The History of Crypto Trading
Cryptocurrency is a decentralised digital asset used as a medium of exchange. This type of currency is operated and managed through a central database also referred to as a Blockchain. The system uses strong cryptography to make sure that financial transactions are secure.
There were other early forms of digital cash as far back as the 1990s however it wasn’t until the launch of Bitcoin (the most recognisable of cryptocurrencies) that people started to sit up and take notice of cryptocurrency and subsequently to either buy it or begin trading it. With Bitcoin considered the real first version of digital currencies, it wasn't long before more emerged.
To many, cryptocurrency was something of a mystery. It was less tangible than operating in Forex or binary options; however it soon began to grow in popularity, and it was introduced as a tradeable asset by many brokers. But how did trading start, how did it become popular and where is it today?
In this guide, you will learn:
- How cryptocurrencies first came to be
- The different types of digital currencies
- What we can expect from crypto trading
How Did Crypto Begin
The most significant cryptocurrency can be traced back to 2008/2009 when Satoshi Nakamoto announced a peer to peer currency called Bitcoin. It wasn’t his intention to create a cryptocurrency, and to this day he retains a level of anonymity. But what are cryptocurrencies and how do they work? Crypto is a form of digital cash that is completely decentralised with no central authority that oversees it.
While the Forex brokers that offer crypto trading have to have licenses and regulations to provide trading opportunities in these assets, there are no servers or government authorities that oversee the currency itself. It has been quite a tumultuous journey for Bitcoin in particular with some notable highs and lows.
If you had invested $1,000 in Bitcoin when first released, this would now be worth much more, and at its peak, your Bitcoins would be worth millions of dollars. Although seen as the first cryptocurrency, Bitcoin wasn’t the first attempt at creating digital cash that was encrypted. Many tried with digital currencies such as B-Money and Bit-Gold, but it was Bitcoin that made people sit up and take notice.
Technology is moving at such a pace that this form of trading that relies totally on tech is only set to grow and get more exciting.
When Crypto Became Popular
While, as with everything, there were the early adopters that invested in bitcoin, it wasn’t until 2001 that other cryptocurrencies began to emerge. Bitcoin values continued to rise, and in December 2017, the price per bitcoin reached almost $20,000. Crypto wasn’t without its hiccups though as in 2013, the value of Bitcoin, having reached $1,000, crashed and many investors lost lots of money.
The price rose once again though, and it continued to increase in popularity. Forex brokers began to offer crypto trading and investors were able to buy and sell various currencies pitching the cryptocurrency against popular currencies like the dollar or the pound. With more brokers looking to gain a competitive edge, it wasn’t long before new brokers started to offer more digital currencies.
As time progressed, dedicated cryptocurrency brokers emerged offering sophisticated platforms that were able to provide a very secure level of trading amongst many other features. Of course, with mobile technology, trading became even more accessible and the fact that the digital world doubles in size every two years means that this form of trading, among others, continues to grow in popularity.
The Story Today With Crypto
There are over 4,000 digital currencies now available; however, this form of trading is still in its infancy when you consider that the first version was only released a decade ago. That said, technology is moving forward at such a rate that time doesn’t stand still and things are evolving at a faster pace than ever before.
Not all of these digital currencies, like some lesser known global currencies, are available through brokers although the more popular ones are more widely accepted. These include Bitcoin, Ethereum, Litecoin, Neo and Zcash, to name but a few. In addition to Forex brokers that offer crypto trading, you can also trade with dedicated brokers.
These platforms allow you to invest only in digital cash rather than using ‘normal’ money to make deposits and withdrawals.
There are Blockchain platforms built by cybersecurity experts that provide fast trade-execution, dependable digital wallets and a very advanced level of security that have been designed by some of the best cryptographers in the industry to give you the most secure and satisfactory trading experience. With such an extensive range of technological expertise at your fingertips, the platforms are faster, more accessible and easy for you to use on the move.
Crypto Trading in The Future
Technology is moving at such a pace that this form of trading that relies totally on tech is only set to grow and get more exciting. The growth of this increasingly popular form of financial trading is still on an upward trend and showing no sign of abating.
With more brokers entering the market place, more cryptocurrencies emerging, new forms of technology and encryption, it is hard to predict where it will all end or if indeed it will.
With more growth in artificial intelligence and more wider adoption of intelligent technology, the things that you will be able to do from your phones, while asleep will continue to wow you, the investor, and there is very little doubt that these digital currencies will become the replacement for hard cash that is governed by a central authority.
As investors, you will be able to trade with less and less emotion as technology takes over and you base your decisions on more intelligence than gut feelings and instinct. It is undoubtedly an exciting time for this form of trading.
Jessica has written for us for 5 years and offers a unique perspective due to her having worked in the financial industry internationally. In fact, Jessica has worked in a staggering 8 countries including Germany, China and the USA. Learn more.