CoinCap is one of the major leading sites online that deal with the trade of cryptocurrencies. Even before we get to understand what the site does with cryptocurrencies, it is important to understand what cryptocurrency actually is.
In simple terms, cryptocurrencies are a subset of alternative currencies. A cryptocurrency is a digital asset designed to work as a medium of exchange whereby they use cryptography to secure transactions.
Cryptocurrencies operate separate from the central bank, and their legality differs from one country to another. There are over 700 cryptocurrencies right now, with most of them being inspired by the bitcoin (which is the first form of decentralized cryptocurrency).
Bitcoin is the first decentralized ledger currency with the highest capitalization. All these cryptocurrencies are available for trade online, and this is what the CoinCap site is aimed at doing. You can make money buying and selling these cryptocurrencies based on how their demand goes in the market.
What Is CoinCap?
The site majorly deals with the trading of cryptocurrencies. This is the international exchange of cryptocurrencies where you can buy a certain currency, anticipate the market price, and sell later making some profit.
It is much easier to start trading in bitcoins than in Forex, as they are easy to enter. You can join right away and start trading in less than one hour. This is quite easy when you compare to Forex, where it takes weeks to transfer money to your account.
You just need some experience on how to estimate the price and the available supply before you purchase. There are over 500 cryptocurrencies available for trading on this site. You don’t have to invest a lot in the purchase of these cryptocurrencies.
The low spreads ensure you can spread the risks and avoid any big losses, but keep in mind that the truth still holds that the more you invest, the more your will gain (or lose).
Leading Cryptocurrencies On CoinCap
While Bitcoin is the trendsetter, there are other major cryptocurrencies to look at as you aim to start trading on this site. Bitcoin has become the de facto standard for all currencies. Almost all cryptocurrencies inspired by Bitcoin have come together to add to the bitcoin market, and are collectively known as altcoins.
These other currencies can be a bit difficult to mine compared to Bitcoin, but are usually bought at a lesser liquidity. Some of the common cryptocurrencies to check out include:
Launched in 2011, this is one of the crypto currencies that follows bitcoin and was usually referred to silver bitcoin in reference to the bitcoin which was considered gold. Litecoin was created by Google Engineer and MIT graduate Charlie Lee as an open source global payment network that is not controlled by any central authority.
This was built in 2015 and used as a decentralized platform that enables smart contracts and distributed applications to work without any downtime, fraud, or interference from third parties. With a market capitalization of $4.46 billion, it is the second largest after bitcoin.
Launched in 2016, Zcash looks like a promising entity that offers privacy and selective transparency. Its choice of shielded transactions allows for encrypted content.
Dash was originally known as dark coin and works as a more secretive version of the bitcoin. It works on a decentralized master code network, making it more anonymous and almost untraceable. This was launched in 2014 and has had an increase in the people following it.
This is a real-time global settlement that offers users certain, instant, and low-cost international payments. Ripple was released in 2012 and has a market capitalization of $1.26 billion.
This is another simple and untraceable currency launched in 2014. It had a spiked interest and highly enthusiastic reaction from its fans. Monero has launched with the donation-based community. This currency uses the ring signature to create complete privacy.
In simple terms, Bitcoins leads the pack of all these cryptocurrencies regarding market capitalization, popularity, and user base. Cryptocurrencies are here to stay, but many will continue to emerge as the market leaders while others fall away.
How To Use CoinCap
Buying and selling crypto currencies is often a do it yourself situation, with very minimal experience required. Through the coincap site, you can become a trader in just a matter of minutes and start making money. Bitcoins have existed for many years and remain highly accessible. There are several benefits of joining the site and starting to trade right away.
The site has a high leverage when you compare to Forex. This is something experienced traders can use to their advantage. However, approach these high margins with caution to avoid making huge losses at the same time.
There are no transactions costs required with everything being digitally recorded. There are no deposit or withdrawal fees, as is the case when it comes to Forex trading.
You don’t need to have a lot of money to start trading in the cryptocurrencies. The duration it also takes to have your deposit reflected in the account is quite quick as compared to when you deposit on Forex trading sites, where you can wait for days or weeks to have your money reflecting.
This form of trading is quite safe and secure as cryptocurrencies do not require you to reveal your bank account or card details to others. This is quite beneficial, especially when dealing with foreign brokers.
There are no global boundaries on these trades, and a trader in Africa can do business with one based in the USA with no government interference. The only issue is the regulatory challenges, but these can be solved when the buyer and the seller are in agreement.
Risks And Downsides Of CoinCap
- The multiple exchanges on the bitcoin can lead to varying rates
- High volatility
- High leverage costs
Cryptocurrencies are gaining popularity year after year, and trying your luck in this trade is something many will say is worth the risk. There are definitely risks associated, but with thorough research and experience you can engage in a profitable business.