Stable Growth of Different Cryptocurrencies Those who purchased a few hundreds Bitcoins in 2009 are millionaires now thanks to the rapid stable growth of the cost of this cryptocurrency against fiat currencies. Naturally, Bitcoin experienced a few major downfalls, and the scaling of this network has its limits, which is why numerous investors, being aware of that, prefer to invest into several different cryptocurrencies. In general, investors prefer cryptocurrencies that demonstrate a positive trend over the last few months and years, which allows to minimize risks. Public Trust Bitcoin and a number of altcoins managed to gain public trust and popularity all over the world. In a way, countless users of this cryptocurrency guarantee its stability in the market, which proves how reliable this asset is. Liquidity The number of Bitcoin ATMs, cryptocurrency exchanges, and points of sale accepting payments in cryptocurrencies is growing annually. Hence, the turnover of cryptocurrencies in the domain of market relations is growing as well. Independence and Decentralization No political, financial, social, and other external factors affect the price and position of cryptocurrencies in the global market. Moreover, the decentralization of the cryptocurrency system guarantees full safety of the funds kept in blockchain. Control Free Unlike traditional fiat currencies, cryptocurrencies are almost not regulated by authorities, all transactions within the network are closed from the outside world. Small Fees Keeping and using cryptocurrencies doesnt involve large commissions.
There are different ways to increase your cryptocurrency assets, for example, one can purchase them while trading at exchanges or invest into the cryptocurrency mining. However, in this case, there are no guarantees and it requires large primary capital and profound knowledge of the industry. Our company offers our customers to invest safely and receive passive income thanks to cryptocurrencies on transparent and mutually beneficial terms.
Any assets, especially cryptocurrencies, seldom preserve the same rates. Market activity of users, traders, and investors, the appearance of new cryptocurrencies and forks (new currencies using the code base of the old ones) directly affect the cost of digital currencies. However, unlike fiat and other non-digital assets, cryptocurrencies hardly depend on external economic and political changes and environment.Positive and negative factors of cryptocurrency volatility often overlay each other, which is why their rates go up and down. Leaps become more dramatic due to trader games when a rate of a single cryptocurrency is being increased or decreased. Cryptocurrencies with small capitalization are much more prone to sharp changes in cost. The cost can change by 50 100% or more even due to an appearance of a couple of big traders. In turn, many multibillion cryptocurrencies change their price due to more global reasons, for example, when a large number of traders makes the rate shift significantly. The rate of little-known cryptocurrencies can change without any evident reasons or depending on the rate of other basic cryptocurrencies.The volatility of cryptocurrencies is especially high compared to traditional assets. Average annual volatility rate of fiat currencies amounts to 3 4%. Real estate and bonds feature low volatility rates.
The price of shares can change within 2 4% on a daily basis. Cryptocurrencies demonstrate a visibly higher volatility rate, their price can change by 20% 50% daily. The average annual volatility of some digital currencies exceeds 100%.These figures will remain more or less stable for the next 3-4 years before cryptocurrencies will become regulated in the global economy and obtain global distribution. Their cost will become more stable once the e-money system is modernized and integrated into all sectors of market relations. For now, cryptocurrencies feature high volatility (which is absolutely normal as they just come into being). This is the best time to increase ones capital.
Cryptocurrency arbitrage is an algorithm of certain actions that involves obtaining some assets at one platform and reselling them at a different platform at a higher price while making profit from the difference of current rates. Spatial arbitrage cryptocurrency trading is possible due to numerous differences in rates presented at difference exchanges. If one looks closely, it is possible to notice that the price of ETH or BTC is not the same at Yobit and Binance exchanges. Why does it happen?It is mostly preconditioned by the specifics of each exchange, for example, which currencies are involved, whether fiat money is accepted, and the possible ways of adding and withdrawing funds.
For example, take the South African exchange named Golix that used to sell 1 BTC for 000, while its price at Bitfinex only comprised 000. The reason for such difference was that it was only possible to withdraw fiat money from Golix using a Zimbabwe bank account with strict limitations.