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How Python is used in Cryptocurrency

How Python is used in Cryptocurrency

by | Nov 21, 2022 | Developer, General, Hour of Code, How-tos, Learn, Other News

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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Examining forex as an alternative to cryptocurrency investment

Examining forex as an alternative to cryptocurrency investment

by | Mar 23, 2020 | General, Other News

With cryptos not looking appealing with recent trends, investors are seeking alternatives. Is forex trading an answer? Let’s take a look.

forex crypto trading dashboard

Cryptocurrency

Cryptocurrency has become a trendy investment topic over the course of the last five years or so, and it’s never been hard to see why. It offers an entirely new opportunity, decentralized and set apart from ordinary investment markets. For many in Africa, it can also be somewhat more accessible than those traditional investment markets. And, of course, there have always been arguments suggesting likely profits. That bitcoin and its closest counterparts will one day skyrocket to high values. Or that cryptos will serve as “hedges” in times of economic downturn. There is definitely some logic to all of this. But all of a sudden cryptos aren’t looking quite as appealing, which could lead some investors to seek alternatives.

Crypto mining in Africa

For starters, there’s the fact that crypto mining in Africa has begun to feel somewhat problematic. Last year, we wrote about the ‘Top Five Countries Mostly Impacted By Ransomware And Cryptocurrency Mining’. Several African nations (Ethiopia, Cameroon, Tanzania, and Zambia) were included. While not nearly as many people mine cryptocurrency as actually use it or invest in it, this does pose a larger problem. Concerns over malware could reduce the flow of new cryptocurrency into Africa, stunting the market and potentially dissuading would-be investors.

There’s also the “hedge” argument to consider. For many years now, crypto advocates have tended to suggest that digital currencies would resist economic downturns and serve as financial safeguards in much the same way gold has occasionally done in the past. Now, however, faced with its first big test on this front, cryptocurrency is coming up short. As world markets plunge in reaction to the coronavirus pandemic, NewsBTC writes that bitcoin is at risk of a massive drop-off (and it has already plunged sharply). This is not to say that the hedge argument has been conclusively disproven. But right now cryptos don’t look any safer or more reliable than ordinary market investments.

Fresh alternatives for investors

This brings us to our main point, which is that we may begin to see African investors seeking fresh alternatives. Options that are not tied to traditional stock markets, but which also don’t involve cryptocurrency. And one logical option is going to be the forex trade.

If you aren’t well versed in the forex trade, it’s actually fairly simple to grasp. At least on a fundamental level. Basically, it is the worldwide market comprised of the exchange of different currencies for one another. It is by nature a decentralized investment market, and one that operates 24 hours a day during the week. FXCM adds that it is the most liquid market in the world as well. Meaning its trade volume exceeds that of any other market (and vastly so, in fact).

In a sense, that description closely matches how many investors view cryptocurrency. The characterizations that the market is decentralized, enjoys high liquidity, and functions via the exchange of different currencies could certainly apply equally to forex and cryptocurrency. This is one reason that the former could become such an attractive alternative to African investors if indeed they start to back away from cryptocurrency. Fundamentally it’s a similar way to invest. Except that it does away with some of the uncertainty that surrounds crypto markets.

Similar?

It may also be that the similarities don’t end there, either. Another thing investors tend to like about the crypto market is that transactions occur via blockchain technology. Which ensures a certain degree of security, fairness, and in many cases efficiency. This method of trading transaction initially only found in crypto markets. However, the last year or so has brought about continual stories concerning the adoption of blockchain tech by other trading entities. For instance, Reuters covered HSBC’s blockchain venture just last year. Revealing that the company had “reduced the cost of settling foreign exchange rates by a quarter” through a blockchain-based system. This could indicate that before long a significant portion of worldwide forex trading will use this technology.

None of this means that forex trading is identical to crypto investment. There are significant differences between the two. However, if crypto does start to look like a shakier prospect, we could begin to see investors in Africa and elsewhere turn to forex as a fairly logical alternative.

Featured image via Good Free Photos

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