If you’re not already trading cryptocurrencies, chances are good that the concept of doing so is new to you. Cryptocurrencies are digital tokens that represent virtual money, and there are many cryptocurrencies in existence, including Bitcoin, Ethereum, Dogecoin, and Ripple. As of 2017, the total cryptocurrency market cap was over $100 billion USD—and although some cryptocurrency prices have experienced rapid price drops this year, experts predict that the next cryptocurrency to explode in 2022 will be a completely new one that has yet to be created.
|The Next Cryptocurrency To Explode in 2022?|
What are cryptocurrencies?
Cryptocurrencies can be defined as digital currencies or assets that are designed to work as a medium of exchange using cryptography techniques. Cryptocurrencies use decentralized control as opposed to centralized electronic money and central banking systems. The decentralized control of each cryptocurrency works through distributed ledger technology, typically a blockchain, that serves as a public financial transaction database.
Predicting the cryptocurrency growth
Today’s cryptocurrencies are becoming well-known. Cryptocurrency trading has become mainstream, and more people are starting to put money into it. In fact, Coinbase reported $2 billion worth of trades on its platform alone in 2017. But where is that growth going next? What kind of trends and technologies will we see in cryptocurrencies? And how can you profit from them? We asked some experts to predict what may happen over the next decade with their answers below.
What is trading?
Trading can mean a lot of things, but for our purposes, we are talking about buying and selling assets on cryptocurrency trading software. These exchanges come in a few different forms: centralized exchanges (Coinbase), decentralized exchanges (IDEX), and peer-to-peer marketplaces (Local Bitcoins). Learning how to buy and sell cryptocurrencies takes some time, so if you’re not already familiar with how it works, take some time to read up on trading before diving into any other topics.
Understanding market trends
Investing in digital currency takes a lot of research and education, and given that so many digital currencies are out there (and new ones popping up all the time), it can be hard to know where to start. When considering investing, especially with an investment vehicle like cryptocurrencies, it’s important to understand current market trends. Some experts think specific crypto will be worth more than $1 billion within five years; others say that that’s total hogwash.
Is bitcoin a bubble?
If you’re reading sites like Coin Desk, it might seem like bitcoin and other cryptocurrencies are exploding into the mainstream. And while true believers aren’t necessarily worried about a bubble—they point out that bubbles don’t burst if no one cares about them anymore—there are signs that it’s long overdue for a correction. The next crash could come soon—or maybe not at all, who knows?
How do I buy cryptocurrencies?
To buy cryptocurrencies, you’ll need to open an account with an exchange (or several exchanges). There are several reputable exchanges out there. My personal favorite is Coinbase and I’ve also heard good things about Gemini, GDAX, Kraken, and Binance. Each exchange has its own process for verifying your identity—some require that you upload identification documents, while others will accept selfies as proof of identity. Some will allow you to trade on their exchange instantly if you pay a fee.
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Risk with cryptocurrencies
Their volatility. Cryptocurrencies are a great investment if you’re looking for quick gains and don’t mind paying a high-risk premium for that possibility. However, it’s still quite early on in terms of cryptocurrency trading, which means that we could see quite a few more flash crashes before things stabilize. This makes investing long-term difficult; predicting whether or not cryptocurrencies will continue to rise or fall has proven impossible over shorter time frames.
Crypto can be defined as digital currencies or assets that are designed to work as a medium of exchange using cryptography techniques. Cryptocurrencies use decentralized control as opposed to centralized electronic money and central banking systems.