These days, Bitcoin, Ethereum, Ripple, and other cryptocurrencies have flooded the news because of the vast opportunities that they offer. While cryptocurrencies have not been officially recognized as an investment medium in many countries yet, a lot of people have been trading them to earn money. If one would want to try it out, here are some basic lessons on cryptocurrency trading for beginners.
Before going to the actual lessons, it is important to know where to trade. Now, one first has to have a wallet which can be either a hard wallet, which comes in the form of a USB, or a soft wallet which can be found online. These wallets store the cryptos to keep them safe pretty much like how a regular leather wallet is supposed to keep paper money safe.
Just think of these wallets as actual wallets that can store money or paper currency inside. As mentioned above, the exchanges are like forex or stock markets by nature. After one has already connected his wallet to the exchange and already transferred money into his account, then he can start trading.
When investing in the crypto market, one will have to learn about the law of supply and demand. To put it simply, the higher the demand, the higher the price will become. The demand is also dependent on the supply wherein the lesser the supply of the currency, the higher the demand will be.
Now that the law of supply and demand is already covered, the next thing to learn about would fundamentals. Fundamentals refer to the news reports that are shown about the cryptocurrency. For instance, there was some recent news about the co founder of the Bitcoin website stating that he has let go of all his Bitcoins.
Now it is very important to take note that investors do not like news where they think the commodity will crash. So for instance, when the co founder of the Bitcoin website said that Bitcoin will eventually burst, people started selling their Bitcoins. The opposite happens for when there is good news.
Aside from that, there is also technical analysis which refers to the analysis of charts to predict what the movement of the price is. Technical analysis is dependent on two zones known as support and resistance. The zone that is below the price is known as the resistance line and the zone above is called support. In technical analysis, there is the bounce and the breakout. If the price breaks out of the support or resistance, then trade in that direction but if it bounces off a support or resistance, trade in the other direction.
These are some of the basic things that one must know about cryptocurrencies. Now in order to trade well and have consistent earnings, it is very important to have knowledge of both fundamental skills and technical skills. These skills will allow traders to know the basic direction of the price and make a decision based on its movement or price action.
Before going to the actual lessons, it is important to know where to trade. Now, one first has to have a wallet which can be either a hard wallet, which comes in the form of a USB, or a soft wallet which can be found online. These wallets store the cryptos to keep them safe pretty much like how a regular leather wallet is supposed to keep paper money safe.
Just think of these wallets as actual wallets that can store money or paper currency inside. As mentioned above, the exchanges are like forex or stock markets by nature. After one has already connected his wallet to the exchange and already transferred money into his account, then he can start trading.
When investing in the crypto market, one will have to learn about the law of supply and demand. To put it simply, the higher the demand, the higher the price will become. The demand is also dependent on the supply wherein the lesser the supply of the currency, the higher the demand will be.
Now that the law of supply and demand is already covered, the next thing to learn about would fundamentals. Fundamentals refer to the news reports that are shown about the cryptocurrency. For instance, there was some recent news about the co founder of the Bitcoin website stating that he has let go of all his Bitcoins.
Now it is very important to take note that investors do not like news where they think the commodity will crash. So for instance, when the co founder of the Bitcoin website said that Bitcoin will eventually burst, people started selling their Bitcoins. The opposite happens for when there is good news.
Aside from that, there is also technical analysis which refers to the analysis of charts to predict what the movement of the price is. Technical analysis is dependent on two zones known as support and resistance. The zone that is below the price is known as the resistance line and the zone above is called support. In technical analysis, there is the bounce and the breakout. If the price breaks out of the support or resistance, then trade in that direction but if it bounces off a support or resistance, trade in the other direction.
These are some of the basic things that one must know about cryptocurrencies. Now in order to trade well and have consistent earnings, it is very important to have knowledge of both fundamental skills and technical skills. These skills will allow traders to know the basic direction of the price and make a decision based on its movement or price action.
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