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.
Now, before going to the details of crypto investing, it is important to know a few things about it. First of all, it is important to know how to safely keep the cryptos so that they will not get hacked or stolen. Basically, one will keep his currencies in a wallet that comes in the form of a hard wallet which is a USB or a soft wallet which is found in the cloud.
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.
Now that one knows about the hard and soft wallets and the crypto market, the next thing to learn about is supply and demand. The fundamental law of demand is that when demand goes up, the price will also go up. The fundamental law of supply, on the other hand, is that when the supply is scarce and the product has value, demand will skyrocket.
So with this, the first thing to take note of is fundamental analysis, which takes into consideration news. Since crypto is very liquid, then it is easily affected by supply and demand which means that news easily shakes it. For example, when the co founder of Bitcoin Dotcom said that Bitcoin was a bubble, the price automatically shot down.
As one can see, someone influential appeared in the news and said something negative about Bitcoin. Because of this, investors are now scared to keep on holding Bitcoin which lead to a massive drop in price because a lot of people let go of Bitcoin. Since the crypto market is very liquid, news like this can really affect price movement.
The second type of analysis is known as the technical analysis which looks at how the price moves in the chart. Technical analysis relies on looking at patterns that appear along with the zones of support and resistance. Now, the zone that lies above the current price is known as the resistance zone while the zone below the current price is the support zone. When looking at these lines, one will want to observe if there is a breakout or a bounce. A breakout refers to the price going past the support or resistance while the bounce refers to the price going in the opposite direction after hitting the support or resistance.
For those who want to learn crypto trading, these are some things to know. For optimal earnings, one must have a good understanding of technicals and fundamentals. This will give him a higher edge when he wants to make money.
Now, before going to the details of crypto investing, it is important to know a few things about it. First of all, it is important to know how to safely keep the cryptos so that they will not get hacked or stolen. Basically, one will keep his currencies in a wallet that comes in the form of a hard wallet which is a USB or a soft wallet which is found in the cloud.
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.
Now that one knows about the hard and soft wallets and the crypto market, the next thing to learn about is supply and demand. The fundamental law of demand is that when demand goes up, the price will also go up. The fundamental law of supply, on the other hand, is that when the supply is scarce and the product has value, demand will skyrocket.
So with this, the first thing to take note of is fundamental analysis, which takes into consideration news. Since crypto is very liquid, then it is easily affected by supply and demand which means that news easily shakes it. For example, when the co founder of Bitcoin Dotcom said that Bitcoin was a bubble, the price automatically shot down.
As one can see, someone influential appeared in the news and said something negative about Bitcoin. Because of this, investors are now scared to keep on holding Bitcoin which lead to a massive drop in price because a lot of people let go of Bitcoin. Since the crypto market is very liquid, news like this can really affect price movement.
The second type of analysis is known as the technical analysis which looks at how the price moves in the chart. Technical analysis relies on looking at patterns that appear along with the zones of support and resistance. Now, the zone that lies above the current price is known as the resistance zone while the zone below the current price is the support zone. When looking at these lines, one will want to observe if there is a breakout or a bounce. A breakout refers to the price going past the support or resistance while the bounce refers to the price going in the opposite direction after hitting the support or resistance.
For those who want to learn crypto trading, these are some things to know. For optimal earnings, one must have a good understanding of technicals and fundamentals. This will give him a higher edge when he wants to make money.
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