They say, all people are created equal. In the world of monies and fiat, it’s not the same. All currencies are do not have equal value.
We live in a world where the value of the currency is influenced by debt, political stability, interest rates, political stability, trading agreements and market inflation. All these factors inevitable impact the exchange rate to a great extent.
What is an Exchange Rate?
An exchange rate is basically the price of a nations currency in relation to another nations currency.
The Gateway To The Crypto-Verse
The two types of currency exchanges rates are:
- The spot exchange rate or interbank rate
- Nominal exchange rate
For a travelers and consumers perspective, we mostly refer to the latter. Exactly how define and read an exchange rate for physical currencies, its pretty much the same for cryptocurreny too. We measure the crypto-value against fiat currencies.
It’s seem pretty easy. But, money is serious business! You can’t just swing your way into the crypto-world without knowing what you truly desire. So, here are some lessons for the millennial’s before they begin their crypto-venture.
Lesson 1: What Are You Here For?
Diving into the crypto-world can be exciting. There is a need to know the technologies and complexities behind all the crypto’s. Then comes the difficulties with the trading and investing. Told ya! It’s not as simple as it may seem.
If you’re entering the crypto-verse to make a few quick bucks, you should know how to do that. Otherwise, you’re doomed. The crypto-world is all about experience, knowledge and playing smart. But, if you’re in it to win it! Then you’ll have to stick around for some time till you get the hang of it. You will have to understand how the market functions, especially in times of a market crash.
If you are getting into the space to make a quick buck, you better know how to earn that quick buck. If, on the other hand, you are in it for a long-term gain (and most likely some loss), you need to understand how the market works, especially as it pertains to exchanges.
If you’re a crypto-newbie then you need the crypto-talk 101!
Lesson 2: How Do The Crypto-Exchanges Work?
As per record, there are 2,112 cryptocurrencies for now. When it comes to exchange there few exchange options available which allow the crypto-holders to convert their fiat currency into the crypto-base currency (Bitcoin, Litecoin or Ether.) If you didn’t know, some of the coins can only be bought by using the crypto-base currencies and can’t be bought using a fiat currency.
Lesson 3: Crypto-Exchange Simplified
In the most simplest way possible, the crypto exchanges allows us to do three things:
- Exchanging a cryptocurrecny for another cryptocurrency.
- Purchasing or selling a specific crypto coin.
- Exchanging and converting a fiat currency into another cryptocurrency.
The crypto-verse is a battle field! You can’t step in without an armor and pray to survive.It’s necessary to come prepared to win. So, its better to be smart and educate yourself first before you purchase any cryptocurrency.
How were these crypto-exchange lessons? We would like your feedback! Let us know in the comments below!