1 What is traded in Cryptocurrency market?
What is Cryptocurrency market?
We can just put it that cryptocurrency market is a global market that allows the exchange of one cryptocurrency for another or exchange of one cryptocurrency to a fiat currency.
The cryptocurrency market is a global market that comprises various Digital coins trading at a different value.
Just like we use government-owned currency (fiat currency) to exchange value in within a particular country for example;
If you’ve ever traveled to another country, you usually have to find a currency exchange booth at the airport, and then exchange the money you have in your wallet into the currency of the country you are visiting so that you can spend it in that country. In the cryptocurrency market, you equally exchange one cryptocurrency to another in order to use it within the ecosystem the cryptocurrency is accepted.
Say if you want to buy clothes with Bitcoin from Amazon, and you have Ether (Ethereum) or Ripple coin, you will have to go to the cryptocurrency market where you can exchange your Ether (Ethereum) or ripple to Bitcoin to spend it. If you don’t want to spend it, you can equally save it for investment purposes with the hopes that the coin will increase in value so you can spend it.
The cryptocurrency market is a global market that has no boundary or restriction. It is digital in nature as such you cannot feel it or touch it just like fiat currency. If you ever want to exchange your crypto say Bitcoin to fiat money you can visit any international online exchange or local your local exchange (otherwise known as peer to peer exchange) operating in your country where you can sell or buy any supported currency directly from someone close to you.
When you do this, you’ve essentially participated in the cryptocurrency market! You’ve exchanged one crypto for another or crypto to fiat or in cryptocurrency trading terms you’ve sold Bitcoin and bought Fiat.
After some weeks of exchange your Bitcoin for your local currency you checked back the price of Bitcoin and discovered that it is no longer at the same price you sold, it has increased in value. This rise and fall in value are what allows you to make money in the cryptocurrency market.
The cryptocurrency exchange market, which is usually known as the crypto market is currently growing and trading billions of dollars in daily volume around the world. It is predicted that the cryptocurrency market will be trading trillions of dollars daily.
Wow, trillions of dollars daily? That’s huge. This is the main reason why you should get into the cryptocurrency industry while it is still in its early stage.
Do you feel like you already know what the cryptocurrency market is all about? We’re just getting started.
Lets take a look at WHAT exactly is traded in the cryptocurrency market.