Cryptocurrency is a digital asset or currency designed to work as a medium of exchange in which encryption techniques are used to regulate the generation and creation of additional units of currency and verify the transfer of assets. Cryptocurrencies utilize blockchain ledgers to record and validate transactions. Many cryptocurrencies are decentralized systems based on blockchain technology, a distributed ledger enforced by a disparate network of computers as opposed to centralized digital currency and central banking systems.
The possibilities for arbitrage and trading are endless with such a diverse quantity of currencies now available. As an initial guide, Merger Arbitrage Limited has a FREE cryptocurrency calculator available on the Personal Finance Calculators page.
Many spread betting firms offering CFD trading also offer extensive cryptocurrency trading facilities alongside traditional FOREX trading. However, many arbitrage these inter-exchange strategies are controlled by bots making it very difficult for the average investor to exploit. Because of this, numerous scams are in perpetual operation offering the average investor the chance to make superior profits for a small outlay. Or even offering some type of subscription service with “expert” advice. It is rarely the case that such services are in the best interests of private investors.
Cryptocurrency Features
A defining feature of this type of currency, and arguably its biggest allure, is its organic nature; it is not issued by any central authority, rendering it theoretically immune to government interference or manipulation. A cryptocurrency is a digital or virtual currency that uses cryptography for security. A cryptocurrency is difficult to counterfeit because of this security feature.
The first cryptocurrency was bitcoin, which debuted in 2009, and approximately 2,000 cryptocurrencies have been created as of 2019, although very few have seen widespread adoption.
