Like any other currency or measure of value, crypto currencies are valuable to the extent we value them. Some currencies are provided by gold or other precious metals. The value of others is supported only by their popularity and value in the eyes of people. Crypto currencies were created as conditional units for the storage of capital, which are not influenced by central banks of the countries. Let's look at the main factors that influence the formation and change in the crypto coin value. Everything said below applies to all digital coins, not just Bitcoin.
Understanding what the real value of crypto coins is still extremely difficult. There are not many places where bitcoin is really needed to pay for a purchase or make a transfer of funds. In this sense, the value of traditional local currencies is sufficiently obvious since the state obliges its citizens to pay taxes in local currency. This fact gives value to the local currency in the eyes of people who use it. Nevertheless, there are several areas where crypto coins are really in demand and it is expected that the growth in these areas will be exponential in the near future.
Cash or money on your account is purely mathematical. This is just some amount that can be reduced or increased as a result of simple arithmetic operations. Of course, based on this, a serious banking system has been built that controls the use of these arithmetic operations. However, this system remains external to money and, theoretically, it can be changed to something else and to control operations with money in some other way. It is important that regardless of this superstructure over money, their mathematical essence will not change.
Crypto coins are a bit different. Crypto currency has already appeared in conjunction with the system that ensures their turnover and cannot be separated from it. The mathematical nature of Bitcoin is inextricably linked with their continuous circulation in a distributed system. This is their programmed property. Moreover, there is a real opportunity to program new properties of the system, correcting its behavior and adding some new features. If desired, you can generally use it for your own system, adding some unique patterns and properties. And this is already happening all over the world.
But, if you look more broadly at the business that is conducted internationally, it turns out that bitcoin-payments are in fact often more profitable than traditional bank transfers. When it comes, for example, to transfer tens of thousands of euros, commissions for this transaction can be quite significant. And businesses around the world are already taking this into account and are using the opportunity to provide goods at a lower price than competitors. Why not since there is a demand for low transaction costs and crypto currencies meet them.
Granting all this, there is an important point to mention. Considering crypto currencies cannot exist in a vacuum, we need services that allow us to exchange them. There are more than 100 cryptocoin market exchanges but only a few of them work well. Therefore, we have compiled our rating of the best cryptomarkets in the world so far in 2018. In recent years, there have been many new platforms so the information might become irrelevant at some point in time; be sure to follow the updates. As you know, crypto market is a rapidly changing industry and for that reason, you need to constantly expect new developments. The rating was made in relation to the feedback on the markets as well as on personal experience. Therefore, this is not just our preference but opinion of most traders.
EXMO is one of the best crypto exchanges, which accommodates more than 100,000 traders and many choose it because of possibility to buy and sell crypto coins for fiat currencies. The main advantages of the exchange are that there are many ways to replenish the account and withdraw funds. And it also has a convenient interface among all relevant websites.
However, there are several disadvantages. Firstly, there is not a wide variety of crypto currencies – it has only popular crypto currencies, which have achieved notable success. And they add two or three crypto coins a month, while other ones add 10-20. Secondly, they have problems with the transfer of funds. That is, money transfer might simply fail and the support team does not answer your questions. Not many people face this problem but it exists.
LocalBitcoins is a great platform for buying Bitcoin. This is the only place where you can find a person who will sell you BTC for cash at a meeting. This crypto exchange is very popular among exchange offices due to the fact that there is a very low price for Bitcoin. In addition, each participant has feedback and rating so look for people with good reviews and you definitely will not be deceived.
Binance has more than 100 currency pairs and the lowest commission for the transaction is 0.1%. So why did we put it in the 3rd place? The reason is that this is a Chinese crypto exchange, where the government once closed the BTC-E and many people lost money. And there is no option for dollar and euro on the crypto exchange; so firstly, you need to buy a crypto currency for money in one place and only then transfer it to Binance.
BitFinex is the world's leading website where most transactions take place. It is this exchange that determines how much Bitcoin or the Etherium will cost for the day. And there is also a possibility of withdrawing money in dollars but it requires a very complicated verification of the data. But we do not advise now to trade on BitFinex because they constantly slow down the server.
EtherDelta is a crypto currency exchange based on the technology of the Etherium. In other words, all the projects are associated with Ethereum. Therefore, there are many unique alternative coins which you can use to earn. You can buy EOS, OmiseGO and Populuos, which are relatively rare. Therefore, we recommend this exchange for professional traders.
Public perception has a huge impact on the value of the currency. So, in the case of crypto, people who react positively to innovation can act as a driving force. Another incentive is that the very idea of a crypto currency is attacking a corrupt banking system and it will not be possible to cope with an emerging competitor using traditional methods. Negative reactions can be caused by the fact that crypto currencies are often associated with illegal activities.
Successful hacker attacks on large crypto exchanges, such as Mt. Gox, also undermine the reputation of digital currencies, adversely affecting their prices. But such innovations as increasing the security of wallets through the use of several signatures and the emergence of new opportunities for online payment can give a positive impulse to the price. To conclude, whenever you need to use a service, exchange money or invest in crypto, consider all the aspects because even innovative ways of managing money have their shortcomings.
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