Information of interest to beginners in cryptocurrency trading 2022

cryptocurrency

The operations of cryptocurrency exchanges, especially the most popular stable digital currencies around the world such as Bitcoin, Ethereum and other cryptocurrencies, has become a controversial matter, not only on the personal level, but on the level of central banks and all countries.

Cryptocurrencies may be traded through trading platforms called “exchanges”, where these exchanges impose commissions on users who trade through them, but these commissions are relatively low, and these exchanges also provide a suitable virtual safe environment that brings all users together with each other in One place to be able to trade in a good secured environment.

It is worth noting that traders benefit from trading encrypted digital currencies in order to achieve profits, and the size of the profit depends on several factors, the most important of which are the investment strategies that it follows, the size of the digital currency market and its ability to control in light of the constant price volatility.

And as we know that investing in the field of digital currencies is a very risky investment because it provides you with certain guarantees in the event of losing your digital assets, as you must rely on yourself and learn your own strategies to trade in this field, and then I can tell you that this field is very profitable and interesting !

What are the types of cryptocurrency traders?

The main types of cryptocurrency investors:

Long-term investors: This category of investors is characterized by investing for years in digital currencies such as Bitcoin, with the aim of achieving huge and real profits in the crypto market.

Short-term investors: They are a category that invests for short periods that may reach only weeks and no more, where their profit is relatively small.

Speculators: This category relies on buying and selling cryptocurrencies on a daily basis, as they can enter into dozens of deals within 24 hours only with the aim of making a quick instant profit.

The most common risks in cryptocurrency trading

1. Cryptocurrency price fluctuations

The price of any cryptocurrency depends on the market movement, as the price decreases and rises gradually or suddenly, so the investor in the crypto field must use the famous technical analysis methods of the digital currency and stock markets, in addition to focusing on reading the market movement and its continuous fluctuations and the general rules of investment.

And based on the sudden currency price fluctuations, the size of the loss increases the more budget your money that you harvest in cryptocurrency trading.

2- Fraud and theft

As we have already mentioned, cryptocurrencies are built on secure blockchain technology, but this does not negate the possibility of traders being defrauded, and this fraud is the result of human error or inexperience of investors in the field of digital currencies.

You may have to use safe ways to store your digital assets through the use of secured electronic wallets, which we talked about in many topics on this site, as these wallets rely on cold storage, which is the method of storing currencies without the need to connect to the Internet, and stay away from hot electronic wallets connected to the internet which causes a lot of problems.

Most important of all is to use your wallet so that no one can access its password and steal all its savings or forget the encryption key phrase for your cold wallet.

Digital currencies can also be traded through trading platforms for investing in 100% reliable and guaranteed cryptocurrencies, and we now have many safe platforms that have become famous among everyone.

3- Entering losing trades

People race to buy certain cryptocurrencies when their price rises suddenly and dramatically, hoping that this price will continue to rise, and when they sell them again, they will make great profits, but this is not true.

What did not occur to them is that the price of the currency will drop suddenly as well as it rose and this is called “price correction”

** Urgent - Violent American escalation against digital currencies .. a shocking new law

Important tips for beginners in cryptocurrency trading

You must know the story of the emergence of any new digital currency that comes to the market, as the number of its users, its market size and price fluctuations must be studied before you think about the process of buying it, as it may be fake and its publication is just a fraud.

Stay away from any cryptocurrency that makes a lot of noise in the crypto market and don't rush to buy it, because it is likely to be just a digital bubble that will explode soon nothing more.

Stay away from buying any digital currency just because it is very cheap, it may be of no real value and therefore you cannot invest and trade in it.

Always strive to invest in digital stablecoins, knowing that not all stablecoins are high in price.

You have to be able to take a loss before you gain, so immediately back out of the trade if you are not prepared properly.

Invest in more than one digital currency and do not depend on one currency only, because price fluctuations are a feature of encrypted digital currencies and therefore when you invest in more than one currency, you guarantee a profit from one or more.

Invest in the long term and stay away from speculation to make big profits.

When everyone is going to buy a certain digital currency, you stay away from buying it, because the result of this will never be in your favor.

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Information of interest to beginners in cryptocurrency trading 2022

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