Cryptocurrency Guide: The Main Things to Know

When the first cryptocurrency coin emerged, it was only understandable to a narrow circle of people and specialists. However, the crypto industry received broad adoption and is not actively developing despite the market’s overall downtrend. What is cryptocurrency? It is money existing in the digital space, which you cannot touch or put in your pocket but can use for payments in stores and trading.

Pros and Risks of Having Cryptocurrency Assets

The market of digital coins is incredibly volatile, which has pros and cons at the same time – you can generate income from just a small initial amount, but at the same time, the risks are huge. Inexperienced traders often make mistakes when starting crypto trading.

There are digital assets with high dominance in the market – Bitcoin, Ripple, Ethereum, etc. These assets are perfect for long-term investments.

The risk of becoming a victim of hacker attacks is increased in the digital space. That is another disadvantage of cryptocurrency investments.

A good thing about having crypto is the possibility to capitalize even from a small initial investment. For example, you buy little-known coins and hold them long-term, and one day, they become popular and grow in value.

Another risk of trading crypto is human’s emotions. Not all of us can cope with them, so we make hash decisions, which lead to losses. Successful trading means a cool head and consistency. Here, strategies come to help.

How to Buy and Sell Cryptocurrency for Profit?

Catching the waves of market trends, investors buy and sell digital assets at different prices and generate income. There are many strategies to follow:

• Buy and hold – long-term investments when you buy coins and hold them for many months or even years until the price skyrockets.
• Swing – this strategy takes a couple of weeks.
• Intraday trading lasts 24 hours. That is, you enter and leave the market within one day.
• Scalping – the most dynamic type of trading that may take a couple of minutes to buy and sell coins.

The first thing to do is to buy assets. How to buy crypto online:

• Register on a large and reliable crypto platform.
• Verify your account and add your bank card.
• Deposit money.
• Open the position for buying coins
• Pay the commission.

If you use a large and credible platform such as WhiteBIT, coins will arrive in your account in a few seconds. Look for a guide to cryptocurrency trading strategies on the WhiteBIT blog.

Related reading: What Is the Stock Market Time Cycle?