WHAT IS CRYPTOCURRENCY?
The definition of cryptocurrency is a virtual or digital currency that makes use for the security of your crypto transactions. It operates independently of a principal financial institution or government. The most famous and popular cryptocurrency is Bitcoin. However, there are almost 12000 cryptocurrencies in existence, according to the source, and year by year, it is increasing tremendously.
These currencies are decentralized, meaning that any single entity does not control them. Instead, they are based on peer-to-peer network computers that work together to maintain the integrity of the blockchain.
Blockchain is the underlying technology for most cryptocurrencies. Your crypto transactions are recorded on the blockchain. The blockchain provides transparency and security, but the parties’ identities are usually anonymous. In this article, we will cover how to trade cryptocurrency.
CRYPTOCURRENCY MEANING IN URDU
cryptocurrency مجازی یا ڈیجیٹل غیر ملکی رقم ہے جو آپ کے کرپٹو لین دین کی حفاظت کے لیے کرپٹو گرافی کا استعمال کرتی ہے۔ یہ ایک پرنسپل مالیاتی ادارے یا حکومت سے آزادانہ طور پر کام کرتا ہے۔
HOW DOES CRYPTOCURRENCY WORK?
Cryptocurrency works by using a decentralized digital ledger called a blockchain to record all your cryptocurrency transactions across a network of computers. The blockchain is maintained with a network of computers, also known as nodes. These computers work together to verify and process transactions. It means there is no chance of hacking.
When a transaction is made using cryptocurrency, it is transferred to the entire network of computers on the blockchain. These computers then use complex algorithms to verify the transaction, ensuring the sender has enough funds and the transaction is valid. Once confirmed, a transaction is grouped with other transactions in a block and added to the blockchain.
If someone tries to change your transaction address or steal your crypto, they need a change from all the computers, which is nearly impossible.
Another important feature of cryptocurrency is that it is typically anonymous. Although every transaction is recorded on the blockchain, the parties’ identities are not revealed. This makes it a popular choice for individuals and businesses that want to keep their financial activities private.
POPULAR CRYPTOCURRENCY EXAMPLES:
More than 12000 cryptos are in existence, but some of the popular ones include:
Bitcoin is the first and most well-known cryptocurrency. It’s the mother of all cryptocurrencies and has its blockchain. It was created in 2009 by an individual name Satoshi Nakamoto. The idea behind Bitcoin was to create a decentralized digital currency that could be used for online transactions without a central authority, such as a bank or government.
This crypto was presented in 2013 by Vitalik Buterin, a Canadian programmer and researcher, and was launched in 2015. Ethereum is the 2nd popular and highly traded cryptocurrency. Ethereum has its blockchain platform that creates smart contracts and decentralized applications.
Cardano is the most popular cryptocurrency. Cardano is an open-source, decentralized platform that runs smart contracts and enables the creation of decentralized applications (Dapps). Creation of Cardano by IOHK (Input Output Hong Kong) in 2015 and launched in 2017. This is a stable cryptocurrency with an excellent market cap.
YOP ( Yield Optimization Platform & Protocol ):
Yop is a new crypto created in 2023. This crypto is a yield optimization platform & protocol. All-in-one optimization application that makes it easy for everyone to access Defi. Yop cryptocurrency gives you complete control, insights, and flexibility in just one application. A high-quality UX/UI-driven product while staying decentralized. It is a wild card because it needs to grow.
IS CRYPTOCURRENCY THE FUTURE?
The future of cryptocurrency is uncertain and highly debated. Cryptocurrency has the potential to be used and regulated in every field of life. Still, there are many challenges crypto will face to be held entirely worldwide.
On the positive side, many experts believe that crypto and the adoption of blockchain technology have the potential to significantly increase financial development by providing a way for individuals and businesses in developing countries to participate in the global economy. Additionally, the uncontrollable nature of cryptocurrency could make it in high demand for companies in the future.
On the Negative side, cryptocurrency is still a relatively new and untested technology causing too large price fluctuations. The lack of regulation worldwide raises concerns about money laundering and other illegal activities. Still, suppose you follow a proper plan and research for crypto investment. In that case, firstly, you need patience to survive in crypto.
Overall, it takes time to predict what the future holds for cryptocurrency. It may become widely adopted and play a significant role in the global economy. Still, it’s also possible that it will remain a niche technology with limited mainstream adoption.
How to Invest in cryptocurrency?: Buy/sell
Before trading and investing in cryptocurrency, you need proper knowledge and practice. You need to find the best broker. To trade cryptocurrencies, you must also learn about technical and fundamental analysis because there is much risk due to the high market volatility. So it would help if you needed a technical analysis guide. You can find it HERE:
Best platforms to trade cryptocurrency
These crypto trading websites are for starting your journey in the crypto market.
Sign up for Crypto exchange:
To start trading cryptocurrencies, you must sign up for the crypto exchange. The best exchange platforms for crypto trading are Binance, Gemini, and Etoro. These exchanges have a smooth trading platform interface without glitches and are best for trading crypto assets.
They will ask you for personal information like a National Id card or a passport. Providing this information is called (KYC) know your customer.
Fund Your Account:
When you are done with signing up, then you need to fund your account. You can also support your wallet through P-To-P ( peer-to-peer ) marketplace in the Binance exchange. The p2p feature is not available for everyone. P2p marketplace where you can buy USD from a person selling with proper security. There is no chance of fraud.
Select A Cryptocurrency To Invest in:
There are many cryptocurrencies in the market. Most people choose to invest in bitcoin and Ethereum. There are a lot of other altcoins/cryptos in the market to invest in. It might be risky, but if you have good knowledge of cryptocurrency projects, you can choose altcoins to diversify your portfolio.
Start trading Cryptocurrencies:
There are two types of trading. One is to store your crypto shares and hold them long-term in your cryptocurrency wallet. 2nd one is trading with crypto derivatives. You will be dealing on both sides of the market price, meaning when the market is going down, you can make money, and when the market is going up, you can make money. Trading crypto derivatives are much riskier than storing them in your wallet.
To start trading crypto derivates, you need to learn the Technical and Fundamental analysis, and also you need to know the risk parameters and money management.
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DEMO CRYPTO TRADING
When you start to learn cryptocurrency. You must need to backtest your crypto trading strategy on a demo account. Here is a list of cryptocurrency exchange platforms that offer demo funds:
These cryptocurrency exchange platforms offer crypto demo funds to test your crypto trading skills or strategy. You can quickly login into these websites, and they will provide you with demo funds to start now.
How to make money with cryptocurrency?
Cryptocurrency has been gaining popularity as a form of investment, and it’s not hard to see why. Its decentralized nature offers an alternative to traditional banking and investment methods.
However, only a few people know how to make money with crypto effectively.
5 Effective methods to make money with Crypto
Crypto Trading is one of the most popular and easiest ways to leverage your money with cryptocurrency. Trading requires buying and selling crypto assets to profit from the price difference. You can buy at low prices and sell at high prices. Trading can be done on cryptocurrency exchanges, where users can buy and sell different cryptocurrencies.
Mining of bitcoin (crypto) is another great way to make money with cryptocurrency. Mining is the process of verify transactions on blockchain for a specific crypto. It verifies and add all the transactions to public ledger. In this process miners make get rewarded for giving this service to particular crypto.However, mining requires specialized hardware and consumes much energy, making it expensive and unviable for most people.
Participating in ICOs:
Initial Coin Offerings (ICOs) are a way for cryptocurrency projects to raise funds. Investors can purchase tokens during an ICO, and if the project is successful, the value of the tokens can increase. ICOs can be risky, as many projects fail, but they can also be very profitable for investors who choose wisely. It is essential to do thorough research before investing in an ICO and to only invest what you can afford to lose.
Staking of crypto is like giving crypto’s to wallets or exchange platforms and get in return interest from the staking. In return, stakers receive rewards in the form of cryptocurrency units. Staking is becoming increasingly popular due to its low barriers to entry and passive income potential. This is one of the best ways to make money with cryptocurrency.
Accepting Cryptocurrency as Payment:
As more businesses accept crypto as a form of payment, accepting cryptocurrency can be a way to make money. This involves setting up a wallet and accepting payments in crypto for goods and services. This method is suitable for businesses looking to diversify their payment options and attract customers who prefer using cryptocurrency.