Smart Applications of Digital Currencies
It has been a decade since Bitcoin’s first white paper released. In these years cryptocurrency and the technology behind it made news and major developments. There are mixed descriptions from groundbreaking technology to wide applications. Bitcoin the most popular cryptocurrency grew from zero acceptances to around $20,000 in 2017 and presently hovering around $9,500 mark. In this period, countless other cryptocurrencies entered into the market, few exist whereas some died. Bitcoin is still the king of the cryptocurrency market even though many new players have entered the business. Cryptocurrencies such as Litecoin, Ether, and Bitcoin Cash is giving tough competition to Bitcoin, yet it has continued to dominate the market. Bitcoin acceptance is increasing and so its popularity, the currency is already finding wide applications across several sectors. Government bodies are now taking the initiative to regulate cryptocurrencies and digital currency trading platform to reap all digital currencies benefits.
Cryptocurrencies have had a reputation for changing fortunes in a fortnight during a bull run. In this 21st century, cryptocurrency is one of the best investment opportunities which can multiply your asset if invested with good research. Over the years many smart crypto investments have come up in which investors can give your investment best return – without involving any major risk. A good digital currency trading platform will make crypto trading fast, easy, and safe.
Cryptocurrency is a virtual currency independent from the government or central bank. In recent times investors are turning to derivatives to get the best out of digital currencies. Trading derivatives open to larger investors and traders group, eager to buy cryptocurrencies on scattered private exchanges. This new opportunity allows crypto enthusiasts to invest in suitable digital currencies without opening digital wallets, worrying about private key features, mining, or fees.
What’s more, trading crypto derivatives are safe as no one owns the currencies. Derivatives are proving to be quite helpful for investors as they can speculate the price of cryptocurrencies without panicking about legal complications. More importantly, Bitcoin derivatives will bring stability to the markets; people can use it for regular payments. Big business names are associating with cryptocurrencies. In the long run, this will help to build trust among commoners.
Financial institutes have shied away from cryptocurrencies for a long time but off late crypto bull run has engaged them with digital currencies. It’s just the start of engagement with cryptocurrencies but there is a long way to go. AML and KYC for cryptos are making it expensive and hard for financial institutes, a reason why many banks still shy away from this new concept.
This is one main reason why financial institutes have been reluctant to accept cryptos; many crypto holders are forced to sell digital currencies before using it in any bank activities. With time many crypto lending projects are coming up which are proving to be a safe option. Several recently introduced initiatives accept crypto as collateral, helping you make most out of it.
Every investor wants to safeguard his or her money, at a time when the global economy is going through a terrible situation, there is a growing need for the best alternative. After the 2008 economic recession, the cryptocurrency concept was introduced; now after a decade, the world is slowly realizing the importance of digital currency investments during economic turmoil. In times of economic uncertainty, digital asset gives every investor the flexibility and most importantly financial security.