Cryptocurrencies are those digital currencies that almost everyone in this age is interested in, trading, or using as an investment instrument. Any particular central authority or government does not usually back them up. The government’s backing would surely increase the weight or the value of such digital currencies, among several others and another thing to note is that these digital currencies are decentralized.
Cryptocurrency has quickly become a universal and global phenomenon or marvel in recent years. Many industries, institutions, and organizations benefit significantly from all that cryptocurrencies offer. A decade ago, if you informed anybody that you were interested in cryptocurrency or were investing in it, they would most likely dissuade you or make fun of you. The world has truly evolved, and in this age, telling people you are not current on cryptocurrency matters might make you look unserious about your finances.
One of the well-known features of cryptocurrency is its volatility. This is what scares a lot of people away from the cryptocurrency sphere. The fact prices cannot be predictable or guessed is the juice in the cryptocurrency market. The price swings put traders on the edge of their seats and make some sit with their devices all day. Of course, there is a solution to this: the crypto auto trading robots that platforms such as BitIQ have made available. BitIQ is a trading platform that provides these trading robots, and what they do is that they use artificial intelligence to make the orders in cryptocurrency exchanges. This is way faster than human-controlled trades. BitIQ puts these trading robots in place so that even when the trader is not available or present, profits are unchanged. Primarily, these trading robots ensure that when significant swings occur in the market in favor of the traders, they do not lose simply because they are not present.
Demand and Supply
Do you ever wonder what makes the cryptocurrency market very volatile and unpredictable? Demand and supply are one of the reasons for this. Supply and demand direct the value of cryptocurrency in the market, as it is with so many other things that people desire or want. Of course, it would be very precious now. Imagine a necessary foodstuff becoming very scarce in the market; those who have it in the store would make it more expensive as the demand for it increases. This same law of demand and supply applies to even cryptocurrencies. Cryptocurrency would surely gain value once the demand rises higher than the supply level. Even with this factor, BitIQ seeks to put its traders and users on top of their profit game.
New cryptocurrency tokens are created through the process called Mining. This involves using a computer to validate the incoming or following block on the blockchain. To verify the blockchain, miners would have to try to get ahead of each other. They invest in electricity and costly instruments and equipment to solve complex problems to validate a block. As this happens, the mining costs would increase because more powerful instruments are needed to mine successfully. When this increases, the value of cryptocurrency also automatically increases; this causes a fluctuation in the cryptocurrency market.