Recently there is more and more talk of Cryptocurrencies . But not everyone knows exactly what words like Bitcoin , Ethereum , Ripple and Litecoin mean . In this Guide , therefore, we will explain what cryptocurrencies are and how to invest in them in a safe and profitable way. In general, you have surely heard and read Reviews on Cryptocurrency Trading .
Millionaireweb.it recommends
EToro Free Demo Account
Millionaireweb.it
To date, high profits can be achieved with digital currencies, but it is essential to know how to invest best. One of the methods is Online Trading, specifically we are talking about CFD Trading with which it is possible to speculate on the price trend of the single cryptocurrency. Later we will discuss in detail the investment methods and how to avoid scams.
The important thing is that you rely exclusively on authorized and regulated trading platforms such as eToro which through its Social Trading platform that allows traders to automatically follow and copy professional traders . While you are learning the theory you need to put into practice what you have learned and you can do it by opening the eToro Demo Account for free .
You have immediately available € 100,000 virtual with which you can make your investments without putting your capital at risk.
Contents Index
1 The origins of cryptocurrencies
2 How to Trade Cryptocurrencies
3 How to Choose a Cryptocurrency Trading Platform
4 Top 5 Regulated Online Trading Platforms
5 Cryptocurrency Trading on the eToro Platform
6 How to trade Cryptocurrencies: example and step by step guide
7 Cryptocurrency Trading with XTB
8 Cryptocurrency trading with Markets.com
9 What is a cryptocurrency?
10 History of cryptocurrency
11 How Do Cryptocurrencies Work? Who produces them?
12 What business do miners do?
13 What is a Mining Pool?
14 Cryptocurrency, main characteristics
15 What is the Blockchain?
16 Have Cryptocurrencies Revolutionized the Economy?
17 Insights:
18 Top 5 Regulated Online Trading Platforms
19 What are the main cryptocurrencies?
20 Bitcoin (BTC)
21 Ethereum (ETH)
22 Ripple (XRP)
23 Litecoin (LTC)
24 Monero (XMR)
25 Stellar (XLM)
26 Dash (DASH)
27 BitcoinCash (BCH)
28 Eos (EOS)
29 Cardano (ADA)
30 The future of money: cryptocurrencies?
31 FAQ: Frequently Asked Questions
The origins of cryptocurrencies
The first cryptocurrency to be created was Bitcoin in 2009
its creator is Satoshi Nakamoto , who still does not want to reveal his true identity. To date, it appears to be the main cryptocurrency and the one with the greatest capitalization, and it is still making investors enjoy an ever-growing trend today.
In recent years, more and more cryptocurrencies have been born, there are hundreds of them, among the most important in terms of capitalization and revolution there is, for example, Ethereum , it is a very safe and fast cryptocurrency, it is considered after Bitcoin the second most important digital currency in the world. Then there is Litecoin , whose main feature is the high speed of transactions.
There is also Ripple , which to date is the third largest cryptocurrency by market capitalization in the world. It represents one of the most important alternatives to Ethereum and Bitcoin cryptocurrencies. It is specifically a product used by banks, because here they can encounter the demand to make payments worldwide faster, at low cost, and on demand for any amount and type of payment.
How to trade Cryptocurrencies
What Do We Need to Trade Cryptocurrencies? Let’s analyze in the table below the characteristics and means we need to seriously invest in Crypto:
💻 Accessories: A PC (Laptop or Desktop) , an internet line (ADSL or Fiber)
💡 Platforms: 🥇 eToro , 🥈 xtb
📈 Strategy: Plan a Strategy
🛠 Tools: 📣Signals, 🎯 Strategies , Technical Analysis, Fundamental Analysis, Charts
💶 Asset: All Cryptocurrencies
💪 Attitudes: Familiarity in Surfing the Web, Tenacity and Perseverance
🎯 Objective: Establish a Goal to be achieved
💰 Initial capital: It can range from € 10 up to € 500
© 2022 – Graphics and tables owned by Millionaireweb.it.
The popularity of cryptocurrencies has increasingly predisposed people to invest in them. What to do if you want to invest in cryptocurrencies? Basically there are three possible alternatives, namely:
you can buy and deposit them in your e-wallet ;
you can buy them on exchanges and then resell them to other users;
you can trade cryptocurrencies on the online trading platforms .
When we talk about cryptocurrency trading, we refer specifically to Trading CFDs . Through CFD trading (Contract for Difference) you have the opportunity to earn on the price variations of that particular cryptocurrency without having to buy them.
Exactly you can proceed with the purchase if you think that in the future the value of the cryptocurrency will rise or you can proceed with the sale if you think that in the future the value of the cryptocurrency will drop. There are investors who make excellent profits from cryptocurrencies, we are talking about professional traders who know exactly how to manage volatility and who above all have relied on certified and regulated online brokers . Cryptocurrency CFD trading allows you to invest in a simple and profitable way.
To date, cryptocurrencies have become good alternatives to traditional currencies. More and more traders are using digital currencies as specifically speculative investment tools.
Furthermore, many Traders prefer Trading with Contracts for Difference (CFD) , this is also due to the fact that as cryptocurrencies are very volatile, it is convenient to speculate in the short term, taking advantage of the changes in their price. Many investors are attracted to different characteristics of cryptocurrencies such as, for example, the fact that they are based on a decentralized system, that is, there is no institutional body or bank that can control them, they have no power. As already mentioned above regarding the volatility of cryptocurrencies, one must always be ready for the risk of a speculative bubble, because as strong price increases have already occurred, there is also the risk that a sudden and violent collapse could occur, such as it has happened before.
To date, cryptocurrencies are in a phase of constant growth, therefore, it is advisable to be cautious.
The eToro platform comes to our rescue by offering us the fabulous Social Trading service . With this service the trader can follow and copy the most experienced traders automatically or he can choose to execute his trades manually.
If you are wondering whether or not it is convenient to invest in cryptocurrencies , as is the case with every other aspect of the financial world, there are pros and cons to consider. One of the positive aspects could be, for example, that it gives the possibility of obtaining excellent earnings; on the other hand, as regards the negative aspects, one could be, as we have already seen, is volatility.
Everything will then depend on the Trader knowing how to make the most of the qualities of cryptocurrencies; and instead be careful of all possible risks. For those who then need to practice, they can rely on the Markets broker who offers a free Demo Account with 100,000 € virtual available inside .
How to choose a Cryptocurrency trading platform
It will be good to rely on regulated and secure online trading platforms . The important thing is that they are above all regulated, and that they also give the possibility of trading with a free Demo Account .
This will be especially important for novice Traders, because they have the opportunity to accompany theoretical study with practice, without putting their capital at risk, but it can also be useful for professional Traders who want to test the platform. before going to open a Real Account. Usually the Brokers , always on the subject of training, also provide free video lessons.
There will be an opportunity to choose between different cryptocurrencies to invest in.
Another important thing will be the possibility to consult charts, and the latest news regarding the financial world. The platforms generally manage to earn with cryptocurrencies by keeping to the Trader the percentage obtained from the difference between the price of the underlying at the time of opening the position, and the price at the time of closing, that is, on the spread .
Top 5 Regulated Online Trading Platforms
The listed Platforms have been Tested and Reviewed by our Expert staff.
Platform Benefits Information Commissions Open Account
Best eToro Platform
Evaluation
⭐⭐⭐⭐⭐
Regulated:
CySEC 109/10, FCA 583263
Free Demo Account:
$ 100,000 in virtual funds
Copy Trading:
Copy the best traders
Minimum Deposit: € 50
Leverage: 1:30
Cryptocurrencies : Yes
Social Trading: Yes
Transaction cost: 0 €
Commissions on Shares: 0%
ETF commissions: 0%
Crypto Fees: from 0.5%
FREE DEMO ACCOUNT REVIEW AND OPINIONS
67% of users lose money with this provider by trading CFDs.
Markets: CFD trading Forex Stock trading ETF trading Funds Cryptocurrency trading Payment Methods:Visa MasterCard American Express GiroPay PayPal Skrill Neteller SEPA transfer Sofort
xtbEvaluation
⭐⭐⭐⭐⭐
Regulated
CySEC 169/12, FCA 522157
Free Demo Account:
€ 100,000
Training Center:
Trading School
Minimum Deposit: € 250
Leverage: 1:30
Cryptocurrencies: Yes
Trading School: Yes
Transaction cost: 0 €
Commissions on Shares: 0%
Commissions on ETFs: 0%
Crypto Fees: from 0.5%
FREE DEMO ACCOUNT REVIEW AND OPINIONS
77% of users lose money with this provider by trading CFDs.
Markets: CFD trading Forex Stock trading ETF trading Funds Cryptocurrency trading Payment Methods:Visa MasterCard American Express GiroPay PayPal Skrill SEPA transfer
Plus500Evaluation
⭐⭐⭐⭐⭐
CySEC 250/14 regulated
Free Demo Account
Professional platform
Minimum Deposit: € 250
Leverage: 1:30
Cryptocurrencies: Yes
MetaTrader 4
Transaction cost: 0 €
Commissions on Shares: 0%
Commissions on ETFs: 0%
Crypto Fees: from 0.5%
FREE DEMO ACCOUNT REVIEW AND OPINIONS
77% of users lose money with this provider by trading CFDs.
Markets: CFD trading Forex Stock trading ETF trading Funds Cryptocurrency trading Payment Methods:Visa MasterCard American Express GiroPay PayPal Skrill SEPA transfer
iq optionEvaluation
⭐⭐⭐⭐
Regulated
CySEC 274/14, FCA 670182, CONSOB 4090
Free Demo Account
Minimum deposit 10 €
Minimum Deposit: € 10
Leverage: 30: 1 and 2: 1 Crypto
Cryptocurrencies: Yes
MetaTrader 4
Transaction cost: 0 €
Commissions on Shares: 0%
Commissions on ETFs: 0%
Crypto Fees: from 0.5%
FREE DEMO ACCOUNT REVIEW AND OPINIONS
77% of users lose money with this provider by trading CFDs.
Markets: CFD trading Forex Stock trading Cryptocurrency trading Payment Methods:Visa MasterCard American Express GiroPay PayPal Skrill SEPA transfer
Markets.comEvaluation
⭐⭐⭐⭐
Regulated
CySEC 092/08, FCA, ASIC
Free Demo Account
Trading Academy
Minimum Deposit: € 100
Leverage: 1:30 and 1: 300
Cryptocurrencies: Yes
MetaTrader 4
Transaction cost: 0 €
Commissions on Shares: 0%
Commissions on ETFs: 0%
Crypto Fees: from 0.5%
FREE DEMO ACCOUNT REVIEW AND OPINIONS
77% of users lose money with this provider by trading CFDs.
Markets: CFD trading Forex Stock trading Cryptocurrency trading Payment Methods:Visa MasterCard American Express GiroPay PayPal Skrill SEPA transfer
© 2022 Graphics and tables owned by Millionaireweb.it
Cryptocurrency Trading on the eToro Platform
EToro broker logo
EToro broker logo
Traders who use eToro for their investments claim that this broker is one of the best in the business. Traders who use eToro for their investments claim that this broker is one of the best in the business.
Its innovative and easy-to-use platform is suitable for beginners and experts alike, its wide range of assets gives customers the ability to have a diversified portfolio. In short, its ease of use together with all its supports and services that help the customer, is one of the best choices a trader can make.
Besides all this, the broker could not fail to be safe and reliable, it is regulated by several international authorities, FCA of the United Kingdom and the CySEC of Cyprus (EU). It uses high security standards to protect its traders. This broker is first choice, for a trader the opinions of the experts and the traders who have tried it are among the most enthusiastic. Its innovative and easy-to-use platform is suitable for both novice and experienced traders.
Its wide range of assets gives clients the ability to have a diversified portfolio.
In short, its ease of use together with all its supports and services that help the customer, make it one of the best choices a trader can make. Beyond all this, the broker could only be safe and reliable. It is regulated by several international authorities such as the UK FCA and the CySEC of Cyprus (EU).
It uses high security standards to protect its traders. Those who decide to operate with this broker make an excellent choice, the opinions of experts and traders who have tried it are among the most enthusiastic. Thanks to Social Trading and Copy Trading , traders can trade cryptocurrencies with more security and effortlessly. They can automatically copy or simply follow professional traders. It is great for both novice and experienced traders.
OPEN A FREE DEMO ACCOUNT WITH ETORO
Free and Unlimited Demo Account with No Deposit Constraints.
Get a free $ 100,000 virtual trial account!
CFDs are derivative instruments traded out of the market, that is, they are an Over the Counter (OTC) market, which allow investors to take advantage of both Long positions , or from the rise, or from Short positions , or from the fall, of the price of the underlying instruments.
Furthermore, operating with CFDs offers the possibility to exploit the Leverage effect to one’s advantage, investing only a small part of the consideration, but which at the same time could lead to heavy losses; you can also keep the positions open for as long as necessary and another important thing is that there are no trading fees for each open or closed operation.
The risks in trading with CFDs should not be underestimated , but they can be managed if you have a good knowledge of both the financial markets and the corresponding operating mechanisms. Furthermore, there is the possibility of using automatic Stop Loss orders , in which it is possible to contain the maximum loss of a position, by programming in advance the value at which you will want to stop, because
the greatest risk could actually be that of incurring losses that may exceed the initially invested capital, also affecting personal assets.
How to trade Cryptocurrencies: example and step by step guide
The first step is to activate a free demo account on the eToro platform: Click here to activate a free demo account on eToro .
Once the account has been activated, we can access the eToro control panel, as shown in the following image:
eToro :: Platform Panel
eToro :: Platform Panel
Now let’s move from the Real Account to the Virtual Account panel: at the bottom you will find “Switch to Virtual” , by clicking on it we switch to operate in Demo mode with € 100,000 virtual offered by the platform:
eToro :: Virtual Account
eToro :: Virtual Account
The following image shows the platform home in Demo Account mode:
eToro :: Virtual account panel
eToro :: Virtual account panel
Let’s take the Bitcoin cryptocurrency as an example, just use the search field at the top, writing “Bitcoin” , see the following image:
eToro :: Bitcoin Research
eToro :: Bitcoin Research
Now let’s click on “invest” to open our trading operation on the Bitcoin cryptocurrency. The following image shows the window of the operation with the amount we want to invest which in our example is equivalent to virtual $ 5000 , with which we would get 0.12 units of Bitcoin , at the value of one unit equal to approximately € 42,000 :
eToro :: Open a Position
eToro :: Open a Position
Now we can start our operation by clicking on “Open Position” ;
Now we will find our open position in the “Portfolio” section in the menu on the left:
eToro :: Open position
eToro :: Open position
In the Portfolio section we have the possibility to control our operation through the following data: the unit of Cryptocurrency purchased, the average value of the current Bitcoin, the invested amount, the dollar value of profit or loss, the value in percentage of profit or loss, we also have the possibility to open a new position and to sell the open position once we have made profits, that is, once the value of the Bitcoin exceeds the opening value of the position (example from 35, ooo € to 45,000 € ) , but let’s explain better, if we buy 0.12 BTC at the value of 35,000 per unit , if the latter value increases to € 45,000which is very likely as the cryptocurrency market is very volatile, then we can sell and make profits.
The last step is to activate the real account, make a deposit of at least € 1000 and start trading cryptocurrencies in total safety as eToro is a regulated and safe platform.
OPEN A FREE DEMO ACCOUNT WITH ETORO
Free and Unlimited Demo Account with No Deposit Constraints.
Get a free $ 100,000 virtual trial account!
Cryptocurrency trading with XTB
XTB broker logo
XTB broker logo
XTB has been in the industry since 2002. It is one of the best brokers specialized in Forex and CFD trading, a European leader, with millions of clients. Its platform is award-winning, offers an easy to use environment, with tools and features that help the trader in trading.
With its wide range of products it allows its clients to diversify their investment portfolio. They can invest in cryptocurrencies, commodities, indices, currency pairs, ETFs and stocks, there are more than 1500 tradable instruments . XTB, now in the sector since 2002, is one of the best brokers specialized in Forex and CFD trading, with millions of clients, European leader. Its platform is award-winning, offers an easy to use environment, with tools and features that help the trader in trading.
Its wide range of products gives its clients the possibility to diversify their investment portfolio, commodities, indices, currency pairs, cryptocurrencies, ETFs and equities, more than 1500 negotiable instruments. Their customer support is always available, they are professional and quick in their responses, you can also use the section dedicated to training, where you can understand how trading works through video lessons, webinars or articles.
In addition, for four weeks you can use the demo account functionality, where you can not only get to know the platform and what it offers, but you can safely practice online trading.
Their customer support is always available, they are professional and quick in their responses. You can also use the section dedicated to training , where you can understand how trading works through video lessons, webinars and articles. In addition, for four weeks you can use the Demo Account feature , where you can not only get to know the platform and what it offers, but you can safely practice online trading .
Read our XTB broker review .
Cryptocurrency trading with Markets.com
Broker Markets.com logo
Broker Markets.com logo
Markets.com is one of the most popular and sponsored CFD and Forex trading brokers on the internet. With over 10 years of experience it offers complete and professional trading services.
Today we want to talk about this broker , which has recently been completely renovated. Let’s start immediately with the most important part, Markets.com has obtained all the licenses needed to operate, in fact the broker is a brand managed by SafeCap Investments Ltd and, authorized to operate in Italy by our Consob, is also regulated by the CySEC of Cyprus and the FSCA .
Now that you know that Markets.com is regulated and licensed, we can move on to the trading platforms it offers, you can choose its proprietary, web based platform that is very easy to use, or you can choose to trade with the popular MetaTrader4 . Both platforms are also offered as mobile apps, and are available for every operating system.
Clients who want to trade with Markets.com can choose between three types of trading accounts, which are: Classic account , whose minimum deposit required is only € 100 , you have access to, daily market analysis, online training through webinars and video tutorial .
You can choose the standard account whose minimum deposit is € 2500 , here you have an account manager , here too you have daily analysis. Finally there is the platinum account whose minimum deposit is € 20,000 .
You also have a free Demo Account. As we have already mentioned at the beginning of the article, the broker offers trading through Contracts for Difference, you can choose between 2000 CFDs , on various markets which include, commodities, stock indices, stocks, cryptocurrencies, ETFs and Forex . If you are looking for a new broker or just want to change your broker, Markets.com is the best choice.
It is a broker suitable for both novice and experienced traders . To get to know the platform better you can use the demo account, made available by the broker , to make your platform known with its functions and services, the function is free and without obligation, you can use it even after opening an account with the broker . You can also use this feature to practice your practice without risking your money.
Read our Markets Broker Review
What is a cryptocurrency?
In a nutshell, what are cryptocurrencies ? Cryptocurrencies are digital currencies, decentralized, therefore, there is no central institution as it could be, for example, a bank, that can manipulate it, and even in the event that a financial shock could arise there is no body that can intervene. NB: The price of cryptocurrencies depends on the law of supply and demand.
Cryptocurrencies are generally produced with the Mining method, which allow the creation of new digital currencies through an algorithm that gradually makes it increasingly difficult to create new currencies. Most cryptocurrencies are spread and circulated on the basis of the Blockchain system , that is, it is a digital register where all the blocks of valid transactions equipped with a timestamp, called Timestamp , are stored., in such a way that it is always possible to verify the validity and effective completion of a transaction, thus making the circulation system of digital currencies more secure. Some digital currencies such as Bitcoin, for example, have in fact been programmed to be present on the market in finite quantities, to be released gradually over the years.
Just the Bitcoins the maximum limit that has been established is 21 million units. Investing in cryptocurrencies is currently one of the best investments for 2022.
But… what is a cryptocurrency ? Cryptocurrency is a digital currency that is made with cryptographic protocols. In this way they made the transactions very safe and consequently not easily manipulated.
One aspect that distinguishes cryptocurrency from a classic currency is that it is not controlled by any central authority . This is due to the blockchain which is decentralized and therefore the cryptocurrency is not under the control of any government as is the case with the rest of the currencies. Cryptocurrencies have revolutionized the financial sector.
Transactions are much simpler and faster. To make a transfer, just use public and private keys for privacy and security reasons. Also, unlike the fees charged by traditional financial institutions, transactions involve much lower fees with cryptocurrencies. It can be said that today digital currencies have become very popular worldwide, even though many still do not really understand their nature. However, most people, governments and even banks have understood their potential value.
History of cryptocurrency
Satoshi Nakamoto was the inventor who created the first cryptocurrency, let’s of course talk about Bitcoin . It is said that his intention was not to invent a currency.
He was able to find the way to create a decentralized digital cash system. In 2008, Satoshi Nakamoto announced that he had developed a Peer-to-Peer (P2P) electronic payment system . Basically with Peer we indicate those computer systems that are connected to each other via the Internet. In this way, systems on the network can exchange files, sharing them directly with each other, without the need for a central server. This means that all computers located on a Peer-to-Peer network become a client and a file server .
Bitcoin, like most other cryptocurrencies, is completely decentralized. Before Satoshi Nakamoto, there were other attempts to create digital currencies, but they failed. Nakamoto drew inspiration from this , from the centralized system to a decentralized system thanks to the Peer-to-Peer network for file sharing. This led to the creation of the first digital currency, Bitcoin.
From here on, hundreds of cryptocurrencies were born, the basic technology is the same, surely those that came later are more advanced, but the function is the same. Since the Bitcoin software is Open Source, i.e. in the public domain, it has led in recent years to the creation of other alternative currencies.
So here is Bitcoin Cash, Ethereum, Litecoin, Ripple and many others, each with its own characteristics, where some are oriented to specific functions and others to specific sectors. There are cryptocurrencies that are made with completely different systems than Bitcoin, for example to offer different services such as Insurance and which therefore cater to different customers. They are called cryptocurrencies due to the fact that they use cryptography and the Proof-of-Work scheme . In this way, security, privacy in transactions are guaranteed and they are protected from counterfeiting.
How do cryptocurrencies work? Who produces them?
Let’s now examine the mechanism to understand how cryptocurrencies work . As previously mentioned, digital currencies are based on a Peer-to-Peer network system .
Each single peer contains within it the complete history report of all transactions and therefore the balance of each user. The transaction is nothing more than a file where the passage of bitcoin from the sender to the recipient is recorded, for example, and is signed by the sender’s private key. It is based on a cryptographic system that is basically a public key, only after signing the transaction is transmitted over the network. Switching occurs from one peer to another peer. The transaction is usually recognized immediately by the entire network.
In general it can be said that a period of time must pass to be confirmed. As long as the transaction is pending it can be tampered with, but you don’t have to worry about that as they are usually confirmed within a short time frame. Once the transaction is validated it is recorded on a ledger which is called a blockchain .
But who can confirm the transactions? Only miners can validate transactions, they deal exclusively with this. Therefore, they review each transaction, approve them, and transmit them over the network. After that the transaction when confirmed becomes part of the blockchain . In return, the miners receive the reward in the form of a cryptocurrency which can be Bitcoin.
The role of the miner is fundamental in the cryptocurrency system. At this point it is important to say that not all cryptocurrencies are mineable. There are cryptocurrencies like IOTA, we always talk about Open Source projects, which consist of a new generation cryptographic token that are already distributed and therefore there is no need to produce them.
What business do the miners do?
In summary we can say that miners are essential for the security of the cryptocurrency network, they have the task of verifying transactions . To mine cryptocurrencies you need very powerful hardware , which therefore requires a lot of economic resources.
There is talk of specific electronic equipment for this type of activity. Each transaction must be validated and are merged into a group, called Block . Generally within the block are all payments that have occurred in the last ten minutes. Whenever a block is completed, the miner transmits it to all the nodes of the network, who only after having ascertained that everything is in order do they insert it to their copy of the blockchain .
What is a Mining Pool?
A mining pool is essentially a platform where several people gather to combine computing powers ( hashrates ) to mine a cryptocurrency.
Since a lot of power is required to create a cryptocurrency this is a way to increase the chances of closing a block and consequently increasing the profits of the miners .
So if you have the hardware to mine you can join a mining pool very well . To operate on these platforms it is necessary to open a personal account, after which you will have to download a specific program that allows you to share part of the computing power of your computer with the rest of the group.
There are several methods for mining pools:
Pay-per-Share (PPS): for each completed block a payout is offeredwhich can be withdrawn immediately;
Slush’s pool or BPM: this is a scoring payment method that is quantified based on the time spent in the pool and based on the ‘hashrate;
P2pool: with this system each miner manages a p2pool node, creating a peer-to-peer network. This way everyone who participates connects their mining software totheir local p2pool node. Whenever a share is found, the other miners on the p2pool p2p network are notified. In this way, all nodes are aware of who is collaborating in mining .
Cryptocurrency, main features
Most cryptocurrencies are characterized by limited token distribution . For example, the disbursement of Bitcoin will gradually decrease until it ends in 2140. It was possible to calculate it because the distribution is managed through a program where the codes of each individual cryptocurrency are reported.
Cryptocurrencies, unlike, for example, Fiat currencies which can only be generated by creating debt, are an end in themselves. As for the transactions , once the confirmation has taken place they can no longer be canceled, they become irreversible. Furthermore the transactions are composed of chains that contain about 30 characters, this can guarantee a form of anonymity.
Still talking about transactions, we can add that they are very fast, occur almost instantly and you can send and receive cryptocurrencies from all over the world. The operations are safe, they are based on the cryptography system that is divided between the public key and the private key, where only with the latter belonging to the owner can cryptocurrencies be sent.
What is the Blockchain ?
The transactions that occur between the parties are stored on an open ledger called the Blockchain or Distributed Ledger . In this way the transactions are safe, they are verified and once completed they are permanent. It is a sort of public register of transactions which are cataloged in chronological order.
The transactions are based on the Peer-to-Peer (P2P) system , that is the nodes of the network, which, when interconnected, give rise to a list that, once a certain number of operations is reached, completes a Block. The blocks are connected to each other and thanks to the encryption system are safe. This makes the data incorruptible and immutable. All blocks of the Blockchain are characterized by a code which contains the information of a set of transactions and, moreover, the code of the previous block is included.
In this way it is possible to walk the chain backwards, up to the original block. Basically all the nodes of the network register all the blocks and therefore the whole Blockchain .
Have cryptocurrencies revolutionized the economy?
The arrival of these digital currencies has certainly shocked the economic sector. Unlike Fiat currencies, with cryptocurrencies you can make payments freely, you don’t have to wait for permission from any central body such as the bank. Furthermore, transactions are irreversible and anonymous.
Digital currencies are beyond the control of the government, bank or any other central institution.
These are some of the reasons that made cryptocurrencies popular. It can be said that digital currencies are regarded as commodities such as gold, they are not affected by politics. Furthermore, being a very convenient, fast and anonymous means of payment, it has aroused even more interest from the world population. Over the years, more and more people have begun to buy and speculate cryptocurrencies.
Insights:
How to invest in cryptocurrencies ;
The best 10 Italian and foreign cryptocurrency exchanges ;
Find out How to Make Money with Cryptocurrencies .
Top 5 Regulated Online Trading Platforms
The listed Platforms have been Tested and Reviewed by our Expert staff.
Platform Benefits Information Commissions Open Account
Best eToro Platform
Evaluation
⭐⭐⭐⭐⭐
Regulated:
CySEC 109/10, FCA 583263
Free Demo Account:
$ 100,000 in virtual funds
Copy Trading:
Copy the best traders
Minimum Deposit: € 50
Leverage: 1:30
Cryptocurrencies : Yes
Social Trading: Yes
Transaction cost: 0 €
Commissions on Shares: 0%
ETF commissions: 0%
Crypto Fees: from 0.5%
FREE DEMO ACCOUNT REVIEW AND OPINIONS
67% of users lose money with this provider by trading CFDs.
Markets: CFD trading Forex Stock trading ETF trading Funds Cryptocurrency trading Payment Methods:Visa MasterCard American Express GiroPay PayPal Skrill Neteller SEPA transfer Sofort
xtbEvaluation
⭐⭐⭐⭐⭐
Regulated
CySEC 169/12, FCA 522157
Free Demo Account:
€ 100,000
Training Center:
Trading School
Minimum Deposit: € 250
Leverage: 1:30
Cryptocurrencies: Yes
Trading School: Yes
Transaction cost: 0 €
Commissions on Shares: 0%
Commissions on ETFs: 0%
Crypto Fees: from 0.5%
FREE DEMO ACCOUNT REVIEW AND OPINIONS
77% of users lose money with this provider by trading CFDs.
Markets: CFD trading Forex Stock trading ETF trading Funds Cryptocurrency trading Payment Methods:Visa MasterCard American Express GiroPay PayPal Skrill SEPA transfer
Plus500Evaluation
⭐⭐⭐⭐⭐
CySEC 250/14 regulated
Free Demo Account
Professional platform
Minimum Deposit: € 250
Leverage: 1:30
Cryptocurrencies: Yes
MetaTrader 4
Transaction cost: 0 €
Commissions on Shares: 0%
Commissions on ETFs: 0%
Crypto Fees: from 0.5%
FREE DEMO ACCOUNT REVIEW AND OPINIONS
77% of users lose money with this provider by trading CFDs.
Markets: CFD trading Forex Stock trading ETF trading Funds Cryptocurrency trading Payment Methods:Visa MasterCard American Express GiroPay PayPal Skrill SEPA transfer
iq optionEvaluation
⭐⭐⭐⭐
Regulated
CySEC 274/14, FCA 670182, CONSOB 4090
Free Demo Account
Minimum deposit 10 €
Minimum Deposit: € 10
Leverage: 30: 1 and 2: 1 Crypto
Cryptocurrencies: Yes
MetaTrader 4
Transaction cost: 0 €
Commissions on Shares: 0%
Commissions on ETFs: 0%
Crypto Fees: from 0.5%
FREE DEMO ACCOUNT REVIEW AND OPINIONS
77% of users lose money with this provider by trading CFDs.
Markets: CFD trading Forex Stock trading Cryptocurrency trading Payment Methods:Visa MasterCard American Express GiroPay PayPal Skrill SEPA transfer
Markets.comEvaluation
⭐⭐⭐⭐
Regulated
CySEC 092/08, FCA, ASIC
Free Demo Account
Trading Academy
Minimum Deposit: € 100
Leverage: 1:30 and 1: 300
Cryptocurrencies: Yes
MetaTrader 4
Transaction cost: 0 €
Commissions on Shares: 0%
Commissions on ETFs: 0%
Crypto Fees: from 0.5%
FREE DEMO ACCOUNT REVIEW AND OPINIONS
77% of users lose money with this provider by trading CFDs.
Markets: CFD trading Forex Stock trading Cryptocurrency trading Payment Methods:Visa MasterCard American Express GiroPay PayPal Skrill SEPA transfer
© 2022 Graphics and tables owned by Millionaireweb.it
What are the main cryptocurrencies?
Below is the list of the most attractive main cryptocurrencies that enhance a greater number of online trading operations .
Bitcoin (BTC)
Bitcoin (BTC) is the first cryptocurrency to be created, let’s talk about 2009, the creator is a computer scientist who hides under the name of Satoshi Nakamoto, who is thought to be just a pseudonym. It is based on a decentralized system and this means that it is neither created nor managed by any central body. Exactly a database is used that connects on the different nodes of the network to trace the transactions and through cryptography manages the various functional aspects such as the creation of a new currency.
The word Bitcoin can be divided into two syllables, where bit refers to the computer bit, or the binary digit. Even if it does not have a physical support like classic currencies, Bitcoin transfer operations can still be done instantly and without borders.
How Bitcoins are produced
Cryptocurrencies are programmable, an idea of a permissionless innovation. Bitcoin production is planned over time, a cryptographic puzzle where computers try again and again to solve it with the right combination.
They are called miners and everyone can become miners even if professional miners use (very expensive) hardware designed to solve the puzzle very quickly. We are entering a new era of programmable money and this innovation requires compromise. Programmable money makes the very concept of money democratic.
How to invest in Bitcoin ;
How to buy Bitcoin .
Ethereum (ETH)
Ethereum ETHEthereum cryptocurrency was created in Russia by computer programmer Vitalik Buterin.
Ethereum has the same characteristics used by other cryptocurrencies, i.e. it can be used to make digital exchanges to buy goods or services. You can speculate on it, on the trend of exchange rates, through online trading. Furthermore, Ethereum can be purchased at exchanges, where they can then be converted into legal tender currencies or other cryptocurrencies.
This digital currency, unlike the others, was created to enter into contracts between companies and people and are drawn up without the presence of intermediaries. These are called Smart Contracts or smart contracts.
Ripple (XRP)
Ripple XRPThe Ripple cryptocurrency has been around since 2013. It was born with the intention of competing with the biggest cryptocurrencies such as Bitcoin and Ethereum.
Ripples can be traded with both fiat and digital currencies. This digital currency does not use the decentralized system as it happens for most cryptocurrencies and is Open Source. Through the internet Ripple gives the possibility to transfer money to anyone and anywhere in the world. Ripples for transactions are backed by banks, but certainly in a cheaper and less regulated way. Furthermore, instead of the Blockchain , they have the Ledger as a register for transactions .
Here, all transactions are monitored and completed in a very short period of time. Finally, Ripples are not generated like Bitcoins, but a defined number have already been issued. Specifically, there is the Ripple network which is based on the XRP currency, a payment network and a stock exchange. They are also characterized by IOU credits (I OWE YOU which translated means “I am indebted to you”) which represent traditional currencies. Once these are sent or received they are converted into real money in the Ripple gateways. Finally, transactions are safe and immediate.
Litecoin (LTC)
Litecoin LTCLitecoin is a cryptocurrency that allows you to make transactions much faster than with Bitcoins with almost non-existent costs.
Also this cryptocurrency as it is based on the P2P (Peer-to-Peer) system, is a decentralized global payment system and therefore they are not controlled by any authority.
As it was initially said unlike Bitcoins, with Litecoins there is a higher frequency of transactions and an excellent data protection system. Transactions are instant and there is also a greater amount of tokens. Litecoin also features a new mining algorithm.
Monero (XMR)
monero XMRThe Monero cryptocurrency is one of the best known in the world, it is one of those that has a high capitalization. It was born in 2014 with the aim of generating a cryptocurrency where the theme of privacy, scalability and decentralization was developed in more depth. Monero is based on the CryptoNote protocol , which is the protocol that fortifies cryptocurrencies that aim at decentralized privacy.
Exactly it is an Open Source digital currency that is always based on the Bitcoin Proof-of-Work system. In this way the network is secured and double spending is avoided. Compared to Bitcoin, Monero is programmed for a smaller number of currencies launched, we are talking about 18.4 million Monero.
Furthermore, transactions with this digital currency are much safer, thanks to a particular ring signature algorithm, that is, we are talking about Ring Confidential Transactions ( RingCT) . In this way, only the two protagonists, ie the sender and the recipient, can view the transactions.
Stellar (XLM)
Stellar XLMThe Stellar Lumens cryptocurrency is one of the most interesting of those currently in existence. It was built in 2017 from the Ripple fork, and still remains one of the most interesting projects in terms of cryptocurrencies. Since its debut it has done nothing but grow thanks to the interest of the people that has become stronger and stronger.
The word Stellar indicates the network and Lumens instead indicates the cryptocurrency. Stellar Lumens is always based on the blockchain where all transactions within the network are recorded. So it is always a decentralized cryptocurrency.
Specifically, the currency and the network are self-sufficient and the latter is able to support transactions of any other type of currency.
Furthermore, transactions happen very quickly, in no more than five seconds. Thousands of transactions are processed per second. The Stellar Consensus Protocol (SCP) is used and not the Proof of Work (POW) as is the case for most cryptocurrencies. It has its own API ( Application Programming Interface ). They are not generated through mining and you can make Smart Contracts and multi-signature wallets.
Dash (DASH)
dashThe basic Dash Coin cryptocurrency is similar to Bitcoin. It is also generally referred to as digital cash . The features it has in common with the Bitcoin cryptocurrency have been enhanced thus bringing about an improvement on functionality.
The Dash Coin is based on a decentralized system and thanks to cryptography it allows you to send and receive payments anonymously. Therefore it is based on the public blockchain where all the transactions carried out are recorded. Compared to Bitcoin, transactions take place much faster and this is certainly one of the qualities much appreciated by users. This is possible thanks to InstantSend technology .
It is also possible to carry out private transactions through the PrivateSend technology and decentralized governance known as Decentralized Governance by Blockchain (DGBB) is guaranteed.
BitcoinCash (BCH)
Bitcoin Cash cryptocurrency is a fork of Bitcoin. Its value after an initial stop phase began to rise more and more thanks to the fact that various miners decided to enter the list.
In particular, this cryptocurrency was created to compensate for a need deriving from the limited production of Bitcoin. So in this way the miners were given a new list to mine. This split did not compromise the value of the Bitcoin.
They managed to make Bitcoin Cash faster, in fact, transactions take place in a very short time, processing times have been reduced. Furthermore, each node of the Blockchain can count on a memory of about 8 mega bytes of data. In this way the extraction of the coin takes place in a more fruitful way.
Eos (EOS)
eosThe EOS cryptocurrency is based on the Blockchain for the creation of decentralized applications ( dApps ) in a similar way to Ethereum. These are often referred to as Smart Contracts .
Unlike Ethereum , the development of dApps has been simplified through a set of services and options that are part of its operating system. These can be used easily and flexibly by programmers. With EOS we have tried to group all the best features concerning smart contract technologies into a more practical platform to use. In this way, even the less experienced can contribute to the development of new solutions through the blockchain .
The aim of the EOS developers was to provide, via the operating system for web-centered decentralized applications (dApps), customizable user certification, server hosting and cloud storage services. It is therefore possible to create apps for the smart economy that gives programmers the possibility of obtaining the maximum performance from the complete authentication system. All this means that developers have the ability to create and deliver web applications and interfaces with hosting , cloud storage and download bandwidth made available by the EOS system.
Cardano (ADA)
Cardano ADACardano is the platform where the blockchain for the cryptocurrency called ADA is executed . It was created by the blockchain developer Input Output Hong Kong (IOHK) headed by Charles Hoskinson who is the co-founder of Ethereum, Ethereum Classic and BitShares.
With this cryptocurrency it is possible to obtain smart contracts as happens for Ethereum, decentralized applications, metadata, side chains and multi-party computation.
The future of money: cryptocurrencies?
Have you ever wondered why coins, currencies or even gold are valuable, have value, and are used to trade? Simple, we decided it. There is nothing intrinsic if it is not decided by man in a conscious and shared way. Think about it … there is nothing objective, money and gold are based on exchanges and transactions, it is a collective factor, a shared history, and Bitcoin is a highly powerful idea and it is part of it.
Virtual currencies
The advent of e-money didn’t come with Bitcoin, e-transactions have been around for 20 years. What has been added to electronic payments i.e. binary code 1 and 0 is an out-of-the-box electronic money. Access to virtual money is a way to overcome obstacles that can slow down our business,
“We needed something outside the rules and governments, this is electronic currency.”
A social brake
Modern institutions put a brake on development due to bureaucracy. The Internet needs to take flight without brakes in an innovative path without obstacles.
“Institutions control the supply and demand for money, so they control annoyances and our financial freedom of expression.”
The stages of money:
From physical to virtual object;
Increase the speed of virtual money transfer;
Establishment of electronic money in the absence of central control, the future of money.
The future of money
Cryptocurrencies are the first step in this evolution called the digital future not managed by anyone centrally but which belongs to everyone, it belongs to the network. To date, there are several cryptocurrencies in addition to Bitcoin: Ethereum, Litecoin, Dogecoin, Stellar and many others that are based on cryptography, a communication managed through a public register of all transactions in Bitcoin or other currency. This ledger is called the blockchain .
“The Bitcoin blockchain is the core of how Bitcoin works.”
FAQ: Frequently asked questions
How to trade cryptocurrencies?
To trade cryptocurrencies it is recommended to open a free demo account on a regulated and secure online trading platform such as eToro. once the account has been verified and the platform tested, real money can be paid.
What are the best apps for trading cryptocurrencies?
the best apps for trading cryptocurrencies are those offered by the same online trading platforms as eToro, xtb or plus500.
Are expert opinions on cryptocurrency trading favorable?
Cryptocurrency trading is an excellent form of investment, as experts advise the important thing is to operate through a regulated trading platform.
Is trading cryptocurrencies safe?
Yes. The important thing is to operate with a regulated and secure platform such as eToro, xtb or plus500.
