More and more online trading enthusiasts are turning their attention to cryptocurrencies. It is an asset that has known moments of ups and downs on the market, especially in the context of their multiple subdivisions: Bitcoin, Litecoin, Stellar, Ethereum are just some of the names that have become known in the world and that are constantly monitored. by the experts. To know the characteristics of the crypto tokens of the moment, you can read the easy guide to cryptocurrencies made available by the portal guidacriptovalute.com, which carefully examines all aspects relating to digital currencies.
Bitcoin and historical cryptocurrencies
The Bitcoin it was one of the very first cryptocurrencies to appear on the markets and, if initially it experienced moments of great growth, gradually it had a predictable decline. The basic technology of Bitcoin is also that of many other more “dated” virtual currencies, namely the POW, acronym for proof-of-work. Basically, it is a system of automatic concessions that the software implements in the blockchain, that is the environment in which cryptocurrencies operate. Strong decentralization allows data to be preserved from hacking at very high levels. Bitcoin is undergoing an internal evolution that should allow greater usability as regards operations and the new currency is called Bitcoin Cash.
At the level of world capitalization, Bitcoin follows Ethereum, whose derivative (or token, in technical language) is called ETH. The Ethereum blockchain does not rely on physical hardware but exclusively on digital software, which reinforces the concept of decentralization which makes it among the safest ever. Its intent is to favor the Smart Contract and the activity of Mining; the latter allows users to access the decryption of certain data called “blocks” and thus become the owners, thus receiving an advantage.
Finally, another historical cryptocurrency is Ripple which, symbolically, holds what we could define the bronze medal after Bitcoin and Ethereum. Its greatest peculiarity lies in the speed up money transfers with minimal fees, as opposed to SWIFT-based banking systems. Its potential makes it one of the great ones observed by trading experts and enthusiasts.
Polkadot and new technologies
The core technology of cryptocurrency Polkadot introduces the concept of communication between different blockchains, which streamlines operations and saves time and money. In a similar context they are also found Uniswap, which operates in the same environment as Ethereum but is even more decentralized; Bitvavo it is more oriented towards the Exchange market, which for experts must be evaluated with extreme attention as an environment often targeted by hackers.
The less risky alternative has always been to focus more on the CFDs, or contracts for difference. An asset or cryptocurrency with which you work with CFDs does not have to be purchased in full, but it is enough to have a share, the derived token. Then it is possible to establish, following a careful study of the markets, if the trend will be bullish (also called long position) o bearish (short position). If the forecast over the time frame turns out to be correct, then an advantage can be generated.
In general, the best technology for current cryptocurrencies is the POS, or proof of stake. The most decisive innovation concerns the system of concessions that make it decentralized, which instead of being automatic with a large expenditure of energy, become green and rely directly on users. In the presence of a smaller user, the system could slow down, but the natural evolution of the virtual money market is certainly considered at the moment.