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Crypto Market

What Is the Crypto Market?

Every crypto serves a purpose: as a general-purpose currency, as a dApp development and deployment platform, as a blockchain oracle, and so on. In addition to their primary roles, each crypto is also available as an investment. That’s the crypto market.

Beyond buying coffee with Bitcoin, beyond finance apps running on Ethereum, beyond oracles and NFTs and and blockchain-powered games there is the crypto market, an unmoderated marketplace for buying, selling, swapping, and storing cryptocurrencies.

Here is a quick tour of the crypto market and the benefits it offers to investors.

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Everything Starts With Bitcoin

Bitcoin is the first modern cryptocurrency, and it’s an ideal example for exploring what we mean by “market.”

Bitcoin was created as a general-purpose currency to replace or augment government-issued fiat currencies. The idea was that you could go to a clothing shop and pay for your purchases by making a Bitcoin transfer as easily as swiping your credit card across the card reader. The number of purchases made with old-fashioned paper money is dwindling; it makes sense to have a new currency that takes advantage of advances in computing and networking technology, freeing consumers from the limitations of highly regulated government currencies and bank cards.

Cryptocurrency enthusiasts have a shorthand phrase for describing the digital-money future they dream of: “Buying a cup of coffee with Bitcoin.”

A funny thing happened on the way to e-utopia. The online platforms that allowed people to purchase Bitcoins also allowed them to sell their coins to others or to redeem their coins for fiat currencies. It became common for people to purchase Bitcoins with dollars or euros, wait for the value of Bitcoin to rise, and then sell their coins, converting them back to fiat currency and pocketing the profits.

In addition to serving its primary purpose as a digital currency, Bitcoin was now an investment.

Now Multiply By Several Thousand

Thousands of cryptocurrencies have been launched since Bitcoin made its debut in 2009. Each of them has a specific primary purpose. And each of them is also available as an investment. This may seem an unlikely turn of events, but it’s quite common in the non-crypto world. Consider IBM. Its primary business is providing IT products and services to big corporations. But it is also an investment. IBM stock is traded on the New York Stock Exchange. IBM has a primary business function and it is also an investment opportunity. If you want to purchase shares of IBM, you buy them at a stock exchange. If you want to purchase shares of Bitcoin’s total market capitalization, you buy them at a crypto exchange – a platform like Kriptomat that allows users to invest by buying, selling, swapping, and holding cryptocurrencies.

In the years since Bitcoin’s debut, some coins have been launched primarily as investment vehicles, but most coins have been launched in conjunction with projects in financial technology, gaming, gambling, entertainment, and other industries. The coins and tokens are available for purchase at exchanges where prices go up and down according to supply and demand – just like prices for corporate stock.

Crypto exchanges are the stock exchanges of the digital world. And just as stock exchanges list hundreds or thousands of stocks, crypto exchanges make it possible to buy, sell, and swap hundreds or thousands of digital currencies. Collectively, those currencies constitute the crypto market.

Beyond Simple Buying & Selling

The Amsterdam Stock Exchange opened in 1611. The financial community has had four centuries to develop and refine tools and strategies for investors. Crypto exchanges are new to the scene, but they benefit from those centuries of trial and error. For example, advisors at pre-crypto exchanges recommend cost averaging as a way to minimize the effects of market volatility. Cost averaging is a simple matter of making frequent investments and spreading them out over time. Instead of making a 12,000 euro investment at the beginning of the year and risking a price drop that would devastate your portfolio overnight, you make a 100 euro purchase every month or a 25 euro purchase every week. Over time, the result is that you own more shares that were purchased at a lower price – because the lower price means you get more shares in return for your regular investment. This has proved to be an excellent strategy, especially for investors building their portfolio over the long term.

Today, cost averaging is available to everyday cryptocurrency investors. Kriptomat’s Recurring Buy feature puts the power of cost averaging in your hands.
Another example: Brokers and investment bankers give wealthy investors access to high-end tools like trading bots that can be programmed to execute transactions when certain price thresholds are met. In the crypto world, Kriptomat calls that Automated Trading and it’s available to everyone.
Even advanced features like index investing and derivatives are making their way into the crypto world.

Better Than Real Money

Regulations and a close-knit investing community have traditionally restricted powerful investing tools to wealthy clients. Bankers and government regulators get to write rules that exclude most people from full participation in managing their own finances. One of the most important benefits of the crypto world is that everyone gets access to the market. With crypto, everyone enjoys financial equity, dignity, and self-determination.

Bitcoin is primarily a general-purpose electronic currency. Ethereum is primarily a platform for running decentralized applications. MANA is primarily intended to support an in-game economy for the Decentraland gaming platform.All three of these cryptos – and thousands of others – are also available as investment vehicles. Bullish on metaverse-style gaming? Look at Decentraland, Tron, Enjin, Loop, and WAX. Think decentralized financial apps are going to take off? Consider DeFI-related cryptos from Ethereum, Cardano, Polkadot, and Avalanche. No matter what industry segment you’re interested in, you’re likely to find multiple cryptocurrencies that are poised to play a key role. Do your homework, pick a coin, and make an investment. In the crypto market, you’re in charge.

10 Reasons to Invest in Bitcoin Over Other Cryptocurrency

This is what our best experts mentions the reasons to invest in Bitcoin over other cryptocurrencies

As a substitute for conventional currencies like the US dollar, euro, or pound sterling, bitcoin is a digital cryptocurrency that has grown in popularity recently. Although many investors presently refer to bitcoin as “digital gold,” it may potentially be utilized as a digital form of money. Since the quantity of bitcoin is set, as opposed to the supply of fiat currencies like the US dollar or Japanese yen, investors believe that investing in Bitcoin over other cryptocurrencies will increase in value over time. These are ten reasons to invest in Bitcoin over other currencies. Bitcoin is decentralized because it is not governed by any one entity, including a government or financial institution, so it is not bound by the same rules and limitations as conventional currencies. This increases user financial autonomy and lowers the possibility of political meddling or currency manipulation.

Transactions with Bitcoin are frequently quicker and less expensive than those involving traditional money exchanges because there are no middlemen involved. This can be especially helpful for overseas transactions, which with traditional currencies can be cumbersome and expensive.

Compared to many conventional solutions, Investing in Bitcoin is more secure since it employs encryption to thwart fraud and hacking.

Bitcoin is a deflationary currency, meaning its value tends to rise over time, in contrast to traditional currencies, which tend to lose value over time owing to inflation. Meanwhile, Bitcoin may be used for transactions anywhere in the world, it is a practical choice for cross-border trade.

Widely used: Bitcoin is being used for an increasing number of purchases and transactions as it is being accepted by more and more businesses and merchants worldwide.
Financial anonymity: Because transactions can be done without disclosing personal information, Bitcoin offers users better financial privacy and anonymity than traditional currencies.
Bitcoin may be divided into smaller parts, which increases its adaptability to transactions of various amounts.

With a fixed number of 21 million coins, bitcoin is a scarce asset with the potential to appreciate over time.

Bitcoin provides investors with the possibility for significant returns and portfolio diversity because it is a relatively young and volatile asset. Yet it’s crucial to remember that buying Bitcoin can also be hazardous, so you should proceed with caution.

Due to the low price correlations that cryptocurrencies like Bitcoin have traditionally had with the US stock market, owning some can help you diversify your portfolio. If you think that people will use cryptocurrencies more frequently in the future, it makes sense for you to directly purchase some as part of a diversified investment portfolio. Be careful to have an investment thesis outlining why each cryptocurrency you invest in will endure the test of time. You ought to be able to manage the investment risk as part of your overall portfolio if you conduct adequate research and learn as much as you can about how to invest in cryptocurrencies.