Crypto price collapsed in 2018 and no one really knows the reason. You’ll find hundreds of different guesses on the internet. A new technology came along, and with a lot of hype, prices rise dramatically. The faster the price rose, the more fragile the crypto market became. Investors who came
To get you started, have a look at the 5 things you need to know before investing in crypto.
Trading volume is one the most important factors when choosing a crypto. First of all, higher the trading volume, more reliable the trading platform is. Secondly, the trading volume may be the indicator of the future. More the people are buying and selling a particular cryptocurrency, higher the possibility you will earn money.
2. Ratings and community
Ratings of cryptocurrency exchanges are worth looking into because they are created based on the most important criteria: supported countries, fees, security, liquidity, etc. However, these ratings do not give enough info for your investment. So in addition to the ratings, we highly recommend taking a look at a platform’s community. Check out the Telegram channel and keep in track of how many users are in it, how active conversation is, what people are discussing, and if they are having any complaints. You may also join a cryptocurrency forum and interact with investors who have experience in cryptocurrency trading.
There are some fees or commission while trading cryptocurrencies. You should carefully look into deposit fees, transaction fees, and withdrawal fees as it could be different depending on the broker or platform you use. They differ across platforms, but usually the fees don’t exceed 0.25%. If you are a large volume trader, you could be wasting big money on commission and fees.
Making profit is important but keeping your money safe is more important. The platform you chose must be providing a mechanism that ensures the safety of your cryptocurrency. At minimum an exchange should implement 2-factor authentication, which requires you to verify yourself in two different methods. In addition to your username and password, you will need an extra security key. Mostly used methods are e-mail or SMS verification. However, the most secure option is to diversify your assets and store them in several accounts.
5. Technical Analysis is key
Technical Analysis could be a bit of use, but not much. Technical analysis is basically a study of how the psychology of the market, expressed with a chart. For example, when prices are going up and volumes decreases, you have to be very careful with that cryptocurrency movement because it indicates that a very small portion of the market is participating in it. On the other hand, if there’s a movement accompanied
The number of cryptocurrency exchanges is constantly growing, which can be inapprehensible especially for new traders. Choosing a platform, with lots and lots of factors to consider would be a time-consuming thing. However, it is related to your precious money, and looking into future, could change your life. Therefore, you need to invest your time in researching information to succeed and do not be lazy.