What is crypto trading?
The trading of Cryptocurrencies is a new form of trading that is taxable and is not illegal. It is actually the act of theorizing or rather finding out the pricing ups and downs of cryptocurrency with the help of a CFD trading account, or by selling and buying the following coins via an exchange.
The question may arise about CFD trading. CFD trading may be considered as derivatives which helps us in speculating the price movements of the cryptocurrency without even taking any ownership of the coins thereby. You can buy if you can speculate the fact that the currency will rise in value and if it falls in value then it is likely for you to sell them.
You are only required to put up a tiny deposit which we term as margin in order to gain extensive exposure to the underlying market. Moreover, your gain or loss is calculated based on your entire exposure and your position, which will in turn cause magnification of both profit and loss.
Five Crypto Currencies to invest in 2021:
- Bitcoin (BTC)
It can be considered as the trendsetter and it really needs no special ways to make you understand what bitcoins are. People who know about the crypto industry, know clearly about bitcoins. Bitcoins are the most famous cryptocurrencies and it is showing the recent surge. Bitcoins are a decentralized and very transparent means of trading.
There is major usefulness of bitcoins because of their features: user autonomy, peer-to-peer focus, low transaction fees internationally, no banking cost, very secured, flexible and has extremely great accessibility.
Ethereum holds the second position in the deck and is an extremely popular cryptocurrency which we remember just after the bitcoins. It has a great hold over the trading market. It is reliable, decentralized and is based on a network of computers in the entire world.
Its pricing as of 2nd February 2021 is $1591 and the success rate of Ethereum is on the rise and the biggest advantage of using Ethereum is that it is the liquid cryptocurrency with smart contracts and allows decentralized applications on mobiles.
ChainLink or simple Link is the actual connector cryptocurrency. It is a decentralized network of oracles and it provides real-life data to contracts that are smart on the blockchain. Smart contracts are contracts that are agreements that are pre-specified on the blockchain that helps to evaluate information and are executed automatically when they meet certain conditions.
Link tokens are usually used to pay for the services that are on the network. They are extremely diverse and affect finance, governance method, insurance etc.
UniSwap or the UNI is another decentralized cryptocurrency that has protocols of exchange built on Ethereum. It follows an automated liquidity protocol. There exist no books for orders or any there are no centralized parties who are required to make the trade.
It is censorship-resistant and is without any intermediaries. Uniswap leaves all the traditional architectural methods behind digital exchanges. It has a working design of Constant Product Market Maker which is a great variant of the Automatic Market Maker Model. It can be considered as the King of Decentralisation.
Tron or TRX has an altogether different ecosystem in which you can not only share content with other people but also you get compensation for being a content creator for all the content that you are creating. It is a completely different method and is in complete opposition to the social media companies (Example: Facebook) monetizing user data. It is a very efficient cryptocurrency and pays for all your data that is being used.
I guess now you have got the ideas about the best cryptocurrency you can invest in. So, why waste your time? Go hop into the industry and buy your own cryptocurrency and be a winner. All the best! Make it big this time.