15 Secrets About CRYPYOCURRENCY That Nobody Will Tell You
Cryptocurrency has revolutionized the world of finance and the global economy, you can do with crypto what you usually do with paper money or fiat
For those who are still yet to come to terms with cryptocurrency, it is digital money or currency and can perform the same functions as paper money and that means it can be used to exchange goods and services
It does not need a centralized institution like the central bank for printing, it is digital and decentralized by making use of a technology called blockchain and this gives the power of control to the people
All over the world, more governments, individuals and organizations have come to embrace cryptocurrency which is the reason for its growing popularity.
If you are new to the world of cryptocurrency and want to learn more, here are 15 Cryptocurrency Secrets that Nobody will tell you:
Adequate Knowledge is Important
There is so much noise about it right now, especially online. It’s even been seen as a shortcut to wealth, and while this is true, as a newbie don’t make the mistake of starting without knowing enough, or else you will make avoidable mistakes and lose your hard-earned money. You will find various resources that will educate you.
2. It is Volatile
The world of crypto is all about volatility, I am sorry to burst your bubble but it’s the truth, a particular coin can rise so high within 24 hours but drop to an all-time high in the next 24 hours. This is important so you know when to exit or plan an entry.
3. It is controlled by Market Forces
Market forces always decide the fate of crypto, when more people are buying it will rise in value or pump but if the reverse is the case and that is more traders are cashing out, it will result in a fall in value.
4. Events Always Play an Important Role
The news of an upcoming event can influence the performance of a particular coin, for example, the news of an expected listing on a popular exchange platform will elicit a positive response and this often leads to more traders buying to hold.
5. You need a Wallet for Storage
Just like physical or paper money that needs a wallet for storage, in the realm of cryptocurrency, you also need a wallet to store your coins but this time a digital wallet. There are many wallets to choose from
You can try this article: Top picks for Crypto Wallet
6. You need a Trading Platform to Buy and Sell
Just like you can trade on forex through the stock exchange, you also need an exchange to trade on crypto and you will find many of them online including popular ones like Binance and coinbase
7. Keep an eye on the Market
You must constantly monitor the market especially if you are a short-term trader, and always withdraw your profit except if you are buying for a long-term trader.
8. Don’t Trade with Emotions
The quickest way to lose money with crypto is to trade and allow your emotions to influence your decision and that is why you should always monitor the market to know the current condition and plan your entry or exit based on present realities and not on sentiment.
9. Choose a long-term investment.
Panic selling and fear of missing out (FOMO) are highly prevalent in the cryptocurrency market. People are currently attempting to sell their Bitcoin assets before prices continue to decline and consume their potential profits. Similar to how investors went bananas over the Shiba Inu rally six months ago, many amateurs tried their hand at memecoin. Despite the fact that these are the variables that drive the cryptocurrency market, the greatest strategy for making money is to choose a long-term investing strategy.
10. Secure your Crypto Portfolio at the Right Place
There are now only two storage options available. Cold storage is one type, while hot storage is another. Cold storage, as contrast to hot storage, refers to an offline digital wallet that is often kept on a hard drive. The best approach to safeguard your bitcoin and other assets against hacks and attacks, according to experts, is to put it in a cold wallet.
11. It is impossible to completely wipe out Cryptocurrencies
Although nations might attempt to impose restrictions on cryptocurrency trade, a total ban is impossible because anyone can own a wallet. Even if the government prohibits digital tokens, people can still trade them via international accounts. Tech-savvy investors lead the pack in adopting such strategies. However, given how much money has been put in cryptocurrencies, large nations won’t even consider doing so.
12. Avoid Buying Because the Price is Low
Many newbies make the same mistake: they buy a coin because it appears to be cheap or is within their price range. Imagine someone who chooses Ripple over Ethereum merely because the latter is much more cheaper.
The decision to invest in a coin should be largely based on its market size rather than how cheap it is.
It makes no difference whether a coin is valued at $10 per coin with a total of 1 million shares in the market or at $100 per coin with 100,000 shares in the market. Because of this, it makes more sense to make investment decisions based on a coin’s market cap than its price. A cryptocurrency is more favorable for investment if it has a larger market cap.
Related Post: How to buy and trade crypto in Nigeria
13. Have a plan for trading digital currencies
There are many sharks out there eager to take your money, making it difficult to distinguish between legitimate crypto advice and frauds.
In the first nine months of 2021, there were 7,118 reports of cryptocurrency investment fraud. Action Fraud reported that the average loss per victim was £20,500, which was a 30% increase over the entire year 2020.
Take a step back from the enthusiasm when you’re confronted with a lot of information about a cryptocurrency.
Consider the platform or project critically. How many people use it? What problem does it aim to solve? Avoid currencies that make lofty promises but fail to deliver on them.
14. Learn to Manage Risk
Some people who provide advice on trading cryptocurrencies might not have your best interests in mind. Therefore, avoid getting hurt by making the same errors as others.
Don’t be tempted to trade with more money than you can afford to lose by setting restrictions on your investment in a particular digital currency.
Trading cryptocurrencies involves a high level of risk, and more traders lose money than make it.
15. Go for long-term Investment
Daily price changes can be quite dramatic, and amateur traders are regularly tempted to sell in a panic when prices are low.
The use of cryptocurrencies is not going away. For the highest returns, consider investing in the cryptocurrency market for months or even years at a time.