What is the cryptocurrency provided with?
Depending on which specific cryptocurrency we are talking about.
There are stablecoins – coins, the value of which is backed by real assets in bank accounts. There are also algorithmic stablecoins, the rate of which does not fall, because it is regulated by predetermined emission algorithms.
As for Bitcoin and other unstable coins, the rate is not supported by anything other than actual supply and demand. The logical question is why, then, does Bitcoin become more valuable over time?
There are several reasons:
- Its emission is limited. Fiat money can be printed as much as you like, but BTC can not be more than 21 million, and it is very difficult to get them, it will take decades.
- On the extraction of bitcoin, miners spend electricity, which gives the coin the main value.
- Cryptocurrencies are gradually accepted in the world, for example, now bitcoin can be officially paid in El Salvador. Those who want to catch the wave are actively involved in the industry.
- One of the main reasons is institutional investment. 13 million BTC lies on the wallets of large investors, and the infusions continue. This increases the price.
There is an opinion that cryptocurrencies are a bubble that will burst over time. In fact, it’s not that scary. “Bubbles” of traditional currencies are much worse, which has been repeatedly confirmed.
What is a cryptocurrency exchange?
Cryptocurrency exchanges are online platforms that allow you to exchange one cryptocurrency for another or for fiat.
A traditional crypto exchange can be described as follows:
- Buyers and sellers exchange assets at their current market rate, and the exchange plays the role of an intermediary.
- For each transaction, the site charges a commission.
On which exchange is it best to buy cryptocurrency?
I recommend Binance.
Reliable exchange, operating since 2017. Easy-to-use, intuitive interface. A large selection of promising cryptocurrencies.
You can buy crypto from a bank card, and you can also replenish your fiat account with a card or AdvCash/Payeer payment systems.
There are a lot of opportunities for passive earnings on cryptocurrency. In general, Binance is a whole ecosystem, this includes a non-custodial wallet Trust Wallet.
Other good exchanges: OKEx, Currency com, FTX, EXMO
RELATED : What is Bitcoin, if explained in simple words, and what is its essence?
How to sell cryptocurrency safely?
The safest way is regulated exchanges such as Binance or EXMO. They fully comply with the requirements of regulators, each of their users passes the KYC check and the likelihood of any problems is reduced to almost zero.
Payment systems – Payeer, Capitalist, AdvCash – are also quite safe. They have been working for many years and have proven themselves positively.
Which cryptocurrency exchanges choose to trade bitcoin?
The most popular exchange is Binance. It leads in all ratings, it is there that beginners most often go. The exchange is really quite convenient and reliable, supports many popular cryptocurrencies.
But that’s not the only option. Also noteworthy are:
- Bybit
- KuCoin
- OKX
- MEXC
- Huobi
- Bynex
- Garantex
You can use Coingecko and Coinmarketcap aggregators to estimate statistics among the 500+ existing crypto exchanges.
What are crypto derivatives?
Simply put, a derivative is any product or contract whose value is determined by the underlying asset. In traditional financial markets, derivatives derive their value from assets such as stocks, bonds, interest rates, commodities, fiat currencies and cryptocurrencies, hence the name.
Crypto derivatives work like traditional derivatives in the sense that the buyer and seller enter into a contract to sell the underlying asset. Such assets are sold at a predetermined time and at a predetermined price. Thus, derivatives have no intrinsic value, but depend on the value of the underlying asset. For example, an Ethereum derivative relies on the value of Ethereum and receives its value.
Derivative transactions also do not own the underlying asset and do not own it. The most popular types of derivatives in cryptocurrency are futures, options and open-ended contracts.
Where is the best place to buy cryptocurrency?
It is best to buy it with the help of well-known sites and services that have a good reputation. The choice of a particular site depends on your needs: what is more important for you, speed, benefit, convenience? Safety should always be a priority.
Types of services and sites for buying cryptocurrency:
- Exchanges (Binance, OKEx, FTX, Currency)
- Exchangers (you can choose the right one using BestChange)
- Payment systems (Payeer, AdvCash, Capitalist)
- p2p exchanges (LocalCryptos, Cryptolocator)
- Wallets with the ability to pay by card
- Bots in telegram
- Crypto ATMs, if your city has them