Abra Goes Mainstream
February 06 2019 - 11:24AM
ADVFN Crypto NewsWire
Bitcoin Global News (BGN)
February 06, 2019 -- ADVFN Crypto NewsWire -- What’s the most
popular crypto trading app at this point? While Coinbase is the
most logical answer, another option exists that gives users more
options in terms of the crypto assets that they can hold within one
wallet. That particular app is Abra, which many of you probably
already know due to its’ goal of being known as the go-to location
for beginners to invest in cryptocurrencies.
In the last few hours, Abra has
pivoted significantly from this focus to one that is much more
wide-reaching. More specifically, today, Abra re-branded itself as
the place for the average consumer to invest in stocks, ETFs, and
cryptocurrencies, all in the same location. Even though Robinhood
and other apps are offering the same services, Abra’s move is
different because of how it works out on a technical
level.
To understand why this is true, it
is important to begin by understanding how Abra works. First, with
the Abra app, you never actually hold more than one cryptocurrency
at a time. If you know anything about smart contracts, then you
know that they represent a promise for some kind of exchange of
assets or services once certain conditions are met. In the case of
Abra, everything basically depends on smart contracts that are tied
to the Bitcoin or Litecoin networks.
This means that each user may feel
that he or she is holding up to 30 cryptocurrencies, when he or she
is really only in possession of two at most. By two, of course, we
mean Bitcoin and Litecoin. Reinforcing this point is the fact that
users can only ever withdraw any gains that they receive by moving
from Bitcoin or Litecoin to fiat currencies like the US
dollar.
Because this still represents how
Abra does business, going forward, keep in mind that even when you
try out the new options of investing in fractional shares of
traditional stocks with Abra, you are really only investing in
Bitcoin and Litecoin. In the end, because of this, these two
networks are the ones to watch to manage your risk in this respect.
As long as both continue to represent market leaders, then you will
continue to be hedged against a large amount of the risk inherent
in all other cryptocurrencies.
By: BGN Editorial Staff
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