Cryptocurrencies are digital currencies used as a medium of exchange of assets worldwide. Virtual currency has been hitting the headlines for a long time. Numerous investors are interested in cryptocurrency due to its decentralized and volatile nature. Furthermore, investors are attracted to buying currencies like Bitcoin due to its high return on investment feature, as the value of cryptocurrency is volatile. Whether the market trends are bullish or bearish, the right strategies to trade cryptocurrency can help you earn profits from almost any market condition.
Bitcoin is the oldest currency, invented in 2009 by a mysterious entity named Satoshi Nakamoto. It immediately got famous owing to its decentralized nature. The value of Bitcoin has multiplied exponentially over the years. It is primarily estimated by the supply and demand of coins in the market. In recent years, the crypto markets have booked and significantly matured. In 2021, the value of Bitcoins exceeded over 65,000 USD. Many trading apps can help you learn about the crypto market and how it works. If you are wondering about what exactly makes the currency so popular, we are here with a few primary reasons behind the rise of its popularity:
- Limited Supply- One of the leading causes of this massive popularity can be the limited supply of digital currency. The total number of bitcoins is limited to 21 million, which cannot be increased. Since the frequency cannot be raised, the demand for the currency rises as the supply gets exhausted. This currency acts as a store of value and a medium of exchange, so the restricted supply leads to an increase in value. You can download an Indian trading app to explore different cryptocurrencies.
- Decentralized- The value of a currency extensively depends upon its scalability. As there is no interference from the government or other financial institutions, peer-to-peer becomes easy and tax-free. Thus, bitcoins can be used universally, making them highly scalable. Due to this factor, they are also more stable as any ordeal occurring worldwide would not necessarily impact its value. Therefore, it is also a great way to secure wealth in a crisis. Furthermore, cryptocurrency investments can be very rapid and lucrative if done the right way on a Bitcoin trading app.
- High Profits- The crypto market trends can be leveraged in your favor to make a great deal of profit from it. When the prices are low, you can buy bitcoins to sell them at higher prices when the prices go up.
Bitcoin is the oldest cryptocurrency. However, there are numerous options today, including Ethereum, Solana, Litecoin, Tither, Dogecoin, Avalanche, Polkadot, etc. They all have their individual properties. The cryptocurrencies work on the revolutionary blockchain system, an electronic ledger that records all the transactions across its network. The cryptocurrencies are verified by proof of work and proof of stake. Users get rewards for verifying transactions. So, cryptocurrencies have a lot more to offer than traditional currency. Thus, many people are into investing in cryptocurrency because of the unique features that crypto coins have. You can research the best trading app in India to choose the crypto app of your choice.