If you are only beginning your journey to the crypto world and don’t know where to begin, this article will be helpful. We will discuss crypto in simple words and tell how to buy cryptocurrency and when to do that.
Cryptocurrency Beginners: Key Facts to Know
Crypto assets are digital money with no physical form but with the same applications as traditional money:
- You can use crypto as a payment method (some restaurants and shops, booking companies, software firms, and travel tours accept it).
- You can trade crypto
- Or you can invest in digital assets long-term.
Investment and trading are very popular ways to make money with crypto. The reason is the high volatility of crypto assets. They are not under government control, and the decision on their emission has nothing to do with central banks. Crypto lives by the laws of demand and supply.
Other factors affecting digital assets price:
- speculating actions in the crypto market;
- news background;
- overall situation with the world’s economy;
- investors’ sentiment.
When large crypto assets drop or grow, it spurs the whole market. For example, the market leader Bitcoin is a driving force for the whole industry, and it happened many times when the fall of BTC caused the overall market collapse, changing the trend.
The market trend is the tendency of up or downward market movement, which happen in a wave-like motion. Up and down market cycles repeat and replace one another, creating buzz and panic around the industry. The best time to enter the market is a downtrend because, in that way, you will buy coins at a low price and then generate income when the rate multiplies on the growing market.
To catch the wave of market trends, investors use different strategies:
- day trading
- buy and hold
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How to Buy Crypto for Beginners?
First, register on a crypto platform and buy your first crypto. Use services that proved to be reliable, for example, WhiteBIT. It allows you to buy crypto assets with a bank card and offers a demo trading crypto for beginners where you can handle all the tools and learn to navigate the interface.