How an ideal crypto portfolio should look like?

5 minutes read

At their core, virtual currencies are just numbers—they’re nothing more than data representing value. The way that those numbers are stored varies from one type of virtual currency to another, but in all cases, they’re held in some form of a digital database. When you purchase something using a virtual currency (like Bitcoin), your money is transferred from your bank account into that digital database, where it’s safely kept until you want it back. Furthermore, if you are into trading, then you may use a safe and secure website like  We’ll touch on why this is important later on in this article. In this article, we’re going to talk about the topic of virtual currencies. We’ll start with a basic overview of what they are and how they work, then move on to the different ways you can get involved in them.

The most common way to use virtual currency is by buying things with it—like paying for services or purchasing goods online. You can also earn them by doing small tasks like completing surveys or playing games; those tasks usually earn points that can be exchanged for real-world rewards later down the road (like cash). But there are other ways people use virtual currencies:

  • Investing in them as an investment vehicle (which may or may not work out).
  • Using them as payment for goods or services.
  • Even printing money out.


Volatility rates measure the price change in cryptocurrencies over a given period. It’s determined by taking historical data on the prices for each cryptocurrency and dividing that data by the number of days since the last record was created. The result is expressed as a percentage and is typically higher for smaller cryptocurrencies with less liquidity. For example, bitcoin had an average volatility rate of around 10% in 2017, while litecoin had an average volatility rate of around 8%. This can be a disadvantage for some people and investors. Still, it also means that the cryptocurrency price can change in the short term, making it very interesting for all interested in trading.

Scalability trends are based on how quickly new units can be added to a cryptocurrency’s supply. This can indicate whether or not it will be able to keep up with demand if it becomes more widely used and accepted as a form of payment. For example, bitcoin was able to add several thousand new coins per day in 2017 due to its relatively low transaction fees and rapid speed at which new coins could be added to its network.

Visibility to scams is based on how easy it is for users to determine whether or not they’re dealing with trustworthy sources. Scams often use similar language and marketing techniques as legitimate businesses, so users won’t notice any difference until they’ve invested money into their wallets.


First, virtual currencies have the potential to generate a more significant profit for the investor. For example, a person who invests in Bitcoin or Ethereum can make thousands of dollars per month by simply holding on to their coins until they increase in value.

Second, virtual currencies have high scalability rates. This means that the number of transactions per second is much higher than with traditional currencies. For example, Bitcoin can handle up to seven transactions per second, while conventional currencies are limited to just two transactions per second.

Thirdly, virtual currency transactions take less time than credit card transactions. This means that transactions can be completed more quickly and efficiently, which means higher profits for investors and lower costs on both ends (for merchants and customers).

Fourthly and finally, virtual currencies tend to be less volatile than traditional forms of money such as dollars or pounds sterling due to their digital nature; this makes them an attractive investment option since they’re less likely to fluctuate in value compared with physical coins or bills printed by governments around the world with each passing day!

Final words

Virtual currencies are easier to use and process as they don’t require any form of personal identification or credit card information. This means it’s easier for people worldwide with different languages and cultures to invest in virtual currency without having problems with cross-border transfers or payments being rejected due to incorrect information provided when registering for accounts on platforms like Coinbase or Poloniex.

Related Posts