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Are you new to the world of cryptocurrency? Are you intrigued and wanting to find out more about this new world of investment? I myself have been interested in cryptocurrency for a little while now and have done lots of research on the topic. I’m still relatively new to crypto but I thought I would share with you what I have learned to far as a beginner…
What is cryptocurrency?
Cryptocurrency is essentially a new form of digital money. It cuts out the middle men such as governments and banks, so that there’s less chance of corruption occurring. You can easily send and receive cryptocurrency online but there are no physical copies of it in the real world. So it’s very different to what we know money to be.
Cryptocurrency uses blockchain technology to host data. It can be tricky to get your head around, but put simply blockchain is a series of data that is managed by many different computers, rather that just one centralised system. Meaning that crypto transactions are kept safe and are less likely to be corrupted.
Why invest in cryptocurrency?
The big question, why invest in cryptocurrency? Cryptocurrency is easy to buy and you can earn crypto interest on your portfolio but there are lots of other reasons to invest too. The main one being that the potential return on your investments is huge, there’s lots of money to be made. You also have greater control over your money, as it isn’t controlled by a bank or government.
Crypto trading strategies
There are many different cryptocurrency trading strategies such as range trading, scalping and high frequency trading. The most common trading strategy however is day trading, where people buy and sell crypto on the same day, selling at slightly higher prices. Although effective, this may not be the best option for a beginner.
Choosing the right cryptocurrency
The most popular cryptocurrencies are Bitcoin, Ethereum, Litecoin and Tether. Even as a beginner, you’ve probably seen some of these names mentioned before. But there are thousands more out there now. So how do you know which one is right for you? This is where you will need to do your research. There’s not really any right or wrong answer here but it’s not all about the return on investment potential. You may want to do some research into the individual companies and decide who you believe in. It comes down to personal choice.
As with any form of investment, cryptocurrency doesn’t come without its risks. As crypto has grown in popularity it has become safer, but prices can fall fast and it is possible to lose money. It all comes down to being sensible, not getting carried away and doing plenty of research. After all, knowledge is power.
I hope that you found this useful and now have the confidence to get started in the world of cryptocurrency. If you are experienced in crypto investing, I would love to hear your thoughts and any tips that you would like to share.
Thank you for reading.