The presence of cryptocurrency is strong in various social media sites. This is why it is not a big surprise why there are many people who are reaching out to brokers such as https://moreforexbrokers.com/ja/fx-brokers/ to help them with their crypto investment and journey.

But why is there a global acceptance to cryptocurrency and blockchain technology? What makes it so loved and popular among people these days? Let us try to decipher the mystery behind in the next paragraphs.

Incredible Liquidity Pool

In each and every asset that’s sold or bought regardless if it is FOREX or crypto, one thing will be a mandatory requirement; it needs someone to buy or sell from. The more who are selling and buying, the more liquid the exchange is. Whenever there’s a new crypto exchange that opens, it should populate all the trading pair order books with the sellers and buyers in order to provide a market among users to trade.

This is distributing the trading liquidity from the current exchanges that may adversely impact the smaller exchanges that you may be trading with at the moment. Brokers on the other hand may avoid such issue by means of closely monitoring the market and reacting on the situation.

Lower Slippage Fees and Spread

One very frequent mistake when choosing a crypto exchange particularly the newer ones are doing it based on the low trading. This may seem to be a very appealing proposition as well as logical decision to make the most of fiat deposit. However, there are brokers who are capable of distributing the sells and buys across exchanges that have the most liquidity. This is strategically done to identify where the highest liquidity is for that asset and then, split the order throughout those exchanges.

Traders are using brokers benefit by acquiring the following:

• Best Market Rate
• Lowest Spread
• Minimal Slippage

Increased Pairs to Trade

Depending on the trading volume per day, crypto pairs on each exchange have its own order book for every asset against fiat like EUR, USD and of course, BTC or Bitcoin. Meaning to say, there’s less liquidity that’s available on the exchange that leads to higher slippage charge and spread for the traded asset.

Brokers have the ability to offer assets without any losses in liquidity are such in an advantageous position. Not just this is lowering the fees in slippage and spread, users can also use one broker trade as well as store their assets in a single location without registering with several exchanges.

Leading cryptocurrency which is Bitcoin Is deemed to be a hedge towards inflation primarily because of the reason that its supply has a ceiling of 21 million while its monetary policy is predesigned to reduce the expansion supply by 50% every 4 years. Because of this, any deflationary collapse of the cryptocurrency might be seen as price-bearish development.

At times of deflation, cash is mostly the king due to the drop in general price level is boosting the purchasing power of monetary unit or its ability to buy services and goods. According to Erick Pinos, in comparison to inflation, when people are trying to get the most of their money due to its losing value, during deflation, people become more comfortable with the fiat currency because the value is going up.

Growing Steadily

The rush for cash on the other hand might not have negatively impacted Bitcoin’s prices. This is because deflation will boost the buying power of crypto. As a matter of fact, the rise in purchasing power draws bigger demand for Bitcoin since crypto is being used already as a mode of payment.

Actually, it isn’t strange for there are countless of businesses, merchants and brands that are accepting Bitcoin as payment and many more are beginning to realize the benefits associated to crypto and by diversifying revenue streams.

Not just that, cryptocurrency has great appeal as being a medium of exchange and will most likely keep its trend. Thanks to the continuous growth of technology especially at these times of pandemic. Well, aside from the fact that Bitcoin and other digital currency is being used as a mode of payment, you can see it as well in the financial market. In fact, many people are trading cryptocurrency and using several indicators such as mt4 indicators to gauge where the trend will go and make more money from it.

Digital Gold

From the time of its invented and introduced to the public, Bitcoin has been named as “digital gold”. Much like actual gold, cryptocurrency is divisible, fungible, durable, recognizable and scarce. Both assets do share the same features which are being functional and practical. Bitcoin though has an actual utility as a mode of payment; something that gold is lacking of.

In fact, both the Federal Reserve and the US government released an enormous amount of liquidity in the system for the past several weeks in an effort to contain the fallout from Covid-19 outbreak. Thing is, many of the central banks and governments are having a hard time keeping up with it. Hence, if the virus never stops, it might result to several corporations going to default, investors might have lose trust in using traditional finance and seek for alternative similar to cryptocurrencies and Bitcoin.

Back then, the types and number of cryptocurrency in the world can be counted by the fingers in your hand. These days, good luck with that! Cryptocurrency market grown a lot since its inception. As we proceed in this article, we will be explaining the major types of crypto which are:

1. Bitcoin
2. Altcoins and;
3. Tokens

With blockchain technology, this becomes possible. In fact, Bitcoin was the very first one. From there on, there have been countless of blockchains that were created and these are otherwise referred to as altcoins. Then there were tokens.

A Deeper Look into Blockchain Technology

Alright, so we already know the three main types of crypto. But what about it? How they are different from each and what they can do?

Bitcoin

It’s a digital currency you could send to others; perhaps has a gift, as payment for service and/or product.

Bitcoin acts like money but it is purely in digital form. But that is not where the difference lies. This is decentralized as well or in other words, no bank or third party handles it.

When using Bitcoin, every transaction takes place between users or called as P2P network. Since no third-party is needed, there’s no reason to identity yourself. You could start making payments and remain anonymous. And mind you, there are many people who are investing in Bitcoin and even using their law cash pre settlement funding just to get their hands off of it.

Altcoins

Then come the altcoins. As of the moment, there are literally thousands of it you can find. But never let that scare you. Most of the altcoins are only an alternative version of Bitcoin, but with a bit of tweak on them; hence the name. Some of the altcoins are using different algorithms like for instance, Factom is an altcoin that’s using PoS or Proof of stake. Here, there are no miners, only stakers.

These are individuals who are verifying transactions in exchange of rewards, much like miners. Rather than verifying blocks before anyone else, they’re chosen one by one and taking turns.

Tokens

Among the three, some consider this as being the most interesting. These are totally unique that they don’t have blockchain of their own. They’re being used on decentralized applications or dApps. These are dApps are made to make use of smart contracts which is the reason why they are using tokens.