Cryptocurrency Guide for Beginners: What You Must Know

Cryptocurrency Guide for Beginners

What is a Cryptocurrency?

            In this digital era, you most likely have heard the word ‘cryptocurrency’. A few ideas may have popped into your head regarding what exactly it is. In this article, we will discuss what is a cryptocurrency and a few things you need to know when starting one.             Cryptocurrency(crypto) is a digital currency used as a medium of exchange to buy goods and services online. To secure the online transactions, it uses an online ledger with strong cryptography making it impossible to counterfeit. Crypto does not exist in physical form. It is not ordinarily issued by a central authority which makes it unique.

What are the Most Common Cryptocurrencies?

            Cryptocurrency is very unstable in the market, known for its volatility. The crypto market has reached more than $2 trillion. According to CoinMarketCap.com, a market research website, about 10,00 different cryptocurrencies are traded publicly. The three most popular cryptocurrencies are Bitcoin(BTC), Ethereum(ETH), and Binance Coin(BNB).

Three Important Tips When Starting a Cryptocurrency:

            These three tips are essential to know if you’re a beginner in the cryptocurrency world but want to learn more and invest:  1. Diversify             Thousands of cryptocurrencies exist in the market. As a rule in investing, you should never put all your money in one basket, it is recommended to scatter it among an array of investments. You should diversify your investment into different cryptocurrencies. You should identify the trends of each cryptocurrency to ensure you are investing in a profitable cryptocurrency. 2. Be alert             You should learn the risks and liabilities that you are engaging in. Always check for an update with your investment. Understand the trends and always stay alert for any news regarding the cryptocurrency market. Being up to date on cryptos gives you an advantage among other investors. 3. Have a strategy             Set your profit target and wait for the right moment to buy/sell. Being in a hurry is not a matter of choice in the crypto market. Continue learning new information and delve more into how to properly handle cryptos. A few questions to keep in mind when dealing with cryptocurrency: “How much is the market cap?”, “Is this a legitimate crypto?”, and   “How many investor does it have?”.

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