Start Your Bitcoin Journey Here

You have heard about it on the news or from a friend, but what exactly is cryptocurrency? Don’t feel down if you don’t yet have a firm grasp on this new asset class. Cryptocurrencies can be difficult to understand if you don’t know the basics.

To give you a better understanding of what cryptocurrency is and how it works, let’s go through the history of this relatively new technology, an overview of its inner workings, different types of cryptocurrency, and where this industry could go in the future. Once you get some background information on these subjects, you will gain a much more solid understanding.

History

Cryptocurrencies have gone down a long, winding road in the past decade. Even though the general public has only stumbled upon cryptocurrencies over the past several years, there has been significant work that has led to this point. In fact, cryptocurrencies have a history that dates back more than a decade, to a time when Bitcoin didn’t even exist.

Was Bitcoin the first cryptocurrency?

Cryptographers had been playing around with the idea of cryptocurrencies decades before Bitcoin came into existence. At the time, the question of ‘what is cryptocurrency?’ wasn’t yet fully answered, but that didn’t stop people from attempting to create their own. The most well known of these attempts came from Nick Szabo, a computer scientist who developed a cryptocurrency called Bit Gold in 1998. While Bit Gold was never fully launched, it is credited as paving the way for Bitcoin.

When was Bitcoin created?

In October of 2008, a white paper by the mysterious Satoshi Nakamoto was released. This paper described a decentralised network used to fuel a new cryptocurrency called Bitcoin. It would take years before merchants would begin to accept the new form of money as payment, but slowly Bitcoin began to catch on. Over the next several years, more cryptocurrencies would be launched on the back of Bitcoin and ride the emerging cryptocurrency wave.

Cryptocurrencies go global

By 2014, there were already dozens of cryptocurrencies popping up. Some of these, like Ethereum, would continue to grow and thrive over time, yet others would go bust as quickly as they came into existence. When 2017 rolled around, cryptocurrencies were becoming the darling new niche of the financial world, hailed as a saviour from the “corrupt” financial system. They were bought and sold on new trading platforms. Hundreds of tokens, another name for cryptocurrencies, had been created and their values were quickly rising. By the end of 2017, Bitcoin had skyrocketed in price from $900 to $20,000, and the entire industry hit a valuation of $600 billion. By 2018, it was clear: Cryptocurrencies were here to stay.

What is cryptocurrency?

A cryptocurrency is a digital currency that uses cryptography as a means of security. Most cryptocurrencies operate without the need for a central authority like a bank or government, and operate instead through a distributed ledger to spread power among its community. A cryptocurrency has a set, defined monetary policy, whether it be a fixed limit of tokens or allowing the creation of new tokens based on predetermined rules.

How does it work?

The distributed ledger that holds cryptocurrency transactions is known as a blockchain. A blockchain consists of blocks, which hold individual transaction information. This information is timestamped and posted to the ledger so that each transaction can be verified by other blockchain stakeholders and never be altered. In order to conduct a transaction on the blockchain, users agree to pay a small fee, which helps maintain the security of the blockchain itself.

Let’s say you want to send your friend a small amount of Bitcoin. You create a transaction using your Bitcoin wallet and request to send Bitcoin to your friend’s wallet, agreeing to pay a nominal transaction fee along the way. After you make the transaction request, your transaction gets grouped with other transactions into a block on the Bitcoin blockchain. This block is verified by miners and posted to the blockchain, making the transaction complete.

Through this process, you can send cryptocurrency to anyone, anywhere around the world, with low transaction fees. Want to send $1 million Ethereum to your family in Brazil? Go right ahead! Not only will the transaction usually be completed in a matter of seconds or minutes, it will only cost you a fraction of the fee you would have paid using a traditional money transfer service.

What is cryptocurrency used for?

One of the early appeals of cryptocurrency was that it offers you the opportunity to transfer large amounts of your wealth anonymously without any government or institutional interference. These days, cryptocurrency is used by some owners to take care of routine matters such as paying bills. Others use it as collateral to obtain online loans.

Still others put their digital currency to use by investing in business start-ups. The combination of innovative tech ventures and cryptocurrency seems like a natural fit. You can also use your digital currency to travel the world. Arrive at your destination in the luxury vehicle you purchased with your cryptocurrency or on the airline that readily accepted your Bitcoin.

How to spend cryptocurrency

In addition to transferring money, you can also use cryptocurrency to make purchases. The list of items that you can buy with digital currency increases as more merchants see the advantage of offering a wider variety of payment options.

People have used cryptocurrency to purchase everything from high-end real estate (with Bitcoin payment service providers like BitPay) to pizza (services like Pizzaforcoins allow you to order from chains like Domino’s, Pizza Hut, and Papa John’s). In fact, the first purchase ever made with Bitcoin was two pizzas for 10,000 Bitcoin.

You can even use your Bitcoin to hitch a ride into space aboard Virgin Galactic. If your lifestyle is a bit more down to earth, you can now spend cryptocurrency at online retailers like Overstock.com (Overstock has partnered with Coinbase for Bitcoin payments.)

How to buy and sell cryptocurrency

Now that you know what cryptocurrency is, it is time to buy some for yourself. Unfortunately, cryptocurrency can’t just be bought on any exchange; it requires the use of a cryptocurrency exchange or online trading platform to make a purchase.

There are many cryptocurrency exchanges available for you, but few are as easy and secure to use as Coinbase. With Coinbase you can buy and sell the most popular cryptocurrencies — such as Bitcoin, Ethereum, Litecoin and more — in an instant and with low fees.

Once you have purchased cryptocurrency, you can then use the Coinbase Vault to securely store your cryptocurrency until you are ready to sell it, spend it, or send it to a friend.

Welcome to the wonderful world of crypto

You understand how cryptocurrency works. You know the difference between the types of cryptocurrencies. You even know how to buy and sell cryptocurrencies on an exchange. What are you waiting for? The wonderful world of cryptocurrencies is waiting for you. Through this new technology, you will find a new financial paradigm that is ready to change the world. The only question now is, are you ready to join the party?

Get Started Trading Crypto

One way to make money from cryptocurrency is trading cryptocurrencies on a Crypto Exchange like Binance.

The Crypto market is highly volatile and it makes it possible for traders to leverage on the price swing to make profit off the market.

At the same time, you can lose a lot of money if you don’t know how to take advantage of the market volatility. In other words, understanding Market volatility is very important if you want to make profit trading on any crypto market.

As a beginner trader, you want to make sure you’re trading with the required guidelines to enable you minimize your losses and maximize your profits.

While there are several exchanges out there, I personally recommend Binance to the beginner trader for the following reasons;

Liquidity: Binance exchange has the greatest market and asset liquidity. Liquidity is simply the ability of traders and investors to convert their assets to cash.

Great Interface: This is very important, especially newbies to crypto trading on an exchange. Binance Exchange has a very friendly and interactive interface designed to meet easy flexibility and accessibility.

Low Transaction Fees: Transaction fees on Binance are quite low and using BNB (Binance native token) as transaction fees attracts a 25% discount in fees.

Secured Platform: Binance has a good security system that can guarantee the safety of your crypto assets in your wallet while trading.

Great support Team: With the Binance support team, at any point you encounter a problem with trading on Binance you can easily assess the Binance support team and get quick assistance.

Powerful Community: Binance has powerful communities that helps maintain market liquidity and drive market trading volume. Also, Binance has communities doing a great deal towards global crypto adoption through mass education.

Generally, cryptocurrency exchangers are market places that matches buyers and sellers order. On the crypto market place, you will find both traders and investors seeking for gains.

However, while investors are long-term gain seekers, traders thrives to make profits within a short period of price swing.

Here are a few reasons why you should trade cryptocurrencies?

Volatility: The change in price of crypto assets happens rapidly, you can make great profit if you are well positioned for the ride. 7Days - 24 Hours

Market: Unlike the traditional market, cryptocurrencies are traded 24/7 days a week around the clock. The crypto market never sleeps like other financial markets.

Liquidity: Traditionally, this is the ability to convert assets to cash. Trading crypto assets with high liquidity like Bitcoin on a crypto exchange is a great deal.

As a beginner trader, trading on Binance or any preferred exchange, you need to be able to make good price projections to enable you enter or exit from the market. To achieve a good price projection, you need the knowledge of Fundamental and Technical Analysis.

Fundamental Analysis

This looks at the technical side of development of the token, news, regulations, team and issues affecting the price. These guys are focused on the technology, ideology and team.

The Price of an asset can be affected positively or negatively through fundamentals like news, regulations or adoption. More people will be willing to buy when there is positive news about a particular cryptocurrency asset.

Technical Analysis

This side study price chart patterns, trading volume, and statistics, since price movement speaks for themselves and tells you a story of what will happen.

There are candlestick patterns and technical indicators you can use to determine price action. You need to get yourself familiar with them.

One thing to bear in mind is that you can never have a 100% market prediction accurately because the market can change direction at any time. You should never bet on any market regardless of how good the analysis may be.

However, it’s very important that as a beginner trader you acquire proper education of Trading Analysis to determine Price Action before trading the market.

COMMON MISTAKES TO AVOID AS A BEGINNER TRADER

Risking More Than you can Afford to Lose Only risk an amount of money you can afford to lose in order to enable you to have a sound mental disposition to make good decisions while trading. A lot of newbies run into frustration after losing so much money from the market.

Trading Pump and Dump Markets

These markets are highly manipulated. Most people who trade on this kind of market are just seeking for quick profits so they sell off quickly and if you’re not fast with the trend, you’ll be badly wounded on this market.

Wanting to make all the Profits before exiting the market

Don’t be greedy! If you have made profit from a trade, you don’t need to wait to make all the profits before exiting, sell off the trade, except if you’re holding for a long period of time.

Trading Without Using Proper Stop loss

Chances are that a trade may not go as expected but reverses, without a proper stop loss you stand the risk of losing your capital on that trade if the market dumps massively. The bottom line is that always use proper stop loss to safeguard your trade from bigger losses.

Not Setting Clear Trading Plan

A clear trading plan should guide you on how to diversify your trading portfolio, your risk to reward ratio and your do’s and don’t. Strict adherence should be giving to them if you want to trade successfully.

FOMO and FUD

The Fear of Missing out (FOMO) and Fear of Uncertainty and Doubt (FUD) is undoubtedly the two emotional setbacks the beginner trader is likely to face.

As a beginner trader, you can easily be carried away by the feeling of “missing out” to buy the peak of a market. The danger of this is that you might end up catching a falling knife.

On the other hand, the fear of uncertainty and doubt will constrain you from taking action. You’ll only make profit when you are able to cautiously risk your money in the market.

Not Investing in your Education

To trade successfully on any financial market, you need some level of education which requires your investment in personal research or tutoring.

Joining a Crypto Community gives you an opportunity to learn more about crypto trading, Blockchain technology and a lot more.

Most beginner traders who skip this step end up learning it the hard way in the market.

How To Trade In Cryptocurrencies Successfully

Cryptocurrency trading has taken the world by tempest and this is what has turned into the standard for the majority of traders and speculators. In the event that you are sufficiently sharp to do your research before going into the trading, you stand a chance to appreciate real development and benefits at last. The most noticeably awful you can do with regards to this sort of trading is going into it aimlessly basically because it is what every other person is doing. A little research on the major monetary forms and getting profound into purchasing and trading fundamentals can make a tremendous contrast. The following are a couple of rules that will shock you into progress with your trading.

Take time to understand how the square chain functions

Blockchain innovation has reclassified transactions and it is changing everything. Blockchain can be characterized as a list of records that continually develop into pieces secured and connected utilizing cryptography.

The Blockchains are data modification resistant and fill in an open transaction record between parties. The transparent and decentralized nature of piece chain makes it profoundly secure and in the realm of hacking, it is genuinely functional and reliable. It takes care of manipulation issues that have turned out to be so apparent on the planet today. Whereas no single individual can claim to understand everything that is Blockchain, learning a couple of fundamentals will give you a considerably easier time with your trading.

Know and learn the best monetary standards

The virtual cash space is getting to be swarmed thanks to how popular the monetary standards have moved toward becoming. The fact is that there are in excess of 100 digital currencies today, which means you have to know which ones are top and popular, so you can pick your purchasing and offer legitimately in light of profitability. Bitcoin accounts for half of the whole market with the most astounding volume, however, Litecoin and Ethereum are also best and giving Bitcoin a run. Discover as much as conceivable regarding the cash you are occupied with. The more you know the better you will be in making decisions; you can actually manage to trade in excess of one Cryptocurrency with no challenge.

Mind the innate risks

Bitcoin and different monetary standards are very volatile notwithstanding when compared the stock exchange and gold. Keep in mind that this is as yet an innovation in its early days and it faces loads of challenges. The benefit probabilities are very high yet so are the risks too. Open estimation about a money can actually impact its costs. What goes up is will undoubtedly descend so be careful with the trade moves you make. The higher the risks the higher the rewards may yet be ready for misfortunes as well. All the better you can do whatever the Cryptocurrency you pick is to watch out for occasions that can affect costs and act fast.

When you know everything that matters in Cryptocurrency trading, you can then simply ahead and open a brokerage account and store it then you can start purchasing and offering the monetary standards.

Is Cryptocurrency a Bubble?

Basically, cryptocurrency is a digital asset that represents a mode of exchange. Usually, cryptocurrencies use stable cryptography to facilitate financial transactions, transfer of assets and creation of extra assets. Cryptocurrency has been described as a reliable alternative, digital and virtual currency. Recently, several economic experts have predicted the collapse of cryptocurrency. These worrying predictions have seen cryptocurrency appear to be a mere bubble?

Is Cryptocurrency really on the brink of Collapse?

In 2017, Bitcoin witnessed a significant upsurge from $800 to $2,605. Besides, other cryptocurrencies followed suit with notable surges. Such an occurrence will definitely rule out the allegations of cryptocurrency’s instability. However, different experts have their view on this.

Experts view on Cryptocurrency

Experts have always had different views concerning cryptocurrency. Some specifically hang on the feeling that cryptocurrency is not here to stay. Others gravely defend cryptocurrency as a universal currency which is bound to get better. So, this has left a lot of people at crossroads, even worse to those who are green about virtual currencies.

In 2014, Warren Buffet, an American investor did hazard a warning. He advised investors against Bitcoin terming it as a mirage, bound to disappear on moving closer. Come 2018, he still maintained his stand on cryptocurrency not being a viable investment. In fact, he referred to bitcoin as rat poison. This squarely confirms that cryptocurrency is a non-productive asset.

So, what is really happening?

Some market onlookers are accurate in perceiving the cryptocurrencies’ bubble-like nature. For instance, most cryptocurrencies have not received any backing from any Central back., furthermore, the so-called global currencies lack a market regulator. Reason being, cryptocurrency value is absolutely notional. Since some coins are still in their initial experimental state and cannot justify their present market price. Such revelations from critics, clearly confirm cryptocurrency is a bubble. Therefore, a quick correction needs to be brought on board. Unfortunately, such a correction is not forthcoming.

Is this a considerable light at the end of the long dark tunnel?

Cryptocurrencies have begun making significant progress to becoming mainstream. The masterminds between these digital currencies are working smart to make them acceptable. In the same faith, most countries are studying to study these currencies. The relevant authorities are looking for ways to regulate cryptocurrencies. Some countries have gone even a notch higher. These countries, for instance, India are allowing people to trade cryptocurrencies for Cash. Besides, several platforms, like ZebPay are permitting payment of installments using Bitcoins. Such happenings are bringing particular cryptocurrencies closer to mass acceptance. When that desired feat is achieved, then more people will have faith blockchain and cryptocurrency technology.

Conclusion

When cryptocurrency was introduced it appeared to be a viable business. Investors could not help but predict future profits. However, over the years cryptocurrency has come under some heavy criticism concerning its stability. Some of the allegations appear to be true and that raises eyebrows. Hence, it is better for any potential investor to be extra vigilant before investing. Proper consultations need to be put into consideration before trying some luck in blockchain investment.