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How to tell if it is a mainstream currency Mainstream currency

Date:2024-04-29 19:10:43 Channel:Trade Read:
In today's digital era, there are various forms of currency, among which mainstream currencies play an important role. So, how to judge whether a currency is a mainstream currency? What are the differentiating rules for mainstream currencies? This article will delve into these issues and reveal the truth about mainstream currencies.
Definition of mainstream currency
Mainstream currencies refer to currencies that are widely accepted and used in the international monetary system and have stable value and liquidity. It is usually issued by or supported by governments and is the primary means of payment in international trade and financial transactions. The status of a mainstream currency depends not only on its domestic use, but also on its international recognition.
How to judge whether a currency is a mainstream currency?
First, mainstream currencies should have wide circulation. This means that people can easily use this currency to conduct transactions in their daily lives, including purchasing goods and services, paying bills, etc. For example, the U.S. dollar, as a mainstream currency, can be accepted and used globally, whether for online payment or offline purchase.
Secondly, mainstream currencies should have stable value. The stability of currency value is crucial to the development of the economy. If a currency experiences significant inflation or devaluation, people will lose trust in it, which will affect the circulation and use of the currency. For example, Japan's yen is known for its stable value and has become one of the important settlement currencies in international trade.
Mainstream currency differentiation rules
There is a clear distinction between mainstream currencies and non-mainstream currencies. Mainstream currencies are usually issued by or supported by governments, have legal status, and are widely recognized and used internationally. In contrast, non-mainstream currencies may be issued by private institutions or individuals, lack legal status, have limited circulation scope, and are difficult to circulate in the international market.
In addition, mainstream currencies play an important role in the global financial system and are used for important purposes such as foreign exchange reserves and international trade settlement. The issuance and value of mainstream currencies have attracted attention from the international market, and their exchange rate fluctuations will have a significant impact on the global economy.
Future Outlook for Mainstream Currencies
With the rise of digital currencies, traditional mainstream currencies are facing new challenges and opportunities. Some countries have begun to explore the issuance of central bank digital currency (CBDC) to meet the needs of digital payments. This will have an important impact on the status and future development of traditional mainstream currencies.
In general, the status of mainstream currencies is not static. It will change with economic development, technological progress, and changes in the international political landscape. Understanding how to determine whether a currency is a mainstream currency and the rules for distinguishing mainstream currencies will help us better understand the operating mechanism of the monetary system and grasp the pulse of currency development.
In this era full of changes and challenges, maintaining a keen observation and understanding of mainstream currencies will help us better adapt to future economic development trends and achieve common prosperity for individuals and society. Let us discuss the nature and significance of mainstream currencies together, and contribute our wisdom and strength to building a more just, stable and prosperous economic order.

The four most famous international exchanges:

Binance INTL
OKX INTL
Gate.io INTL
Huobi INTL
Binance International Line OKX International Line Gate.io International Line Huobi International Line
China Line APP DL China Line APP DL
China Line APP DL
China Line APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

Mainstream coins can be said to be the most popular cryptocurrencies among investors in the currency circle. It can even be said that most investors will choose mainstream coins for investment. In fact, mainstream coins are strictly based on blockchain technology and have gained a wide range of markets. Consensus and certain practical applications in the market. Currently, there are only a handful of mainstream currencies, such as Bitcoin, Ethereum, Litecoin, Ripple, etc. So, how should investors judge whether they are mainstream currencies? Below, the editor of the currency circle will tell you in detail how to judge whether it is a mainstream currency.

 How to judge whether it is a mainstream currency?

1. Whether there is a strong enough consensus. Only when a currency gains widespread recognition, that is, a strong consensus, can it enter the mainstream and develop for a long time.

2. Whether it can withstand the test of history. Gold emerges from the waves. Mainstream currencies not only develop well in the bull market, but also survive in the bear market.

3. Public chain with strong technical strength. This is the most basic. Technology is the most basic support for blockchain networks. Without strong technical support, it will be difficult to survive in the currency circle, and it must be a public chain. No matter how well the side chain develops, it will ultimately not be able to enter the mainstream market.

4. Status of online exchanges. At present, there are only 3 mainstream exchanges in the circle. (,, OK) If a digital currency is not listed on a mainstream exchange, it certainly cannot be regarded as a mainstream currency.

5. Market value. Market capitalization is an intuitive criterion.

6. The ecological vision of the currency. If any currency wants to be "lasting", it must create value. Only in this way can it be long-lasting and widely recognized.

 Advantages of mainstream currencies:

There are many players, many exchanges, deep trading depth, and high attention, making it easy to become a hot spot for speculation. Most mainstream currencies have been tested by history; or have technical comparative advantages, these currencies have a higher probability of success in the near-death currency market. The shortcoming is: because everyone is unanimously optimistic, the car is too heavy and difficult for the main force to pull. Therefore, when the big market comes, the increase may be relatively small.

However, Bitcoin is still very different from other mainstream currencies. Since many people regard Bitcoin as a safe-haven asset during times of great economic crisis and geopolitical crisis, the scale of the large influx of funds into Bitcoin is not large compared with the large influx of other mainstream currencies.

The above is a relevant introduction to the issue of how to judge whether it is a mainstream currency. Finally, the editor of the currency circle reminds investors that no matter whether it is a mainstream currency or not, investors must control their emotions when trading digital currencies. As we all know, investing in Largely driven by human emotion and emotion, when prices drop or rise significantly, many new or inexperienced investors make emotional, short-sighted decisions. During times of high volatility, the best thing to do is Take a step back, assess the situation as calmly as possible, and revisit your trading plan. Only then can investors make appropriate decisions rather than emotional ones.

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