Crypto currency in Nigeria
A cryptocurrency is a digital coin, designed to be transferred between people in virtual transactions.
Crypto currency exist only as data and not as physical objects; you cannot actually hold a Bitcoin in your hand or keep Ethereum in your safe.
Owning a Bitcoin means you have the collective agreement of each and every computer on the Bitcoin network that it is currently owned by you and – more importantly – that it was legitimately created by a miner.
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What is crypto currency mining
Cryptocurrencies are handled like cash but are mined like gold. Mining is simply the process of verifying a crypto transaction. People around the world transfer e-coins from wallet to wallet, while miners use computer-processing power to maintain the blockchain and verify these transactions.
When a new crypto is launched, its founders announce how many coins will be mined. Once the quota is reached, no further coins can be produced. The first digital coin introduced was Bitcoin, which remains today the benchmark for all other digital coins. Among other currencies that have made their way into the cryptocurrency hall-of-fame we have: Ethereum, Ripple, Litecoin, EOS, and a number of derived currencies, including Bitcoin Cash and Bitcoin Gold.
Blockchain – The Technology Behind Crypto currency
Unlike traditional transactions, cryptocurrency transfers are not handled by banks or other financial institutions. Every time someone pays via e-coin, his payment is recorded on a digital ledger called the blockchain.
What is Blockchain?
A list of transaction records, called blocks, which are linked to each other and encrypted. The blockchain is continuously growing and is completely open to anyone. Each block in the blockchain contains:
- 1.The details of the sender, receiver and amount of e-coins.
- 2.A hash, which serves as a unique fingerprint.
- 3.A hash of the previous block in the chain.
When a new block is created, it is sent to all the users in the network. Each user then verifies the block and it is added to the blockchain.
Each one of the numerous cryptocurrencies existing today has its own blockchain, and the complex math that is at the heart of the blockchain is computer generated. In order to run a transaction on the blockchain you need an e-wallet (or cryptocurrency wallet).
What is Tangle
The biggest problem of the Blockchain is its reliance on miners. This is exactly why the crypto currency called IOTA (the Internet of Thigs Application) was created in 2016. IOTA also battles increasing transaction fees and network scalability. IOTA’s blockchain is called Tangle. It is a blockchain with no blocks and no chains. In this system, the users themselves are responsible for validating transactions. This means there’s no need for approval from miners; so users enjoy a fee-free transaction and an increased process speed.
What is a crypto currency wallet
A piece of software or hardware that gives you the ability to store and exchange your crypto currencies. Each crypto currency wallet is encrypted and unique. When you send funds you actually broadcast an encrypted message to the recipient. Only the recipient’s crypto currency wallet can decrypt that message and thus receive the funds. A hardware crypto currency wallet is considered to have key advantages over other software wallets:
- It is immune to viruses or malware
- Its private keys are not exposed to your computer
- Does not require an import to a software
- More secure and interactive
- Uses an open source software that allows you to validate the entire device operation
- Can host multiple crypto currencies
Why Trade Crypto currencies with Avatrade
AvaTrade offers all traders the opportunity to trade a wide range of top-ranked digital coins 24/7. Due to the massive popularity of crypto currencies over the past couple of years, they have become a conventional and popular asset. The main purpose of this new technology is to allow people to buy, trade and invest without having to rely on banks or any other financial institutions.
Discover all the advantages of trading crypto currencies with AvaTrade:
Why Trade Crypto CFDs with Avatrade?
- Uncompromised Safety – With six regulatory authorities and segregated accounts, your money is protected at all times.
- Many Cryptos to Choose From – Trade on the wide variety of cryptos available on our trading platforms.
- No Hidden Fees – We offer zero commissions and no bank fees on transactions!
- Crypto Never Goes to Sleep – AvaTrade is one of the few brokers offer around-the-clock service and support in 14 languages.
- Generous Leverage – Increase your initial capital with generous leverage and get far more exposure to trade than your account balance. Up to 2:1 (for EU residents) 25:1 (for non-EU residents).
- Limit Your Risk – You can preset profit and loss levels by using stop losses or take profit limits when you trade. Determine the maximum amount you are prepared to risk when speculating on the price, or set a price at which you want to take profits. Future orders like Buy Stops and Buy Limits are also available.
- Trade Cryptos Against Fiat Currencies – Unlike many exchanges out there, who are restricting their clients to trade only Crypto to Crypto, our clients can trade Cryptos against Fiat currencies (USD, EUR, JPY etc.), as well.
Cryptocurrency Trading at Avatrade vs. Crypto Exchange
|Onboarding/registration process||Traders can start to trade immediately||Opening an account directly is a lengthy process|
|Speed of opening a trade position||Immediately||Each trade is confirmed via an arbitration panel and takes up to 30 seconds|
|Regulation||AvaTrade is Regulated on 5 continents and continuously monitored||Cryptocurrency exchange are not subject to regulatory authorities|
|Earning potential||Potentially profit even when markets are moving downward||Earn only when the traded asset is on an upward trend|
|Security||No risk of hacking or cryptocurrency wallet theft||High risk of hacking and cryptocurrency wallet theft|
|Trade execution||Immediate||Clearing house required|
Today’s Most Popular Cryptocurrencies:
Here are Today’s Most Popular Cryptocurrencies:
Altcoins is the general term associated with the cryptocurrencies launched after Bitcoin’s success. At first, these were mere copies mimicking the original Bitcoin. Today, there are over 1,000 of these, and the list just keeps growing. Most crypto coins are launched following an ICO (Initial Coin Offering – a form of crowdfunding) in which the developers raise cash by offering a limited number of initial coins to finance technological development. So far, besides the list below, we can find names, such as Namecoin, Peercoin, Bytecoin, Deutsche eMark, Novacoin, Cryptogenic Bullion, Quark, DarkCoin and Mangocoinz (for smartphones).
What Makes Cryptos Ideal for Trading
Cryptocurrencies allow traders to diversify their investment portfolio, as their price is mainly determined by demand and supply; Their value has a low correlation to national economies or political scenarios. Once Bitcoin surpassed the price of gold in 2017, US markets introduced 2 ETFs on Bitcoin and drew more and more institutional money into the world of cryptocurrencies. In 2017, Indian PM Narendra Modi has announced the gradual replacement of paper currency with electronic currency; In March 2018, the Marshall Islands announced that they would be introducing a cryptocurrency to replace US dollars as their main currency; other central banks are investigating the adoption of blockchain-like technologies… in short cryptocurrencies are probably here to stay. A growing number of crypto investors all over the world have already discovered the benefits:
- Cryptocurrency trading allows traders to diversify their investment portfolio, as cryptocurrency price is mainly determined by market sentiment, demand and supply
- Benefit from a wide range of today’s top traded cryptocurrencies
- e-coins offer a new form of high-volatility investment
- Cryptos are traded 24/7, even during the weekend
Open an account now and trade with the broker N°1!
Please note: The cryptocurrencies market’s high volatility may offer endless trading opportunities, but also high risk of loss.
Due to price fluctuation, certain crypto pairs may be suspended and/or removed from our trading platforms periodically.
Please see our crypto trading conditions page for available crypto currencies.
When trading with AvaTrade you are trading on the price changes of the digital coin, and not physically purchasing it.