What should you know about cryptocurrency?

What exactly is a cryptocurrency?

Cryptocurrency is a type of online payment that can be used to buy and sell products and services. Many businesses have created their own currencies, known as tokens and/or coins, that can be exchanged for the goods or services that the business offers. Consider them to be arcade tokens or casino chips. To use the good or service, you'll need to convert actual money for cryptocurrency.

Blockchain is the technology that enables cryptocurrency to function. It is a decentralized technology that handles and records transactions across numerous computers. The security of this technology is part of its attractiveness.

How many cryptocurrencies are there in the market?

According to CoinMarketCap.com, the referenced price-tracking website for cryptoassets a market research website, more than 10,000 different cryptocurrencies are traded publicly. And cryptocurrencies continue to grow in popularity, with initial coin offerings, or ICOs, being used to raise funds.

Why are cryptocurrencies so popular?

For a number of reasons, cryptocurrency advocates are drawn to it. Here are a few of the most well-known:

• Supporters regard cryptocurrencies like Bitcoin as the currency of the future, and they're rushing to buy them before they grow more valuable.
• Some proponents prefer the idea that bitcoin frees central banks from controlling the money supply because central banks tend to devalue money over time through inflation.
• Other advocates favor the blockchain technology that underpins cryptocurrencies because it is a decentralized processing and recording system that is potentially more secure than traditional payment systems.
• Some speculators are interested in cryptocurrencies because they are increasing in value, however, they are unconcerned about the currencies' long-term acceptance as a medium of exchange.

Are cryptocurrencies a good investment?

Cryptocurrencies may appreciate in value, but many investors regard them as speculative investments rather than long-term investments. Cryptocurrencies, like actual currencies, have no cash flow, thus in order for you to profit, someone else must pay more for the currency than you did. This is known as the "greater fool" investment theory. In contrast, a well-managed business grows in value over time by increasing profitability and cash flow.

How do I buy cryptocurrencies?

While some cryptocurrencies, such as Bitcoin, can be purchased with US dollars, others require to pay by bitcoins or another cryptocurrency. To purchase cryptocurrencies, you'll need a "wallet," which is an internet application that stores your funds. In general, you open an account on a cryptocurrency exchange and then use real money to purchase cryptocurrencies like Bitcoin or Ethereum. More information on how to invest in Bitcoin may be found here. Coinbase is a well-known cryptocurrency exchange where you can open a wallet and buy and sell Bitcoin and other cryptocurrencies. Cryptocurrencies are also available from an increasing number of online brokers, including XSpring Digital.

Is it legal to trade cryptocurrencies?

They are unquestionably legal in Thailand. XSpring Digital is granted a license to operate digital asset exchange and digital asset brokerage services by the Securities and Exchange Commission and the Ministry of Finance in Thailand. As a result, you can be confident that your cryptocurrency trading transactions with XSpring Digital will be secure.

Why should you invest in cryptocurrencies?

Cryptocurrency is a highly speculative investment. Investing in crypto assets is risky, but it can also be incredibly lucrative. Here are some reasons why cryptocurrency is something you might be looking for.

1. Possibility of rapid expansion - Cryptocurrencies have a better return potential than other asset classes. Despite the fact that digital currencies are a relatively new technology, they have been among the best-performing assets of the last decade, if not the greatest. 

2. Legitimate asset class - Digital currencies are no longer a fad or an afterthought. Governments have opened their doors to them, and businesses all over the world have begun to accept cryptos in exchange for goods and services. Bitcoin has risen to sixth place in terms of market capitalization among the world's most valuable assets. Institutional billion-dollar investments helped to establish cryptos as a viable asset class and gave them more credibility. The rise of cryptos as an asset class was marked by sophisticated financial products such as crypto derivatives becoming a major force in the cryptocurrency market.

3. Investment portfolio diversifier - It's a good idea to diversify your portfolio by investing in different businesses and categories. This means that even if some assets perform inadequately, the loss will be covered by other portions of the portfolio connected with various sectors.  Cryptocurrencies outperform most other asset types in terms of returns. Including them in investment portfolios can increase returns and improve the overall performance of the portfolio.

4. Protect yourself from inflation - Cryptocurrencies are risky investments, but they can potentially keep their value over time. You can buy them, hold them, and sell them at a better price later.

5. The market is extremely liquid - The market for cryptocurrencies is quite liquid. Simply said, it's a marketplace where anyone can simply purchase and sell digital assets. Orders can be filled in seconds by many market participants. This is especially important in the case of unexpected circumstances. Before investing, market liquidity is an important indicator to examine. The term "liquid market" refers to a market with a large number of vendors and buyers who can complete trades swiftly. As a result, pricing is more competitive and less influenced. The market becomes more stable and risk-free.