Cryptocurrency market is one of the most rapidly growing markets in the world, with an enormous potential to develop in the future. Unfortunately, many people still don’t know much about this market and how it works, but once they learn more, they often want to start investing and earning their own money by trading cryptocurrencies. Here are 10 cryptocurrency market facts that you didn’t know before now, as well as some tips on where to start learning more about it if you find yourself interested in investing your own money into this market.
1) The cryptocurrency market is still young
The cryptocurrency market is still very young and there are many changes happening. The market is very volatile and can change in an instant. It is hard to say what will happen in the future but one thing we do know is that it will be different.
2) Bitcoin is the most dominant currency
Bitcoin is the most dominant currency on the market with a market cap of $117 billion. Bitcoin has been around since 2009, but it really got popular in 2017 when its value increased by 1,000%. Over 100,000 bitcoin transactions happen every day.
3) Ethereum is the second most popular cryptocurrency
As of June 2018, Ethereum is the second most popular cryptocurrency. It’s been around since 2013 and has a market capitalization that exceeds US $61 billion. Ethereum was created by Vitalik Buterin and co-founded by Dr Gavin Wood.
4) Ripple is the third most popular cryptocurrency
Ripple is the third most popular cryptocurrency after Bitcoin and Ethereum, but it’s also one of the most controversial. Ripple is a blockchain company that created XRP. It’s designed for banks and global money transfer companies like Western Union. Ripple was founded in 2012 by Chris Larsen and Jed McCaleb, who had previously founded eDonkey2000 (which was sold to Rhapsody), Prosper Marketplace, Plaxo (sold to AOL), and Mt. Gox.
5) Bitcoin Cash is the fourth most popular cryptocurrency
Bitcoin Cash is the fourth most popular cryptocurrency in the world, with a market cap of $8 billion. Bitcoin Cash was born on August 1st, 2017 when Bitcoin split into two cryptocurrencies: bitcoin and bitcoin cash.
6) Litecoin is the fifth most popular cryptocurrency
Litecoin is the fifth most popular cryptocurrency based on a ranking compiled by CoinMarketCap, with a market capitalization of $7.35 billion and an average trading volume of about $4.4 million per day.
1) Litecoin was created in 2011 by former Google employee Charles Lee as an alternative to bitcoin, with faster transaction times and lower fees.
7) Bitcoin prices are volatile
The cryptocurrency market is volatile and changes on a daily basis. For example, the price of Bitcoin has fluctuated wildly in the last few months. In December 2017, Bitcoin was priced at $19,000 USD but has since fallen to around $7,300 USD as of February 2018. This volatility can be attributed to factors such as supply and demand and more specifically, how much people are willing to pay for it.
8) Cryptocurrencies are often used for illegal activities
Cryptocurrencies are often used for illegal activities such as money laundering and the purchase of drugs or weapons on the Dark Web. However, they can also be used to avoid taxes, launder money and pay employees in countries with hyperinflation.
9) Cryptocurrencies are not regulated by governments
Cryptocurrencies are not regulated by governments or backed by a central bank, which means the value of each cryptocurrency is subject to volatility. Cryptocurrencies offer the promise of lower transaction fees than traditional online payment mechanisms and an ability to conduct transactions quickly and anonymously (which appeals to those who wish to avoid government scrutiny). Some people believe cryptocurrencies will eventually replace traditional currencies.
10) Cryptocurrencies are risky investments
Cryptocurrencies are risky investments because they are still in their infancy and they don’t have a guaranteed market or intrinsic value. The price of cryptocurrencies is highly volatile, and there’s no way to know what the value will be tomorrow. Investors also don’t have any legal protections if the company goes out of business or does something illegal.