An Introduction to Cryptocurrencies

In the world of finance, one of the most highly sought after investment strategies in recent years has been the rising popularity of cryptosurfers. This rise in interest was sparked by two major factors. The first being the emergence of numerous online forex brokerages that made it possible for ordinary people like you and me to participate in the forex markets without the need for large investments or even large outlay of cash. The second was the inclusion of a number of ‘new kid on the block’ digital assets like cryptosurfers which have grown substantially in value in recent times.

So, what exactly is a Cryptocurrency? A Cryptocurrency, also commonly referred to as Cryptocash, is a digital commodity that is created as a result of the mining of digital assets using sophisticated computing algorithms. Cryptocurrencies are generally considered as a kind of digital commodity since they are intrinsically worthless but are traded in large quantities. Generally speaking, the more valuable a Cryptocurrency is, the higher its market capitalization; hence Cryptocurrencies with the highest market capitalization are generally the most widely used Cryptocurrencies in the Forex market.

As Cryptocurfs are a type of digital asset, no physical commodity is attached to them; hence no market capitalization is associated with them. However, like stocks and shares, the value of Cryptocurrencies is generally derived from the performance of the underlying asset. For example, if you were to look at the financial performances of most popular Cryptocurrencies, you would notice that not only do they suffer from a poor market cap but they also suffer from poor trading volumes. It is for this reason that most Cryptocurrencies are not exchanged directly on traditional exchanges. Instead, they are usually traded on ‘exchange traded fund’ (ETFs) such as the Toronto Board of Trade (TSB) and the New York Board of Trade (NYBOT)..

With the numerous problems associated with traditional exchanges, there has been an increased interest in alternative methods of purchasing Cryptocurrencies. This is where the growth in the number of users of Cryptocurrencies have been noted. Basically, a user who wishes to purchase Cryptocurrencies would first need to select a Cryptocurrency that meets their investment objectives. It should be noted that in most cases a typical investor would not need to know anything about the financial wellbeing of a Cryptocurrency in order to purchase it. On the other hand, a more knowledgeable investor may wish to perform research in order to ensure that they are investing in a high quality Cryptocurrency.

In addition to the above, another source of interest for the general public relates to the number of illicit activities that are being conducted in the ‘dark web’. The dark web is where a range of criminal activity is carried out, and one in which Cryptocurrencies have become extremely popular over the last year or so. To date, the Silk Road is thought to be the largest online brothel ever found, and this has attracted a significant amount of attention from both the public and the police. However, there are potential concerns as to the safety of certain Cryptocurrencies, namely Monero and other digital currencies. There are also concerns that the lack of regulatory standards for these currencies may hinder their ability to achieve sustainable growth.

Finally, it should be noted that Cryptocurrencies can be used for money laundering. This has resulted in significant fines being imposed on an array of people involved in the trading and sales of Cryptocurrencies. This has led many Cryptocurrencies to be placed on blacklists by various government agencies. As a result, if you wish to conduct any type of Cryptocurrency transactions, it is imperative that you only conduct your transactions through a known reputable and regulated Cryptocurrency exchange.