Cryptocurrency

What is cryptocurrency?

Cryptocurrency is an encrypted, unregulated digital asset that is used as currency in exchange transactions with minimal fees and no intermediary. Due to the correctly selected economic strategy, bitcoin gradually increased its value and became by far the most expensive currency in the world. This was the main idea behind the creation of Bitcoin as opposed to government currencies. Cryptocurrency turnover depends on its holders.

The accounting of cryptocurrency is called a blockchain and is carried out collectively by all network participants, Bitcoin is not the only cryptocurrency, but the first in history and the most popular. Unofficially, Bitcoin is already called "digital gold". An important aspect of cryptocurrency is the technology it is based on. With a sufficient number of participants, the turnover of operations in cryptocurrencies can reach billions of dollars, but so far, investors and ordinary users are just beginning to explore this niche.

How to trade cryptocurrency?

The most famous way is to register a Bitcoin wallet, buy cryptocurrency with regular currency and then exchange Bitcoin for altcoins on a specialized exchange, so you can invest your funds in various digital assets.

Factors affecting the value of cryptocurrencies:

Events in the cryptocurrency market are developing rapidly, new currencies are constantly appearing.
Gradually, Bitcoin has become a full-fledged currency, which is accepted both online and in regular retail outlets. As a result, banks and state financial authorities are beginning to understand that such a revolutionary method of mutual settlements can change the entire financial world, and partially weaken control of cryptocurrency turnover. There are a number of factors that can affect the rise or fall of a cryptocurrency. To begin with, growth can be driven by strong demand, while speculative buying of cryptocurrencies affects supply.
The fall of the cryptocurrency may be caused by negative news background and statements or actions of government agencies.

General tips for trading cryptocurrency

Regardless of the amount of capital, a trader can find a suitable cryptocurrency and purchase it, relying on its growth in the future. When trading cryptocurrency, it is very important to follow the news of both the market in general and a specific digital asset.
It is necessary to be guided by two types of analysis: fundamental and technical.

2020 was a very successful year for the cryptocurrency market. Bitcoin has risen in price by more than 50% since January.
Coins related to the decentralized finance (DeFi) sector added even more. The price of the Chainlink (Link) token has increased almost sevenfold to $ 13.8 at the moment it is approaching $ 20.
The digital money market has a good chance of continued growth. And the current crisis is only good for them: to fight it, the governments of many countries print currency, which leads to its depreciation. For example, the DXY dollar index has dropped 8% since May to 91.6 points.

Also, the Government of the Russian Federation approved a draft law on taxation in the field of cryptocurrency circulation. Prime Minister Mikhail Mishustin announced that it is planned to direct the development of the cryptocurrency market in a civilized direction, recognizing digital financial assets as property. In November, the Ministry of Finance announced that it had developed a package of bills on the regulation of digital currencies, in particular, mandatory declaration is proposed for transactions over a certain amount. In addition, judicial protection of holders of digital currency is envisaged if the owner informs both about the fact of owning the currency and about transactions with it.

True, the holders believe that these are too strict regulatory measures.

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