This is a year where everyone (even your grandma!) got interested in cryptocurrencies. Everyone has heard about it and has their take on it, but it seems like nobody knows what it’s really about.
“You can earn lots of money in a day” or “I just need to click on this, and it will be fine”. Common sentences that you shouldn’t fall for, and that’s why we prepared these facts for you, so you can be informed and spread that knowledge further. Can it pay off? Yes. Quickly? Not really. With the right information? You are on the right track.
What is a cryptocurrency?
Crypto is a digital currency, having the most significant impact on the revolution of the trading market because it is decentralized. This means authorities cannot influence it directly. Most popular crypto up to date is Bitcoin, and if you heard “blockchain” many times, it’s a technology thanks to which Bitcoin exists and can be produced. Bitcoin is not the only crypto, and following its debut, many came to life and disappeared, but the top 10 are still there, like Litecoin, Ethereum, Ripple, etc. Blockchain makes everything more secure because the algorithm is changing all the time. This is why mining Bitcoin is becoming harder and harder, but this crypto puts a lot of effort in securing the code and keeping transactions private or rather non- traceable.
Why you should think before you choose Bitcoin or some other crypto
Bitcoin is something people will look for first, but once you get into trading (which you will have to if you want to deal with any crypto), you will see that every crypto has their pros and cons. Bitcoin is, for example, harder and harder to mine, because it has a cap od 21 million. Once it reaches that number, it won’t be produced anymore. On the other hand, Ethereum only has a yearly cap, but it’s not limited forever. Litecoin can be created much faster than Bitcoin (it takes 2.5 minutes to produce one Litecoin, while you need 10 for Bitcoin). Some cryptos are better if you want to adopt a holding strategy, but others will serve you well if you like a short-term exchange. That’s why it’s essential to get enough information about, say, the top five currencies for the beginning, so you can figure out what suits you best and won’t make your life stressful.
Choosing the right Broker
It’s of utmost importance to choose a certified brokerage if you want to start trading, especially forex. Forex operates solely online, and it’s decentralized, like crypto. Everything is prone to scams, and the internet is no exception. Many fake companies will promise the world to you, and that’s often mirrored in ads like “Earn Bitcoins in a week”, or “Click here, and you’ll get (insert some reward here) for free!”. Foreign exchange is a place where you can benefit from if you put effort into it, and find the right way to do so. That’s why you should pay attention to certificates and licences because buying and selling cryptocurrency is also available via crypto brokers. If you are a beginner, a good broker should be there for you to introduce you to everything you want to know and make it easier for you to learn. Of course, learning on your own will make the process quicker and easier.
The market operates 24/7
Since Forex market operates on the internet, it’s virtually open 24/7, making lots of opportunities available, without you getting FOMO about missing out on a specific time frame when you “could’ve profited”. Thanks to crypto, traders all around the world got the chance to get into the market without having millions of dollars. This presents a huge advantage than ever before.
Making profit takes time, but it’s worth it.
When we say it takes time, what we want to say is that you shouldn’t rush the process because it usually leads to bad decisions. Learning is meaningful because it helps you devise the trading strategy that won’t make you nervous or impulsive. Impulsive traders are the ones who put everything they have into their trading account and then regret it in a matter of days. Your Broker will be the first to tell you to start slow, and never to invest more than you can afford to lose. Your trading account is similar to a savings account, where you will choose how much money you want to invest in something. It doesn’t have to be the whole amount and it rarely should. Having a good plan and going at a steady pace will get you to your goal if you are willing to put in the time and effort.