Statistics show that more than 2 million people in Egypt have cryptocurrencies that they trade in electronic markets, and these numbers are constantly increasing.
People and investors have found an opportunity to invest and profit quickly, especially after their prices have risen significantly in the past period.
Despite the advantages investors see, they meet some of the selections that meet Egypt Cryptocurrency.
This article will take a comprehensive look at everything related to digital currencies in Egypt and address the most prominent things about investing in them and the challenges they face.
Table of Contents
What is cryptocurrency?
The product of the technological and informatics revolution is an encrypted digital asset based on decentralized blockchain technology, where cryptocurrencies are mined and mined through algorithms that operate on blockchain servers.
These are currencies that have no physical shape, are entirely virtual and are only available on the Internet, and differ from common banknotes, extracted and traded through the Internet.
It relies on a decentralized system and no central organization or bank governs its trading process, produced through cloud mining operations.
Mining and its importance to cryptocurrency
Mining is the way cryptocurrencies are created, a system created through large servers and computers, using algorithms and rates, resulting in currency units adding them to metal accounts and personal wallets.
Mining is the only way to create cryptocurrencies, with the two metals monitoring the mining process and earning some bitcoin units for the process as a reward.
Today, more than 8 million are in circulation, and mining operations continue to discover Bitcoin.
Several mining-based platforms called cloud mining platforms with enormous transaction processing and verification capacity have also been deployed.
It allows people to open accounts and do cryptocurrency mining without the need for technical expertise or servers such as CCG Mining, Hashlists, and BeMeen platforms.
There are thousands of cryptocurrencies that are traded, but the most important is:
Bitcoin: The most prominent and largest cryptocurrency in the market, coded “BTC” with a price in the previous period of more than $20,000, follows the system of decentralization, which is an encrypted currency i.e. the data of the person who owns this reason is undisclosed
Ethereum: Coded as “ETH“, it is a strong competitor in Bitcoin and according to the coin market CAP is the second cryptocurrency with a market value of more than $950 per unit.
Tither: Taking the symbol “USDT” has become an important currency in the digital market comes in third place after Ethereum and composition it is a fairly fixed-price currency $1 if you are an investor who does not like the risks significantly in your investments and wants to stay away from other currency fluctuations, it is suitable for short-term trading.
Information indicates that there are more than 8 million bitcoins traded on the market with a market value of $927 billion, and throughout time more and more cryptocurrencies are being launched.
Bitcoin accounts for more than 60% of the total value of currencies in the digital market and the rest represent 40% of the total market.
They depend on supply and demand and can be converted safely online, and there are thousands of alternative currencies that offer enormous investment potential.
How do cryptocurrencies work?
Most cryptocurrencies are decentralized blockchain-based networks, each currency is basically a computer file stored in a digital wallet that can be accessed through internet-enabled applications and devices, through which it is traded.
They are issued through mining operations that are somewhat similar to the banknote issuance process, where the two metals own some units of currency in exchange for monitoring the mining process.
You can buy them in exchange for services or sell products or dollars through the blockchain market and resell them again through trading platforms, smart applications, and create a portfolio of several currencies.
Egypt Cryptocurrency features
Many people have turned to investing in cryptocurrencies because of their many advantages:
- Decentralization: That is, their trading is outside the control of any party, and no bank governs investor-to-investor trading.
- Difficulty cheating and forgery: Because it is subject to encrypted blockchain technology, data is difficult to access or edit, which is why many people prefer it.
- Compatible with the future of digitization: it suits the digital revolution we are now living in the world.
How do you choose your cryptocurrency?
In order to get a cryptocurrency at first, you should know that most transactions are available to buy in US dollars but there are some currencies that can be purchased in other digital currencies, you need an electronic wallet, an online app that can maintain your currency and trade through it, and you can also buy currencies from a financial broker such as Pippennas.
Where you have to create and finance an account to buy your currency.
As we mentioned earlier, there are 1,000 cryptocurrencies, but until you choose the right currency that suits your investments, it is symbolized by “ETH“, and understand what the source of each currency is, and the purpose of issuing it, because each currency has a different application.
Daily trading volumes should be studied and analyzed, giving you an idea of how easy this investment is, and what the sale is.
Then you choose the currency that suits your investments and start buying it and trading it across trading platforms.
How do you start investing in cryptocurrencies in Egypt?
Everyone can start making money investing in cryptocurrencies by starting one of two things:
The first is to do currency mining and then start selling it and the other is to buy it for services or money and resell it again when the price rises.
Find good currencies and choose the right currency for your business and investments.
You’d better have a secure trading strategy that ensures you make a lot of profit and keeps you away from loss risk.
Choose a platform that specializes in cryptocurrency trading and a serious search for the most reliable and licensed platform to trade safely, so that you protect yourself from the risk of fraud.
In order to become a cryptocurrency trader, you must start investing more than your business, because it reduces the loss process.
Best cryptocurrency trading platforms
These are websites specializing in cryptocurrencies and their trading and control operations, as well as some price analyses and buying tips that make traders interested in trading.
1. Pipanas platform
A world-leading easy-to-trade platform that serves traders from all over the world with low commissions and accepts bank transfers and credit card payments.
The trading process provides more than 200 digital currencies and offers three trading options (primitive, classic, and advanced)
A platform that specializes in trading bitcoin at most and trading in more than 80 other currencies serving more than 120 countries around the world.
The platform is easy to handle and suitable for beginners and provides mobile appellation to do trading through the phone.
But it does not allow traders to control their money and digital currencies, which makes users not keep their money long at their expense on the platform.
3. Robin Hood
It is an easy-to-use platform that provides only 7 digital currencies, including bitcoin and Ethereum.
They do not take commissions on their trading operations, as well as safely trade them.
But they don’t offer many investment options, which makes them not a favourite for some, but they fit beginners in trading.
Will traditional currencies be exchanged in cryptocurrencies?
In general currencies have 3 properties, namely:
- The currency saves value.
- A unit of measurement of things.
- Means of exchange.
- Traditional currencies are valued by several factors that affect medicine and are linked to the economy of States.
While cryptocurrencies have their characteristics, they are a unit for measuring objects and an exchange method and are also subject to the law of supply and demand but do not follow any central factors.
Some expect that cryptocurrencies will be replaced by traditional currencies in the future, but economists expect this to be applicable in the near future, especially since they are centralized, as they will raise interest rates and inflation when the replacement is fully implemented.
cryptocurrency challenges in Egypt?
One of the challenges facing digital currencies in Egypt is that Egyptian law prohibits trade and trading in cryptocurrencies and even the establishment of platforms for trading or carrying out any related activities without obtaining a license from the Central Bank of Egypt.
The currencies offered are therefore limited and therefore subject to the law of supply and demand, and demand is constantly increasing and is coupled with a limited supply ceiling if they are often characterized by high prices.
When you start investing in cryptocurrencies, there must be a clear strategy and a line of risk remediation, it should be recognized that such a large and sometimes rapid return loss is large and rapid, especially in the absence of experience at first.
The majority of cryptocurrency trading platforms take very high commissions on buying and selling cryptocurrencies.
Although many countries allow cloud mining operations, Egypt stands in the way of such an operation and denies cloud mining operations.
Tech Village Conclusion cryptocurrencies have become a reality, have a different and diverse future and applications, and constitute an amazing opportunity to profit like any other investment, but you must work on a clear strategy to enter and succeed in the trading market and get profits from the sale and purchase of cryptocurrencies.
What are cryptocurrencies?
They are encrypted virtual currencies that do not have a physical presence traded on the Internet supported by decentralized blockchain technology, i.e. no government agency or central bank governs their trading process.
How do cryptocurrencies work?
Cryptocurrencies are decentralized blockchain currencies in their work, stored in digital wallets accessible through phone applications that support the Internet and support trading.