6 Ways to Understand the Cryptocurrency Market Better
What is cryptocurrency? How does trading work? Is the crypto market stable? Where can I find books to learn more about that? Is trading and exchanging safe? Is crypto money worth investing in? You may have a lot of questions about Bitcoins and every other digital currency, and there is so much information available on the Internet, so you can never know where to start, and what to read and explore first. But, before you go any further, you must know that the first thing you need to do is to understand the whole market better, and then decide if you want to invest or trade, or even save money on your e-wallet, waiting for the right time to exchange them.
If you decide to take part in this market, you should be aware that it’s a type of a wild ride and you can never be sure if the currency reached its highest value, or if there is hope for even better days. But, at the same time, you can also never know would the range be the same the next week, because if something unexpected or unpleasant happens to the world, the crypto market will reflect that. One of the most recent examples was the low price of the Bitcoin after the coronavirus pandemic hit the world. But, after the May’s halving, everything went more stable, and now the crypto rates compared to real money are higher, but there is no guarantee that this thing will last, especially if we expect another one crisis related to the pandemic.
But, if you are still interested in this market, you need to know these things so you can understand it better:
1. How many cryptocurrencies are there?
There is no exact known number, but according to the Internet, there are between 5,000 and 6,000 active crypto coins right now, but the most popular are still the Bitcoins, Ethereum, Litecoin, and Ripple. You can trade them all through the known trading platforms that provide great support and it’s available for every device. The existence of all these currencies doesn’t mean you need them all so you can become a trader or investor, but it’s always good to keep in mind that you can choose every other currency if you are not into Bitcoins.
2. What is the market cap
The people in this market are using this term to explain the total value of the particular coins. They compare the number of the available coins in the network with the whole number of the circulating supply, so they can determine how much coins are owned by the traders, and how much are available. When the price is calculated, they form it following the circulating supply, so they can see how much is market cap worth at this moment.
3. Meet and know all the tools you need
We already said that there are trading platforms that let you trade and exchange the digital coins you have. Some cryptocurrencies, such the Bitcoin, require advanced equipment and power supply because the blockchain is energy-consuming. Digital wallets are a must. When you trade crypto money, after you get them, withdraw the whole amount to your e-wallet, so you can ensure your savings are secure from online breaches and scams. Learn more about how all the currencies work before choosing your favorite one. All these tools are useful at the very beginning of your crypto career.
Check here: https://crypto-gps.com/.
4. Learn from the best
Almost every of the most anticipated investors and traders shares their knowledge and experience through their social media profiles, websites, and blogs. You can learn from them by following what they publish. Some of them even offer to be mentors to the inexperienced traders, so they can show them the way, and teach them some more tricks on how to be successful in this market.
There are also a lot of social media profiles and pages that provide their followers with the most recent events and changes in the market. If you are seriously interested in it, you should follow a few of them, but also filter the sources, so you can avoid falling to fake news, and taking the wrong steps. Also, many commercial media publish crypto-related content almost every day, covering everything that is important about this field at a particular moment. There are a lot of sources you can learn from.
5. What affects the price rates the most?
Crypto prices rise and fall without following any predictable pattern, and that can be confusing and frustrating for the beginners. The most experienced traders know it’s not the end of the world when that happens, but it’s always hard to explain where the prices will be high enough again, so they can be worth the effort. In general, every huge thing that happens and affects the global economy, can have some influence over the cryptocurrencies, and you can’t change that fact, but just to accept it and then proceed to improve your career on the market.
6. Focus on one or two currencies at the time
The fact that a huge number of cryptocurrencies is available on the market doesn’t mean that you need to try them all. You can stick to one or two and see how it goes, and right after that, when you are sure you understand the things, you can include one more in your plan. But, it’s normal if you don’t want to do that, so in that case, focus on one, and become an expert in it.
Becoming an expert in the crypto world is not an easy step to take. You need to have a lot of resources available, so you can begin, and then even more things to learn almost every day, until you find the best method for you. Some traders and investors follow the trends, and others trust their gut when it comes to the big steps they want to take. It’s on you to decide how you will do all of that.
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