Today, everyone who has minimal savings has at least once thought about how to make money on them. Among the many options, one of the most relevant is to enter the cryptocurrency market. Everyone knows these “success stories”, in which a beginner, without any knowledge, managed to break a huge jackpot in a matter of days. Nevertheless, there are plenty of stories where newcomers mindlessly lost their last money. Before trying to make money on cryptocurrency, you need to study the specifics of this market and its pitfalls.
Where to start in the crypto world
The term itself comes from the words “cryptography” ー protection by encryption, and “currency”. The first thing that is known about cryptocurrencies is that they are a draw and are securely protected. Bitcoin was the first cryptocurrency to become famous all over the world. In simple words, a crypt is a file placed in a digital wallet. To successfully earn in this industry, you must first choose a strategy:
Investments (purchase of cryptocurrency and its storage)
Trading (buying and selling in a short time in order to make money on it).
For the first strategy, “cold” storage is suitable: on your computer, disk or flash drive. But in the future, if you want to sell at a new rate, it will take time to transfer your cryptocurrency to the trading floor.
For trading, special exchanges are best suited. With their help, you can instantly buy, sell, exchange cryptocurrency, use loans, etc.You can start trading on a practice account so that you do not lose all your assets due to inexperience. And after getting acquainted with the market, you can start with small amounts.
The most common mistakes
Beginners are lucky, but not always. Therefore, it is important not to repeat the mistakes of others:
Do not make a purchase after the news predicting a price increase. If the news has already reached everyone, the rise in price, most likely, has already happened.
Keep emotions under control. It is the lack of control over the situation that creates losing trades.
Don’t stop learning. Grow to an experienced trader who can predict the behavior of assets ー long work.
Draw conclusions. Each losing trade is an invaluable experience that will help you get rich in the future.
Not everything is so difficult, you just need to find the most convenient exchange for yourself, allocate a certain amount of money and start earning on cryptocurrency!