After reading our guide on crypto jargon and a beginner’s guide to trading Bitcoin you are probably ready to invest in cryptocurrency for the first time. At this exciting time, it is a good idea to consider these seven facts which can help you achieve your trading goals.
Cryptocurrencies have made the headlines many times due to their massive price fluctuations over a short period of time. Price swings are extremely common, especially amongst newer Altcoins, although even main coins, such as Bitcoin, are known for massive gains and losses. This volatility is due, in part, to the market being unregulated by a central entity.
Unfortunately, this industry has not been immune to criminals, and there are numerous cases of hacks and fraud. As a responsible investor, you should seek to protect your keys and only use reliable, trustworthy cryptocurrency exchanges to do business with. Consider storing your digital currency in offline wallets, and never share confidential information, such as user details or passwords, with third parties.
If you’ve got experience trading stocks and other, more traditional financial instruments, you need to be aware that cryptocurrencies don’t normally follow the same patterns and rationale. Rather than being affected by performance data and market caps, the value of digital currencies tends to vary depending on news stories. This is why you should always stay up to date with the latest cryptocurrency news.
The basic investor rule of thumb to buy when the price is low and sell when it’s high applies to cryptocurrencies too, up to a certain point. Digital tokens are such a new instrument that it is difficult to gauge when a price is actually high or low. Historical data is extremely limited, especially compared to traditional instruments. You should avoid panic buying or selling, as you could result in later regret. Instead, give time for the currency to level-off temporarily.
It is important that you understand that cryptocurrency is classified as a high-risk investment, and you should only invest a portion of your capital in it. Just like any other financial instrument of this risk, there is a high potential for rewards, however, you should never invest more than you can afford to lose.
You are probably aware that there exist many different currencies. You’ve definitely heard of Bitcoin and perhaps Ether and Litecoin. In fact, there are over 800 different ones, and this number is increasing. Different currencies are created with different purposes, and you should read extensively about the currency you intend to invest in.
The more time passes, the higher the number of governments and international bodies embrace cryptocurrencies. Legislation, regulation, and oversight are increasing, as is entrepreneurial innovation in this sector.
The rising popularity of cryptocurrencies over the past years have sped up their creation and growth. New traders and investors may easily be confused by the sheer number of currencies available. This guide aims to help you invest in some of the best digital currencies available. Bitcoin You’ve probably heard of Bitcoin before hearing the […]
The topic of cryptocurrency mining is gaining popularity as more individuals turn their attention to this digital industry. Cryptocurrencies are rising, and this is attracting new miners who would like to how to make money with Bitcoin. Here are some of the most common questions asked by newbie miners. What exactly is Bitcoin mining? Mining […]
Bitcoin is the cryptocurrency which put blockchain and digital assets in the limelight. The currency, created by the mysterious Satoshi Nakamoto, was first invented in 2009, but it gained worldwide popularity in subsequent years, as its value continued to increase beyond anyone’s imagination. Today, the volatile and popular digital asset continues to make major headlines […]
After reading our guide on crypto jargon and a beginner’s guide to trading Bitcoin you are probably ready to invest in cryptocurrency for the first time. At this exciting time, it is a good idea to consider these seven facts which can help you achieve your trading goals. It’s a Volatile Market Cryptocurrencies have made […]
This guide is the second in a two-part series about the most common terminology used in the cryptocurrency industry. If you haven’t yet, be sure to also check out Part 1. ICO – meaning Initial Coin Offering, this is the crowdfunding mechanism of the industry which allows businesses to issue their own cryptocurrency in exchange […]
The cryptocurrency industry is a relatively new one, yet it includes a variety of specific keywords and phrases which any serious trader or investor should know. The following list is the first in a 2-part segment on crypto jargon which you should definitely know. Altcoin – any cryptocurrency which is not Bitcoin, including popular ones […]
Whilst you probably already heard of Bitcoin you might be unsure of how coins come to exist. This guide will explain the concept of mining, and what you can do with digital tokens you make. With fiat currency, each individual government decides when and how much money should be printed. Bitcoin, on the other hand, […]
If you’re reading this, chances are you’re looking to start trading Bitcoin using your PayPal account. Fortunately for novices, this popular cryptocurrency has become a lot more easy to obtain than it was just a few short years ago, when the only way to get it was to mine it yourself. Nowadays, people can easily […]