Tuesday, June 28, 2022

How To Learn Investing In Cryptocurrency

Cryptocurrency Trading: Candlestick Trading Masterclass 2019

Learn to Invest in Cryptocurrency
  • Who its for: Advanced students
  • Price: On sale

This is another technical analysis course for cryptocurrency but it only covers candlestick patterns, which is particularly useful if youre planning to day trade. The course is very comprehensive because it includes candle patterns.

Youll learn how to use the best candle patterns for cryptocurrency trading, fundamentals in reading and analyzing candle patterns and long body candle patterns.

This course will also cover spinning tops and bottoms, Doji candlesticks, pin bar, hammers, Marubozu and more.

Remember That Not Every Crypto Influencer Has Your Best Interest At Heart

Fox said that there are a lot of sketchy crypto influencers out there and that it’s important to remain skeptical and question the motives behind the information you’re getting.

“Some of them are getting paid to promote certain projects that aren’t necessarily reliable because that’s their livelihood,” Fox said. “There are certain voices in the crypto space I trust more than others.”

Fox said she’ll search for the projects and coins mentioned on Twitter, Reddit, or other social media sites, and will pass if she doesn’t see a lot of buzz or excitement from a large number of investors. “I like to see kind of more interest in a project from a larger group of people before I decide to invest in it,” Fox said.

Key Advantages Of Cryptocurrency

Cryptocurrency is a bit risky but promising way to invest money. You can get high profits due to a significant increase in the value of assets. Bill Gates, the co-founder of Microsoft and investor, once said:

Bitcoin is exciting because it shows how cheap it can be. Bitcoin is better than currency in that you dont have to be physically in the same place and, of course, for large transactions, currency can get pretty inconvenient.

Lets finish his thought and consider the key advantages of cryptocurrency investments!

  • For a long time now, Bitcoin has shown stable growth in relation to other currencies. The chart shows the exchange rate of BTC against the US dollar.

BTC Price Chart

  • Bitcoin has a stable growth rate. After any downs, Bitcoin saw an upward trend. In addition, it has a large market cap, which further strengthens its position.
  • Bitcoins liquidity is higher than that of other cryptocurrencies. The possibilities of using it in buying and selling are also extensive.

Its necessary to invest in cryptocurrency right now since at the moment Bitcoin and other digital coins are freed from government pressure. There is no additional charge for storing coins, as is the case with deposits or bank accounts. Advantages of most cryptocurrencies: anonymity, decentralization.

Also Check: How To Track Crypto Trades For Taxes

Is Cryptocurrency A Good Investment

The cryptocurrency markets are far more volatile than the stock markets. With less liquidity, and more speculation than traditional financial markets, the value of any given cryptocurrency can rise and fall by 30% or more in a day. Not only that, crypto markets are open for trades 24/7, 365 days a year. There are no evenings or weekends off like the NASDAQ or LSE

If youve been hearing about cryptocurrencies a lot these days, you may feel like its a good opportunity to make a quick profit. But if youre just jumping on the bandwagon and take no steps to educate yourself about how the technology and the market work, you risk losing money.

Lets take a look at Bitcoin, for example the first and by far most dominant cryptoasset.

Early investors in Bitcoin have made millions of dollars in profits. In the span of just one year, Bitcoins price went from $7,000 USD in April 2020 to over $60,000 USD in April 2021! Now imagine what kinds of profits went into the pockets of people who bought Bitcoin back in 2013, when it was a mere $100 USD.

Though that sounds very exciting, it certainly is not the whole picture. Take a look at the entire graph, showing Bitcoins fluctuations in price between October 2013 and the end of May 2021. Its not a straight upward climb.

Thats why you should only ever risk as much money as you can afford. Like Wence Casares, CEO of Xapo, sums it up in an AMA on bitcoin.com:

The Best Cryptocurrency Trading Courses For 2022

Learn how to make your first cryptocurrency investment

Investing in cryptocurrencies, Decentralized Finance , and other Initial Coin Offerings is highly risky and speculative, and the markets can be extremely volatile. Consult with a qualified professional before making any financial decisions. This article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies nor can the accuracy or timeliness of the information be guaranteed.

Recommended Reading: How To Send Money To Bitcoin Wallet

Day Trading And Scalping

A crypto day trading strategy allows the trader to take full advantage of cryptocurrency assets price volatility. As mentioned earlier, virtual assets are currently extremely volatile, which works to the advantage of a day trader.

The day trading strategy is a game of numbers strategy. A day trader will make multiple trades within a day, buying low and selling high within little gains that compound to large sums by the end of the day. Typically, sometimes it gets hard to perform this manually. To succeed in thisstrategy, you will need to consider automating your trades using trading applications or crypto trading bots like Coinrule.

Important: It is not recommended that you begin your trading journey as a day trader. This is because this strategys fast-paced nature will require that you make fast decisions, and there is little room for research between trades.

Scalping is a part of day trading but typically involves concise trading periods. Think minutes.

When either day trading or scalping, many trades will result in both wins and losses. The idea is to make sure that the win/loss ratio is in your favor. Score more wins to consider your strategy a success.

Choosing Which Crypto To Buy

Everything about investing in cryptocurrency for beginners boils down to buying a particular coin. There are thousands of coins available in the market, so how can you decide which coin to buy?

Bitcoin is the number one crypto and the most stable coin in terms of volatility, but investing in bitcoin may not provide the highest return on investment. Altcoins or other cryptos which are not bitcoin may provide a higher ROI in the long term when compared to Bitcoin.

Some key question to ask when choosing a coin to buy includes Will there be a demand for this token? will it work in the future? what is the team behind this project? what is the price, quantity, and market capitalization of this token you want to buy? These are key fundamental questions that will help you decide if you trust a project well enough to invest in or not.

If you are just getting started investing in crypto assets, buying top coins with higher market capitalization like Bitcoin and Ethereum might be a good place to start depending on your risk tolerance level.

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Major Companies Are Engaging With Cryptocurrency

Some of the biggest and most dominant companies globally are now engaging with cryptocurrency – which once again, proves beyond doubt that this industry is here to stay in the long run.

For example, Tesla – which is one of the largest companies globally with a market capitalization of over$1 trillion, invested $1.5 billion from its balance sheet in late 2020 into Bitcoin.

Then you have companies like Overstock, Paypal, Microsoft, and Starbucks – all of which allow you to spend Bitcoin on their respective products and services.

Create And Verify Your Account

How To Invest Your First $1000 In Cryptocurrency [ For Beginners ]

Once you decide on a cryptocurrency broker or exchange, you can sign up to open an account. Depending on the platform and the amount you plan to buy, you may have to verify your identity. This is an essential step to prevent fraud and meet federal regulatory requirements.

You may not be able to buy or sell cryptocurrency until you complete the verification process. The platform may ask you to submit a copy of your drivers license or passport, and you may even be asked to upload a selfie to prove your appearance matches the documents you submit.

Also Check: Do You Have To Be 18 To Buy Crypto

Tips To Know Before Investing In Cryptocurrency

Here are a couple of important things you should know before investing in cryptocurrency.

  • Capital Gains Tax: For tax purposes, cryptocurrency is considered an asset, like a stock or property. When you sell crypto and make a profit, youll have to pay capital gains tax on what you earned. Keep this in mind when youre budgeting for the year and planning for taxes.

  • Short-Term Investing: Because cryptocurrency is a volatile asset, many investors would consider it to be a short-term investment rather than a long-term one. Its possible that in the future, cryptocurrency may become a stable investment and that long-term holdings will yield significant profit. But thats a big if. Since cryptocurrency values have been decreasing, you might have a better chance of making a profit by timing the market. Thats incredibly risky, but crypto is high-risk. If you want your money to appreciate over a long period, youre better off investing in long-term bonds, index funds, or IRAs.

Best For Passive Strategies: The Complete Cryptocurrency & Bitcoin Trading Course 2021

Udemy Career Coaching Certification

  • Course requires $100 for investing

  • No lifetime access

Although the course description reads like a sensational sales letter, Udemys Complete Cryptocurrency & Bitcoin Trading Course 2021 is highly rated and has enrolled more than 15,000 students. That, combined with its focus on a copy and paste system for earning passive cryptocurrency income, makes the course our choice as the best for passive strategies.

The Complete Cryptocurrency & Bitcoin Trading Course 2021 is taught by financial e-learning platform Wealthy Education which boasts over 200,000 students, more than 31,000 reviews, and a whopping 518courses on Udemy. The course consists of 9.5 hours of on-demand video, four articles, and 19 downloadable resources and can be accessed on the Udemy mobile app.

While much of the course description is rather flowery in its language, a perusal of the syllabus reveals direct and practical strategies. Modules include instruction on how to register and secure cryptocurrency trading accounts, the best trading tool to use, how to reduce risks and protect profits, and technical trading techniques like exponential moving averages.

The Complete Cryptocurrency & Bitcoin Trading Course 2021 costs just $124.99 and includes Udemys standard full lifetime access, certificate of completion, and 30-day money-back guarantee. Due to one of Udemys regular specials, the course was on sale for only $13.99 at the time of writing this article.

Read Also: How Do You Buy Crypto

Cryptocurrency As A Percentage Of Your Investment Portfolio

This part will be wildly subjective. Crypto has the potential to realize many rags to riches stories, but its volatility makes it unpredictable. As a precaution, the money you put in crypto should be money that you are fine with losing. I cannot emphasize the importance of this as we often underestimate how the volatility affects our emotional capacities. The upside is huge, but it comes with lots of risks and, if I may put it, emotional torment.

A conservative portfolio I would suggest is as follows:

< 30 years old 30% Crypto, 50% Traditional Investments

30 40 years old 20% Crypto, 60% Traditional Investments

> 40 years old 10% Crypto, 70% Traditional Investments

This is not meant to be age discriminatory but considers the fact that one takes up more financial responsibilities as he grows older.

Within the designated crypto share of your portfolio, you may diversify your coins based on your risk appetite.

Select A Cryptocurrency Exchange

Should Kids Learn How To Use Cryptocurrency?

You must buy cryptocurrency through an exchange such as Coinbase.com, Binance.us, Crypto.com, or Kraken.com. Some factors you may wish to consider when selecting an exchange are security, fees, the volume of trading, minimum investment requirements, and the types of cryptocurrency available for purchase on a given exchange.

Also Check: What Does Each Cryptocurrency Do

Chapter 10instructions On Managing Crypto

Congratulations, you are now prepared to start buying cryptocurrency safely and securely.

In my other guides, I will show you how to set up accounts with exchanges and finally how to buy, sell, transfer, and store cryptocurrency.

I recommend buying cryptocurrency from Coinbase, which is one of the safest and easiest exchanges to use for beginners.

Another exchange that lists most available coins is called Binance.

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Place Your Cryptocurrency Order

Once there is money in your account, youre ready to place your first cryptocurrency order. There are hundreds of cryptocurrencies to choose from, ranging from well-known names like Bitcoin and Ethereum to more obscure cryptos like Theta Fuel or Holo.

When you decide on which cryptocurrency to purchase, you can enter its ticker symbolBitcoin, for instance is BTCand how many coins youd like to purchase. With most exchanges and brokers, you can purchase fractional shares of cryptocurrency, allowing you to buy a sliver of high-priced tokens like Bitcoin or Ethereum that otherwise take thousands to own.

The symbols for the 10 biggest cryptocurrencies based on market capitalization* are as follows:

  • Bitcoin
  • *Based on market capitalization as of June 28, 2021

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    How Do You Buy Cryptocurrency

    To purchase cryptocurrency, most centralized exchanges allow you to deposit funds via your bank account, credit card, or debit card. You can then exchange those funds for the cryptocurrency of your choosing. While some offer a simple Buy Now type transaction that only offers a market order, some exchanges will allow you to set more advanced order types, including limit and stop orders.

    Once you purchase that cryptocurrency, the exchange typically takes custody of it, and most store cryptocurrency in offline cold storage for safekeeping. If you want to take custody of the cryptocurrency yourself, most exchanges allow you to transfer it to your hot or cold wallet, along with the private keys for that cryptocurrency.

    Invest What You Can Afford To Lose

    How to Invest in Crypto For Beginners 2021 [FREE COURSE]

    Cryptocurrencies are highly volatile, just like stocks, the value of tokens can diminish in a matter of hours due to the forces of demand and supply. Government regulations, media hype, and investor sentiment are other factors that can spiral the value of cryptocurrencies.

    Ethereum, one of the most stable of cryptocurrencies after bitcoin was created in 2013. Ethereum recorded an all-time high of $4891 in November 2021 and an all-time low of $0.4209 back in 2015. Ethereums 24-hour price is hardly the same each day, with prices fluctuating according to market forces of demand and supply. Other cryptocurrencies have recorded even steeper price changes within a 24-hour period.

    In the Crypto space, price volatility is commonplace, a token that may be worth so much can take a hit in a couple of hours and this is why you should invest no more than you can afford to lose, as Crypto prices are highly unstable, increasing and decreasing in value every time. Crypto investing is highly risky and you do not want to lose more than you are willing to.

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    Crypto Basics: Blockchain Explained

    To understand cryptocurrency, you have to understand blockchain. Blockchain is the technology that makes cryptocurrencies secure and anonymous. Basically, blockchain provides a digital record of transactions, and stores copies on multiple devices across a global network whenever the record is updated. As such, transactions that rely on blockchain are practically immune to fraudthey can always be verified multiple times over.

    Prior to blockchain, most digital records were stored in a single server bank. If you could hack into the servers where those records were kept, you could change them. However, because blockchains copies are stored on anonymous devices all over the world, it would be extremely difficult to hack them all. In fact, just identifying the devices you needed to access would be a herculean task.

    Select A Storage Method

    Cryptocurrency exchanges are not backed by protections like the Federal Deposit Insurance Corp. , and theyre at risk of theft or hacking. You could even lose your investment if you forget or lose the codes to access your account, as millions of dollars of Bitcoin already has been. Thats why its so important to have a secure storage place for your cryptocurrencies.

    As noted above, if youre buying cryptocurrency via a broker, you may have little to no choice in how your cryptocurrency is stored. If you purchase cryptocurrency through an exchange, you have more options:

    Also Check: How To Pay With Bitcoin Wallet

    In Conclusion How To Invest In Cryptocurrency As A Beginner

    Investing in volatile assets like cryptocurrency can be a roller coaster ride, but can be rewarding particularly if you buy and hold good cryptocurrencies with great fundamentals. I tried in this guide to take you from what you need to know before investing to actually buying crypto and holding them for the future as well as answering some frequently asked questions about investing in cryptocurrencies.

    Choosing Where To Store Your Cryptocurrency

    Beginners guide to cryptocurrency: Learn How to Invest in digital cash ...

    With cryptocurrency just obtaining it isnt enough, you also need a place to store it.

    Coinbase/Coinbase Pro, Bittrex, Kraken, Binance, etc all offer online wallets. You can technically store your cryptocurrency on them for as long as they continue to operate.

    However, exchanges arent meant to be used for long term storage .

    Thus, unless you use a service built for long term storage, like Coinbase, youll likely want to look into other wallet options.

    For long term holding one will likely want to choose an offline wallet where they can securely store their cryptocurrency.

    Like methods for obtaining cryptocurrency, wallet options all have their pros and cons to consider. Coinbase is a simple solution, but an offline wallet where you control your private keys has its own range of benefits despite the complexities.

    Learn more about cryptocurrency wallets.

    TIP: A cryptocurrency wallet is a place where you store encrypted passwords that represent coins and a cryptocurrency exchange is like a stock exchange or like a currency exchange in a foreign airport . Just like if you want to trade stocks you need a bank account and access to the stock exchange, it is the same deal with cryptocurrency.

    TIP: When it comes time to send cryptocurrency from an exchange to exchange or exchange to wallet youll need to pay a transaction fee. Litecoin is a good choice for moving from exchange to exchange because it is traded on most exchanges, has low fees, and has quick transaction speeds.

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