Investing and trading on Cryptocurrencies online

To invest online on the prices of the main crypto-currencies on the market, it is possible to go through certain online brokers offering this type of assets.

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Investing and trading on Cryptocurrencies online

The exchange rates of the main cryptocurrencies

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The Bitcoin, the first Cryptocurrency ever created, launched a few years ago, has already experienced a very important increase in value, individuals seeking for profitable shares in which to invest get increasingly interested in virtual currencies which are gradually invading the market. It is true that this new way of paying for goods and services online has many qualities that attract users and speculators who see in it an asset of first choice to invest in short, medium or long term. But how do you invest and trade with these Cryptocurrencies online, and what do you need to know about this type of assets before beginning to speculate? This is what we are going to help you discover today thanks to some explanations and practical tips.


Reminder about the concept of Cryptocurrencies: What are virtual currencies?

We call cryptocurrencies to currencies that are “cryptographic” or the system that allows this kind of peer-to-peer payment method.

In conclusion, we can explain what cryptocurrencies are by saying that they are virtual and dematerialized money, which have no physical support. Cryptocurrencies therefore have no coins or bills allowing their physical or material exchange. These currencies cannot be used with traditional banking methods such as checks or credit cards.

Cryptocurrencies are thus an alternative to traditional currencies. Due to their complete independence from the traditional monetary system, they also do not have legal price in any country in the world. This independence makes it compete side by side with gold and with other currencies since their price is not indexed on any price of another value. Finally, it is obvious that cryptocurrencies are also totally detached from any specific central management entity.

However, Cryptocurrencies are not considered as risky currencies since they have, on the contrary, undeniable advantages in terms of security and transparency. The cryptography system used for cryptocurrency transactions allows you in fact to secure these transactions by systematically verifying and registering them in a public domain. Also, Cryptocurrencies users have the guarantee of confidentiality and genuine authenticity. The technology to encrypt these transactions is called “Blockchain”.


How can we have access to Cryptocurrencies today?

In order to own and use Cryptocurrencies today, there are several different methods you can use. You could for example choose to sell a good or a service online and request to be paid with a virtual currency, which will be credited to your crypto account.

Just like any other currency, you can also get crypto money by converting another currency such as Euros or Dollars. In order to do this, there are several online services specializing on the conversion of currencies to cryptocurrencies, including Bitcoins. Of course, to convert some of your money to a cryptocurrency, you will have to register on a platform specially created for this purpose and provide some documents such as a copy of your identity card or a recent proof of address.

Now that you know how to obtain Cryptocurrencies, you are probably wondering how they will be stored or preserved since they are not materialized the only way to keep cryptocurrencies is by owning a specific file.

This file is evidently a virtual account with an address in the form of a sequence of numbers and secured by a password. It is relatively easy to create this kind of Cryptocurrency file online in a platform dedicated to this purpose. It should be noticed that every kind of Cryptocurrency has its own platform and therefore its own file, but certain platforms allows you to have several different Cryptocurrencies.

Using your cryptocurrency, once in your virtual file is quite simple you only have to do it through an intermediary such as a trading platform (broker) or a software that you can download for free.

The service is not completely free however and most of these intermediaries charge a commission on the transactions made.

With this information, it can seem obvious that owning cryptocurrencies virtually is not necessarily the best way to invest on shares in the future. We will see below how trading online is a more suitable solution.


What are the most interesting Cryptocurrencies listed on the stock market at the moment?

You have probably already heard about the most popular Cryptocurrency among particulars, the Bitcoin, since this virtual currency was the first to come out. But since then, the cryptocurrency market has changed significantly.  Since the Bitcoin started to show limitations in terms of transaction execution speed, other virtual currencies using blockchain technology have appeared and it is now possible to trade online with them.

To guide your choice of investment, we will give you a list of the ten most important Cryptocurrencies in terms of market capitalization in 2017:

  • The Bitcoin: Created in 2009, the bitcoin is still the Cryptocurrency with the largest market capitalization with more than 54 billion dollars. It still ranks first in our list.
  • The Ethereum: is in second place of this list. This virtual currency created in 2015 has a market capitalization of almost 27 billion dollars.
  • The third position of the list is occupied by the Ripple which was launched in 2012. This Cryptocurrency has a stock market capitalization of nearly 7 billion Dollars.
  • Bitcoin Cash, was launched in 2017 to compensate for the defects of the original Bitcoin, it occupies the fourth position in the list with a capital of 5 billion dollars.
  • In fifth position, we find the Litecoin, launched in 2011 and whose market capitalization nears 2.5 billion Dollars.
  • The NEM, launched in 2015, currently counts with a market capitalization of 2.4 billion dollars, it occupies the sixth position of our list.
  • The seventh position is currently occupied by the Dash, created in 2014. Its market capital is currently 1.4 billion dollars.
  • The IOTA, recently launched in 2017, occupies the 8th position in this list with a market capitalization of nearly 1.4 billion dollars as well.
  • On the ninth position we find, the Cryptocurrency Ethereum Classic, created in 2016 with a market capitalization of 1.4 billion dollars.
  • Finally, the tenth and last place of this list is occupied by the Cryptocurrency NEO, launched in 2016 and with a capital of 937 million dollars in 2017.

Of course, all those Cryptocurrencies are not necessarily offered as an investment asset by online brokers. You will not find however any difficulty in speculating on the course of the Bitcoin or the Ethereum which are very popular among investors around the world today.


Cryptocurrencies and their advantages as investment assets:

As we have just seen, Cryptocurrencies are increasingly becoming popular as a secure method of payment for online transactions. But their recent success has also made them prime investment assets among particulars around the world. The same way than other assets such as currencies, stocks or raw materials, the price of Cryptocurrencies is constantly changing, and it is therefore possible to speculate on the trend that these prices will follow on the market.

This impressive performance is not only about the bitcoin but most of the other Cryptocurrencies, all of which remain particularly attractive assets for long term investment strategies. But the volatility of these assets also allows to do very interesting short-term strategies, in particular by using contracts such as CFDs which allows you to invest in the rise and fall.

Investing on Cryptocurrencies is more or less speculating about an advanced technology that could change the way we use money and pay our transactions.

The most cautious investors will be happy to bet on the bitcoin which remains, today, the leader on the market of virtual currencies, and the most adventurous will bet on the growing success of other Cryptocurrencies such as the Ethereum, in good position to dethrone the bitcoin in the medium term.