What does the crypto market look like?
Now multiply the whole thing by several thousand
Thousands of cryptocurrencies have been released since Bitcoin debuted in 2009. Each of them has a specific primary purpose. And each of them is also available as an investment.
This turn of events may seem unlikely, but it is quite common in the non-cryptographic world. Take the example of IBM. Its main activity is to provide IT products and services to large companies. But it is also an investment. IBM stock is traded on the New York Stock Exchange. IBM has a primary business function and also represents an investment opportunity.
To buy IBM stock, you must go to a stock exchange. If you want to buy shares of the total market capitalization of Bitcoin, you must buy them on a cryptocurrency exchange – a platform like Kriptomat that allows users to invest by buying, selling, trading and holding crypto -currencies.
In the years since Bitcoin’s debut, some coins were released primarily as investment tools, but most coins were released in conjunction with fintech, gaming, entertainment, and other projects. sectors. Coins and tokens are available for purchase on exchanges where prices fluctuate based on supply and demand, much like company stock prices.
Cryptocurrency exchanges represent the stock exchanges of the digital world. In the same way that stock exchanges list hundreds or thousands of stocks, cryptocurrency exchanges allow you to buy, sell and trade hundreds or thousands of digital currencies. Collectively, these currencies make up the crypto market.
More than just buying & selling
The Amsterdam Stock Exchange opened in 1611. The financial community has had four centuries to develop and refine tools and strategies for investors. Cryptocurrency exchanges are new, but they can benefit from centuries of trial and error.
btc item 3
Image source: QuoteInspector.com, License: CC BY-ND 4.0
For example, advisors at pre-crypto exchanges recommend spreading costs as a way to minimize the effects of market volatility. Cost averaging is simply making frequent investments and spreading them out over time. Instead of making an investment of 12,000 euros at the start of the year and risking a fall in prices that would devastate your portfolio overnight, you make a purchase of 100 euros each month or 25 euros each week. Over time, the result is that you own more shares that were purchased at a lower price – because the lower price means you get more shares in return for your regular investment. This strategy has proven to be excellent, especially for investors building their portfolios for the long term.
Today, cost spreading is accessible to everyday cryptocurrency investors. Kriptomat’s Recurring Purchase feature puts the power of cost averaging in your hands.
Another example: Brokers and investment bankers give wealthy investors access to high-end tools like trading robots that can be programmed to execute trades when certain price thresholds are reached. In the cryptocurrency world, Kriptomat calls it “Automated Trading” and it is available to everyone.
Even advanced features like index investing and derivatives are making their way into the world of cryptocurrency.
Better than real money
Regulations and a close-knit investment community have traditionally reserved powerful investment tools for wealthy clients. Bankers and government regulators write rules that prevent most people from fully participating in managing their own finances. One of the main advantages of the cryptocurrency world is that everyone has access to the market. With crypto, everyone enjoys financial fairness, dignity, and self-determination.
btc fiat 4
Image source: Flickr.com, License: CC BY-ND 2.0
Bitcoin is primarily a general-purpose digital currency. Ethereum is primarily a platform for running decentralized applications. MANA is primarily intended to support a game economy for the Decentraland game platform.
These three cryptos – and thousands more – are also available as means of investment. Do you like metaverse type games? Discover Decentraland, Tron,
in, Loop and WAX. Do you think decentralized financial applications will take off? Think of DeFi-related cryptocurrencies like Ethereum, Cardano, Polkadot, and Avalanche. No matter what industry you are interested in, you are likely to find several cryptocurrencies ready to play a key role. Find out, choose a currency and invest.
In the cryptocurrency market, you are in control.