After the financial crisis in 2007 caused trust in the centralized banking system to erode, a new digital currency was spawned as a result and investing in Bitcoin became a hit. From its advent in 2009, cryptocurrency has revolutionized investment trading by becoming a form of digital currency in which you can trade against other digital currency.
Most Commonly Traded Cryptocurrencies
The types of cryptocurrency available for trading is nearly endless, but investing in Bitcoin, Ethereum, or Litecoin is where the majority of digital currency investing occurs. Although Bitcoin was the first and is still the most recognized cryptocurrency, a number of private cryptocurrency and digital coins with less open and decentralized systems than Bitcoin have come to market recently.
The most dominant digital coin in the Cryptocurrency market remains Bitcoin. However, their market share has decreased from 90 percent in 2017 to hovering around 40 percent currently.
Established in 2015, Ethereum cryptocurrency ranks behind Bitcoin, but can also be used by app developers to pay transactions and services on their network.
As one of the early Bitcoin spinoffs in 2011, Litecoin enables instant payments to anyone in the world with the ability to accommodate up to 84 million coins.
Striving to be the standard mode of the transaction between internet-connected devices, IOTA was formed to record and execute trade between internet-based machines.
Working as a decentralized and open-source cryptocurrency, Zcash provides privacy and transparency on digital transactions.
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What Are Cryptocurrencies?
Cryptocurrency utilizes cryptography and blockchain technology to secure the financial transaction through a decentralized digital cash system. The first recognized form of cryptocurrency was Bitcoin which formed in 2009 and is still the most traded cryptocurrency in the market. From a market value of over $2 billion at its peak, investing in Bitcoin has resulted in rapid swings due to the cryptocurrency’s vague position in future markets.
Referred to as a ‘peer-to-peer electronic cash system,’ the decentralized system that tracks all transactions is conducted through Block Chain. With this network, everyone can see and track every transaction and see everyone’s account balance. Once a transaction occurs within a Cryptocurrency network, the data is mined by solving a cryptography puzzle. After the transaction puzzle is solved, these miners determine if the financial action is legitimate and then is spread over the blockchain networks.
By being a fully decentralized network, cryptocurrency requires no central bank, government or third parties in order to execute a customer’s demands. With cryptocurrency wallets acting as a digital bank to store, send, and receive digital currencies, Saint Vincent Holdings has the ability to accept various crypto wallet payments.