When it comes to cryptocurrency, there is some kind of mystery around it. Although many have heard about it, they still don’t know what it is. Some on sider it taboo, as they have heard of scams that frequently make headlines on social media platforms.
With such a shroud of secrecy
surrounding it, some venture into the murky waters of the crypto world.
However, there is nothing mysterious
about cryptocurrency trading strategies.
It is just the lack of awareness that makes it a candidate for a mystery novel.
Even though it is more than a
decade old, it is a highly volatile and lucrative market. As the saying goes,
"High Risk, High Reward." Once you understand the factors responsible
for such volatility, you can make millions in a short amount of time.
One must also understand that if
the concept of cryptocurrency is such a flawed technology, why would
governments across nations wish to mint their version of digital currency?
Cryptocurrencies are indeed
surrounded by scams, but you must understand that there is nothing wrong with
them; it is simply the mismanagement of a few greedy people who end up
tarnishing the name of the crypto world. You might have heard of crypto
exchanges like Terra Luna, Voyager, Celsius, 3AC, and the latest FTX and
Alameda.
So it is advisable that before you
invest in cryptocurrencies, you go to a reputed crypto exchange. Some crypto traders
invest in both cold and hot crypto wallets. Although some of these wallets are
expensive, they protect your hard-earned cryptos when an exchange declares
bankruptcy. Investing in crypto wallets is the best investment, although it
might be painful to access them while you trade on the crypto exchange.
However, such pain is worth it.
Before you go out and buy one, you
should understand the advantages and disadvantages of a crypto wallet. Doing
such research will save you both time and money.
If you are a beginner in the
crypto world, then it would be advisable to learn as much as you can. You
should be able to understand the difference between a crypto token and a crypto
coin.
Then there are the NFTs
(non-fungible tokens) and ICOs (initial coin offerings), which you should be
careful about as they are favorite targets for scammers.
Several crypto traders find
investing in Bitcoin and Ethereum interesting, although there are other coins
that they also find interesting.
These communities will discuss
everything about crypto. So you don’t need a degree in computer science to
understand how and why the latest cryptocurrency would revolutionize the crypto
world.
Every cryptocurrency has a white
paper, which is a technical document that reveals the cryptocurrency's intent.
Since every cryptocurrency is different, you can always ask the community
members for their advice and suggestions.
However, you must go for one of
those crypto communities that are reputed, since changes like
"rug-pull" and "pump and dump" are quite common.
Another advantage of joining a
crypto community is that you will become familiar with all the latest jargon
that is being used. So when you read an article about cryptocurrency, you will
understand what the author of the article is trying to convey.
Joining a reputed and reliable
crypto community is a one-stop shop for all the latest crypto news. You can
also seek advice about the fundamental and technical factors from the community
members who also actively participate and trade in cryptocurrencies.
They can share their trade secrets
and trading techniques for cryptocurrencies. However, you, as a future crypto
trader, need to understand that every crypto trader is unique and has certain
goals and objectives. These goals and objectives need not necessarily coincide
with or align with those of yours. So you need to take advice that is aligned
with your financial aspirations and goals.
Once you understand the basics of
cryptocurrency, you can also try reading other articles that might help you
develop robust crypto trading strategies.
When you believe you have
sufficient knowledge, look for a reputable and trusted online crypto broker or
brokerage firm. Some offer "demo" accounts and they also offer online mysterious about cryptocurrency trading strategies. Some
even offer a crypto trading community where you can get in-depth trading
knowledge.
You can polish off your trading
skills on the demo accounts, where you can discover your trading style. Since
it is a demo trading account using virtual money instead of fiat currency, any
profit or loss you make can hardly have any impact on your wallet.
Once you are comfortable carrying
out trades on a demo account, you can then try the live account, where you can
invest and trade cryptocurrencies in real-time.
Several play-to-earn games have
become available online in recent years. After the success of
"Axie-Infinity," many new games based on cryptocurrencies are gaining
popularity. Before you dive into such games, try to understand which cryptocurrencies
are being used.
You need to proceed with caution
when you enter such games since you may get scammed. The best and latest
example is "Crypto-Zoo," the brainchild of Logan Paul, a social media
influencer, an actor, and a professional wrestler.
He had planned to launch his
crypto-based game, which creates a new and unique animal by virtually
cross-breeding. However, these NFTs were nothing more than poorly created,
photoshopped images of animals.
This was not the first time he had scammed his followers and crypto fans. Dink Doink was a crypto meme coin before the crypto zoo, and Logan Paul made a lot of money from money pledged by his followers and crypto fans without delivering the meme coin.
Conclusion:
Cryptocurrency trading is not as mysterious as many think; it is the lack of awareness that makes it such a mystery. Like any other financial asset, cryptocurrencies have their pros and cons. And, as with any other financial advice, trade and invest in cryptocurrencies with money you won't be sorry for losing.
The best way to stay ahead of the
game in the crypto world is to stay as focused and well-informed about the
crypto you are interested in as possible. You may even wish to build up a
portfolio by investing in other cryptos too.
