Due to the huge amounts of returns yielded on cryptocurrency trading, virtual currencies and their trading have gained massive popularity and acceptance all around the world. It is reported in some studies that some people have become millionaires over the last few years by trading in crypto. The huge profits on their crypto investments have increased their wealth and fortunes exponentially. All thanks to cryptocurrency trading.
Crypto began its journey almost a decade ago when Satoshi Nakamoto created a revolutionary digital currency system, which at first was not widely accepted and looked upon with hesitation. However, with the passage of time, and relatively shorter amount of time, crypto has gained massive acceptance all around the world as more and more people have either invested in crypto, making profits through trading, or are using it as a payment method to buy goods and services.
Currently, there are almost around 106 million users of crypto all around the world, actively investing or transacting their dealings using digital currencies, and this count is increasing rapidly day by day.
According to some experts and analysts in the market, owing to the rapidly increasing acceptance and holdings of virtual currencies among individuals and institutions all across the world, it is expected that there might come a point in the near future where due to the vastly increased circulation of crypto, the majority of the population of the world would be using it in their transactions as a payment method, and therefore the governments all around the world would have to make several different digital currencies official in their countries.
In this article, we will be presenting a few of the most important and interesting facts about cryptocurrency trading for our readers so that they get a brief yet meaningful insight into the world of digital currencies. Hence, without a further ado, let’s dive into these facts which are as follows:
With great returns on crypto comes high inherent risk in the form of Price Volatility
For those who think that making money through investing in crypto is a walk in the park, well, they are mistaken. In fact, digital currencies are one of the most complex and challenging forms of financial asset category, which is still new and has several underlying risks.
One of these risks is the high amount of volatility in price trends of these crypto markets, which reduce the profit margin for the investors and make it extremely hard and challenging for them to make huge gains. This is due to the high rate of price volatility in these digital currencies. For those who do not know what volatility means in this context, it indicates the degree of change in the price and value of a virtual currency for a given period of time.
Although all the major players of crypto undergo volatility in their prices, BTC is comparatively the most volatile cryptocurrency, as its price can move from all-time high levels to very low in just a matter of days or even hours.
What is the total number of digital currencies in the world right now?
Whenever the topic of crypto pops up anywhere, the first thing which comes to our mind is ‘Bitcoin’. This is not something strange, given that Bitcoin was the first crypto to enter the global markets, is still the leading crypto by market cap and is most widely discussed on media platforms. This is what makes it so popular, and therefore is the first thing which occupies our mind when crypto is discussed.
However, with the passage of time, hundreds of new virtual currencies have emerged in the market, for example, XRP, Litecoin, Dogecoin, Ethereum, bitqt and Stellar. Facebook recently released a statement announcing that they will also be introducing a new crypto of their own along with a digital wallet, soon. They even unveiled the identity of their crypto, whose name will be ‘Diem’. Initially, the premiere social media platform had named their crypto ‘Libra’, however it was later changed to ‘Diem’.
Even celebrities are a part of the crypto club
It should be known that the opinion that crypto is a scam and only people who are not sure about investing their money invest in crypto, is completely false. There are millions of individuals and several big corporations who have a huge chunk of their wealth invested in crypto, and a part of this huge number is also the celebrities all around the world.
In fact, to facilitate these people with crypto holdings, a large number of companies and brands all around the world have integrated crypto in their payment methods, and an increasing number of companies are doing so with the passage of time. Expedia, Shopify, Wikipedia, Microsoft, and Starbucks are one of the many examples of such big names.
Interesting Related Article: “Five Ways to Deal with Stock Market Volatility“