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Cryptocurrencies: Indices: The World's most intriguing Financial Market

Here, you will find the definition over crypto world, top cryptocurrencies which are traded around the world: Bitcoin, Ethereum, Bitcoin Cash, Ripple, True USD. Almost everything you want to know over cryptos, live prices, what affect their prices and more.

What are Cryptocurrencies?

Cryptocurrencies are becoming very popular since their first appearance in 2009 and there are now over two thousand in existence. Some of the most traded cryptocurrencies are Bitcoin, Ethereum, Bitcoin Cash, Ripple, True USD. They have the largest market capitalization.

In difference compared to the traditional currencies which are produced, managed, controlled and observed by government and/or central banks, is that cryptos are mined through computers network and managed through blockchain technology- a permanent record of transactions that cannot be altered without the consensus of the network.

What are the top cryptocurrencies traded worldwide?

The most famous cryptocurrencies classified by their market capitalization and recent price movements are Bitcoin, Ethereum, Bitcoin Cash, Ripple, True USD. These dominate the market and are popular among traders and investors.

Bitcoin

Bitcoin is a peer-to-peer digital cash system that allows interested parties to transfer electronically units of the digital coin without the presence of an intermediary. Bitcoin is a combination of a public transaction ledger, a decentralized currency producer algorithm and a transaction verification system. Its supply reaches 21 million bitcoins, which are expected to be mined before 2025.

Etherum

Ethereum is a Turing-complete blockchain protocol that is based on smart contracts. These smart contracts are scripted with Solidity, which the native programming language of Ethereum. Smart contracts are self-executing programs that facilitate money, content, property exchange. Of course, there are needed some conditions to be met and there is no need for intermediary part. Smart contracts run exactly as programmed without censorship, downtime, fraud or third-party intervention.

Bitcoin Cash

Bitcoin Cash is also a peer-to-peer electronic cash system, it allows digital transfers of bitcoins without the need for a third party. Bitcoin Cash is a result of a chain split from Bitcoin Core protocol, while an upgrade increasing the block size limit from 1 MB to 8MB (and later to 32 MB). Like Bitcoin, Bitcoin Cash has a supply cap of 21 million bitcoin cash. During a fork of the BCH chain in November 2018, Bitcoin Cash Satoshi's Vision and BitcoinABC were created. As the time passed, many exchanges started to name BitcoinABC chain simply Bitcoin Cash (BCH).

Ripple

Ripple is a real-time gross settlement system, currency exchanger and remittance network based on an open-source protocol. Ripple supports traditional currencies, other cryptocurrencies, commodities and other forms of payments, like mobile minutes for example. Ripple’s platform uses a distributed ledger to facilitate payments, exchanges, and remittance via its native cryptocurrency, XRP. The Ripple supply is around 100 billion XRP, while 60% of them is held in Ripple labs, most of which is locked in escrow contracts. Ripple transfers needs very little to no confirmation time, free global transactions with no chargeback threat.

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What affect the cryptocurrency market?

Cryptocurrencies are the champion of volatility. There are a variety of triggers for this high volatility. Some of them are:

Speculations

Speculation is a powerful influencer on cryptocurrency prices. It was very clear how Bitcoin dropped from $20,000 in December 2017, to $1,000 in 2018. Both, experienced and inexperienced traders would go long and wait without being bored- expecting the price to keep rising and going as high as possible.

New Cryptocurrencies

There are 2,000 and more cryptocurrencies available in the market to trade. As more cryptocurrency enter the market, created under faster and more efficient networks, the status and the power of current cryptos may be shaken. For example, the network transaction value of TRON (TRX), as of October 2018, exceeded that of larger market-cap cryptocurrencies such as Bitcoin, Ether and XRP.

News Announcements

It is proven that cryptocurrencies are highly sensitive to news announcements. Starting from CEO of JPMorgan Chase calling Bitcoin a ‘fraud’ to details of networks being hacked, and anything in between can lead to uncontrollable fluctuations. On the other side, economic and political events which affect fiat currencies, can make people lose their interest in traditional currencies, so they turn their interest towards cryptos, causing a grow on their price.

Regulation

Regulations are a big issue when it comes to cryptocurrencies. Just for the fact that they are decentralized, the issue becomes more complex, with wide international disagreement ranging from the legitimacy of currency status, or even whether they should be made illegal. For example, in February 2018, China blocked for its citizens the access on the website which were offering cryptocurrency services. This caused a 15% fall in Bitcoin and 20% plunge for Ethereum. Similarly, in January 2018, Bitcoin’s price was hit by new South Korean legislation requiring traders to reveal their identity.