Blockchain technology is the antihero of the banking industry. One day, it could spell the end to financial monopolies. Cryptocurrencies can reduce the price of transactions by making intermediaries entirely unnecessary. Revolutionary as this is for the sector, you’ll want to invest for a different reason: to earn returns. This is what you need to know:
1) How Do I Trade Cryptocurrency Safely?
In early 2018, a massive Bitcoin bubble burst. The internet moves faster than the real world, but this doesn’t mean your investment is impossible to forecast. Short-term trends can be predicted using Fibonacci retracements and other chart patterns. Long-term trends will show in price movement charts, which also demonstrate the volatility of the market.
Cryptocurrency values are a reaction to supply and demand. The higher the demand, the greater the value, but a demand surge also tells you there will eventually be a reduction in availability as supply diminishes. Watching the average price of a coin over a period of time will tell you when a positive trend is on the way. If this sounds like gibberish to you, an established broker will trade securely on your behalf and discuss your questions via phone. They’ll work through your risk tolerance and discuss the benefits of long term investment over short term rewards.
On February 21, 2018, a Blockchain consortium consisting of more than 100 financial institutions launched a trade finance platform based on Corda’s distributed ledger technology. This will make digital trade far easier and open up the supply chain for blockchain technology. This doesn’t merely make trade easier to achieve—it could revolutionize the global economy. State-of-the-art cryptography can protect your privacy better while encouraging decentralized distribution.
2) How Important is Ethereum, Litecoin, and Ripple?
Ethereum has the first general purpose platform capable of building decentralized applications to manage distribution, voting, and governance systems. It’s the only cryptocurrency that didn’t fall after the drastic dip in Bitcoin value, so it deserves serious attention from investors. Litecoin is a strong performer, having climbed by 60% in February, and Ripple has already made billionaires of a few investors. Diversification can be beneficial. Not only can it minimize potential losses, but if one investment is doing poorly, another might be doing well, which still allows you to generate returns.
3) How Secure Is Blockchain Technology?
In recent days, U.S. chatter around cryptocurrencies has been getting louder. The SEC and CFTC gathered in February 2018 to discuss regulatory frameworks. This is a sign that cryptocurrencies are here to stay, and protection rules will offer investors more security.
Blockchain technology is unchangeable and cryptographically secured. This makes corruption and manipulation virtually impossible. Blockchains each have their own limited supply of currency, and their monetary policy is hidden in their own software code. Data store nodes and records are all hardened against tampering. Every transaction is added to its history, so as the blockchain grows, so does the proof of all network transactions. In short, the reason blockchains haven’t been manipulated yet is that they’re immutable and thus exceptionally secure. Add the security of a BitGo wallet, and you can wave traditional banking goodbye.
4) How Mainstream is Cryptocurrency?
To date, financial transactions have needed a banking intermediary, with all the expense and control that comes with it. Cryptocurrencies remove that barrier, letting you shift value peer-to-peer. Each day, more retailers begin to accept them. Niche e-commerce stores buy and sell in cryptocurrencies, and the first house was put on the market for Bitcoin in 2013. More importantly, blockchains are being adopted by brand titans like Google and PayPal. They’re creeping into university classes and major e-tailers like Amazon and Shopify. Widespread usage should reduce volatility while simultaneously opening up purchase channels.
The value of a single Bitcoin has risen by 10,000% in five years, largely due to the rising number of users and transactions. Blockchain technology might seem too futuristic for economics 1.01 rules, but it’s every bit as responsive to these basic principles as ordinary currency is. The more demand there is for the network, the more valuable that network becomes.
2017 was the year the world got excited about blockchain technology. 2018 will be the year the world adopts it. Blockchains will transform several industries and, thrilling as that is, it may also change the way you think about money. If you have questions or want to find out more about investing in cryptocurrency, contact Bit Trust IRA today.