How many cryptocurrencies are there? How much is a crypto coin worth? and What is the best Cryptocurrency? these are the most common asked Questions when talking about Cryptocurrency.
There are almost 6,000 cryptocurrencies in existence today ( we have data of 5778 diffenrent cryptocurrencies). the Value of the crypto currency is very volatile , this makes it such an interesting financial asset tfor trading and as you see in the table below many people do. Bitcoin is leading the pack but there are many others.
CryptoCurrencies Guide will take you into the world of Cryptocurrencies with providing you with the Latest News and updates, Forex brokers where to Trade Crypto, Bext Exchanges Price Charts, Trading Opportunities and much more
| # | Coin | Price | Change | Marketcap | Volume (24h) |
|---|---|---|---|---|---|
| 1 |  Bitcoin BTC | $ 27,192.29 | 0.45% | $ 527.91 B | $ 362.92 B |
| 2 |  Ethereum ETH | $ 1,894.16 | 0.15% | $ 227.84 B | $ 4.41 B |
| 3 |  Tether USDT | $ 0.999873 | 0.06% | $ 83.14 B | $ 10.41 B |
| 4 |  BNB BNB | $ 307.23 | 0.14% | $ 48.51 B | $ 349.01 M |
| 5 |  USD Coin USDC | $ 0.999148 | 0.08% | $ 28.88 B | $ 1.58 B |
| 6 |  XRP XRP | $ 0.520900 | 0.51% | $ 27.10 B | $ 867.73 M |
| 7 |  Lido Staked Ether STETH | $ 1,892.97 | 0.08% | $ 13.36 B | $ 16.25 M |
| 8 |  Cardano ADA | $ 0.376660 | 0.24% | $ 13.21 B | $ 123.88 M |
| 9 |  Dogecoin DOGE | $ 0.072734 | 0.87% | $ 10.16 B | $ 172.65 M |
| 10 |  Solana SOL | $ 21.17 | 0.32% | $ 8.40 B | $ 180.57 M |
| 11 |  Polygon MATIC | $ 0.900485 | 0.31% | $ 8.36 B | $ 130.99 M |
| 12 |  TRON TRX | $ 0.081660 | 6.60% | $ 7.37 B | $ 881.24 M |
| 13 |  Litecoin LTC | $ 96.53 | 2.39% | $ 7.06 B | $ 2.61 B |
| 14 |  Polkadot DOT | $ 5.28 | 1.07% | $ 6.55 B | $ 80.42 M |
| 15 |  Binance USD BUSD | $ 0.999375 | 0.07% | $ 5.15 B | $ 802.23 M |
What Is a Cryptocurrency?
Cryptocurrencies are digital currencies. They are created using digital cryptography to process transactions and create new “coins.”
Cryptocurrencies like Bitcoin are popular because they are decentralized. In other words, banks and governments don’t control access to the currency. In contrast, fiat currencies are more easily manipulated by governments and banking institutions. There are thousands of alternatives to Bitcoin that are called altcoins.
Cryptocurrencies like Litecoin, Monero, Ripple and Dash have improved upon Bitcoin’s original model or created differences in their currencies to support niche uses.
Fiat currency is money that a government has declared to be legal tender and is the regular money you know.
What Is Blockchain?
If you’ve heard of cryptocurrency, chances are you’ve also heard the term “blockchain,” since its technology is what makes cryptocurrencies unique and valuable.
In simplest terms, blockchain is a method of storing all Bitcoin transactions in a ledger that’s attached to each and every coin(When we use Bitcoin as an example, for other altcoins it works the same).
From a digital perspective, each block lists transaction details like dates, times, amounts, and traders involved. All of the blocks together are known as a chain, which functions like a publicly-accessible, if encrypted, database.
Blockchain gives structure to the Bitcoin ledger. The ledger is encoded by cryptography so that its contents are insulated from hackers( big slaes point !!).
The use of cryptography also makes it very difficult to almost impossible to forge coins. Pricing the Cryptocurrency Market Cryptocurrencies are a high-risk trading instrument since they are much newer than fiat currencies. That makes their value difficult to predict. Cryptocurrencies may be appropriate for traders who are looking for a high-risk, potentially high-reward trading instrument.
Crypto Market Size
The University of Cambridge conducted two amazing studies on cryptocurrency, the most recent one in 2019. ( atleast that the data what we have , we are looking forward to the latest study thou we assume that Covid also here added to some delay)
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- Over 139 million crypto wallets – Only 38% of wallets (about 52.8 million) are considered active.
- 52% of crypto companies work 2+ sectors – The number of cryptocurrency companies operating across two cryptocurrency industry sectors or more, giving rise to an increasing number of universal cryptocurrency companies.
- 84% of providers support more than one coin – Multi-coin support by service providers has doubled since 2017. Over 84% of companies now offer support for several type of coin.
- 164% growth in numbers of employees – The amount of employees working in the cryptoasset market grew by 164% from 2017 to 2018
Source: 2nd Global Cryptoasset Benchmarking Study (download Link )[University of Cambridge, 2019]
What Drives the Price of Cryptocurrencies?
Situations that affect cryptocurrencies are typically different from what affects fiat curriencies.
Simultaneous volatility –
The cryptocurrency market is characterized by steep rises and sudden dramatic falls. An interesting quirk of cryptocurrency is definitely that multiple coins tend to rise and fall in tandem.
Attention from the Media –
As a currency hits the news, it is typical to see an influx of fresh traders. This tends to precipitate a rise in value. Early investors may then engage in profit-taking. Other traders panic and a rush to sell ensues, leading to a drop in price.
Future regulation –
The pending prospect of regulation can make cryptocurrency traders bearish.
Coin idiosyncrasies –
Individual currencies are influenced by very particular factors. Keep in mind they are often developed by a company so if facebook gets their currency from the ground properly how the company is doing on other aspects will affect the value of the crypto. If there is a support for that particular Cryptocurrency from the financial sector then you will see a rise ( for example Ripple )
there are like we mentioned at the top right now over 5500 different cryptocurrencies.
Crypto Regulatory Bodies
Various regulatory bodies around the world make laws that apply to cryptocurrency trading.
- Australian Securities and Investments Commission (ASIC)
- Canadian Securities Administrator (CSA)
- European Union Cyprus Securities and Exchange Commission (CySEC),Markets in Financial Instruments Directive (MiFID),European Securities and Markets Authority (ESMA)
- Germany Federal Financial Supervisory Authority (BaFiN)
- Japan Financial Services Agency (FSA)
- New Zealand Financial Markets Authority (FMA)
- Switzerland Financial Markets Supervisory Authority (FINMA)
- United Kingdom Financial Conduct Authority (FCA)
- United States Financial Crimes Enforcement Network (FinCEN),Security and Exchange Commission (SEC)
Cryptocurrency Exchanges
One way to Buy crypto is by using a cryptocurrency exchange. there are many out there like Atomexchange, Kraken and many others
With an exchange, you can: Use fiat money to buy tokens (ie, coins) Store cryptocurrency in an electronic wallet and or Trade tokens for different cryptocurrencies that are available on the exchange.
what do you need to look for when you are selecting and exchange to work with?
Fees Associated With Trading
A crypto exchange generates funds primarily through fees. Most investors will want to choose exchanges with low fees. However, some exchanges do offer more features in exchange for higher fees.
Here are the most common types of fees charged by exchanges:
Trade fees:
Usually take the form of a maker or taker fee. Traders are charged a fee to place a trade on the market or to take someone up on a trade. Trade charges can be up to 1% of the transaction, depending on currency pairs or payment method.
Deposit and withdrawal costs:
It’s typically cheaper to deposit cash with an exchange than to withdraw from it. Some exchanges allow you to deposit via a credit card but this typically incurs fees between 3%-5%.
Exchange fees:
These fees are exacted when converting tokens between currencies. The amount of the fee varies based on the currencies involved.
Identity Verification:
Most traders will want to use an exchange that has ID vetting , this is called the KYC protocol ( know your customer ) and is a way for them to stop Money Laundering (AML) and other illegal activities.
Currency Pairs Offered:
Not all exchanges offer the same currency pairs. Some focus exclusively on a single currency, usually Bitcoin. Other exchanges provide trading across hundreds of alt-coins.
Security:
Make sure you research potential exchanges for elements that make the system safer to use. Factors to consider include: The age, history, and stability of the exchange Scam-prevention Individual trader ratings Reviews and comments from the exchange’s users.
This should give you a very basic Insight in the world of Cryptocurrencies
Cryptocurrency FAQs
How much does it cost to trade cryptocurrency?
Costs to trade crypto vary widely. Deposit/withdrawal fees, and currency exchange fees. If you choose to trade with a Forex broker instead, you’ll need to look for commissions or spreads .
Is crypto trading still profitable?
It’s impossible to say what the future holds for cryptocurrencies. And even if its long-term trend is upward, it’s still possible to lose large amounts of money via short-term fluctuations in the volatile market.
So although it’s possible to make money by trading cryptocurrency or its derivatives, it’s not easy or safe for the casual trader.
How do you effectively trade Cryptocurrency?
- Only invest what you can lose.
- Always pay attention to Bitcoin.( is the one that drives the market)
- Never put all your eggs in one basket.( diversify your portfolio)
- Don’t be greedy. if you are 5% monthly profit don’t go straight for 20%, you will take too many risks getting there).
- Don’t invest blindly.( do your research)
- Always learn from your mistakes.( if we just would do this on all aspects of live , but here you can actually measure your mistake).
- If you are doing any active trading, set stop losses.( is just common trading sense),