Cryptocurrency is digital by nature – it works like cash except it is digital.
It is a digital asset and is secured by cryptography – which makes the system extremely secure and resistant to fraud
The blockchain technology on which it is based is a de-centralised network, and distributed across a wide number of computers all over the world, which allows it to operate independently of financial and government authorities.
In many ways, this brings new opportunities for everyone, for example, absolutely anyone can acquire a bitcoin wallet and start trading, whereas traditional trades on the stock market or forex often mean acquiring a broker.
That isn’t to say trading is risk free – although a new generation of ‘trading apps’ is making it easier.
Crypto Engine is just one example of modern tools that enable someone with little knowledge or prior experience to register and start trading while reducing the risks. The system’s sophisticated AI tools will begin making trading recommendations.
Users can either allow the system to trade fully automated, or can take a few minutes a day to learn the platform, reduce the automation or trade completely manually – which makes it equally useful for professionals and first-time traders.
It’s important to remember that investments can go down as well as up – and if you need an illustration on that, you’ll note that Bitcoin prices are currently falling. However, despite the obituaries you’ll see from the negative nellies, many investors are not worried – in fact many well known bulls are currently buying while the price is low. A decentralised currency is naturally volatile to market shifts, but generally speaking, what goes down will often come back up, and in the case of bitcoin, it has a habit of outperforming other assets, including gold, for a few years now – so while you’ll see reports of people selling, you’ll also find bullish experts frantically buying at the current prices.
With bitcoin prices falling, now could be a good time to start investing – and it’s certainly not just a back-door currency for small-time home users. Legendary billionaire investor Bill Miller, for example now holds 50% of his entire net worth in cryptocurrency, regarding it as an insurance policy against the collapse of traditional financial markets.
Indeed, the very fact that crypto is outside the banking system which is prone to the boom and bust of capitalism is what makes it highly attractive to many investors, but that’s not to say that traditional financiers are not interested in it, with the CEO of DeVere, one of the world’s largest finance organisations, frequently championing bitcoin – even amid falling prices.
Similarly, the uber-secure technology behind cryptocurrency, blockchain, has potential applications elsewhere, and experts believe it is set to disrupt technology in other sectors. It’s certainly set to grow.
Bitcoin has its followers and definitely a good share of non-believers, but it’s not the only cryptocurrency and digital is likely to be the future.
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