Important tips for beginners in cryptocurrency trading 2022 site - GREAT MONETIZE

Investing in cryptocurrency trading

 Peace and God’s mercy be upon you. Welcome, dear followers of our GREAT MONETIZE website. In today’s topic, we offer you very important tips for beginners in the field of cryptocurrency trading for the year 2022.

 Trading digital currencies, especially stable digital currencies such as Bitcoin, Ethereum and other relatively cheap cryptocurrencies, has become a controversial matter, not only at the individual level, but also at the level of central banks and countries as a whole!

 Therefore, the reliable Cloud Mine platform offers you this blog that discusses the most important points that you should know about buying and selling cryptocurrencies, the types of investors in them and where the trading process takes place.

 In addition to mentioning the most common risks of online trading with important tips for beginners to avoid falling into the traps of trading and losing

 What does TRADING CRYPTOCURRENCIES mean?

 To begin with, we must introduce you to digital currencies, which are decentralized intangible virtual currencies that can be traded, that is, they can be sold, bought and exchanged online only and not on the ground.

 It consists of unique encrypted tokens located on a very secure virtual network, the Blockchain network, known as the modern and contemporary Blockchain technology or technology that has made a digital revolution in the last two decades.

 Cryptocurrencies are traded via “exchanges” trading platforms that mostly charge users who trade through them, but the commissions are relatively low.  Thus, stock exchanges provide a suitable virtual environment that brings users together in one place to be able to trade in a secured environment.

 The user benefits from trading encrypted digital currencies to make profits, and the size of the profit depends on several factors, the most important of which are the investment strategies that he follows, the size of the digital currency market and the volatility of its price.

 As we know, trading in digital currencies is a risky investment as it does not provide you with certain guarantees in case you lose your digital assets, but you must rely on yourself and learn investment strategies in this field, and then I can tell you that this field is very profitable and interesting!

Investing in Bitcoin

 What are the types of cryptocurrency traders?

 The main types of cryptocurrency investors:

 Long term investors:

 They have been investing for years in digital currencies such as Bitcoin, with the aim of making a huge and real profit, and they are the ones who contribute to the growth and prosperity of the crypto market.

 Short term investors:

 They invest for a short period of time, up to a maximum of weeks, and their profit is relatively large.

 Speculators:

 They deliberately buy and sell cryptocurrencies on a daily basis and can enter dozens of trades within 24 hours with the aim of making a quick instant profit.

The most common risks in cryptocurrency trading

 We now have the 4 most common risks for cryptocurrency traders:

 1- Cryptocurrency price fluctuations

 The price of any cryptocurrency depends on the market movement, specifically supply and demand. For example, when people tend to buy a particular digital currency in abundance, the demand here becomes greater than the supply and therefore the price of the currency decreases. When people sell a digital currency in abundance, the supply becomes greater than the demand and thus rises  currency rate.

 The decrease and rise of the price occurs gradually or suddenly, so the investor must use the famous technical analysis methods of the cryptocurrency market and stocks, and technical analysis indicators, in addition to relying on the theoretical reading of the market movement and the general rules of investment.

 note:

 Depending on sudden or even gradual currency price fluctuations, the size of the loss increases as the budget of funds you put into cryptocurrency trading increases.

Cryptocurrency trading

 2- Fraud and theft

 As we have already mentioned, cryptocurrencies are built on secure blockchain technology, but this does not negate the possibility of being exposed to fraud, knowing that your exposure to this will inevitably be due to human error or inexperience on your part as an investor.

 For example, you should use secure storage methods for your digital assets using secured electronic wallets and adopt cold storage, which is a method of storing currencies without the need for an Internet connection, and completely avoiding hot electronic wallets connected to the Internet.

 The most important thing is to master the use of your wallet for fear that someone else will access your password and steal all your savings or forget the encryption key phrase for your cold wallet.

 Cryptocurrencies can also be traded through the best 100% trusted and guaranteed cryptocurrency trading platforms, and we have many well-known platforms and regulations of their laws that are known to all.

 Read more here about: Trading Platforms.

The last trap that most beginners fall into is being unsure of the hidden story behind a certain coin that suddenly appears and is often very cheap and therefore attractive to many users who may not realize the risks of buying that counterfeit coin.

 3- Entering losing trades

 People rush to buy a certain digital currency when its price suddenly and dramatically rises, hoping that this price will continue to rise and therefore when they sell it again, they will make big profits, and this is not necessarily true.

 As the price of the currency will drop suddenly after that this is called "price correction" which plays an important role in which seasoned long-term investors and not speculators.

 note:

 The name “FOMO” was commonly mentioned and it is already common in the cryptocurrency trading market, as the novice remains insistent on entering a losing trade, knowing that the result is known and does not realize that the opportunity to profit is missed and the matter is over.

 4- Commissions and taxes imposed on traders

 Trading platforms charge traders certain commissions for each trade that takes place through them, and the commissions are relatively low or high, and this can cause panic for investors, not only platforms but also countries.

 Some countries impose taxes on financial transactions in digital currencies and those transactions are subject to tax and value-added law, after they have allowed individuals and entities such as companies to trade digital currencies legally under a law imposed by the state.

Important tips for beginners in cryptocurrency trading

 Here are the most important tips that cloud Mine gives you that can avoid falling into the trap of losing or a weak instant profit:

 Learn the story of the emergence of any new digital currency and study the number of its users, its market size, and its price fluctuations before you think of buying it, as it may be fake and its spread is just a fraud.

 Stay away from any cryptocurrency that makes a lot of noise in the crypto market and don't rush to buy it because it is likely to be just a digital bubble that will explode soon nothing more.

 Stay away from buying any digital currency just because it is very cheap, as it can be of no real value and therefore you cannot invest in it.

 Seek to invest in digital stablecoins, knowing that not all stablecoins are high in price.

 You have to be able to take a loss before you win, so back out of the trade if you are not ready enough.

 Invest in more than one digital currency and do not depend on one currency only, because price fluctuations are a feature of encrypted digital currencies and therefore when you invest in more than one currency, you guarantee a profit from one or more.

 Invest in the long term and stay away from speculation to make huge profits.

 When everyone goes to buy a particular digital currency, you stay away from buying it and don't catch up, because the result of this will never be satisfactory.

 Cryptocurrency trading is easy for many beginners and has many negatives and positives, but as a professional investor, you should avoid falling into the trap of negatives and invest in the positives to make a profit.