Cryptocurrencies – The New Gold
AvaTrade now offers all traders the opportunity to trade a wide range of the top ranked digital coins 24/7. Today cryptocurrencies have become known to most people as a conventional and popular investment option. The main purpose of this new technology is to allow people to buy, trade, and invest without the need for banks or any other financial institution. Cryptocurrencies are highly volatile and can be profitable to any trader’s portfolio.
Cryptocurrencies are not physical coins they are electronic, a digital asset that remains as data. The technology behind the cryptocurrency controls a large part of its value which holds new technology on the secure way to identify and transfer money.
The first digital coin introduced was Bitcoin and today it remains as the standard that all other coins compare themselves to. Following in its steps came Litecoin, so to date they stand as the top 2 highly valued coins on the market. There are several other coins also reaching a high-level market share such as Bitcoin Cash, Dash, Ripple, Ethereum, Monero and NEO.
This year alone has seen an absolute explosion in the number of cryptocurrency offerings. Find out below about the other high-profile cryptos such as NEO, Monero, Ethereum Classic, Dash, IOTA, and Zcash.
Why trade cryptocurrencies with AvaTrade
AvaTrade offers competitive spreads, with no commissions charged on transactions making it more profitable. When trading with AvaTrade you are trading on the price changes of the digital coin, and not physically purchasing it. Trading with AvaTrade ensures that you will trade with a 100% reputable broker. More reasons to trade cryptocurrencies with AvaTrade today are:
- Start trading with as little as $100
- Benefit from a wide range of top traded cryptocurrencies on the market
- Competitive swap rates
- All pairs can be shorted
- Up to 20:1 leverage
- Around the clock service and support in 14 languages
- Live quotes and charts for your reference
- Various trading platforms for all level traders
- Powerful MT4 Platform and AvaTradeGO, the newly linked mobile app
Trade king crypto Bitcoin as well as Bitcoin Cash, Ethereum and Litecoin on AvaTrade’s MT4 platform and the AvaTradeGO app.
Here is a brief description of the top coins available at AvaTrade:
This mega-powerful currency has not only opened the gate for other currencies, but also leads the cryptocurrency world with pride. It is governed to make sure no extra Bitcoin is produced, as a maximum quantity of 21 Million Bitcoin units was agreed. When introduced, the price of $1 was 1,309 BTC. The wheel has turned, and when Bitcoin breached the $2,000 barrier in 2017, meaning 1 BTC was worth $2,000, it was certainly a meaningful milestone to Satoshi Nakamoto, the creator of Bitcoin.
Bitcoin Cash (BCH) was created by the bitcoin hard fork on August 1, 2017, generated a new version of the blockchain with different rules. By switching from the main bitcoin blockchain to a new version, the software now has capacity for larger number of transactions.
Ethereum is more than just a currency – it’s like one giant computer housing many computers around the globe. Ethereum can respond to sophisticated requests. Its ability to store revolutionary computer programs gives Ethereum an edge on Bitcoin and has attracted attention from banks around the world. This, among other factors, has led to a jump of almost 1000% this year!
Other popular cryptocurrencies that have taken the world by storm:
Ripple can be described as the next generation of payment networks. Originally set up to engage financial industry leaders, the digital currency has been a leading technology so far. This cryptocurrency has exploded over the past few weeks, when in just one day Ripple advanced by 71%
The very popular cryptocurrency, Dash, has been portrayed by many as Bitcoin 2.0. This digital asset was developed to remedy some of the weaker parts of Bitcoin. Developers added new features to Dash, making it faster and more anonymous to its predecessor Bitcoin.
Litecoin is similar to Bitcoin in many of its characteristics, and is also one of the more veteran cryptocurrencies out there. However, there are two main differences between Litecoin and Bitcoin; Speed and amount. While it takes 10 minutes to create a Bitcoin block, Litecoin demands roughly 2.5 minutes to create a block – meaning 4 times the speed. Moreover, Litecoin attracts many users as it can produce 4 times the quantity of Bitcoin! However, as Litecoin uses highly complex cryptography, often mining it is more complicated than other cryptocurrencies.
Monero (XMR) was created in April 2014 and focuses on privacy, decentralization and scalability. It is a secure, private and untraceable currency system. Monero uses a special kind of cryptography to ensure that all of its transactions remain 100% unlinkable and untraceable. The word ‘Monero’ comes from the language Esperanto where it literally means ‘coin’.
NEO is the first decentralized, open-source cryptocurrency and blockchain platform launched in China in 2015. NEO uses a unique blockchain algorithm similar to Ethereum’s model. While the basics still apply, it also supports decentralized commerce, identification and digitization of several assets.
Focused on providing secure data communication and payments online, IOTA (IOTA) is one of the “new generation” coins that aim to develop the decentralized blockchain technology even further than its predecessors. IOTA blockchain has no “blocks”. Instead, it uses a system called “Tangle” which allows free and instantenous transactions. Its system can handle unlimited transactions and is overseen by the IOTA Foundation, a non-profit for maintaining the cryptocurrency as a license-free technology
Zcash (ZEC) is a cryptocurrency which grew out of the Zerocoin project in 2016, aimed at giving crypto users a greater level of privacy and anonymity. Zcash payments are published on a pubic blockchain, giving users the option to hide some features of identity such as fund sender, recipient and amount.
There is a fixed total supply of 21 million mined units (same as Bitcoin), 10% of which will go to Zcash’s stakeholders (founders, employees, advisors etc.).
Qtum (QTUM) was developed by the Singapore-based foundation and is an open source blockchain project. It combines a modified Bitcoin Core infrastructure with the Ethereum Virtual Machine (EVM).
By combining the two best parts of each, it is the merged toolkit for building trusted decentralized applications geared towards a business friendly blockchain. Those following the digital currency can now agree on a platform that offers direction.
What are cryptocurrencies
Cryptocurrencies are encrypted digital currencies which are transferred between peers. They sre decentralized, meaning not governed by any bank or government institution. They are a sequence of encrypted codes transmitted and stored over a network. All transactions are confirmed and stored on a public ledger. The system uses other complex techniques to certify and validate the record keeping process.
Lack of regulation for cryptocurrencies mean that they are highly volatile by nature, and an investment with this can make a lot of money fast, and at the same time it can turn and one can lose money fast. The reason it is not yet accepted by a lot of businesses is partly due to the lack of regulation.
There is a set amount of digital coins that can be created and which was outlined from the beginning, after that number is reached no further coins can be produced.
The reality is such, that Bitcoin and digital currencies prices rise and drop for various reasons such as media and bad press, news events, and government statements, more people are using it and for this reason the price is rising. Their unpredictability makes it exciting for most traders. Moving forward there are discussions on how to manage the currencies and that in itself can swing the price.
How were cryptocurrencies created
In 2009 Satoshi Nakamoto had found a way to build a decentralized coin and cash system without a central unit. From this Bitcoin was introduced to the world as the first digital currency of its kind.
The “blockchain” is the master ledger that records and stores all the transactions and mining activity, trades, and purchases. At the same time, it requires validation of ownership. Technically a transaction is not finalized until it is added to the blockchain which usually takes a few minutes and is irreversible. During the time between transactions, the units are not available for usage by either side, which prevents double spending, fraud, and duplication.
Each user has a “wallet” with specific information that confirms them as the owners of any specific cryptocurrency. Each user’s wallet allows them to send and receive coins and acts as a personal ledger of transactions. These wallets are built to be secure however additional measures and passwords need to be considered to keep them secure. The wallets can be stored on a cloud or an internal hard drive.
The “Miners” act as the “record keepers” for the cryptocurrency communities. Through technical methods they create new coins and verify the blockchains.
Why trade cryptocurrency
There are many reasons why the digital currencies are gaining popularity and momentum around the world. They have a finite supply that has been identified and source codes outline the exact number that can exist. Users of this currency benefit differently from users of traditional currency. For example, governments cannot intervene and banks cannot freeze your account. Since there is a limit on the amount, cryptocurrencies in that sense, are finite commodities, more like metals than a currency, and with time their value could go up.
They are attractive to people who worry about direct control of national banks and governments. Privacy and anonymity are key to the ownership of these coins which many people appreciate. It is more and more difficult to identify accounts of users. Generally, transactions are cheaper than the traditional way using banks.
Overall cryptocurrencies can change the financial world, and for the moment it is all still being worked on. Users of these coins still do need to remain aware of their limitations and volatility for the time being and foreseeable future.
Just like in Forex, their price flow is defined for the most part by market demand and thanks to the complicated code involved cryptocurrencies are impossible to counterfeit. They do make for a rewarding albeit uncertain investment endeavour. The long term results are still unknown but cryptocurrencies are only growing in popularity and for the immediate future they are here to stay and will most probably thrive.
Please note: The cryptocurrencies market’s high volatility offers endless trading opportunities.
Due to price fluctuation, certain crypto pairs may be suspended and/or removed from our trading platforms periodically.
Please see our crypto Trading Conditions page for available cryptocurrencies.