When you are a newbie, you need just started from the bottom to start making profits. It is very important to begin with, basic facts and continue to advanced things. Most crypto professionals write about complex technical topics but hardly anybody writes about main questions like What is Cryptocurrency and how to start investing in cryptocurrencies. In this article, we want to share our view to cryptocurrency trading from perspective of value stock trader. We need to mention before we begin, that article will guide you through the right fundamentals of investor behavior to how to choose the right coins. So, carefully read a whole article.
Introduction to cryptocurrency market
Everyone wants success and money, especially in crypto space. If you want to succeed somewhere, you have to be lucky guy or well-educated. Sometimes you can catch luck but If you want to win regularly you need information and experience. Thanks to our long experience in the stock market, we are transferring main principles from value investing in cryptocurrency space.
What is value investing in cryptocurrency?
Value investing in cryptocurrency market means, that investor is focused on real “value”. In cryptocurrency market value is represented by technological advantages. Our experience shows, that strong technology coins, market sooner or later will appreciate it. If you want to make money, you have to trade like a big guys (Buffet, Soros etc…) with value investing style. In my opinion, day trading, intraday and scalping it is only wasting your time.
STEP BY STEP TO BUILD YOUR PORTFOLIO
What is Cryptocurrency and how to start investing
Cryptocurrency is a digital asset, which is secured by cryptography and powered by Blockchain technology. Every Cryptocurrency has some purpose, why it was created. Most of the cryptocurrencies have Whitepaper, where is described main use technology and purpose for creating it. For clear technical understanding, what is cryptocurrency and how to start investing, I recommend read the article about Blockchain technology.
FIAT MONEY AGAINST CRYPTOCURRENCY
Cryptocurrency against Fiat money, what is the difference?
The basic difference between classic fiat money and cryptocurrency is that government have full control over the supply of Fiat money. On the other hand, cryptocurrency is transparent programming code with strict rules, that can not be changed or deleted. Another advantage is, that cryptocurrencies are decentralized. Decentralized means that no one can control all network. So, If you compare Fiat money (USD, EUR, JPY. etc…) to cryptocurrencies, you will see that Fiat money are control by the group of people and system is set up wrong. Another fact is, that today nobody knows how much fiat money is in circulation. So, the real value is based only on a trust between people. On the beginning money had the golden standard (Every 1 USD must be supported by gold).
Background of cryptocurrencies
The first cryptocurrency was Bitcoin. Bitcoin was created in 2009 by pseudonymous developer Satoshi Nakamoto who first use blockchain technology in form of P2P decentralized payment network. As a result of the growing popularity of Bitcoin, developers started created their own cryptocurrencies based on the Blockchain technology.
Altcoin is a slang expression for cryptocurrencies, which are based on the blockchain technology. The main purpose of Altcoins is to create more advanced technology, that uses the principles of decentralization, transparency, and privacy. Usually, altcoins offer different functions of their project against Bitcoin. Most interesting cryptocurrencies
Tokens (or Dapp)
Tokens or DApps are applications created on cryptocurrency platforms like Ethereum or Neo. Cryptocurrency platform means, that developers can create own apps based on cryptocurrency blockchain. For detail information about apps based the blockchain technology, I recommend read the article about DApps. Creating DApps is much easier process than creating own blockchain because developer uses the technology of the base platform like Ethereum. Also, Tokens are distributed thru Initial Coin Offering (ICO).
How and where to buy cryptocurrency?
If you would like to buy cryptocurrency, first what you need to exchange your Fiat money into some cryptocurrency. This can be done on some Fiat-crypto exchange like Kraken.com or Coinbase.com. I very recommend deposit money via bank transfer, because credit card fees are really high.
if you are new to trading in the exchange, you need to know, what is bid and ask price. Bid price is intended buying. Ask price is intended for selling. The price gap between bid and ask is called spread.
How and where can hold it?
For the next step, you will need to create a wallet. In detail of profile coin on our website, you will find a link to the needed wallet. You need to know that is very important to keep your data safe. You can choose from these two solutions. One of this solution is an online wallet and the second is hardware wallet.
How to make money on investing to cryptocurrencies?
If you want to make money on cryptocurrency market, you have to become the well-educated crypto trader. No one tells you where you have invest your money, what coins should you buy and etc… Only if you have a wide overview of cryptocurrency market, you can make a smart decision based on logical judgment. In my opinion strong technological advantages of each coin, market sooner or later approach it. So, a combination of value investing (technology focus) and longterm investing is probably the best way, how to make huge returns on cryptocurrency boom. Crypviz is mainly build for exploring technology advantages/disadvantages of each coin for non-techs people. The knowledge database is all written to be clear and simple for everyone.
Next important thing is, that I don´t recommend trying trading styles like intraday, daytrade or scalping. This is only wasting your free time and probably money. Greed is one of the strongest emotion each of us. Do not allow greed to take control of you investing judgment.