The first few weeks of the year, there has been an explosive growth in the number of people talking about Crypto Investing. However, what is it exactly? It is the process of trading currencies with the aid of cryptosporidium or cyphers. For those not familiar with the term, here is a quick breakdown:
As mentioned above, Crypto Currency Trading involves using a virtual money system called Cryptosporidium. It is not entirely virtual however since it is backed by real world currency (usually the US Dollar). By trading in Cryptocurrencies, one can speculate, invest, and profit off of movements in the market for the crypto they are speculating on. Most of the popular exchanges for now are namely, Bitfinex, Bithumb, and OANDA. Although there are many more on the way, these are the major ones that you can start with to get a feel of it.
You should note that investing in Cryptocurrencies is very different from traditional stock trading. Unlike stocks and bonds which have a long history as well as a clear exit strategy, investing in Cryptocurrencies is all about short term gains. That being said, if you look at an exchange, you will see that it acts just like a stock on the stock market. You make money when the price goes up and you lose money when it goes down. Because of this structure, many investors have been attracted to the volatile pricing of some of the lesser known but more profitable currencies.
For example, one of the more volatile and interesting crypto right now is the bitcoin. Many traders have been attracted to this because it is the most highly leveraged, and for good reason. Many investors want to know that they can leverage their trades so much without worrying that they are losing their entire investment in the blink of an eye.