Bitcoin is the world's first cryptocurrency to deploy a bionetwork of elements and services that have allowed users to carry out transactions in an easy and comfortable way, where the execution time in seconds from one point in the world to another. They can also carry out operations such as payments for services or consumption in shops, a real financial comfort.
Its security protocol is much more reliable and responds to all the problems that the crypto community has faced in the last decade. This is because of its decentralization where no one is managing the Bitcoin network.
Elements to choose a cryptocurrency correctly
There are several essential elements to take into account. The main ones are:
- That can be traded on various “exchanges.”
- Mining power. Have a high mining power.
- Website and browser open to the public. The information on the number of coins, exchanges, mining power, and equipment that supports it is public and visible to everyone.
- It is not “one more currency” to “buy cheap and sell high.” Instead, it has a specific use or solution in the cryptocurrency ecosystem.
- Limited production. That it has a finite number of coins to exist, and that the total amount to be produced and the current number in circulation are transparent.
How to go from a typical user to a crypto-master?
Learning to navigate the realm of trading can be difficult, but there are plenty of experts and resources available online with which anyone can learn to trade cryptocurrencies.
You need to realize that the bitcoin markets or the markets for any cryptocurrency are very different from the average stock trade or the waters that Forex traders navigate.
In fact, many people will tell you that traditional technical analysis will never be accurate when it comes to digital currency markets.
However, some use technical analysis frequently for day trading, making a living, and predicting the short-term movements in prices that we all know.
That is why we recommend that you know what your risk profile is before investing.
Some of the tips that can help us make the right decisions regarding the exchange of cryptocurrencies are the following:
- Choose a safe platform to trade
- Choose a trustworthy wallet
- Don't spend money you can't have the funds to recover.
- Read, ask, prepare
- Start investing with established cryptocurrencies
- Be very cautious with safety
If you are just starting out in investing in cryptocurrencies, it is advisable to start little by little. There are many cryptocurrencies, but the most popular and followed, you can find the most information about Bitcoin.
For this reason, we recommend that you start by investing in Bitcoins: in addition to being the most popular, it is the one with the highest capitalization the most excellent security and liquidity. Moreover, many investors already talk about Bitcoin as a refuge value and even a substitute for fiat money.
Technical analysis is essential.
A knowledgeable individual about technical analysis who closely follows what is being said on the streets could still be terribly wrong in his predictions.
Cryptocurrencies like bitcoin can often mislead traders, throwing away all this street-wise and technical-related knowledge.
Traders highly skilled in technical analysis can lose everything in a matter of minutes. So make sure it is an actual head-shoulder-shoulder pattern or an actual uptrend signal.
Whether it is trading or investing, cryptocurrencies contain enormous risks and opportunities due to their extreme volatility, so investing with caution is advised to achieve practical technical analysis.
It is essential to practice daily habits, including collecting as much daily information as possible regarding news and financial indicators of the traditional economy, as well as the behavior of the markets and their corporate leaders.
We know that the financial world is somewhat complicated; the traditional market leads to a detailed analysis of the indicators that affect its rise or fall in specific periods, where the supports of this market are hit without prior notice.
The cryptocurrency market is even more complex from an analytical point of view. Its only support is its followers' opinions and support to the various digital currencies; its changes are subject to many more variables, even more, vulnerable than those of the Traditional market.
The main thing to be a crypto master is to be informed, prepare, anticipate possible situations that violate the values of cryptocurrencies.