The reality of mining and trading cryptocurrencies in 2018. The market for cryptocurrencies is in a growth trend.

In 2017, the cryptocurrency industry brought users and investors many positive and negative surprises. However, that year has passed and now we must understand what opportunities this industry has to offer both in terms of technologically mining crypto coins, but also in regards to earning a profit through direct investment into these resources and by trading on specialized binary options platforms. Today we’ll provide some materials that will investigate the questions relating to the various perspectives in regards to trading cryptocurrencies, their mining through technical equipment, as well as considering the possible growth in the market for crypto coins and the general growth of this IT industry.

The reality of mining and trading cryptocurrencies in 2018

The reality of mining in 2018

So, we’ll begin with the traditional approach of getting cryptocurrencies, mining. For those users who are not yet informed, allow us to enlighten you. Mining is mining crypto coins through dedicated processing power, which involves searching for system information blocks and resolving special algorithms that earn cryptocurrencies. These days mining remains the main technical approach for mining traditional crypto coins.

In the early days of Blockchain technology, all you needed to accrue cryptocurrency was an everyday computer and you’d earn 10 coins a day. However, due to the increase in popularity of mining, it has become more difficult and requires more and more technical capabilities and energy. As a result, mining cryptocurrencies has become less accessible to the average user. Today the majority of Bitcoin is mined by a few large-scale mining pools, that, in most cases, are based in China, as the energy consumption of these computing giants is comparable in size to that of an average-sized European country. However, in the end, it’s irrelevant, as we’re interested in the real opportunities for mining in 2018.

The start of the year has already shown that miners aren’t losing their hope and the cryptocurrency industry is attracting more and more new users. These traders, in particular, are drawing interest to Blockchain and maintain the popularity of mining. However, when considering the perspectives of profitability of mining crypto coins, it is necessary to go into the problems faced in this sphere as well:

Difficulty Processing Blocks – the process of the search algorithm itself and processing cryptocurrency blocks periodically becomes more difficult. Therefore, miners must increase their mining power year by year.

Large Financial Commitments – in order to set up a relatively functional mining farm, requires significant means for private traders, on average from about $2,000. During this, with the understanding of the difficulty processing blocks, the investment growth period essentially increases. If you started mining a year ago, you’d have your investment returned in 3-4 months, now that period has increased to 9-12 months

The Growth of Large-Scale Mining Pools – large farms with large computing power simply push private investors out, while significantly complicating their own work as well. The issue is that the cryptocurrency computing technology is designed in such a way that when the capacity of block searches radically increases so does the complexity of the algorithm of its search. The increase of farm capacity leads to increased difficulty mining coins for all participants regardless of their computing power

Lack of Equipment – Many producers have begun to limit release and sale of the necessary video cards for running a farm. It is credited to the emergence of a deficit in necessary equipment for producing personal computers and specific prohibitions by governmental bodies

Close Attention by Government to the Problem of Cryptocurrency – Cryptocurrency and mining have become such a global reality, that governments can no longer ignore this IT good. The issue is that in several countries mining has grown to such an extent that it has begun to threaten countrie’s energy sectors, others object to the level of risk that comes with cryptocurrencies and try to ban it within the confines of their territory. This causes significant damage to the cryptocurrency industry as a whole

As you can see, these days mining is completely overwhelmed with problems and, at first glance, its relevance should decrease!

On the contrary, the majority of cryptocurrency specialists are convinced that 2018 will not experience a decrease in mining activity or a loss in interest direct to this endeavor. Once you understand the growth of the cryptocurrency sphere and in wild popularity of electronic funds, as well as the appearance of new coins, it is reasonable to argue that mining isn’t losing its place as the main tool for mining cryptocurrencies.

However, specialists also note that mining Bitcoin has become exclusively the prerogative of large farms and pools. The option open to anyone on their own is to join a larger mining pool to mine cryptocurrency jointly. Anyone who doesn’t want to lose that independence can switch to mining simpler coins or electronic resources that have appeared on the market more recently. More or less, in regards to mining, these days, there isn’t a problem in terms of lack of choices.

In regards to this topic, in short, the cryptocurrency trend online isn’t decreasing and mining isn’t losing its relevance in 2018

Trading cryptocurrencies and prospective market growth of crypto coins

The second option for working with cryptocurrencies, that opens up the opportunity for earning real profit, is, of course, trading. We will expand on this in case there are any newcomers. Trading is a speculative operation on a specific asset on the financial market, in this case, cryptocurrency or specialized binary tools designed for generating profit.

In this case, we will cover several traditional approaches to conducting speculatory operations:

● The direct purchase of crypto coins and generating profit off the growth of their price. Today, you can freely obtain any cryptocurrency, providing investors a lucrative place to invest their funds

● Exchange operations on platforms for speculation without directly buying an asset. Today, there is a wide variety of cryptocurrency exchanges that offer an even wider selection of financial services, anything from holding currency in special virtual wallets to buying/selling crypto coins to work in a trading method through specialized forms of binary options contracts

● Forex, the mainstream service for trading currencies, couldn’t ignore the international cryptocurrency trend. Today, all Forex operators offer CFD contracts on cryptocurrency rates

● Electronic options are futures contracts that work like bets on asset price change. This trading tool allows for earning the most profit in the least amount of time thanks to its fixed-profit contracts and predetermined duration. For example, leading trading platforms, such as Binomo, IQ Option, Finmax, OlympTrade, Binary.com, provide cryptocurrency options.

Considering the cryptocurrency market in terms of the trading perspective, it is worth pointing out that this approach to profiting doesn’t demand hefty financial investments, unlike mining. All you need is a deposit of $5-$10 dollars to gain access to the cryptocurrency market. Therefore trading cryptocurrencies and derived contracts will live on and grow so long as the internet is around and, at the same time, crypto coins themselves!

Access to this financial approach and simple method is what attracts the majority of private investors and traders to the trading field. Although there is a specific array of problems associated with cryptocurrencies, the resolution of which would lead to a boost in the market growth of cryptocurrency:

● There are high risks of losing any capital invested. The market for crypto coins highly volatile. You can just as easily lose your entire investment, as you can get rich quick. Hence, when starting out trading, be careful and use special cryptocurrency approaches to market analysis.

● There is a lack of regulation on trading platforms. The majority of cryptocurrency exchanges today run quasi-illegally. The issue is that cryptocurrencies are only recognized as a financial tool and means by a few countries, but remain unrecognized by the overwhelming majority of countries. However, the complete decentralization of cryptocurrency and the lack of a centralized body charged with the monitoring and regulation of this market makes it impossible for governments to completely ban cryptocurrencies, leading to lively active exchanges across the world. On that front, the internet is filled with a wide variety of fraudulent companies.

● In terms of crypto-banks’ data protection, as recent as 2017, several leading platforms were hacked. As a result, investors lost both their investment in fiduciary currencies as well as any crypto coins held in the companies’ virtual wallets. This factor has led to the negative reputation of the cryptocurrency market.

Although, despite all this, the opportunity to quickly earn large profits with minimum investment completely neutralizes the negative aspects of cryptocurrency trading and opens up the possibility for its future growth. In this context, the analysis of perspective crypto coin market fluctuation becomes relevant. A topic on which we will expand on further on.

Perspectives on the growth of the cryptocurrency market

The past year has shown us what kind of spikes and dips are can be seen in the cryptocurrency industry, such as the rapid market capitalization up to the level of 800 billion and the subsequent fall two times. It has definitely spooked investors. However, when analyzing the perspectives of Blockchain currency and new ICO coins clearly speaks to the growth of the market, regardless of the collapse, and there are several reasons for this:

The Legalization of Cryptocurrency – these crypto coins have become so widespread internationally that governments can no longer ignore them. Several are taking steps to regulate or ban cryptocurrency, but how can you regulate something that has no central governance? This is why the vast majority of countries will be forced to recognize cryptocurrencies as an official form of payment. This has led to increased investments in crypto coins and, in accordance, the rise in their prices

The Technical Perspectives – The cryptocurrency industry isn’t only a payment method, it is also a tool as well that attracts investment and users to Blockchain. Take, for example, smart contracts, which are already used today as a type of contract between large companies and corporations. In this context, the institutional investors’ interest in cryptocurrencies has seriously risen, heating up the market

ICOs provide an attractive investment opportunity, aided by the release of new cryptocurrencies, allowing for high returns from promising projects. At the same time, investors in this sphere get the opportunity to invest funds in highly-profitable assets. This kind of symbiotic relationship also provides the increase in the cryptocurrency market capitalization.

As you can see, the cryptocurrency market isn’t losing hope and offers investors a fairly wide variety of benefits that demonstrate its prospective growth.

In this sense, as well as taking into account specialists’ opinion on the growth of Blockchain currency, you can clearly say that today, in 2018, the leading group of popular crypto coins are demonstrating growth. In a few cases, the value will reach last year’s highs, with specific points possibly breaking through the previous high with ease, showing even higher indications of growth, here we refer to the first five cryptocurrencies by capitalization.

In Conclusion

Despite the recent financial collapse of the cryptocurrency market and the technical obstacles to mining cryptocurrency, there is perspective growth in this sphere in 2018. In this context, both miners and traders can consider the high financial indicators.

TRY CRYPTO TRADING

“General Risk Warning: Binary options and cryptocurrency trading carry a high level of risk and can result in the loss of all your funds.”

The reality of mining and trading cryptocurrencies in 2018
Rate this post

Leave a Reply

Your email address will not be published. Required fields are marked *

Pin It on Pinterest

Share This