A Quick Walkthrough to Crypto Trading and Its Future
Since 2009, the Cryptocurrency industry has been on the road to constant success and development. What was proposed to the entire internet community on a white paper has now morphed into a whole new dimension that has a world of its own with ever growing projects and products that are there for the wellbeing of the individuals providing full transparency.
At the start, users were to mine the crypto-coins but there were many tech savvy individuals who knew the potential of the cryptocurrency technology and to facilitate their users and miners, they developed cryptocurrency exchanges that were equipped with providing their users will a secure and reliable channel that they could use to save their valuable coins.
How Cryptocurrency Trading Started?
Although, the cryptocurrency industry had so much potential and value to it, the users who mined the coins out of fun and curiosity had nowhere to go and invest or spend these coins. This is when a need for a medium was felt that would allow users to utilize their mined coins; otherwise, the mining would have become stale and would’ve become a baseless activity.
Then in 2011, Kraken was introduced to the entire cryptocurrency community as the very first cryptocurrency exchange, providing users with a platform where they could store their coins, sell them, buy them and even trade them to land profitable deals.
The Kraken exchange turned out to be so successful that it still operates among the list of the largest cryptocurrency exchanges that include Binance, Coinbase, Coinjar and Bittrex etc. Similar to the cryptocurrencies, these exchanges also operate in a decentralized environment as well as centralized and provide users with complete privacy and secure channels to make transactions without worrying about any theft or cyber-hacks.
Types of Cryptocurrency Trading
Once a user is able to acquire cryptocurrency coins and store them into the cryptocurrency wallet provided through his preferred crypto-exchange, he/she can then perform the following trades in order to gain profits and make fortunes:
Converting Fiat Money to Cryptocurrency
This type of trade mainly refers to a long process where the users can convert their fiat money into cryptocurrency by transferring the money to their crypto-exchange account either through bank money transfer or card payment and then convert that e-currency into cryptocurrency in order to utilize the trading instruments provided by the exchange and the crypto-trading world.
Storing Owned Cryptocurrency for Increase in Price
This particular type can also be considered as the second step to the fiat money conversion trade. Here, once the person has earned or converted his/her fiat money to cryptocurrency, he/she can keep it saved up until the price of the chosen cryptocurrency goes up and then sell it to make profit from the difference in the price of the crypto.
Crypto to Crypto Trading
This trade is somewhat similar to forex trading where the users can exchange one cryptocurrency with the other after analyzing the future value and demand of the preferred cryptocurrency from crypto-market’s stand point. After acquiring the cryptocurrency, it can be sold off to earn profits, which would be the difference in the price of the crypto(s) at the time of the purchase to time of sale.
Future of Crypto Trading
Although, cryptocurrency trading is the most recent trading asset to the online trading platform, it has proven to be one of the most prominent instruments of the 21st century, the economic giants in the start were reluctant and hesitant to adapt to the crypto-trading, as they considered it to be an unsafe instrument due to its decentralized and unregulated nature.
This concept, however, has started to change with the current changes that have taken place around the world, especially, when the entire world was affected by the pandemic. As a result of the COVID-19, hundreds of companies shut down, leaving millions unemployed and without any source of income. This is when the crypto-trading industry turned out to be one of the best sources for these individuals to adapt and make this platform their primary source of income.