Cryptocurrencies are another alternative to traditional currencies, but they are different from fiat currencies because they are based on peer-to-peer technology, and their value is affected by the supply and demand on the market.
Even though cryptocurrencies are perceived as a volatile investment, they offer a lot of benefits, and that’s why they have been in the spotlight over the years, especially during the latest bull cycle of Bitcoin.
So, it’s understandable that there are many new crypto investors that want to obtain crypto. That being said, this article features a list of four important things every new crypto investor should be familiar with.
Before you start investing in crypto, you need to familiarise yourself with the crypto market and how it operates. More specifically, you need to learn more about the currencies you want to add to your portfolio and their position in the market.
It’s worth mentioning that the crypto market is still small, and events like a bigger purchase of certain currencies can alter the position of other virtual currencies on the market. For example, when a Tesla made an investment in Bitcoin, the price of Bitcoin increased dramatically to over $60,000, and generally, the bull cycle of Bitcoin also impacts other cryptocurrencies that also entered a bull market phase.
Moreover, when reputable businesses accept crypto payments, this also impacts the position of cryptocurrencies in the market and their value.
For example, when Overstock supported BTC payments that influenced the rise of the price of Bitcoin, the same applies to other businesses which accept crypto payments and affect the development on the market.
So, it’s important to keep up with the latest news about the market, because as we said, it is relatively small, and whenever there is an event that fuels the demand or supply, that will change the positions of the cryptocurrencies in the market.
Online Trading Platforms
It goes without saying that you need to compare different trading sites and choose a reliable one that works for your budget and goals. For example, if you want to invest in e-Yuan, you can register on https://yuanpayapp.com/.
This online trading site is a perfect choice for anyone that wants to invest in the e-Yuan as the cryptocurrency is expected to quickly increase in value. It was created by the Chinese government as a digital form of the traditional national currency. The trading training site is easy to use, compatible with mobile devices, and you only need to make a deposit of $250 to start trading.
Cryptocurrency’s White Paper
It’s important to learn as much as you can about blockchain technology and specific cryptocurrencies that you want to include in your investment portfolio. For this reason, you might want to read the white paper of the cryptocurrency where you can learn from its creators more about the project, what their goals are, and how you can obtain it.
For example, Bitcoin’s white paper explains in detail what is the main reason behind the development of this decentralized cryptocurrency and the foundation of the blockchain technology. So, most cryptocurrencies will have white papers that explain the background of the cryptocurrency in more detail.
Follow Cryptocurrency Enthusiasts
That being said, if you’re new to the crypto world, it is equally important to follow cryptocurrency enthusiasts and experts that have been part of this field for a longer period of time and are more experienced in crypto trading.
This will help you learn more about the crypto community and stay up to date with the latest relevant news in the market. You can join our communities on Reddit or crypto forums like the Bitcointalk forum and even follow crypto influencers on social media platforms. But, again, you need to have a good understanding of your personal financial goals and how you want to achieve them.