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HomeBUSINESSWhat you need to know about the 5 most traded cryptocurrencies

What you need to know about the 5 most traded cryptocurrencies

Without a doubt, cryptocurrencies have become one of the largest centers of attention in the world, since they not only serve as a form of investment, but also as one of the alternatives to traditional finance.

Based on the current trend and growth of these digital currencies, in this article we want to explain the characteristics and provide you with the best possible information about the most traded cryptocurrencies that exist to this day.

Regardless of your financial goals, this information will help you better understand how these coins work and whether they fit your investment profile.

The news of cryptocurrencies

According to Statista, there are more than 68 million cryptocurrency users in the world (as of February 2021).

In the case of the most popular cryptocurrency Bitcoinrepresents about 7 million users.

In addition, there are more than 4,000 types of cryptocurrencies at the beginning of 2021, and every day the number is increasing.

This new type of cryptocurrency has a clear objective: to make the processes that Bitcoin initially had more and more efficient. To achieve this, in some cases they replicate its structure and in others, they improve it.

What are the most important digital currencies?

According to the same report of Statista, The most important cryptocurrencies are: Bitcoin and ETH.

And its importance goes beyond the value and amount of money held in Bitcoin, but in the general enthusiasm for new technologies.

In fact, both cryptocurrencies have remained top for a long time.

You want to know why? Keep reading that this is the objective of this article, that you understand the characteristics and how these cryptocurrencies work.

Main characteristics of a cryptocurrency

One of the most outstanding features of cryptocurrencies is the possibility of transferring a cryptocurrency to someone through the internet, without the need for an intermediary (such as banks).

Another feature that stands out from cryptocurrencies is its security system, also known as blockchain. This system allows you to keep users’ money safe.

Despite the fact that new types of cryptocurrencies emerge every day, not all of them manage to have the positive impact that they do. Bitcoin either ethereum. Some even disappear shortly after going on the market.

In the next section you will learn about the cryptocurrencies that are most popular among the most successful investors and the advantages of each one.

The Top 5 of the most traded cryptocurrencies

Something that we have no doubt is that Bitcoin changed the world dramatically. Since his expedition, he has done nothing but break paradigms. The financial system underwent a change in the way the monetary system is perceived.

With the entry of cryptocurrencies, a before and after of the world economy is marked. You can be for or against this system, but you can’t deny that it changed our way of thinking about global transactions and money investments.

It is not only about what a digital currency represents, but in the system that supports it, known as cryptography and a powerful technology called blockchain.

From the emergence of the first cryptocurrency, a gap was opened so that more and more virtual currencies have emerged.

Each of them has particular characteristics, however there are some that are better received than others. In other words, there are some that are more negotiated than others. But, How do you know which one is more negotiable?

To find out, it is necessary to observe which are the most offered in the multiple trading platforms. Also, you can check on these platforms what their trading volume is to clear up any doubts.

So that you are more aware, here we present the most quoted to date.

1.Bitcoin

Considered the original cryptocurrency, it was launched in 2009 and is the one that started the movement regarding cryptocurrencies.

The pioneer bitcoin and its famous blockchain technology with which it works, was developed by a person or work group, whose identity is hidden under the pseudonym of Satoshi Nakamoto.

Advantages of Bitcoin

It’s fast: Money transfers are made in a matter of minutes regardless of the amount or destination, the money will always arrive.

Economic: It is no secret to anyone that making a transfer to any part of the world can cost a lot of money. On the contrary, if you decide to do it with Bitcoin, the cost will only be cents and in some cases it will be Free!

Worldwide transfers: Thanks to this innovative payment system, you can send Bitcoin to any country in the world. Like the internet, Bitcoin has no borders.

two. Ripple XRP

It is certainly one of the most traded cryptocurrencies worldwide, since its blockchain platform is optimized to greatly facilitate international currency transfers.

This cryptocurrency has been strongly supported by several banks since its launch, making it one of the most demanded by users.

On the other hand, it is a coin that has great potential in the market, since the number of transfers made through the Ripple platform has gradually grown over the years and there is a great possibility that it will become part of the market. traditional system.

Ripple XRP Advantages

  • Fast, secure and cheap transactions
  • It can be exchanged for any currency or value (such as gold)

3. Litecoin

Litecoin is another of the most traded cryptocurrencies in the market. It is a currency that has been positioned as a much more practical and technologically superior alternative to Bitcoin.

One of the most impressive things about this type of cryptocurrency is that transactions can be confirmed on the P2P network, this feature allows it to be much faster than Bitcoin transactions.

Advantages of Litecoin

  • There is no government that controls its value
  • They are difficult to counterfeit, making them one of the safest on the market
  • It has an open source system, this means that its security system is constantly evolving.

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4.NEO

One of the most traded cryptocurrencies, due to its ease of use when making smart contracts. This was launched on the market in 2014, whose blockchain technology is more sophisticated.

Neo was created with the goal of having a much smarter economy, and it involves making the most of smart contracts. This feature allows you to distribute digital assets more effectively.

Advantages of NEO:

It grants the possibility of acquiring a digital wallet proposed by the developers, allowing users to obtain greater benefits when using the platform.

5.IOTA

Known for being another the most traded cryptocurrencies in the market. It is the only cryptocurrency based on the Directed Acyclic Graph structure.

This was developed in order to work with devices that are compatible with the Internet of Things, also known as IoT (initials in English).

Undoubtedly, IoT facilitates cost-free microtransactions involving connected devices. In addition, this system helps maintain the integrity of the information

Advantages of IOTA

  • Security and speed when making transactions.
  • Transaction times get faster the more you use the platform.

How you can invest in digital currencies easily

Without a doubt, cryptocurrencies today have become an indispensable resource for many people, due to the great financial possibilities it offers us.

You should keep in mind that it is not yet possible to buy cryptocurrencies in banks or exchange houses. Then Where can I buy cryptocurrencies?

The most popular place to buy cryptocurrency is through an exchange. The most popular are Coinbase, GDAx, and Bitfinex.

In these systems you can buy fractions of currency, so you do not need to invest thousands of dollars to acquire them.

You can also do it through a broker that offers this option. You can even buy them through CFD’s that include the cryptocurrency asset.

Why are they so volatile?

These types of investments are very volatile for the following reasons:

The technology is still being developed: For example, Blockchain technology is still in the process of consolidation. As long as I have not managed to mature further, its scope will remain unknown.

It is still a small market: Despite the boom that this market is experiencing, it is still considered an emerging market.

If we compare the US stock market, which is valued at more than 28 trillion dollars, the cryptocurrency market with an estimated value of 800 billion in 2018 is still far away.

Speculation: This is one of the main reasons for the high volatility of cryptocurrencies.

Rumors that arise daily such as the entry of a new currency, or that public figures comment on the subject, is reason enough for the price to go up or down.

For example, announcements, news, investor expectations and sentiment are factors in moving the price abruptly.

The more you know about cryptocurrencies, the lower your risk

Investing in cryptocurrencies has become one of the most important attractions in recent years. Since its creation in 2009, the interest and value of cryptocurrencies have been increasing.

However, there are few cryptocurrencies that manage to be on the lists of the most traded. In this article you could know what they are. This will help you make better decisions when deciding between one cryptocurrency or another.

Always remember to stay informed of the changes that these assets may present to avoid losing your money.

Continue reading:Cryptocurrency Wallet: What is it and what is this wallet for?

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