These days, Bitcoin, Ethereum, Ripple, and other cryptocurrencies have flooded the news because of the vast opportunities that they offer. While cryptocurrencies have not been officially recognized as an investment medium in many countries yet, a lot of people have been trading them to earn money. If one would want to try it out, here are some basic lessons on cryptocurrency trading for beginners.
Now, before going to the details of crypto investing, it is important to know a few things about it. First of all, it is important to know how to safely keep the cryptos so that they will not get hacked or stolen. Basically, one will keep his currencies in a wallet that comes in the form of a hard wallet which is a USB or a soft wallet which is found in the cloud.
Just think of these wallets as actual wallets that can store money or paper currency inside. As mentioned above, the exchanges are like forex or stock markets by nature. After one has already connected his wallet to the exchange and already transferred money into his account, then he can start trading.
When investing in the crypto market, one will have to learn about the law of supply and demand. To put it simply, the higher the demand, the higher the price will become. The demand is also dependent on the supply wherein the lesser the supply of the currency, the higher the demand will be.
Now that the law of supply and demand is already covered, the next thing to learn about would fundamentals. Fundamentals refer to the news reports that are shown about the cryptocurrency. For instance, there was some recent news about the co founder of the Bitcoin website stating that he has let go of all his Bitcoins.
Now it is very important to take note that investors do not like news where they think the commodity will crash. So for instance, when the co founder of the Bitcoin website said that Bitcoin will eventually burst, people started selling their Bitcoins. The opposite happens for when there is good news.
A second type of analysis is known as technical analysis which is the analyzing of the charts or graphs that show the action of price. In the very basics of technical analysis, one has to know of two zones namely the resistance and support. The zone or price level above the current price is called resistance level while the zone or line below the price is the support level. The two things to look out or is a bounce or breakout. If the price breaks through the support or resistance, then one will follow that breakout direction. However, if the price bounces off either levels, then one moves in the opposite direction.
These are some of the basic things that one must know about cryptocurrencies. Now in order to trade well and have consistent earnings, it is very important to have knowledge of both fundamental skills and technical skills. These skills will allow traders to know the basic direction of the price and make a decision based on its movement or price action.
Now, before going to the details of crypto investing, it is important to know a few things about it. First of all, it is important to know how to safely keep the cryptos so that they will not get hacked or stolen. Basically, one will keep his currencies in a wallet that comes in the form of a hard wallet which is a USB or a soft wallet which is found in the cloud.
Just think of these wallets as actual wallets that can store money or paper currency inside. As mentioned above, the exchanges are like forex or stock markets by nature. After one has already connected his wallet to the exchange and already transferred money into his account, then he can start trading.
When investing in the crypto market, one will have to learn about the law of supply and demand. To put it simply, the higher the demand, the higher the price will become. The demand is also dependent on the supply wherein the lesser the supply of the currency, the higher the demand will be.
Now that the law of supply and demand is already covered, the next thing to learn about would fundamentals. Fundamentals refer to the news reports that are shown about the cryptocurrency. For instance, there was some recent news about the co founder of the Bitcoin website stating that he has let go of all his Bitcoins.
Now it is very important to take note that investors do not like news where they think the commodity will crash. So for instance, when the co founder of the Bitcoin website said that Bitcoin will eventually burst, people started selling their Bitcoins. The opposite happens for when there is good news.
A second type of analysis is known as technical analysis which is the analyzing of the charts or graphs that show the action of price. In the very basics of technical analysis, one has to know of two zones namely the resistance and support. The zone or price level above the current price is called resistance level while the zone or line below the price is the support level. The two things to look out or is a bounce or breakout. If the price breaks through the support or resistance, then one will follow that breakout direction. However, if the price bounces off either levels, then one moves in the opposite direction.
These are some of the basic things that one must know about cryptocurrencies. Now in order to trade well and have consistent earnings, it is very important to have knowledge of both fundamental skills and technical skills. These skills will allow traders to know the basic direction of the price and make a decision based on its movement or price action.
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