What’s Trending in Cryptocurrency?
Published on: 28 Jun 09:10
Since its inception in 2009 with the advent of Bitcoin, cryptocurrency and cryptocurrency technology (specifically blockchain) have grown in prominence. Now, most people have at least heard of cryptocurrency (a decentralized digital currency), albeit they may not be able to explain what it is. Cryptocurrency is only going to continue to grow as its applications are used by more and more companies and the idea behind it becomes more accepted by more and more people.
cDuel offers the best trading simulator for cryptocurr
ency online. Here, you can practice trading in cryptocurrency using real-time values of actual currency. This enables a safe place for you to learn about cryptocurrency trading without any of the risk. You’ll gain an intimate understanding of trading cryptocurrencies, as well as the different kinds of cryptocurrency, as you try to maximize your rate of return. You’ll be able to set up your own cryptocurrency portfolio so you can track your overall performance in a real-life trading experience. This dynamic trading simulator game is unlike any other. Compete against your friends, while learning in this free environment. cDuel will well prepare you for when you do decide to begin investing in cryptocurrency.
In this blog post, we’ll go over some of the current trends in cryptocurrency, and why they are important. Visit us online today!
TRENDS IN CRYPTOCURRENCY
The trend towards Security Token Offerings (STOs) versus Initial Coin Offerings (ICOs).
The growing number of scams involving cryptocurrency is hurting the overall reputation of cryptocurrency and can potentially impact its growth and acceptance in the mainstream business world. Part of this problem is the growing number of scams around ICOs.
Initial Coin Offerings are very similar to Initial Public Offerings in the traditional stock market, except ICOs refer to units of cryptocurrency instead of stocks. ICOs allow small businesses and startups the ability to raise funds for future growth opportunities. The growth of ICOs has exploded, becoming a very popular way of fundraising. However, it would be nice if cryptocurrency could stay deregulated like it is meant to be. To an extent, it will; however, currently ICOs are taking a hit due to regulators, mainly the Security and Exchange Commission, that is throwing a fit because ICOs are pre-sales of tokens, meaning there is no actual functionality behind them. These utility tokens have no guarantee that they will ever exist, which is incredibly risky to investors. The SEC is concerned that investors do not understand this enough to make an educated decision. Hence, the STO was born.
The Birth of Security Token Offerings
Security Token Offerings began in 2017 officially, although the idea has been around for a while. An STO shares the same basic characteristics of an ICO, in that an offering is made by a business to the crowd, where consumers purchase cryptocurrency tokens built on a blockchain. However, here is where ICOs and STOs diverge. ICOs are the sale of coins, purported utilities or even currencies. STOs are the sale of securities.
STOs are usually purchased by investors who pay for the traditional security that is represented by a token. These securities can be equity, debt, shares in revenue, etc. However, all sales of STOs must be registered with the SEC before commencing. While this sounds cumbersome, there are workarounds in terms of crowdfunding that can be utilized to avoid involving the SEC. For example, STOs can be offered to accredited investors, or to both accredited investors and non-accredited investors if the company limits the amount of money it can raise.
STOs are poised to quickly take over and replace ICOs due to the fact of the inherent security involved with STOs which means the SEC is less likely to step in and cause headaches. ICOs still have their fans, however, because ICOs are unregulated — a hallmark of cryptocurrency — and because the cost is lower thanks to fewer regulations being imposed. With the unregulated exchanges, investors open themselves up to other risks, such as front running, pump and dumps, and painting the tape. Besides these names being quite colorful, the risk is real.
- Front running. This is where a company or individual trades ahead of the investor and then dumps the currency for a quick profit. Usually what the investor will do is discovered before it is added to the blockchain.
- Pump and dump. Here, a group of investors collude to buy a bunch of one cryptocurrency, driving the price up (hence, pumping it) before selling it (or dumping it), which drives the price back down. This is usually done to hurt other investors not in the know.
- Painting the tape. This is where investors trade amongst themselves, effectively not doing anything to the actual cryptocurrency, except creating the illusion that lots of trades are being made in that cryptocurrency. Again, this hurts investors not in the know.
STOs in the end will be traded on Alternative Trading Systems or with broker-dealers under close supervision of the SEC. Due to this supervision, the fees to trade cryptocurrency STOs will be high.
Currently, the crypto exchanges still remain unregulated, using blockchain technology to keep the trading fees extremely low, making these barriers to entry acceptable to many investors. cDuel helps you to learn all about the ins and outs of the cryptocurrency exchange markets with our free trading simulator game. Sign up today!
Increased use of Ripple
Apart from being a new cryptocurrency, Ripple or XRP is a real-time gross settlement system. Created in 2012, Ripple works off an open source protocol and allows tokens to be transferred between banks as payments. There is no verification process with Ripple, which increases the speed of transactions and makes them easier to perform. Due to its versatility, Ripple has become one of the best cryptocurrency coins to invest in with no obvious signs of stagnant growth any time soon.
Increased awareness of cryptocurrency in general
There are die-hard fanatics of cryptocurrency, such as cDuel, who recognize its enormous potential to transform the current monetary system as we know it. However, humans being humans, they are exceedingly slow to change. Hence, there has been a concerted effort by the cryptocurrency community to begin educating people on cryptocurrency, its uses, its value, and its potential in their lives.
Programs, such as cDuel where users can engage in an online cryptocurrency trading simulator game with no risk, have begun to spring up so the general public can gain a better grasp of what exactly is cryptocurrency. You can find webinars on cryptocurrency, as well as online classes, to raise awareness, especially amongst younger people. The idea is that by educating people, cryptocurrency will begin to become more accepted as a currency and used more. Expect to see more online trading programs and simulators similar to cDuel, as well as online platform and chat groups, spring up.
Cryptocurrency market stabilization
Historically, cryptocurrency has seen wide swings in its pricing in the market. Bitcoin perhaps best illustrates this concern when in 2017, its price dropped significantly, only to rebound quickly, leaving many holders in the lurch. Many other cryptocurrencies have experienced the same unstable patterns in their values as well.
However, 2018 marked the first year of stable prices for cryptocurrency, which cDuel expects to see in 2019 and beyond. This is partly due to better security measures being implemented, which helps to calm investors’ fears, and partly due to time. After all, anything any new product or service is launched, it takes time for investors and/or users to determine the market value of it, based on supply, demand, and other market conditions. But with cryptocurrency being widely accepted worldwide as a form of payment, cDuel expects the volatility of the past cryptocurrency markets may be gone.
Increased use of stable coins
A stable coin is a type of cryptocurrency whose value is tied to another fiat currency, such as the US dollar, which stabilizes its value. Its goal is to get rid of the volatility of the cryptocurrency itself. However, stable coins are global, meaning they are not tied to any central banking system, which is a hallmark of cryptocurrency.
Stable coins have come about in an effort to add stability to the cryptocurrency market. There are thousands of cryptocurrencies whose prices increase or decrease in the double digits sometimes daily. This is not sustainable in the long run. Think about it: do you really want to pay $25 for a hamburger and fries that yesterday cost you $20 for the exact same thing?
In reality, as good of an idea as cryptocurrency is and as radically changing it can be, it’s useless without stability because investors won’t invest in it otherwise. Hence, with this in mind, stable coins were invented and are expected to become a crucial part of the cryptocurrency market.
So why not just integrate fiat money into the cryptocurrency markets instead of inventing a whole other type of currency? Because cryptocurrency operates off decentralization. Thus, it’s counterintuitive and goes against the whole point of cryptocurrency to use government-backed money. Hence, if cryptocurrency mimics fiat money, you end up with the best of both worlds and bridge the gap between fiat money and cryptocurrency.
Increased use of blockchains
Everywhere you turn these days, the word blockchain is being heard, even if those using it don’t exactly grasp what it is, what it does, or why it’s so important. A blockchain is literally a chain of blocks that stores information about transactions (date, amount, time, etc), about who is executing the transaction, and stores distinguishing characteristics so it’s different than other blocks using cryptography. These blocks are then added together into a chain that is then visible to everyone once it has been confirmed by the miner (if you are speaking of cryptocurrencies). Due to this, a blockchain is incredibly hard to change once confirmed, giving it a security level unparalleled by other methods. This security level is what is propelling blockchain technology to be utilized by other industries in order to prevent hackers and fraud.
That being said, due to its newness, blockchain technology still has improvements to be made to make it fraud-proof. Expect these changes to be coming down the pipeline relatively soon.
HOW CDUEL CAN HELP
As you can see, cryptocurrency has many exciting changes coming down the pipeline, from stable coins to better blockchain technology. There’s a sense of history being made when you engage in cryptocurrency. It’s often wondered if George Washington felt this during the Revolutionary War or Abraham Lincoln during the Civil War. While these were historical events that altered the course of America forever, cryptocurrency, being inherently borderless, could alter the monetary system of the world forever. And that’s exciting.
cDuel’s mission is to help ordinary people understand cryptocurrency better. Through our online simulator game, we believe we’ve created the best way for you to safely learn about cryptocurrency that is fun, dynamic, and engaging. Currency itself can be boring; hence, when you turn it into a game, suddenly it’s as appealing as apple pie on Thanksgiving Day.
cDuel is easy to learn, and it’s free. You simply visit our website, sign up for your account, and you’ll be walked through the online simulator game. And without any worries in terms of actual money lost, you’ll be able to make riskier cryptocurrency trades that you wouldn’t normally do since nothing is at stake. This is a great way to test out your cryptocurrency market strategies before you invest.
cDuel is the best online trading simulator for cryptocurrency. Sign up on our website today!