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What are digital currencies? Cryptocurrency trading explained for beginners

What are digital currencies and their types - and what are the best cryptocurrencies to invest - Cryptocurrency trading for beginners



Everyone is asking about what are encrypted digital currencies, and what are the best digital currencies? Why is the cryptocurrency market so volatile?
Your comprehensive guide to cryptocurrency trading.
Everything you need to know about cryptocurrencies - for beginners - in this article, we will learn everything about investing in digital currencies.

?What are digital currencies

Digital currencies are crypto currencies that are used as virtual currency and do not exist in any physical form, they are secured by cryptography, in this way, it becomes encrypted, in the sense of falsifying or making multiple transactions with the same cryptocurrency, almost impossible.

The world's first digital currency was Bitcoin, which was created in 2008.

Bitcoin was followed by other forms of digital currency, their number in the hundreds to this day.

Digital currencies are called electronic digital money, electronic currency, or virtual digital currency, and digital currencies are not issued by a central authority.

This feature is perhaps the most attractive aspect of digital currencies for investors. Because in this way, the majority of digital currencies remain immune to government regulation, manipulation, or control.

Cryptocurrency trading explained


Cryptocurrency trading explained
The digital currency is called an electronic currency. In 2017, the American magazine The New York Times ranked digital currencies as the largest financial revolution in the past decades.

Digital currency is completely changing the way we manage our money.

To this day, money throughout the states is controlled by intermediaries led by banks and credit companies. These corporate entities base their profits on the collection of commissions and interest.

The digital currency seeks to eliminate these bodies, creating a new type of economy without intermediaries - a system that is decentralized, open and transparent to the general public.

And here he means a decentralized system, that is, there are no organizations that control digital currencies - in short, there is no authority or intermediary that controls digital currencies, such as: a central currency money device, the bank, governments, regulatory bodies.

Which makes it loved and wanted by drug dealers, contraband, and mafia gangs, simply because it has no authority or oversight from government agencies or other organizations.

?How do digital currencies work

How Cryptocurrencies Work - Trade Cryptocurrencies
Digital cryptocurrency or electronic currencies and is the first medium of exchange created and conducted by default.

Each transaction in the digital currency is processed and saved in a distributed ledger on the network, i.e. no one person controls the record, so it is considered secure.

Transactions are processed in the form of chains of "blocks", hence the name of the blockchain technology.

It is a transparent program that is open to the public, maintained by "miners" (cryptocurrency mining) who update records by investing the computational power of the computing machines they own.

?How are digital currencies created

How cryptocurrencies are created - currency trading
Cryptocurrency industry or cryptocurrency mining - works through processes called mining.

Individuals who have a network hardware (powerful computer) with other tokens or currencies such as Bitcoin are rewarded for their services.

It requires powerful hardware and huge capabilities. 

In this decentralized competitive process, if too many people try to mine cryptocurrency, it will become increasingly difficult to monetize with each new addition to the network.

This is one of the main reasons why the price of Bitcoin, which can be produced on a limited basis, has increased over time as its popularity grows.

?What is the difference between digital currencies and traditional money


What is the difference between digital currencies and traditional money

 Cryptocurrencies - Cryptocurrencies are not  controlled by any central bank or other institutions.

Traditional money -  can be controlled by, bank, government, or other organizations.
Digital currencies work through the “blockchain” technology, which is based on decentralized networks.
Digital currencies are managed by a code rather than a central entity such as governments or banks that do so using traditional money systems. In addition - as the opposite of cryptocurrencies.

?Can Bitcoin be used to invest in the future 



Is altcoin profitable to invest in the future

The answer is “yes” but when trading it you should know that bitcoins need a lot of money depending on your budget.

In addition, there are other cheaper prices to buy bitcoin and search for a cryptocurrency trading platform, preferably safe to avoid fraud.

?Can anyone create digital currency

Yes, anyone can create digital currency and also must have technological knowledge in the field of cryptography to create digital currency
or virtual currency.

But if you want to trade it to make money, you have to set the price of the digital currency.

When buying digital currency, you should beware of fraud and theft, and use experts when necessary to secure and avoid fraud.

There are also unlicensed companies that take trading money without guarantee.

Celebrities also have the ability to boost the price of the little-known digital currency.

This is what happened to Dogecoin, which in recent years has witnessed huge popularity in the world, and is growing strongly even though it started as a joke and within a week it jumped by 420% thanks to a congratulatory tweet from billionaire Elon Musk.

?How will I know which currency to invest in

Other cryptocurrency markets consist of about 17,000 different currencies, and as with any investment, it is advisable to first understand the market, its forces, the meanings of buying and selling, the level of liquidity, and more.

The main criterion that must be taken into account when choosing a digital currency for investment is the essence of the project, its purpose and the value it provides to users.

It is important to remember that in the field of cryptocurrency there are a large number of scams and it is important to know the reputation and background of the promoters of the project in this field.

?What types of digital currencies are there today

Dealing with the name of the currency Bitcoin has become synonymous with digital currency or digital money and is the first electronic currency in the digital currency industry, but to this day there are about 17 thousand forms of digital currency.

?What is Bitcoin and can I earn from it

Payment currencies such as bitcoin, an exchange virtual digital currency such as shekels and dollars; Such as encrypted tokens (token) issued by service providers.

Bitcoin is among the popular and most popular cryptocurrency is also among the topics that investors are looking for in its developing days.

?What are the best digital currencies to invest in



Binance ( bnb ).

Polygon ( matic ).

Shiba Inu (SHIB).

Luna Queen ( luna ).

Ethereum ( eth ).

Hala Moldova (hala).

Solana (SOL).

( slp ).

Avalanche ( awax ).

mana

Anna ( ana ).

Dogecoin.

Gala coin.

Bitcoin (BTC).

Litecoin

?What are the best digital currencies to invest in

These cryptocurrencies are always on the move, as the interest in the popular “cryptocurrency” is always greater.

Although it is beneficial for large investors to prefer expensive coins and put cash in, a small investor should definitely resort to cheap coins to put cash in.

There is another reason, before investing in currencies, it is necessary to check the values ​​and dates of currencies and choose accordingly.

?What are the best and most traded cryptocurrencies

Chia currency (XCH)

 Bitcoin is the most popular currency and is symbolized by (BTC).

Binance is symbolized by (BNB).

Bluegon and symbolized by (MATIC).

Sheba and symbolized by (SHIBA).

Solana and symbolized by (SOLANA).

Luna and symbolized by (LUNA).

Blockadot and is symbolized by (DOT).

Dogecoin and symbolized by (DOGE).

Ethereum (ETH).

( SLP ) 

Rose and symbolized by (ROSE).

Awa and symbolized by (AWA).

Cardano and symbolized by (XADA).

Ripple (XRP)

What are the most popular digital currencies?

The most famous currency today to this day is the initial bitcoin because it is more valuable and this is one of the reasons why the world of bitcoin is a world full of the most technical electronic money.

The first virtual digital currency, Bitcoin, was born at the end of 2008, and its primary goal was to expand payment methods as virtual money and the way we manage our money.

With the introduction of additional coins to the market in the last decade in 2022, new additional uses have been added to it and it has also become a promising investment channel for development.

This prompted many famous currencies and other currencies to develop early and enter into fierce competition in the future.

?What are the most popular digital currencies

Bitcoin is used to secure investors' money, which makes its market value high.

Although the Bitcoin currency in the last years of the past witnessed a significant decline in the price of Bitcoin.

“Bitcoin is one of the fastest growing markets, currently managing $2 trillion,” says ProxiBit, CEO and investment owner.

Bitcoin, the most popular currency, makes up 42% of the coin market capitalization.”

Bitcoin is an exchange for making money and the number one virtual currency in the economy 

There are currently over 1,600 virtual cryptocurrencies in circulation with a total market capitalization of $800 billion!

However, there are only 5 major currencies in existence - Bitcoin (BTC) - Ethereum (ETH) - XRP - Rubple (ripple) - Litecoin (LTC) - EOS - Xia (XCH) - currently accounting for over 50% of the total market value.

Apart from this top five list, there are also some cryptocurrencies out there in general like Binance, 0x Protocol Token and TRON Mainnet Token that are worth looking into if you want to invest in coins.

?What are cryptocurrency wallets

To buy cryptocurrencies, you first need to create a wallet

You must  create a wallet  to trade in cryptocurrencies in order to invest in the cryptocurrency markets. Learn about them below.

There are two types of wallets: hot and cold, the hot wallet can be purchased by multiple different platforms.

Hot Wallet /  It is a group of wallets connected to the Internet; This allows users to quickly access their coins without having to access the Internet.

Cold Wallet /  It is an offline wallet; This allows users to quickly and securely access their coins without having to access the web. You can buy cold wallets from cryptocurrency exchanges such as Ledger and Trezor.

?How to buy cryptocurrency

For a novice investor there are several options for buying “cryptocurrencies”:

By dealing with cryptocurrency trading platforms only

Buying cryptocurrencies from a private person, this is not a recommended method as it is prone to fraud and theft.

Cryptocurrencies must be purchased through dealing with a well-known exchange and secured platforms to purchase virtual currency.

Currently there are only about 500 exchanges dedicated to trading cryptocurrencies, and it is important to choose a large, old, stable and moderated exchange, as there are very few cases of hacking of these exchanges.

It is investing through digital currency trading platforms - cryptocurrencies.

You'll manage the entire portfolio investment on your phone from A to Z - from buying and selling to saving and taxing.

?Why is the cryptocurrency market so volatile

The main reason for the volatility of market volume.

The market value of all cryptocurrencies is around $2 trillion. For comparison, its value on the stock exchange exceeded $100 trillion. That is, markets are not even worth a quarter of a percent of the world's total money.

That is why it is not easy to fluctuate the market.

?Why is the cryptocurrency market so volatile

Another reason for the volatility of a digital currency is the fact that influential and famous people are interfering in the market.

People just buy and sell based on it as some kind of way to make profit in crypto and this is how they drive the market aggressively.

Billionaire Elon Musk is one of the most famous and leading figures in the virtual digital currency markets.

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