Cryptocurrencies are digital currencies that use cryptography to provide high-level security for digital data and transactions. Cryptocurrencies are designed such that they can act as a digital store of value and can be used for the transfer of value including money. Lately, cryptocurrencies are being seen and used as a cost-effective and more efficient alternative to traditional currencies and payments.
Crypto Market Vs Stock Market — What’s the Difference?
The crypto market is being increasingly adopted as a more profitable alternative to traditional stock markets. Why? Because the returns of the crypto market in the past years have been phenomenal. At the same time, it enables traders to make high returns in a very short period. But, there are other things too that you must know about the crypto market, including how it is different from the stock market before you start trading cryptocurrencies. Let’s get started.
Crypto Market — What is it all about?
Just like any regular market where you can buy/sell goods like groceries, vegetables, etc., in a crypto market, you can buy and sell cryptocurrencies.
Unlike traditional markets, however, crypto markets have no physical presence. They exist virtually on the internet and can be accessed from anywhere in the world.
Crypto markets that are based on blockchain are called decentralized trading markets. These types of trading markets are not administered or controlled by centralized authorities such as banks or the government. Rather, they are managed by distributed computers called nodes and controlled and run by their users.
Crypto markets or cryptocurrency exchanges essentially provide the facility to buy and sell cryptocurrencies. In other words, they connect users looking to trade their cryptocurrencies like Bitcoin, ETH, Libra coin, and many others. They provide an interface where crypto buyers and sellers can find and connect with each other to seamlessly exchange coins. In addition to the interface, they also offer the support required for new users to start their crypto trading journey. All crypto trading (exchange) transactions are verified through and securely stored on the associated blockchain.
Good cryptocurrencies like the Libra Coin (LC) have a high potential to grow because the coin has real use cases that gives it a high demand in the market.
What is the Stock Market and how is it different from the Crypto Market?
The Stock Market is where you trade stocks of the listed companies. For example, if you want to buy the stock (shares) of the Apple company, you would go to the NASDAQ exchange/market where the stock is listed. Stock exchanges have a physical presence and can also be used online via dedicated apps/platforms.
The biggest difference between the crypto market and the stock market is in terms of assets they allow to trade. While stocks are real physical assets backed by legitimate companies and have real values, cryptocurrencies are not generally backed by any real assets and their values are entirely subjective. This not only makes them a riskier asset type but also makes it difficult to predict the price trend or movement of digital currencies.
Crypto markets or exchanges are either fully decentralized or partially decentralized, while stock markets are under centralised control. This means all crypto trades are transparent and publicly available, unlike stock trading records, which are private to specific investors.
Crypto markets are generally more volatile than stock markets, which can be a good thing for traders looking to make quick profits through day trading.
Unlike traditional markets that are affected by a number of things, including current happenings, politics, news, and more, crypto markets are often above all these and are completely regulated by the user sentiment.
5 High-potential Cryptocurrencies You Can Invest in 2022
Cryptocurrencies have emerged as one of the best and high-quality investment options in recent years, more so in the last couple of years. There has been a huge growth in the number of crypto users everywhere in the world, but the demand has been truly unprecedented in developing countries like India, where small retail investors are using crypto as a way to earn extra money or income through trading.
And why not? Cryptocurrencies have made many people millionaires who chose to trust this digital asset to earn an income through trading and investing. There are many ways to earn with crypto. Some choose to trade digital currencies to earn quick profits while others want to invest and hold for the long term.
No matter which kind of crypto investor you are, here we are going to tell you about 5 cryptocurrencies that can make you rich this year.
1) Bitcoin
This one needs no introduction. Bitcoin is a legendary coin, and now you can buy it at a bargain price because it has come down to less than half from all-time high. Yes, you heard it right. I know people who purchased bitcoin at above $60,000. And this is a golden opportunity for anyone to buy the token at nearly half the price. So, what are you waiting for?
2) Libra Coin
Did you know Libra was one of the fastest-growing cryptocurrencies last year? Despite being a new cryptocurrency, the Libra Coin has outstanding demand and value in the market. This is because it is backed by great value and a high potential blockchain-based ecosystem called the Libra ecosystem. This year, more people are likely to adopt Libra as a way to streamline e-commerce and make digital payments accessible & affordable for everyone.
3) DOGE
Created as a meme coin, DOGE is now one of the top-rated coins on the CoinMarketCap website. Nobody knows why the coin price is rising, but it is. And many people have made millions by investing in it. If you also want to become rich and are ready to take some risk for it, do invest in DOGE. But remember, invest only what you can afford to lose.
4) ETH
The native token of the Ethereum blockchain also needs no introduction. Ethereum was the first blockchain to introduce smart contracts and enable the development of DAPPs. It is also the blockchain behind very popular NFTs. That means ETH is one of the best tokens you can invest in today. And now that the coin price is lower than the average, buy it before it’s too late.
5) Tether
Tether or USDT is a stable coin that was created to give users a less risky alternative to bitcoin. Tether coin’s price is linked with the US dollar and is always stable with the USD price. So, you can buy and store this coin as a hedge against your investment in high volatility coins such as bitcoin and ETH. Also, most exchanges use USDT for trading with other op cryptocurrencies, so it is easy to find an exchange to buy-sell USDT.
Happy investing!!
Very Good information