Cryptocurrency, and its future, trading, earning, precautions and safety measures.

What is cryptocurrency?

Cryptocurrency ( or Crypto) is a digital or virtual currency that uses cryptography for secure transactions. This money takes the form of tokens or coins.

Crypto in cryptocurrency means cryptographic techniques or technology is used for creating the digital currency.

This system does not have any centralized regulating authority; instead, a decentralized system records transactions and issues new units.

In other words, we can say that cryptocurrency is a digital asset on a network distributed along various computer networks. This decentralized structure of cryptocurrency makes them free of government control or any centralized authority.

The name cryptocurrency is given to this payment system because encryption is involved to verify the transactions. Encryption provides safety and security to this system.

Encryption means advanced-level coding is required to store and transfer the data between public ledgers and digital wallets.

Cryptocurrency is an application of blockchain computer technology.

It does not rely on banks for transactions and payments.

Anyone from anywhere can send or receive the payment. It is a peer-to-peer system.

During the transaction of Cryptocurrency, it is recorded in a public ledger and stored in a digital wallet.

It is used to buy goods and services or traded for profit or speculative investment.

Bitcoin was the first cryptocurrency. It was founded in 2009 and is still considered the best among the various cryptocurrencies.

What Is Cryptography?: The blocks are linked in the chain by cryptography which is a complex mathematics and computer science. Any fraud attempt to disturb the cryptographic links between the blocks can be identified immediately by the computers in the network.

Working principle of Cryptocurrency:

It works on the distributed public ledger. The record of all transactions is updated and held by the user. This principle is called blockchain.

What is blockchain? As the name suggests, it is a chain of blocks. Blockchain is a shared digital register to record all the data.  Each and every transaction of cryptocurrency is recorded to the blockchain in blocks. A new block is added at the front of the chain.

What is Cryptocurrency mining? The coin (the unit of cryptocurrency) is generated with the help of complex mathematical problems solved by a powerful computer. This process of generating the coins is called Mining. In other terms, with the help of mining processes, transactions are validated digitally on cryptocurrency networks and added to the blockchain ledger in the form of new blocks.

Instead of generating the coins, they may be purchased from brokers and further coins may be stored and used from cryptographic wallets.

For the transaction of coins, a key is required. Cryptocurrency holders must have a key that will be used for the transactions of coins.

Types of cryptocurrency: There are thousands of cryptocurrencies in the market. Some of the cryptocurrencies or tokens are listed below:

Payment cryptocurrency: It is the first major type of cryptocurrency and a medium of exchange and purely peer-to-peer electronic cash for transactions.  It is a general-purpose cryptocurrency and is expected to have only a limited number of coins. Limited mining of coins will increase the chances of its value to rise.  Bitcoin is the first cryptocurrency for digital payment. Others are Litecoin, Monero, Dogecoin, Bitcoin Cash, etc.

Utility Tokens: It is the second major type of cryptocurrency. The cryptographic assets which run on top of another blockchain are called tokens. The first network that allowed other crypto assets to piggyback on its blockchain was Ethereum. By creating more and more utility tokens, its value falls like fiat currency which is being printed more and more. Utility tokens serve a specific function or purpose on the blockchain and it is called a use case.   The Ethereum network has been changed to burn off some of the Ether used in each transaction to align the use case. Such types of tokens are called infrastructure tokens.

Service tokens: The tokens that grant access to the holders or allow them to perform something on the network are called Service tokens. Example: Storj is a service token that is an alternative to Google Drive, Microsoft Onedrive, or Dropbox. It rents unused hard drive space to the client which needs to store the data in the cloud.

Finance token: These tokens are created to give discounts on trading fees and are referred to as exchange tokens. Finance tokens are generally sold by Initial Coin Offerings (ICO). In this system, early-stage cryptocurrency projects are connected to investors. One example of a Finance token is Binance coin (BNB).

Governance token: These tokens give the right to vote on certain things within a cryptocurrency network. Voting decides on proposals to maintain the decentralized nature of the network. Example: MakerDAO is a Governance token, generally called MKR. It provides the right to vote on decisions about MakerDAOs Stablecoin which is called Dai. DAO stands for Decentralized Autonomous Organizations, a type of virtual cooperative.

Media and Entertainment tokens: As the name suggests, these tokens are used for content, games, and online gambling. Example: Basic Attention Token (BAT): BAT is used to view the advertisement followed by best content creation.

Non-Fungible Tokens (NFTs): First, we should understand the difference between Funglible and Non-Fungible tokens.  In Decentralized Finance (DeFI), cryptocurrency is fungible and it implies that one unit of a particular currency is identical to the next. However, in NFTs, each unit is different from the other. Therefore, NFTs are not included in the cryptocurrency.

Stablecoins: Stablecoin is a specific type of cryptocurrency that is not highly volatile like Bitcoin or other cryptocurrencies. Its value roughly remains fixed equivalent to some other assets like fiat currency, commodity, or other cryptocurrencies. They maintain their values and are exchangeable with fiat currencies. Stablecoins are pegged with physical currencies like dollars and Euros.  To provide the guaranteed value of stablecoins, the pegging company is expected to maintain the reserves. Due to its stable value, investors like it as a savings bank and medium of exchange for regular transfer of money without the fear of volatility. Please keep in mind that fiat currency is issued by the government, and the Dollar, Euro, etc. are the fiat currencies. Some examples of stablecoins: Tether’s USDT, Dai, USDC, etc.  It is cautioned here that not a single cryptocurrency is regulated by Government regulations. So it is again not 100 % safe. In 2022, high profile stablecoin TerraUSD and its own coin Luna badly crashed and the value of TerrUSD went down from 1US$ to 11 cents.

Central Bank Digital Currencies (CBDCs): It is issued by the central banks of different countries. Its value is pegged to the domestic currency of the issuing country or region. Central banks maintain complete control and regulations over the CBDC. Though it is limited to some countries but It is growing and expected to be adopted by many countries in the near future. There are almost no chances for volatility and fraud.

Cryptocurrencies and blockchain platforms: There are thousands of cryptocurrencies and blockchain platforms. Some of the platforms are listed below:

Bitcoin (BTC): This most popular cryptocurrency is developed by Satoshi Nakamoto which is probably not the real name of the developer(s).  The real name(s) is not known. It is still the leader in the cryptocurrency market in terms of market capitalization, user base, popularity, etc.

Ethereum (ETH): It was developed in 2015. It is a blockchain platform as well as a cryptocurrency. It is called Ether (ETH) or Ethereum.  It is also the most popular cryptocurrency after Bitcoin. It exists in the second place of market capitalism after Bitcoin.

Litecoin: It is almost similar to Bitcoin but it is capable of doing more transactions with faster speed.

Ripple: It was developed in 2012 and is a little bit different from the above-mentioned cryptocurrencies. It is a distributed ledger system along with a cryptocurrency.  Its developing company has worked with various banks and financial institutions. XRP: It is created by Ripple as a payment system.

Altcoins: Altcoins is not a single cryptocurrency, it is a group of cryptocurrencies other than Bitcoin. It makes them different from Bitcoin. We can say that Altcoins are the modified or improved versions of Bitcoin.

Avalanche (AVAX): It is a cryptocurrency and blockchain platform similar to Ethereum (ETH). It is considered the fastest smart platform.

Telcoin (TEL): It is a cryptocurrency based on the TELx network.

Solana (SOL): It was founded in 2017. It is a blockchain platform and it is considered the killer of Ethereum due to comparatively low trading fees and faster transactions than Ethereum (ETH).

Polygon (POL): It is a cryptocurrency as well as a blockchain scaling platform. It links and grows the Ethereum-compatible blockchain platforms.

Polkadot (DOT): This platform works within blockchain networks for scalability and other technical challenges. It is a multichain protocol that provides multiple chains to transfer data and tokens.

Tether(USDT): It was launched in 2014 and it is understood to be one of the most popular stablecoins with less volatility compared to Bitcoin and others. USDT is pegged with the US Dollar and remains stable at around 1 US$. It is achieved by keeping reserves equivalent to 1 US$ in cash or assets. It is easily convertible in US$ (roughly equivalent to 1 US$).

Binance Coin (BNB): It is generally used as a utility token for trading fees. This payment mode gets some discounts also.

USD Coin (USDC): It is another stablecoin like Tether and its value always hovers around US$1. It is not highly volatile like non-stablecoins.

Meme coins: The cryptocurrencies designed for no functions other than to be token or humorous are called Meme coins. They are inspired by the internet memes and trends. Many meme coins are in circulation in the cryptocurrency market and some have gained a good value.

Dogecoin (DOGE): It was created by two software engineers (Billy Markus and Jackson Palmer) in 2013. It is popular as a meme coin for some people due to a huge increase in its value in 2021.

Shiba Inu (SHIB): Some reputed companies accept the mode of payment by a coin that uses an image of Shiba Inu as its avatar.  It is an Ethereum-based altcoin and is considered the alternative to Dogecoin. Note: Shiba Inu is a Japanese breed of hunting dog that is used as a mascot here.

Tron (TRX): It was launched in 2017. TRX is a native coin of Tron which is used to pay for on-chain transactions and payment modes on exchanges.

Toncoin (TON): It is the native coin for The Open Network and was initially created by the Telegram team. Now, it is run by Ton Foundation.

Cardano (ADA): It is co-founded by Charles Hoskinson. He was one of the five founding members of Ethereum. It is also considered the killer of Ethereum,  due to the very high capability of its blockchain. It is expected that Cardono is capable of providing the solution to interoperability, voter fraud, legal contract tracing, etc.

Chainlink (LINK): It is a technology platform that allows the blockchain layer for the universal smart contracts.

How to start investing or trading in cryptocurrency? The steps to buy or sell the cryptocurrencies are described below:

Step -1:

Choose a platform: You may have the following two options: Traditional brokers and Cryptocurrency platforms.

Traditional brokers: These are online brokers and facilitate the transactions (bury or sell) of cryptocurrencies along with other financial assets like stocks, bonds, ETFs, etc. They offer lower trading costs but with limited crypto features.

Cryptocurrency exchanges: Many such platforms exist with some specific features like: Trading in various cryptocurrencies. Wallet storage system. Different methods of fees. Other different options like payment of interest, etc.

Some other platforms: Some other platforms facilitate the transactions of cryptocurrencies like PayPal, CashApp, Venmo, etc.  People can buy, sell, and hold cryptocurrencies through these platforms. In addition, the following systems are also available for the transactions of cryptocurrencies: Bitcoin trusts: Retailers (buyers and sellers) can buy, hold, or sell bitcoins in the stock market through Bitcoin trusts at a prescribed rate for transaction fees. Bitcoin mutual funds: This platform facilitates the bitcoin transaction for ETF (Exchange Traded Fund) and Mutual funds. Blockchain stocks or ETFs: As you know, the cryptocurrency system functions with the help of blockchain computer technology. Most of the blockchain companies are experts in cryptocurrencies, so we may invest in cryptocurrencies through such blockchain companies. Alternatively,  we can buy, hold, and sell in the ETFs of blockchain companies that are involved in the cryptocurrency functions.

Points to be considered before selecting the platform: Offer on the cryptocurrency which you want to purchase or buy. Transaction charges. Security features of wallet. Deposit and withdrawal options. Your goal and appetite for risk. Any other important features, rules, or regulations affecting you positively or negatively.

Step-2: Transfer of funds into the account:

Most of the platforms allow the use of government-recognized currency like US dollars, British Pounds, euros, etc. Debit or credit card may also be used for the transactions. Some platforms may also have other options (ACH, Wire transfer, etc.) for the transfer of funds.

Different payment methods take different periods for clearing the funds.

Some trading platforms or credit card banks do now allow transactions for cryptocurrencies. It may be risky to the user also. Since cryptocurrencies are highly volatile and transactions through credit cards may trouble you due to the following reasons: Unnecessary loans may put you in debt. High transaction fees are charged by credit card companies.

Always pay attention to different charges like transfer of fund fees and trading fees for cryptocurrencies.

General tips for opening an account in cryptocurrency exchange: These tips may slightly vary from one platform to another. However general tips are given below: Create an account: An email address is required to open an account. We have to create a password for the same. An email will be received to confirm the owner of the given email account. Upload personal information: It is expected to be required to upload the requisite information like full name, address, mobile phone number, and copy of photo ID issued by the government like passport, driving license, etc. Complete the identity: verification: some exchanges may ask for your photo by webcam or mobile phone camera to confirm the ID.   Fund your account: After successful verification of the account, funds may be transferred into the account by various options available on the platform, and trading may be started.

Step-3

Order placement: The order can be placed either through the website of brokers, exchanges, or through mobile phone apps. Select the option Buy or Sell, as per your need. Fill in the option for the amount of cryptocurrency. Select the option Confirm to place the order.

When we buy the cryptocurrencies via the exchange, it means we purchase the coins and we will need to create an account in exchange and store the coins into the wallet till the sale of the same.

Trading in cryptocurrencies and trading account (CFD):

A large number of transactions in cryptocurrencies are executed for a good profit due to speculation, high volatility, and fluctuations in prices.

Trading account: A CFD trading account is required for buying and selling the cryptocurrency. CFD (Contract For Difference) is a financial contract that allows settlement for the payment of the difference between the buying and selling price. In CFD, ownership of assets is not given. However, we can take advantage of low and high values of cryptocurrency for executing short (sell)  or long (BUY) for a short period.  CFDs are leveraged products, which means opening the position for a fraction of the total value to be traded.  Or we can say that with the help of a small deposit, which is called margin,  we can get exposure for a larger amount of cryptocurrency. We will get the profit or loss on full exposure.  A similar pattern is adopted in the stock markets also. Simple example:  By investing 100 US$ in cryptocurrency trading, we can get profit or loss like an investment of  1000 US$ (say example). But keep in mind that any trading impact (profit or loss),  will be calculated on your full amount of investment which is US$1000 in this example. Here margin is 10% ( US$100) of the total open position (US$ 1000). Note: To prevent the huge loss, apply the level of stop loss as per your need.  Units will be automatically sold when the market touches the stop loss level. Similarly, we can put the limit on the sell price, to get the profit. Automatically units will be sold when the market reaches a limit price.

Cryptocurrency market movement:

Mostly it depends on demand and supply.

Unlike the stock market,  Many political and economic disturbances do not impact the cryptocurrency due to its decentralized nature.

However, the following factors can impact the cryptocurrency market:

Supply: The total number of coins and the rate at which the coins are created, destroyed, or lost.

Market capitalization: It is the total value of all the coins in the current market.

Media coverage: The way (positive or negative), cryptocurrency is projected in the press, news channels, etc. will impact accordingly.

Integration: How easy it is to use in the market like e-commerce platforms, etc.,  will impact the value of the coins.

Affecting features:  Any change in government regulations with respect to cryptocurrency, Security breaches, cryptocurrency fraud, economic trends, technical glitches, etc. will certainly impact the value of cryptocurrency units.

What is mining? Since the Cryptocurrency market is decentralized and not regulated by the government or any other central agency. Instead, it runs across computer networks that can be purchased, sold via exchanges or brokers, and stored in digital wallets. Only shared digital records of ownership exist and are stored on the blockchain.  When someone wants to transfer the units of cryptocurrency, it is transferred to the receiver’s digital wallet. The transaction is considered final after verification and addition to the blockchain through a process which is called mining. In this process of mining, new coins are generated.

Crypto Wallet services: After purchasing the cryptocurrency, we need to store it safely for further transactions to avoid hacking or theft. Cryptocurrency can be stored in digital wallets or a third-party service which is called Coinbase. Some exchanges provide this facility automatically. Some physical devices or online software are used to safeguard the public keys that are used for the transactions of cryptocurrencies. Wallets are the tools that are used to store the encryption keys. Encryption keys authenticate our identity and link to our cryptocurrency. The following two types of wallet services are available: Hot wallet. Cold wallet. Hot wallet: It uses online software to store and safeguard the public keys of your wallet. It is a cloud-based service. Cold wallet: It is also known as a Hardware wallet because this system uses offline electronic devices to store and safeguard the public keys of your assets. Can be stored on our computers or mobile devices. Note: Normally, Hot wallets are provided free of cost contrary to the Cold wallets for which the concerned company takes the charges.

Uses, advantages, and benefits of cryptocurrencies:
First of all, Bitcoin was introduced in 2009. It was assumed that it would be used for any type of transaction, either a little for a cup of coffee or a big for real estate matters. However, it has not materialized. In some countries, cryptocurrency transactions are not even legal. However, the number of countries and companies accepting cryptocurrencies is growing. By using cryptocurrencies, We can buy a variety of items  directly or on different sites/apps as given below:
Technology and e-commerce sites:
newegg.com	AT&T
Microsoft	Overstock
Shopify	Rakuten
Home Depot
Luxury goods like high-end watches; Rolex, Patek Philippe, etc. are offered by various online retailers like Bitdials.
Insurance: Various insurance companies like AXA (Swiss insurer) and Premier Shield Insurance ( in the USA) have started to accept cryptocurrency (Bitcoin) for the premium of an insurance policy.
Cars: Dealers of various car brands including high-end luxury segments are accepting the cryptocurrency.
In the USA, If any retailer is not accepting cryptocurrency directly, payment may be made through cryptocurrency debit cards like BitPay.
One of the good advantages of cryptocurrency is its cheaper and faster transactions.   Since it is a decentralized system that does not collapse due to a single point of failure.
Third parties are not involved in the transaction. It made the remittances streamlined.
An effective method of transferring money across the borders. A fiat currency of the sender is converted into cryptocurrency and after transfer across the borders, cryptocurrency is converted into the fiat currency of the destination without the involvement of a third party.
It is secured by private keys and public keys.

Cryptocurrency’s drawbacks or disadvantages:

Fraud and Scams:

Fake websites: Such websites attract the public by giving false promises, offers, and privileges. Many customers have become victims of such sites and lost their money.

Virtual Ponzi schemes:  Many customers have been trapped in these attractive and decisive schemes by offering fake huge returns. More than US $700 million was looted by a company named Bitclub Network,  by offering non-existing schemes.

Celebrity endorsement: Such fraudsters pose online as famous businessmen or billionaires and lure customers to multiply their money by investing in cryptocurrency. They use various channels like chat rooms or messaging apps to give false information like a reputed celebrity is backing the scheme. Due to huge investments in this way, the value of cryptocurrency increases, and the fraudsters sell their stakes to make a good profit. Due to the sudden sale,  the value of the cryptocurrency was reduced and general investors were trapped in the loss.

Romance scam: Online dating apps and social media platforms lure investors to trade in cryptocurrency. Thousands of crypto-related romance scams were reported in the USA. People lost millions of US$ in such scams.

Fake Cryptocurrency exchanges: Beware of such fake exchanges that lure people to invest in the virtual currencies through them and one day investors find that they are trapped in the scam.

Other types of bugs and scams like hacking of digital wallets, attractive schemes for senior citizens or retired persons, etc. are adopted by scammers.

Cryptocurrency is an intangible currency that is based on Digital technology. Therefore, it is hackable like any other digital technology-based issue.

Loss of wallet: If we are unable to access our wallet due to the loss of a computer or mobile device where the digital wallet is stored and not having a backup,  it means that our entire investment in the cryptocurrency is lost.

Lack of foolproof safety:  As already described, cryptocurrency works on the principle of blockchain technology. Cryptocurrency transactions are recorded into blocks and time-stamped.  Moreover, it follows the two-way authentication process. You will be asked to give your username and password to start the transaction and finally, you are required to provide the text code which is sent to your phone. It creates the digital ledger of transactions which is difficult for hackers to hack. But it does not mean that the transactions and digital wallets are 100% safe. Various scams have been witnessed in the past like the following examples: Hackers tempered the safety of  Coincheck and BitGrail and took away US$ 534 million and US$ 195 million respectively. Cryptocurrency is not backed by the government like bonds, mutual funds, and stocks. The value of virtual currencies totally depends upon supply and demand. Due to wild swings, heavy profits, and heavy losses are expected in the trading of virtual currency.

There is fierce competition among the thousands of blockchain projects.

Since cryptocurrency is not regulated by banks or third parties, therefore it is difficult to convert into tangible currencies like US Dollars, Euro, etc.

Legalization: It is still banned in many countries.

Not acceptable as a universal mode of payment.

Some experts believe that Cryptocurrency and blockchain-related applications may have a negative impact on many industries including law and finance.

A lot of energy is consumed during the mining process. Mining popular cryptocurrency requires huge energy, it may be equal to the energy consumption of a country.  Due to the involvement of high energy consumption, only billion-dollar firms are capable of carrying out the mining process.

Due to its pseudonymous (virtual)  nature, it is being used in a lot of unlawful and criminal activities like money laundering, illicit purposes, the sale of drugs on the dark web, etc. Hackers use the cryptocurrency for ransomware activities.

User risk: The cryptocurrency transaction can not reverse or cancel, once it has been sent. It is estimated that around 1/5th of total bitcoins are not accessible due to lost passwords or wrong sending addresses.

Regulatory risk: The regulatory status of the cryptocurrencies is not clear so far. Some countries are planning to consider it securities or currencies or both. Due to sudden changes in the regulations, it may be difficult to sell the cryptocurrency or a sharp fall in value may be seen, ultimately causing a heavy loss.

Counterparty risks: We are dependent on exchanges or third-party digital wallets. Theft or loss by anyone may cause the loss of an entire investment.

Management risks: There is no rule for the protection against unethical and deceptive management practices.  Due to the lack of such rules, many investors have lost their money to the management team who failed to deliver the product.

Programming risk: Automated smart contracts to control the swings in the user's investment are used by various platforms. Bugs and other similar applications in such platforms may cause heavy losses to the investors.

Marketing manipulation: Due to unethical practices, some influential people, organizations, and exchanges may manipulate the market and cause a heavy loss.

More expensive compared to other modes of investment.

Tax liability is also involved in the transactions (buying and selling) of cryptocurrencies.

Off-chain security issues: risk due to transactions not secured by blockchain.

Favorable regulations are not expected shortly for the cryptocurrency industry.

Safety precautions for investing in cryptocurrency:

We should be well aware that most of the investments carry risk, it may be low or high. The stock market is also subject to market risk due to volatile conditions.  However, Investment in cryptocurrency carries a lot of risk, volatility, and uncertainty. Therefore, it is important to take maximum precautions to reduce the risk in cryptocurrency investment. Some of the precautionary measures are listed below:

Select the best cryptocurrency exchange: More than 500 cryptocurrency exchanges are functioning with different trading fees & other terms and conditions. Find out the pros and cons in respect of exchanges. Study the official websites, independent third-party comparisons, reviews, etc. Select the best 2-3 exchanges which are suitable for your target and risk appetite. Again compare the selected exchanges and choose the best one.

Storage of cryptocurrency: After purchasing the cryptocurrency, it is required to be stored safely. So you need a digital wallet. It may be provided by the exchange itself or taken separately. Please consider all the pros and cons of options for digital wallet, its charges, terms and conditions, etc. Do the research work and select the best one that suits you as per need and safety. Use always a trustworthy wallet, don't sacrifice this trustworthiness over low fees and attractive fake offers.

Backup strategy: Since your investment is entirely based on digital technology without any physical forms of support, always have an accessible backup record of investment, wallet, keys, etc. In case of loss of a mobile or computer device where a digital wallet is stored, a backup record will be helpful to access your wallet.

Diversification of investment: It is a thumb rule that your investment should always be diversified. Don't put all your money in a single sector. And when you are investing in cryptocurrencies then it is more necessary to diversify your currencies due to wild swings in cryptocurrency’s values. Though we know that Bitcoin is the most reputed cryptocurrency, even then don't invest all your money in Bitcoin. You should invest in different currencies to reduce the risk.

Always be ready for calculated risk: Cryptocurrency investment is considered the most risky and highly volatile compared to other investment modes like banks, stock market, bonds, mutual funds, etc. Your risk appetite should be very high to tolerate any loss due to wild swings in the values.

Use of  good qualities antivirus tools: Since your investment is online and in cryptocurrency which is highly risky due to cyber fraud. Always use strong antivirus software and tools like Kaspersky Internet Security Tools to block and alert for any cyber fraud.

Some facts about cryptocurrency:

Dread Pirate Roberts was selling the drugs by using the cryptocurrency on the dark web.

It is estimated that a total of 4568 bitcoins were opened in a month (May - June 2024). Out of them, roughly 1% of bitcoins were opened by unknown addresses, and 99% were opened by mining pools.

During the past few years, cryptocurrency exchanges and wallets equivalent to millions of dollars have been hacked.

Bitcoin has witnessed wild swings in its value. In November 2021, the value of Bitcoin was US$ 65,000. One and a half years later, its value dropped to US$20,000. In October 2024, again Bitcoin was near its high value of US$ 65,00.

Global Cryptocurrency market capitalization may be estimated at around US$ 2.42 trillion in today's market. Bitcoin market capital may be around US$ 1.33 trillion. In second place, Ethereum (ETH)  may be around US$ 294 billion in the first week of October 2024.

Bitcoin's share in the cryptocurrency market is around 55%.

It is estimated that more than two million cryptocurrencies exist in the market however many are valuable and many are worthless.

Approximate exchange rate for top 10 cryptocurrencies (market capital wise) in US$ as of 16-10-2024 around 1100 hours
Name of Cryptocurrency	Exchange rate in US$
Bitcoin	66883
Ethereum (ETH)	2576
Tether (USDT)	1.00
BNB	593
Solana (SOL)	154
USD Coin (USDC)	1.00
XRP	0.54
Dogecoin (DOGE)	0.12
Tron (TRX)	0.16
Toncoin	5.2

List of some crypto exchanges and apps: Many crypto exchanges and apps are functioning for trading in cryptocurrencies.  Some are listed here: Kraken, Coinbase, Crypto.Com, Gemini, BitMart, Cash App, Bisq, etc.  Each platform has some pros and cons which are listed below:

Kraken: Established in 2011. Its headquarters is located in San Francisco. Transaction Fees - 0.00 to 0.40% Minimum deposit or purchase - US$1 Trade limits - yes Pros: One of the best cryptocurrency exchanges in the world. It facilitates the buying, selling, and storing of more than 200 cryptocurrencies. Best choice for experienced traders. It offers two platforms: The main trading platform - Kraken and the highly professional-grade platform - Kraken Pro. Future rich platforms. Best low-fee exchange. Advanced order types facility. Supports margin and future trading. High liquidity facility. Cons: Not covering all states of the USA. Limited options for account funding.

Coinbase: Founded in 2012. It is decentralized and does not have any headquarters. Transaction fee - 0.00% to 0.60% Minimum deposit or purchase - US$2 Trade limits - yes Pros: One of the best exchanges for beginners. Supported by a large number of cryptocurrencies and trading pairs. Strong security features. Easy to use for beginners. Supported by advanced trading options. Comfortable liquidity options. Available in more than 100 countries. User-friendly options. Gives the feeling of a banking app. It puts the reserves (US$) equivalent to assets in FDIC (Federal Deposit Insurance Corporation) to prevent a loss to the customers due to fraud. Various options for funding the trading accounts like wire transfer, ACH (Automated Clearing House) transfer, etc. are available. Options for custodial or non-custodial wallets. Cons: Poor customer service and feedback. Its default wallet is a custodial account.  Users do not have control over private keys. Trading fees are high. Tainted image and legal issues observed by the US Security Exchange and Commission (SEC).

Crypto.com: Founded in 2016 and operated from Hong Kong. Transaction fee - 0.00% to 0.075% Minimum deposit or purchase - US$1 Trade limits - yes. Pros: More than 350 cryptocurrencies are available for trading. One of the best mobile crypto exchange apps. Easy to operate on a smartphone. Options for various cryptocurrency products. Leading global crypto exchange and available in more than 90 countries. Cons: Customer support is not satisfactory.

Gemini: Found in 2014 in New York. Transaction fees for active traders - 0.00% to 0.40%, however, it is very high (1.49%) for most of the transactions on regular platforms. Limited trades. The minimum deposit or purchase is variable. Pros: Strong security features for the safety of user funds. Awarded SOC-2 certificate by the Service and  Organizations Controls (SOC), which is a cyber security compliance standard. Easy and comfortable experience in use. All 50 states of the USA are covered by Gemini service. One of the best exchanges for liquidity. Insurance for hot wallet funds. Cons: Very high transaction fees in many trades. Only (80+) cryptocurrencies are available for transactions compared to a large number of cryptocurrencies provided for trading by the other competitors.

Bitmart: Founded in 2017.  Operated from Cayman Island. Transaction fees - 0.04% to 0.10% Minimum purchase of deposit - US$ 50 for Bitmart purchases. Trade limits - yes. Pros: Bitmart is the best platform in the Altcoin category. A large number of cryptocurrencies and tokens ( more than 1500) are available for trading. Users in more than 160 countries can carry out transactions on Bitmart. Ample opportunity for crypto earning. A good platform for small and mid-cap cryptocurrencies. Simple and customer-friendly features. Bitmart promised to reimburse the loss to the investors who suffered in the US$196 million hacking incident in December 2021. Cons: Suffered from a large-scale hacking in 2021, a loss of US$196 million from user funds. Bitmart savings feature is not available for investors residing in the USA. Poor customer feedback.

Cash App: Founded in 2014 by Block Inc. Formerly, Block Inc. was known as Square Inc. Its headquarters is located in San Francisco. Investors from the USA and UK are allowed to send, spend, invest, and bank via Cash App. It may be considered a mobile banking app that facilitates peer-to-peer payments and investment. Investment in stocks, ETFs, and Bitcoin can be done through Cash App. Compared to its peers like Robinhood and Venmo, Cash App has an advantage due to its standout feature to withdraw Bitcoin from in-app custodial wallets to third-party wallets to which we have private keys. Transaction fees - 0.00% to 3% Currencies - 01 Minimum purchase or deposit - $1.00 Trade limits - yes. Pros: Customer-friendly interface. Support fast and secure buying, selling, and storing Bitcoins from smartphones. Cons: Transaction in Bitcoin cryptocurrency only. Its in-app wallet is Custodial, which means users do not have any control over private keys. So it is less secure than non-custodial wallets. Various limits on deposit, sell, etc. The cash app trading fee varies and it is shown when we confirm the buy or sell order.  During the transaction of Bitcoin, the app uses the mid-price + spread fee.

Bisq: Founded in 2014. Its headquarters is located in Barcelona, Catalonia. It is an open-source cryptocurrency trading software. Transaction fees - 0.15% to 1.15% Currency - not known Minimum deposit or buy - now known Trade limits - yes Pros: Users can access from anywhere in the world for the transactions of Bitcoin, other cryptocurrencies, and tokens in a peer-to-peer manner.  It is secure and confidential. Know Your Customer (KYC) or identity (ID) verification is not required and maintains a very high level of privacy. There is no limit on the number of users in a particular region. More than 50 payment options including bank wire transfer, ACH (Automated Clearing House) transfer, and cash deposits are available. Cons: Slow transaction fee. Low trading volume. Suitable for small trades only. Not compatible with active trading. Its capital market capitalization is not known. It is not beginner-friendly due to the tough mechanism.

Final words: Cryptocurrency and applications of blockchain is still an emerging field. There is a lot of scope in the financial world. The cryptocurrency trading market is always open round the clock except for the maintenance periods of servers, etc.  Many people earn a lot of money by investing in cryptocurrency and many have lost the entire investment. Risk is involved everywhere when we want to earn a good amount. High risk is mostly involved with high gain.  However, it always depends on our goal and risk appetite. By considering the high risk equivalent to zero return, and high speculative gain, investment may be done in the cryptocurrency.  Within certain limits, experts or government agencies are capable of tracing the transactions.  We should have good technical and cryptocurrency knowledge. Always alert for fraud. Use strong antivirus tools. Select the reputed and best-suited cryptocurrency exchange. Diversify your investment like different cryptocurrencies, stock markets, mutual funds, bonds, Government-controlled banks, real estate, etc. If needed, always take the advice of an expert. Don't become greedy and adopt a shortcut method to earn huge money within a short time. Do not invest by taking loans, etc. Invest only surplus money.

Disclaimer: With the help of self-knowledge, following, and similar websites, the best efforts are made to write this blog. However, the author does not take any responsibility (legal or otherwise) for its correctness and completeness. This blog is not AI-generated and typed manually, therefore any typographical error is regretted. The cryptocurrency market is highly volatile and does not have control of any regulatory authority. Unlike the traditional exchanges or brokerage firms, Cryptocurrency exchanges are not members of the Security Investor Protection Corp. (SIPC). Therefore, investors may lose their funds. Take all precautions and own decisions to invest in the cryptocurrency market. For any loss, nobody will be responsible. https://www.kaspersky.com https://www.oswego.edu https://www.investopedia.com https://www.nerdwallet.com https://www.fool.com https://corporatefinanceinstitute.com https://www.ig.com https://www.exness.com https://www.investopedia.com www.google.com

Think positive and act wisely. ==The End==