Global Journal of Commerce & Management Perspective
Open Access

A New Investment in the Market of Cryptocurrency

Huy Nghiem^{* *}Correspondence: Huy Nghiem, Department of Economics and Business Administration, University of Southern California, Los Angeles, California, USA, Email:

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Description

A cryptocurrency is a digital or virtual currency that is secured by encryption, making counterfeiting or double-spending practically impossible. Many cryptocurrencies are disrupted networks developed on blockchain technology, which has become a distributed ledger enforced by a network of computers. The concept that cryptocurrencies are often not issued by any central body makes them particularly impervious to political meddling or manipulation.

In the recent decade, the cryptocurrency business has grown significantly, offering an alternative financing platform to regular stock market trading. Despite its rapid expansion, regulatory laws haven't really kept pace with the cryptocurrency sector, attracting the attention of scammers attempting to profit from legal gaps. Pump-and-dump schemes, a tried-and-true fraud technique, have resurfaced in this new territory. In a classic pump-and-dump plan, scammers coordinate and use media channels to artificially increase the price of an alternative cryptocurrency, only to rapidly sell it to unwary customers for a profit. Because of the disruptive nature of pump-and-dump methods, a system that can predict pump targets and the extent of success is required.

Types of cryptocurrencies

Bitcoin is recognized as the first cryptocurrency, and other individual cryptocurrencies are referred to as "altcoins" (a combo word derived from "alternative coin"). It's hard to determine which cryptos are the best, but Bitcoin and some of the larger altcoins are top-tier possibilities because to their scalability, privacy, and breadth of functionality.

• Bitcoin (BTC)

• Ethereum (ETH)

• Tether (USDT)

• USD Coin (USDC)

• Binance Coin (BNB)

• Binance USD (BUSD)

• XRP (XRP)

• Cardano (ADA)

• Solana (SOL)

• Dogecoin (DOGE)

Bitcoin: It is widely considered as the first decentralised cryptocurrency that makes usage blockchain technology to initiate payments and digital transactions. Instead of depending on a central bank to control an economy's money supply (such as the Federal Reserve in collaboration with the United States Department of Treasury) or third parties to verify transactions (such as your local bank, credit card issuer, and merchant's bank), Bitcoin's blockchain serves as a public ledger of all transactions in Bitcoin's history.

Ether: It is a cryptocurrency that can be used to conduct transactions on the Ethereum network. Ethereum is a platform that uses blockchain technology to enable the creation of smart contracts and other decentralised applications (software that does not have to be distributed on app exchanges like Apple's (NASDAQ:AAPL) App Store or Alphabet's (NASDAQ:GOOGL) (NASDAQ:GOOG) Google Play Store, where they may have to give the tech giants a 30 percent cut of any revenue). Ethereum is both a cryptocurrency (the coins ultimately are measured in Ether units) and a software development sandbox.

Applications of cryptocurrency

• They develop a unique investment technique that does not rely on forecasting projected profits.

• AutoEncoder pulls the parameters that allow you to avoid a significant decline.

• The dynamic delta hedging is used to implement the extracted non-linear factors.

• Backtesting with several cryptocurrencies demonstrates the efficacy of our technique.

• Cost-effective money transfers.

• 'Yield Farming' allows you to earn interest on Bitcoin and other cryptocurrencies while also providing a censorshipresistant alternative store of wealth.

• Invest in early-stage firms that are innovative.

• Conduct private transactions.

• Transmit non-cash remittances.

• Get paid to share material.

• Lease your extra hard drive space to the cloud.

• Scalability.

• Cybersecurity concerns.

• Price volatility and the absence of intrinsic value.

• Regulations procedures.

Conclusion

A crypto currency is a form of technology asset that is built on a network that is dispersed across many computers. Because of their decentralized system, they can exist independently of governments and central authority. Blockchain and similar technology, as per experts, will disrupt numerous industries, including finance and law. The benefits of cryptocurrencies include cheaper and faster money transfers, as well as decentralised systems that do not fail at a single point. Cryptocurrency downsides include price instability, high energy consumption for mining activities, and application in criminal activities.