Trading cryptocurrency is a good option for earning money online. However, it’s not
for everyone. The market is relatively young, meaning it is very unstable, so it is much
harder to predict its next move, especially when huge drops occur. In this article, we will tell
you about things you should know before you buy crypto.
Few beginner traders reach success on the first try in trading. Successful
- A thorough understanding of how the market works
- Control over emotions
- Knowing strategies
- Ability to react to market changes quickly
- Ability to assess risks.
The first thing a beginner trader should know is the fact that the cryptocurrency
market is extremely volatile since it is still emerging and young. Governments do not have a
direct effect on the crypto market. Central banks cannot cut the supply of coins because they
have nothing to do with this field.
So what are the main factors determining crypto prices? The answer is simple — the
relationships between supply and demand. Such rules work on all markets, and crypto is not
an exception. Crypto rates directly depend on the supply and demand: when supply is limited, and an asset offers a valuable technology, its price grows. The price drops if a
project’s supply is higher than the demand for coins. So to succeed in trading, you should be
able to analyze the market and catch the wave when it grows and drops.
Another thing to know before trading is picking assets:
- Diversification is the key to success — buy mega, large, and small coins. For example,
buy BTC and LINK coins. The LINK cryptocurrency price is more likely to grow during
the next bull trend
- Learn the project’s technology
- See who supports the project
- Check out if the development team has a good background
- See how the asset’s price changed in the past and what affected it.
The next thing to know about the crypto market is choosing a platform for investment.
That must be a reliable exchange with license and registration, as well as a convenient
interface and a variety of financial instruments. There are also wallets, which are more secure than centralized exchanges, yet as they are decentralized there is no responsibility
on the wallet’s owners for what you do.
How to Buy Crypto: the Easiest Way
One of the best ways to become a crypto owner is to use the WhiteBIT exchange —
an official service working in over 15 states. Using the WhiteBIT tools, you can easily buy
coins with fiat money through your bank card. To that purpose, start with registration and,
following the platform’s suggestions, deposit money into your account. Then open the
converter and choose the coins you would like to own. The exchange will offer you the
relevant price and fee. Pay the commission and receive coins in your account.
To wrap up, new investors need to do their research and put time in before running
off and wasting their time and money. Doing so will allow for greater chances of higher
returns. It is also important to learn about quality exchanges for secure investments.