In recent years, cryptocurrencies have seen an increase in popularity, mainly due to their great profitability. As of 2021, there have been 70,000 million owners of digital crypto wallets. The main draw of cryptocurrency is not just the high chances for profit but also the anonymity, safety, and security that using bitcoin as a payment method provides.
But, even with the increase in interest in cryptocurrency, there are still many people who do not understand what crypto is and how it works. So, in this article, we will look at a few of the important things that new investors should bear in mind before setting out on their journey into the world of crypto trading.
Trading Sites and Apps
The first step after you’ve chosen the cryptocurrencies that you want to add to your portfolio is to find the right apps and trading sites. Trading sites and apps such as Coin8 Exchange are online online trading applications where you can invest in crypto. Furthermore, there are auto-trading sites that are beginner-friendly. All you need to do is register and make your first deposit on an automated trading site. However, make sure to learn more about the software utilized by the platform. As the trading process is conducted automatically, without your input, it is important to choose reliable software based on high-end AI technology.
BitQL is a trading site that offers auto-trading solutions to its users. The technology makes the site perfect for crypto newbies, while it works according to the global data privacy regulations, and GDPR. Now, let’s take a look at BitQL software as an example.
It is based on Artificial Intelligence technology, and it helps users capitalize on their crypto investments. The AI-based trading system gathers market data and predicts future fluctuations and market movements. To top that off, they only charge a 2% commission on profits.
Fluctuations
Though the trading apps make it easier than ever to become an investor, there is still some responsibility that a prospective investor has to be mindful and vigilant. Most cryptocurrencies are very volatile, with fluctuating prices. What high volatility means is that generally, the value of the cryptocurrencies is subjected to unexpected changes, frequently based on the interaction of the market supply and demand.
So, in other words, not every rise in the value of every cryptocurrency is a good enough reason to invest in that particular crypto. It is very likely that sudden rises may be followed by sudden declines, and the opposite is also true. Just remember, patience is an investor’s biggest virtue.
Watch the Market
An important thing to note is that there is an insane number of different cryptocurrencies that are permeating the market. Estimates have placed the current number of cryptocurrencies at ten thousand. So with this insanely high number of things to invest in, how can a prospective investor know where to start.
What you need to do is take a look at the most respectable and high-priced cryptocurrencies on the market. Bitcoin has consistently proven to be the most valued crypto, being worth around $60,000 right now. Other respectable cryptocurrencies to look into if Bitcoin is above your pay grade are Ethereum, Litecoin, Bitcoin Cash. If you want to invest in a more stable form of cryptocurrency, look into Tether and other forms of stable coin.
Do Research
With the rise of the prominence of cryptocurrency, many helpful videos and articles have been popping up to help prospective investors make the best returns on their investments.
Of course, the automated trading apps and sites will make your trading easier. However, make sure to do your research and find the best platform for your needs. And remember, we never stop learning. Even after you’ve gained enough experience in the world of crypto trading, never stop educating yourself, as cryptocurrency always changes.
