What you should know about digital currency in 2018

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Technology is more and more powerful lately and the digital era is continuously evolving. This is the reason why people started to ignore cash and make investments in cryptocurrency. Buying bitcoins and altcoins are pretty usual nowadays when people prefer to invest their money in something that can actually have a positive outcome very easily. Most cryptocurrency lovers make investments in this field because of the huge winnings they may be getting their hands on if everything goes as expected. The problem with digital currency is that if you don’t follow real time cryptocurrency charts you might end up selling at a wrong time and lose money instead of winning them. The territory of cryptocurrency is full of obstacles and issues that you need to deal with and that’s the main reason why getting informed and learning as much as possible about this topic before making any move is paramount.

Cryptocurrencies are not palpable. They are purely digital coins that are created using cryptography. This means that the process of counterfeiting cryptocurrency is almost impossible. Many people wonder if investing their money in cryptocurrency is safe, given the fact that this era is governed by cybernetic attacks and hackers. The answer is yes. If you purchase a physical wallet to store your coins you have nothing to worry about. In addition, many online wallets are safe enough to trust them with your cryptocurrency. Here are the latest trends in digital currency and the cryptocurrencies that promise a lot for the future:

Altcoins, cryptocurrency & value

The market value of cryptocurrency has increased tremendously during the past year and if the pace continues, the following year will boost everything up to another level. Traditional financial markets and business investments started to lose ground since cryptocurrency is so promising and profitable. Bitcoins and altcoins are currently becoming a big part of trading. The only downside of cryptocurrency would be its instability. The value of a digital coin can drop as fast as it can grow. When deciding to invest in cryptocurrency you should be aware that you are facing a high risk. When a type of cryptocurrency collapses many people – and companies too – are exposed to losing money directly. Start-up companies that are entirely based on bitcoins or altcoins could dramatically suffer from a cryptocurrency crash. Yet here are some of the digital currencies that promise profits in 2018:

  • BTC – Bitcoin

One BTC is currently valued at $10,186.45n but it can fluctuate severely. This is the reason why following charts it’s so important. If you decide to sell BTC at an inappropriate moment, you risk losing lots and lots of money. There were times when BTC valued much more than in the present moment, which means that some people lost money by simply believing that waiting for the value to rise is the best decision. This is what makes investing in cryptocurrency quite risky. BTC is the strongest type of cryptocurrency. Talking about Bitcoin’s value fluctuation, it creates interest among business people who are looking for high-risk transactions. Bitcoin, like any other cryptocurrency type, is used for avoiding centralized institutions that control transactions between individuals.

  • ETH – Ethereum

ETH is worth no less than $930.81 at the moment and is considered a promising investment for the following year. People are wondering what’s the difference between ETH and BTC, besides the actual value. Well, the two types of cryptocurrency share the fact that they are built using public network technology (blockchain). The similarity is that both Bitcoin and Ethereum offer a single application, a peer-to-peer exchange system that allows online payments in a pure form. Yet while Bitcoin uses blockchain technology to identify actual Bitcoins, Ethereum uses a blockchain as a platform to virtually run any decentralized application. The possibilities with ETH are unlimited. The reason why ETH’s value grows so fast is that people began to see a similarity between ETH and BTC which is already popular and more valuable and wanted to take advantage of that, investing while it still has a low price.

  • LTC – Litecoin

LTC is currently valued at $171.27. The difference between LTC and the other cryptocurrencies mentioned is that it offers faster confirmation. The entire Litecoin network is processing a block faster than other types of digital coins. A faster transaction confirmation also has disadvantages regarding the blockchain (e.g. orphaned blocks). In addition to the faster confirmation, LTC is using a different hashtag algorithm and the network generates more coins than Bitcoin’s network.

Using Bitcoins on the market

There are several questions that people ask themselves before investing in cryptocurrency. Yet it is more important what normal people believe about introducing cryptocurrency at a larger scale, in everyone’s daily lives. For instance, many people don’t know much about bitcoins or altcoins by now because it’s still an unknown, unstable territory. When asked about whether they would feel comfortable with investments in digital currency, people tend to say no because of the value fluctuations.

Although many people would respond yes to the latter question is still not enough for implementing the usage of digital coins at a global level in markets. Compared to other types of money handling, like banks, properties, stock markets, virtual currency is losing ground regarding the fluctuations and sudden changes, the reason for people choosing banks over cryptocurrency. This situation may change over time, considering that people prefer going through life without using physical money anymore. People use credit cards and virtual wallets to make payments and it is more convenient this way. That’s the main reason why cryptocurrency gained so much popularity in such a little time. With just a look at this new medium of exchange, which is electronically stored, people might get convinced that it is the right option for the future. The only thing they seek for at the moment would be stability.

Final thoughts

As people are becoming more and more interested in how cryptocurrency works or whether is it worth it or not to invest in them it is inevitable not to notice a growth in bitcoins and altcoins’ value.