How can I benefit from cryptocurrency? Cryptocurrency provides an excellent opportunity to fund education and financing of innovative ideas. Before we dive into this article, I would like to explain the concept of the cryptocurrency market so we can get some advantages. I highly recommend that you follow this article for an explanation of the valuable features of the cryptocurrency market which make it impactful in our lives. I will start with an overview of how the cryptocurrency market works.
As I have mentioned, cryptocurrency and finance are based on token creation. Token (representing a unit of account) is a digital token that is created in cryptocurrency. The demand for token increases as its value increases and the supply decreases. So if the price goes up, then it is greater and its supply decreases also.
When the value of a token increases, its supply decreases in number. A better example is Blockchain whose value is changing but the number of records/blocks is increasing.
When both prices of the token and its supply is stable, then it is referred to as a stable coin. During a blockchain run, coins that are not worth anything are declared to be dead. After their death, they can be swapped for hard currencies like US dollars, etc.
I will discuss the concepts of the cryptocurrency market in detail.
Market parameters:
Price, Segmentation, and Development:
Price
This is the main parameter. As the price of an item increase, the quantity of that item has not increased. The price of an item is always different in number from other items. Due to this, it is still unpredictable. The price of Bitcoin is 65K Brits per coin (USD) and the number of Bitcoin increases only slightly when it increases in price, then the price of Bitcoin stays high.
The exact value, number of coins exchanged (a coin cannot be exchanged for another coin)
Novelty
People are interested in using cryptocurrency in daily life. This is the benefit to certain products and services.
Now we come to Segmentation:
Identify underlying driver:
This also defines at whose price basis.
Negative listing –
Counterfeit items are also challenging to track. Most of them find their way to market due to limited law enforcement.
As a result, many people engage in darkness because they can buy and sell these items at higher rates than legal sources.
Now, let’s discuss development:
How it works:
Everyone knows that cryptocurrency is changing in terms of the adoption of blockchain technology. For example, Recently, a survey shows that in New York, 45% of people said they use cryptocurrencies.
Not only people in New York but in all the countries in the world, there has been a positive trend towards the cryptocurrency market.
But if the graph of blockchain technology is not rising fast enough as you want, and for some purposes including education and financing of startups, it does not make sense to use the blockchain. So this is a big issue to be faced. If you are planning to implement the blockchain with the cryptocurrency market and invest in it, then cryptocurrencies will not be a good investment if you are dependent upon education/research.
I would like to share 4 valuable features that will enable you to benefit from the cryptocurrency market. As I have mentioned on the wall a few months ago, I would like to share that the cryptocurrency market is complete in name of simple yet big benefits. Therefore, we will go through these benefits with full explanation.
