The world is going through trying times as everyone has been confined to their homes due to the corona virus outbreak with nothing better to do than to simply bide their time without any breakthrough.
Something else is going through a similar situation and it is something that has been around for quite a long while but whose future looks pretty bleak given the current situation it is in.
We are going to discuss about cryptocurrency and its most important branch in this article to highlight some important facts about them and where their standing is going to be in the next few years.
Definition
Cryptocurrency is defined as decentralized currency that is designed to work as a new medium of exchange in place of legal currency that we know as money but whose financial transactions are controlled by means of cryptography.
It is done so because unlike legal currencies of all countries, crypto money is not regulated by any central bank to its name, which means that there is nobody to keep an eye on its transactions, which is why cryptography is used to do so.
While the financial accounts and statements of regular transactions are officially maintained and regulated by the government in the form of ledgers but crypto money is done so through the process of digital ledgers, which means digital and online data that is spread throughout different countries but with no centralized storage as it is unregulated.
Expert Opinion
Naturally with such unique features involved in it, cryptocurrency would be held with skepticism by the higher authorities but has always been a topic of interest for experts in this field, who have conducted extensive research over its study and want to find out more about it.
Organized studies have been conducted in the recent times where some engineers have gone through the rules of trading in the currency market and what kind of profit can be generated with the help of technical rules as far as trading goes with a privacy function applied for crypto money.
This aspect has been welcomed by everyone and they went ahead with the process of studying and analyzing the data at hand where they collected the prices of nearly ten cryptocurrencies from the period of December 2016 to January 2017 and only concentrated on those that had the highest market value at that time.
Strategic Planning
The currencies that were involved included Bitcoin, Litecoin, Bitshares, Dogecoin, Ripple, Ether, Bitshares, etc. to name a few and several others, which goes to show that cryptocurrency was having booming business in the 2016-17 time period and hoped to increase it in the coming times.
However, the success did not come easy as there was exceptional hard work and a strategic planning that was in play here where everything had to be decided in advance about how and what to do.
Before formulating the task, the currencies were tried out in developed countries like the US, UK, Germany, Australia, France, etc. and almost all of them yielded strong numbers which shot up the market price of bitcoins at an all time high.
The portfolio weighed heavily with the help of a buy and sell strategy and the samples produced high returns averaging at about 34.52% per annum over other sample sizes of other cryptocurrencies.
It is important to mention that the rules of technical trading in the crypto market is way different from that of equity market shares for various reasons because crypto money was traded almost 24/7 all over the world, especially in the countries mentioned above, which is why they have such a strong presence over other nations.
New Study
In a new research, 10 more cryptocurrencies were used as they were the most traded ones which included Dash, Bytecoin, Digital Note, Cloak Coin, Monero and others which were researched by crypto signal groups for better results than the previous study.
The results concluded that the newer study was successful only for Dash and it was the only one that had decent returns ranging from 12.53% to 14.65% per annum but when an average of all 10 currencies were calculated, the numbers were far from being satisfactory.
Therefore it is a mixed bag as only the first process has been successful where technical trading does seem profitable but not so for the second one, which raises doubts for the future prospects.
