Which Top 5 Cryptocurrency Markets Exist?

A newer innovation in the world of digital currency is Cryptocurrency, also known as virtual money. This industry is still in its earliest stages, but already large financial institutions such as banks and asset management companies are using it as a strategic instrument. The main attraction for investors in this business is the fact that there is no need for a physical commodity like currency. This enables them to continue making profits without any immediate need to add physical assets.


As an example, when you trade in the US dollar or Euro against a Japanese Yen or Australian Dollar, you’re trading one pair of currencies. However, when you trade in Cryptocurrency, you’re trading two different currencies. If you choose to trade in several popular currencies at the same time, your downside risk in most cases will be zero because you won’t be physically adding anything to your portfolio. On the other hand, if the value of the base currencies drops, you could lose some profit, depending on which currency pair you’re trading.

There are various ways you can choose which currencies to trade in. In general, the more volatile the pair is, the better your chances are to make profits. Popularly used pairing is the EUR/USD, USD/JPY and GBP/USD. Other popular pairs are USD/JPY, EUR/CHF and USD/JPY. Some traders prefer to stick with their favorite ones so they avoid the potential losses associated with switching from one pairing to another.

The biggest weakness of Cryptocurrency trading is the ease of fraud and scams associated with it. Several well-known websites have been identified as conducting fraudulent activities that take advantage of novice traders and inexperienced traders. Some of these include running automated software that automatically accepts transactions and transfers funds without the knowledge or consent of traders. Other websites may even be fraudulent themselves.

Since Cryptocurrency markets exist outside of government control, they are not completely free from issues. Some issues relate to the stability of the currencies and their supply and demand. For instance, the token created by Dash, the “DASH”, has experienced a recent surge in popularity. However, the reason why this particular pair is gaining in popularity at such a great speed is because of the strong demand for privacy-preserved networks (VPN’s).

The two largest trading platforms – Cryptocompare and TradeKing – provide pricing information relating to all of the major cryptos listed on both sites. This information is generally not available to the public, but some of it is publicly accessible through third parties. The information includes a summary of current market conditions for each pair as well as a current analysis of how well the respective investments are doing. Both sites offer daily and weekly overviews of where the markets are in relation to the various currency pairs that they list.

Another highly popular type of Cryptocurrency, ERC20 tokens, is traded on the Shapeled Future Market. This market is exclusively managed by its creators, ConsenSys. Shapeled Future Market functions similarly to the NYSE and London Stock Exchange, with one major difference – Shapeled Future trades will trade largely in ether. As a result, many people believe that Shapeled Future is a private marketplace for ether (an asset that is closely related to gold). However, no private marketplace for ether exists at the present time, and investors must rely upon third party services in order to trade Shapeled Future. The liquidity of ether is currently very low, but the lack of liquidity is believed to decrease the overall profits that can be earned by investing in the open market.

Finally, many traders choose to trade in the Forex market via a software program called MetaTrader. MetaTrader is one of the top cryptosystems used by professional traders and because it is built on the Meta Trader Platform, many traders use MetaTrader to trade their favorite cryptosystems. Since many traders use MetaTrader to trade their underlying asset and because MetaTrader is the most widely used trading software around, it is no surprise that MetaTrader is also the top choice for software developers who want to offer traders an automated system for managing their portfolios.

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