Currency trading is quickly becoming one of the most popular ways to enjoy a sustainable source of liquid income. While traditional markets such as the Forex sector are undoubtedly tools to leverage, a new generation of traders is beginning to look towards to the digital horizon. Were you aware that certain instruments known as cryptocurrencies are now available?
One of the many advantages of this alternative is that such currencies are decentralised; the markets are open 24 hours a day and seven days a week. We should also mention that there are no day trading pattern regulations associated with cryptocurrencies.
In other words, you can perform as many trades as you wish during any given session. This is an excellent way to transform a small amount of capital into an impressive holding. So, what are three of the most popular alternative currencies and what does each have to offer?
As Bitcoin is arguably the most popular cryptocurrency, it only makes sense that it is mentioned first. Bitcoins are associated with this highest trading volume; signalling healthy price changes. For example, Bitcoin was valued at $3,851 dollars at the time that this article was written.
This represents a daily change of +7.55 per cent. Another massive advantage of Bitcoin is that there are numerous trading platforms which now cater to this form of currency. While the sheer presence of Bitcoin cannot be overstated, there are other options at your disposal.
Litecoin (sometimes abbreviated as LTC) is another cryptocurrency to consider. One of the main advantages of this option is that it is much cheaper to maintain when compared to Bitcoin holdings. Blockchains are able to be produced up to four times as fast their Bitcoin counterparts, so transaction fees are massively reduced. It should also be mentioned that Litecoin holdings are said to be more sustainable from a long-term point of view. There are currently a total of 84 million Litecoins available. Assuming that the demand for cryptocurrencies continues to expand, investors could very well turn to the Litecoin in the event that other cryptocurrencies associated with lower caps are no longer available to trade.
Ethereum is actually a decentralised network that was created to trade another type of cryptocurrency known as Ether. First established in 2015, this system is intended to run programming codes associated with decentralised currency trading applications. The main advantage of Ethereum is that its functions are split across thousands of “nodes” across the world. These nodes are maintained by volunteers and in theory, this signifies that a “world computer” has been created.
This ever-increasing reach provides traders with instantaneous access to a variety of cryptocurrency-related tools. We should once again refer back to the principle of decentralisation. Prices are not controlled by any bank or firm. They are instead determined by supply and demand. Furthermore, it is impossible to ban a single application; ensuring that you do not suddenly lose access to your holdings. While this network is still growing, it is nonetheless a good idea to learn about Ethereum if you hope to gain a foothold within the cryptocurrency domain.
If you have been looking to further diversify your portfolio, a foray into the world of cryptocurrencies could be an excellent idea to consider.