to the paper currency for payment.
Although Litecoin is technically similar to Bitcoin, it offers faster transaction times and lower transaction fees, which means it's more convenient for small transactions. At the time of writing this report, Litecoin is the sixth largest cryptocurrency by market cap. Aliant Payment Systems, a US-based payment services dealer, announced in February 2018 that it is adding Litecoin to its service portfolio, along with Ethereum and Bitcoin.
Best Investment Digital Currencies # 4: Ethereum
Wt is ethereum? Ethereum (also referred to as Ethereum and
ETH) is a decentralized blockchain-based decentralized computing platform. In the sense that Bitcoin is a simple and pure coin, as ethereum is much more than that. It takes technology from the heart of Bitcoin - the global anti-tampering record known as a blockchain, run by a network of nodes - and uses it as the infrastructure for a system that suggests managing the way the cloud works on its head.
Instead of applications, payment services, and cloud storage managed by individual entities, Ethereum proposes a network that no single entity controls in these operations. To use this network, you need an ether. Ether is a cryptocurrency that allows you to pay for transactions and services within the Ethereum network. Then you can think of ether as a platform fuel.
Best Digital Investment Coins # 5: Ripple
What is Ripple? Ripple (called the original language Ripple XRP) is a peer-to-peer payment protocol. Like Bitcoin, it uses a public registry of constantly-verified security with a network of standalone servers. Ripple is also the name of the company managing the protocol, based in San Francisco. Ripple is also used interchangeably for the protocol's original digital currency.
The Ripple system was designed as a broader range of Bitcoin, claiming to allow fast and secure financial transactions of any kind. Not only supports XRP, but all currencies in fact. Ripples are the cipher codes that support the payment system, and are the third largest cryptocurrency in terms of market value (at the time of writing this report).
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