Important Things to Know About Cryptocurrency Applications [A Quick Rundown]

Since the first cryptocurrency was developed in 2009, this field has become one of the hottest trends in the digital generation up to this day. After Bitcoin was launched, the field of crypto gained attention from crypto enthusiasts from all over the world; and thanks to Bitcoin, hundreds to thousands of altcoins have also emerged. Altcoins refer to the cryptocurrencies in the market that are not Bitcoin. 

Despite having a volatile market and risks that became the subject of speculations, doubts, and criticisms, cryptocurrency has proven its resiliency and effectiveness for potential profit, which led to more and more people flocking to it over the last years. If you are a newbie who is still at the exploration stage, you must stuff your brain with knowledge about cryptocurrency to increase the chance of potential gains in the market

If you’re looking to learn important information about this field before you jump in, read on to find out all that you need to know about cryptocurrency. 

What Is Cryptocurrency?

Cryptocurrency is a type of digital currency that relies on cryptography, making it difficult to cheat or fake. The idea of crypto travelled among individuals from different parts of the world when Bitcoin was introduced to the public. Bitcoin is the first cryptocurrency that an anonymous person developed with the alias Satoshi Nakamoto in 2009. From then on, more and more altcoins started emerging in the market, which millions of people have enjoyed today.

This currency uses a technology known as a blockchain – a system that keeps track and records all the details about any transaction made by its users. Compared to traditional currency, crypto has a decentralised nature which means it is not associated with a third-party agent like banks or the government.

Cryptocurrency is known to have a highly volatile nature, where the values of its digital coins follow rollercoaster trends and change rapidly. The value of cryptocurrency is decided based on its supply and demand; the more this current world is accepting cryptos, the higher the demand for them is. 

There are various ways to acquire crypto. The main one is through mining and has a limited supply. Trading and direct investment are the alternative methods to own cryptocurrencies.

How Does Cryptocurrency Investment Work?

Cryptocurrency trading and investing may include buying and selling, but it’s more than that. This field requires users to possess a certain level of knowledge and skills to succeed. The first step that users must take to participate in this industry is by choosing a crypto exchange and creating an account, but even that step is not that easy either! 

Before you begin your journey with crypto investment and trading, make sure that you are well equipped and you are fully aware of how cryptocurrency works. Also, it is essential to find a reliable platform that provides reliable trading software. Beginners often flock to companies such as Binance and Coinbase, or brokerage hubs like the Immediate Edge app to find trustworthy trading platforms. However, the market offers a great many alternatives, so your choice of trading apps is quite vast.

There are a lot of factors that you need to consider to ensure you invest in the right platform. However, there’s no need to worry because there are plenty of applications and software developed that are designed to assist crypto users in handling platforms and managing their portfolios.

If you are a newbie in the industry, make sure to save some space on your device for digital currency applications since these help manage your investment portfolio depending on your trading style and techniques – whether you want to diversify your assets or improve your profits. Each app contains different features and advantages that you’ll either find helpful or confusing. So to ensure you understand its purpose before downloading just any app, here are some of the things to know before installing crypto applications.

Research the Application Utilities

There is a long list of mobile applications online that are just waiting to be downloaded by a crypto user in the App or Google Play store. Instead of just searching each app according to how it’s sequenced on your search list, it’s important to identify what the different types of crypto applications and their purposes are.

1. Exchange Applications

Exchange applications are for users who want to engage in buying, selling, or exchanging cryptocurrencies with other users. This is one of the most popular app types downloaded and installed by people since it’s very useful for exchanging cryptos, as reflected in its name. There are many exchange applications in the market, and depending on your career goals, you have the choice to download as many as you like.

Most often, long-time traders who have more specific requirements usually use more than one exchange app based on what currency they prefer to exchange in the market. In addition to this, knowing your goals and techniques is essential in choosing the right application to download. 

2. Wallet Applications

Cryptocurrency wallets are responsible for storing your digital assets, but keeping them safe is up to you. Traders who use the HODL technique are advised to have a wallet for storing funds for easy transactions anytime and anywhere. 

Crypto wallets are like your regular wallet where you store your money – except this one is purely digital (or hardware, in the case of cold wallets). In addition, wallets are only to store crypto funds, which means buying or selling crypto using the wallet is not possible.

3. New Applications

Unlike government or central bank-regulated fiat currency, crypto allows its users to make transactions anytime, anywhere. New applications are specifically designed for big cryptocurrencies like Bitcoin and Ethereum to keep you updated about their movements and behavior in the market.

4. Tracker Applications

As stated in its name, tracker applications are used to track the real-time movement of your chosen cryptocurrency in the market. Instead of logging in to your crypto platforms every time you want to check the market, tracker applications make it easier for you to track the daily movement of cryptocurrency.

Features to Look for in a Crypto App

After knowing the different types of applications, you probably have one or two options in mind already. But don’t dive in yet; similar to the fact that there are many types of applications, there are also many applications available of each type. So before pressing that install button, make sure to look out for these features:

1. Security

In this digital world, private information is highly at risk, so it’s important to choose an app that offers a high level of security. There are two types of storage options in the market for your crypto: hot and cold wallets. While these two provide the storage purpose needed for your funds, they greatly differ when it comes to security.

Hot wallets are only recommended if you plan to hold your assets for a short period but are not advisable for long-term holdings. This is because this type of wallet is connected to the internet all the time, making it visible and vulnerable to hacking. 

On the other hand, cold wallets are preferred by many experts as they provide better security by storing your cryptocurrency offline. These wallets can be in different forms, such as a printable security key or a USB drive.

There are smartphone applications that offer downloadable wallets with high-end security features. Keep in mind to choose a wallet that makes it impossible for scammers, hackers, or cybercriminals to target and steal your assets.

2. Availability

If you are an active trader who is always on the go but doesn’t want to be left behind when it comes to the market trends, then it’s recommended to choose a crypto app that is available in any area or region. Over the years, there have been several states and countries that are against using or trading cryptocurrency; some even have strict rules in terms of utilising this field due to its decentralised nature.

3. Real-time Updates

Due to the volatile nature of the crypto market, the values of digital coins change from time to time. Because of this, investors need to keep track of the market prices daily; this should be one of the features that you should look for in the crypto application. Having an app that offers real-time updates allows you to stay updated about the latest trends in the market with minute-to-minute updates.

Final Thoughts

In summary, there are various smartphone applications – with multiple features and purposes – in the store that you can download online for free. Before downloading, make sure to brush up on the things mentioned above to ensure you download the right device applications for your career. Understand the purpose of each app and assess if it aligns with your career needs and goals.