Crypto currency is more than just a bunch of digital numbers that people have decided to use as money. The technology that was brought forth by Bitcoin is essentially a decentralized public ledger system, known as the Blockchain. This cryptographic Blockchain technology is what makes Bitcoin, Litecoin, Darkcoin, and other Bitcoin-alternatives a “cryptocurrency.”
Being a decentralized ledger, the Blockchain can never be controlled or manipulated by a single institution. Its design makes transactions virtually error proof, and it can also do much more than just transfer the ownership of digital currency; it can be used for transferring assets and shares of companies, smart contracts, commodities, and escrow services. This technology will likely change the future of finance as we know it, democratizing financial markets while simultaneously eliminating “banksters.”
Bitcoin can be used to buy things electronically. In that sense, it’s like conventional dollars, euros, or yen, which are also traded digitally.
However, bitcoin’s most important characteristic, and the thing that makes it different to conventional money, is that it is decentralized. No single institution controls the Bitcoin network. This puts some people at ease, because it means that a large bank can’t control their money.
Researching the market is referred to as “fundamental analysis.” By gaining the right information at the right time and understanding how it will interact with the market, it becomes easier to stay predict trends — essentially whether or not a crypto coin will rise or fall. In addition to fundamental analysis, you also have “technical analysis.” Technical analysis is equally important, but it refers specially to studying charts and finding patters—for example, at a certain price, a coin will fall repeatedly.