Big traps of investing in cryptocurrency
There are plenty of opportunities to make lots of money in the crypto market, and you should be patient and wise to acquire the right knowledge before investing. Don’t be the person that invests based on the current hype. Do your research first. If it’s too complex, look for answers. The cryptocurrency community is filled with awesome individuals that can simplify things and help you along the way.
Importance of Due Diligence
One of the most fundamental skills that you absolutely must possess is the ability to identify cryptocurrencies that are backed by solid fundamentals. There are hundreds of coins available, and there is a tendency for most to overlook the fundamentals of the coin and make investment decisions based on hype. This is especially common since many don’t understand the mechanics of the coins they invest in. They tend to just follow the hyped crowd. (See more: A Guide To Fundamental Analysis In The World Of Cryptocurrencies).
Is Hype Good?
True, you can make loads of money buying coins based on hype, but there’s a real chance that it could backfire and you could get burned. There are and will be numerous opportunities to make money with Cryptos, and you have to be patient. It’s easy to fall into the hype of something we don’t fully understand. (Read also: Guide to Common Crypto Terms)
The best way to protect yourself is to arm oneself with the necessary skills and knowledge to make an informed investment decision. Investing on fundamentals sets you up for the long term, and most importantly it gives you ease of mind since you’ve made your decision based on your own analysis and stand.
Ask as many questions as possible and seek to find the answers before you invest. Such questions can include:
- What issue does the coin solve?
- Is there any utility to the coin?
- What are the credentials of the team of developers?
- Do they have competitors within the space? And if so, compare their valuations
Also, it’s a great idea to look for reasons you shouldn’t invest. There might be several red flags associated with that particular crypto. Keep asking and finding answers through various sources. Reddit is a good source of information. Once you’ve done your due diligence, you’d have a peace of mind knowing whether it’s worth your money.
Be safe, guard yourself with the right knowledge. Master The Crypto is a great place for you to start. Additionally, you can have a look at our various comprehensive resources that will help you understand the complexities of cryptocurrencies and start investing. Here are some resources that can get you started:
- Guide on Cryptocurrency Fundamental Analysis
- Beginner’s Guide to ICO Investing: How to Participate in ICOs
- Crypto Guide 101: Choosing The Best Cryptocurrency Exchange
- Guide to Cryptocurrency Wallets: Why Do You Need Wallets?
- Guide to Cryptocurrency Wallets: Opening a MyEtherWallet (MEW)
- Crypto ICO vs. Stock IPO: What’s the Difference?
- Guide to Cryptocurrency Security: Activating 2FA
- Guide on Privacy Coins: Comparison of Anonymous Cryptocurrencies
- Guide on Identifying Scam Coins
Venturing into a new and revolutionary technology can be daunting but exciting at the same time. We hope that you make lots of money investing in cryptocurrencies, whilst being aware of the real risks and dangers. We will continually create more content and resources to help you in your journey. Have fun and stay safe!
How block-chain works
Best known as the immutable database that runs underneath cryptocurrencies like Bitcoin and Ethereum, blockchain is poised to play a critical role in every industry imaginable as businesses seek ways to cash in on the distributed ledger technology’s promise of enabling a “trustless” consensus to validate transactions.
Earnings in the past year
Smart miners need to keep electricity costs to under $0.11 per kilowatt-hour; mining with 4 GPU video cards can net you around $8.00 to $10.00 per day (depending upon the cryptocurrency you choose), or around $250-$300 per month.
Chart shows our earnings in the past year.
Financial transactions are typically guaranteed by a trusted third party (such as PayPal) and blockchain can be used to automate that process, reducing overall costs by cutting out the middleman with autonomous smart contracts acting as trusted intermediaries between parties on the network.
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What is Ethereum for beginners?
At its simplest, Ethereum is an open software platform based on blockchain technology that enables developers to build and deploy decentralized applications. Like Bitcoin, Ethereum is a distributed public blockchain network. Although there are some significant technical differences between the two, the most important distinction to note is that Bitcoin and Ethereum differ substantially in purpose and capability. Bitcoin offers one particular application of blockchain technology, a peer to peer electronic cash system that enables online Bitcoin payments. While the Bitcoin blockchain is used to track ownership of digital currency (bitcoins), the Ethereum blockchain focuses on running the programming code of any decentralized application.
Bitcoin and its traps
If you’re a novice when it comes to cryptocurrency trading, there’s a lot you need to learn if you want to be successful. If you’re new to the financial markets completely, you definitely need to learn the ropes – just to make sure you don’t make any otherwise avoidable mistakes.
What Is A Bear Trap
Today, we’re going to talk about a common occurrence in the Bitcoin markets – the bear trap.
Bulls & Bears Markets
Just like any financial market, the Bitcoin market undergoes ups and downs. In fact, Bitcoin (and other cryptocurrencies) can be even more volatile than, say, the stock markets. The trick is reading these upwards and downwards movements and see them for what they are.
You’ve probably heard of the idea of “bull” markets and “bear” markets. The terms indicate market conditions that are either aggressive when it comes to increased value – bullish – or predictive of falling value – bearish.
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