Cryptocurrency has been making waves for the last few years in the upper echelons of financial trading. However, thanks in part to the onslaught of easy-to-use platforms, we’re seeing a growing number of casual traders becoming adept at cryptocurrency trading.
Currently in the UAE, cryptocurrency transactions remain largely unregulated with the UAE government becoming more focused on building up its own digital money. Launched in 2018, emCash is legal tender in Dubai and is often used to pay for school fees and government services. Built using blockchain technology, it provides users with secure access to their cryptocurrency.
With the average person in the UAE having approximately $99,000 in private wealth, there’s a reason advanced crypto technologies are big business. But what are the top 3 you should be looking out for and how do they work?
As previously mentioned blockchain is the chosen technology of emCash. Using a shared digital register, users are able to transfer and trade money in real time with a real time ledger recording all the transaction. The asset is also decentralized, therefore allowing for full transparency of all the transactions. This helps reduce risk, eliminate fraud and ultimately brings all round transparency in myriad ways.
To create a blockchain, there are three basic elements: the data in the block, a randomly generated 32-bit number called a nonce, and a 256-bit number wedded into the nonce that must start with a number of zeros called a hash.
When a block is created, a nonce automatically generates a hash and that hash is assigned to that nonce unless it is mined. Mining occurs because no one computer or organization can own the chain making it a lucrative way to trade cryptocurrencies.
ECN stands for Electronic Communication Network and it allows customers to be directly connected with liquidity providers without involving a broker. ECN enabled platforms are growing in popularity as they open up cryptocurrency trading to a wider portion of the population.
ECNs offer all the necessary data to users instantly and given the speed at which fortunes are made and lost in trading, it’s an important advantage.
Like blockchain technology, ECN offers full transparency. All the user’s orders are transmitted through the network and are immediately reflected in the system, once again giving real time results.
MetaTrader4 (MT4) is another advanced crypto technology that is driving the popularity of cryptocurrency and crypto trading. MT4 is popular for a number of reasons including the fact its easy adaptability. It can be fully customised to suit the platform and the user making it the ideal companion for novices and experts.
MT4 also harness the latest technology by automating trading. By implementing algorithms, MT4 can open and close positions according to pre-set parameters, helping traders save time and ultimately money.