How Forex Trading Is Going To Be Affected By Cryptocurrency - Drimz Media Blog

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Monday, June 11, 2018

How Forex Trading Is Going To Be Affected By Cryptocurrency


There’s a lot of buzz around cryptocurrencies, their super volatile and making millionaires in weeks not years. Bitcoin & co have also started hitting the mainstreameven banks are onboard. And even personally I was super skeptical I’ve now invested a lot of money for a long term hold in one crypto.
Personally I’m still skeptical apart from one crypto that I’m personally all in on.
It seems every passing month there are more and larger significant players in the market from the financial world.
BUT?
What does this mean for the forex markets – How will currency exchanges change?
In this post I aim to tackle this question. If you haven’t yet signed up to the email list and received the free ebook, do that now and you’ll be notified when new posts go live! I hope you enjoy the post!

What Is Cryptocurrency?

Starting with the very basics.
If you’ve been living under a rock for the past year and haven’t heard about BitCoin or Cryptocurrencies then here is the basic breakdown. Cryptocurrency is based on blockchain technology. It began years ago but has only recently exploded in the public with the explosion in the price of bitcoin & investors looking into crypto investing more seriously.
The blockchain technology itself is actually quite difficult to explain and honestly I still don’t fully understand the ins and outs of it. It’s kind of like electricity. It’s a great tech that has millions of applications but I don’t need to know exactly how electricity is created to be a successful trader, I simply need to analyse the impact of it in specific industries or applications. Saying that I have embedded a video below that explains (on a few different levels) what blockchain tech is.

What are some examples of cryptocurrency?

There are hundreds of cryptocurrencies avaiable to mine and trade. These are launched using ICO’s in most cases but for the sake of keeping this post simple I’m going to talk about the major ones in the industry.

Bitcoin

Bitcoin is the father of cryptocurrencies. Seen as the original crypto it is the leader in market cap and has a massive potential to change the face of the financial industry as we know it. The reason for this is Bitcoin is a decentralised currency. Meaning it is not controlled by banks or governments. Originally Bitcoin was seen as an almost “dodgy” currency being used to exchange valuable goods on the black market.

Ethereum

Instead of copying Ethereum’s definition I’ve pasted an image pulled directly from their website below. This shows very similar benefits to Bitcoin but in a slightly different way.
ethereum Definition
Etherium is seen as a faster and more secure way to create what they call digital smart contracts. More about this below in a very non-technical way that I liked.

Find out more on difference between FOREX TRADING and CRYPTOCURRENCY here

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