The crypto world, at this historic moment, in excellent health. In fact, every day is the occasion for a new digital asset to be born based on blockchain. But, above all, every day is a good day for a cryptocurrency explosion, in terms of popularity and/or value. So here we explain why the most experienced traders devote part of their time every dayprofessional update. In fact, if you want to do crypto trading at a high level, it is not enough to know how the digital currency works, or to know what the word “blockchain” means.
On the contrary, it is necessary to study and train to know which cryptocurrencies to buy, in order to make the most of the potential offered by each token. On the other hand, cryptocurrency is a financial instrument characterized by Volatility level Which is practically unparalleled in the market. This means that the price of any cryptocurrency can be the protagonist of both the real rush and crash: trend “roller coaster” quote This forces investors to always keep the attention threshold very high. For example, in this period, the eyes of traders mainly focus on three specific digital currencies: EthereumAnd Tezos And Excellent lumen.
Start with the basics
Before delving into the advantages of the most popular cryptocurrencies at the moment, it is definitely worth starting from the basics. This means, first of all, to clarify the above blockchainTechnology, in fact the set of technologies that form the basis of cryptocurrencies. The blockchain is a file Transaction history organized through a “chain of blocks” (i.e., a “blockchain”): each to forbid it contains Information relating to a particular transaction; Each block is connected to the previous and the next, thus creating a chain.
The Cryptocurrency They instead digital representation of value that use the blockchain as a database. Many people mistakenly tend to confuse cryptocurrency withCode“: Virtual tokens used in various cryptocurrencies and within the direct trade than thatbuy services. Tokens (at least that can be exchanged) are actually digital currencies. On the other hand, cryptocurrencies are more complex systems in some cases.
However, the important thing to emphasize is that blockchain and cryptocurrencies are contributing to a real revolution in the financial world, and more generally, in the world of transactions. Thanks to both, in fact, the so-called “decentralized finance“A model that could completely eliminate the need for external intermediaries such as banks.
Cryptocurrencies to watch
To get an idea of the success that the crypto world is experiencing, just consider a city Lugano He introduced a program for the city itself to become the European capital of BTC, allowing citizens to pay taxes via cryptocurrency.
Finally, when it comes to cryptocurrencies, news and success, it is impossible not to remember how, in this period, the attention of traders is flooded with three cryptocurrencies, which in fact look more like a network than a simple one. Virtual currency. The first is Ethereum: A particularly deep crypto system, which, among other things, allows you to register domains and develop crowdfunding platforms.
The second is TezosThe blockchain is completely open source, which allows the implementation of many different types of smart contracts. The third is instead Excellent lumen: Another decentralized open source network that has managed, in a few years, to engage more than 4 million users. However, in all three cases, investors can also participate in the direct trading of Tokens: It is called from Ethereum etherit is called from Tezos Teeswhile that of Stellar Lumens lumen.