How Python is used in Cryptocurrency

How Python is used in Cryptocurrency

Cryptocurrency is something that most people are familiar with. If you are not, then it is a form of digital currency that’s used primarily for investment purposes. However, there are other sides outside of investment, like gambling, and even buying one’s groceries. Countries all around the world are starting to regulate it and are encouraging stores of all kinds to accept it as a form of payment.

Python, a programming language, is one of the most used programming languages in the cryptosphere. This article will explore  Python, explaining what it is, how it’s used for crypto, as well as why you should be using it for your projects.

What Is Python?

Python is a computer programming language, used for many different things. Its most popular uses are to build websites and to test software, though. It is without a doubt one of the world’s leading programming languages. You could even go as far as to say that it is the most popular. Ordinary crypto users have no use for Python. It’s only ever used by people who’re building cryptocurrencies or creating their own platforms. It is, therefore, not something the average trader needs to know much about.

How Is It Used?

Python is most commonly used to create cryptocurrencies. Many major cryptos were made using the Python language. It can of course also be used to build platforms and sites, like gambling sites. Most of the web’s BNB gambling sites (BNB being one of the major cryptocurrencies) use Python. The same is also true for Bitcoin, Ethereum, and XRP sites. However, if you plan on making your own currency using Python, then you are going to need a lot of experience. It’s not easy making a cryptocurrency, or a site for that matter. There are a number of courses you can take on Python specific to crypto development.

Algorithmic Trading

Another use of Python in the cryptosphere is the creation of algorithmic trading bots. If you are somebody who’s interested in trading crypto but does not have the time to manage investments personally, then the creation of an algorithmic trading bot is something that’s worth considering. Most algorithmic trading bots are made using Python. The creation of an algorithmic trading bot will mean that you do not have to manage your investments yourself. That said, it’s still a good idea to set stop loss and take profit, just in case your bot malfunctions.

Trading Crypto

Deviating from this post’s topic for a moment, it’s important to briefly discuss crypto. If you plan on using Python to create bots (or your own currencies) then you will no doubt be handling crypto. You need to manage crypto carefully. Unfortunately, crypto has cost a lot of people a lot of money. Not carefully managing your investments could lead to you bankrupting yourself. There are various courses available online, that you can use to learn how to trade. Taking a course before getting involved with crypto is something that most experts recommend.

a computer screen shwing python lines of code
Photo by Chris Ried on Unsplash

Benefits of Using Python

Easy to Use

While Python is a high-level programming language, it’s still easy to learn. This is because Python has an English-like syntax. Learning to use Python is pretty straightforward. All you have to do is take a course in it online or read guides. Taking a course is probably the better option because you will receive instructions from somebody who’s experienced in the language. Before taking a course, research the person leading it. Ensure they are qualified, experienced, and know what they are talking about.

Python is Free

You do not have to pay anything to use Python. However, you might have to pay to sign up for a course. If you are on a budget, then it is without a doubt one of the best programming languages for you to learn. Something else worth noting is that because it’s free, it means that you will have more money to set aside and use for crypto. With Python, everything can be built from scratch. Bear in mind you will have to pay for things like website hosting and domain names if you are going to use it to create websites. Those things are not free.

Huge Library

Python’s standard library is huge. In it, you can find more or less any function that you could ever need. If you are trying to make crypto, then you will be able to find many functions there that can be of use to you.

Python is a popular programming language, and it’s not hard to see why. If you want to use it to make a cryptocurrency, create a platform, or design an algorithmic trading bot, then consider the points outlined here, and take some time to master Python first.

Featured image: Photo by Hitesh Choudhary on Unsplash

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Here is how to start your journey to online trading

Here is how to start your journey to online trading

online trading forex money bitcoin

Online trading is becoming increasingly popular, with Modern Trader reporting that the number of global online traders has grown from 9.5 million four years ago, to more than 15 million today.

Dany Mawas, Regional Director at INFINOX, a leading CFD and FX broker with an international presence including in Africa, attributes this growth to technological advances, which makes trading convenient and fast. Traders can now trade from anywhere and at any time and will get quick, easy access to the markets.

Apart from the potential of achieving lucrative financial returns, additional benefits of online trading includes greater financial knowledge and developing associated skills with trading like discipline and emotional control,”. 

Dany Mawas

How to start online trading

There are those that are apprehensive about starting online trading, due to the associated financial risk. To put them at ease, Mawas notes that while fine-tuning trading skills comes with experience, the best way to start is to open a demo account with one of the many online trading partners available today.

“A demo account is a simulation account that provides users with the opportunity to place trades and to become accustomed to how markets move,” he says.

Additionally, some online trading brokerages provide bonus incentives to boost traders initial deposit and give them a better platform to start on. With INFINOX, traders are only required to deposit as little as US $50 and will, in turn, receive an additional US $25 bonus. Meaning that 33% of their at risk capital is the bonus.

However, he points out that traders should also do their due diligence when selecting the brokerage to partner with and not only base their decision on the starting bonus. “This includes investigating where the brokerage is regulated, and ensuring it has a physical presence instead of merely being an online entity,” says Mawas. 

Determine your plan of action

Mawas notes that although there are several game plans that beginner traders can adopt to gain profits on their investments, the old adage of ‘over-analysis leads to paralysis’ couldn’t be more true. “When developing a strategy it is vital to spend time researching and learning what works best. The more you perfect managing your risk, the better you become. If I could give one piece of advice, it would be to start simple and keep it simple.”

Mawas emphasises that trading is a humbling experience due to its binary outcome of either making the right or wrong decision. “As such, it is important for traders to have emotional control and the willingness to learn from their trading mistakes.” 

Being emotionally invested can be detrimental to success, he adds. “Often, when the market dips, traders will make the emotional decision to continue trading in the hopes that they recover quickly, which often doesn’t happen. It’s imperative to assess each situation for what it is and to make the most informed decision.”

Why trading is more accessible

Current affairs such as COVID-19, the U.S election, and Brexit have prompted people to stay more up-to-date with current news, says Mawas. “This is important as the outcomes of these events have an effect on the markets. Nowadays people are more clued up than they think they are when it comes to knowing what is happening and what could impact their trading. This knowledge makes trading more accessible for those that wish to start.”

He also states that the internet is full of useful information for new traders to digest and that websites such as IX Intel offers manuals and how-to guides to help traders learn the basics of a successful trading career.

Mawas points out that the rise of social trading has also increased accessibility for beginner traders. “Social trading apps such as IX Social, allows users to access all the financial markets at their fingertips with the added bonus of tapping into other traders’ knowledge. Users can auto-copy top traders and receive the same results that they do.”

Today, online trading is an easily accessible journey, and anyone can be successful if they use the right tools and spend time developing the necessary skills and acumen,” concludes Mawas.

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