4 Main Questions About Crypto

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Apr 28 2022
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The cryptocurrency market is not the easiest place to work. There are many things to consider, such as volatility, assets, liquidity, news, and more. All of these things require preparation to face the challenges that these digital assets present. In this article, we will share with you some useful tips to help you trade better in the crypto market.


1.  How to choose which crypto to trade?

First of all, you have to decide which cryptocurrency you want to make money on. There is no universal rule here, almost any token has the ability to go up sharply, and then collapse just as quickly. A novice crypto investor can predict these movements only with a lot of luck. But it is possible to do something to protect your investments.

At first, it is better to choose a currency that has been around for a long time and is in demand among traders — like Bitcoin or Ethereum. They do not usually rise in value as fast as altcoins — little-known cryptocurrencies, but they are easier to find a buyer for if you need to sell tokens in a hurry.


2.  Where to begin trading cryptocurrency?

To start trading cryptocurrency, you need to register on a cryptocurrency exchange or with a broker.

When choosing an exchange, it is worth checking its reliability. Examine whether the exchange has been subject to hacker attacks and how conscientiously it works. When you find a market you are interested in, you will need to sign up with that exchange. Usually, the procedure is rather simple and similar to registration on any other site — you need to provide basic information about yourself and your e-mail. Some exchanges allow you to use their services after that, but you need to confirm your identity and residence address with proper documents for full-fledged trading.

However, to simplify your task, you can use the services of a broker. Reliable broker FBS Trade now has an opportunity to open a cryptocurrency account. With FBS you can earn money by trading coin to coin, coin to fiat, and coin to metals.

If you analyze the selected broker on the following criteria, you will not make a mistake:

  • Regulation. It is worth checking if there are any known regulatory organizations that can influence the broker.
  • List of available instruments.
  • Trading conditions. Pay attention to the size of the minimum deposit, the volume of the lot with which you can work, and the leverage, as well as the methods of withdrawal.

Crypto Currencies - Types

3.  How to forecast price changes?

Often, the movements of cryptocurrency quotes can be predicted if you follow certain rules. To sense market trends, you need to study the asset, look at its movements in the past, what provoked its growth and what caused it to fall. Usually, positive news about technological development, the forthcoming upgrade, cooperation with major players in traditional financial services provokes the growth of the exchange rate, while reports about hacker attacks, thefts, vulnerabilities in the code provoke a decrease in the exchange rate.


4.  How to protect yourself against scams?

When choosing a cryptocurrency and an exchange or a broker, don’t get carried away by the fantastically generous offers. If they promise unbelievable profits, look for the catch.

Characteristics of dubious crypto projects:

  • People designated in the project team have not previously been seen in the news of the crypto world.
  • The creators of the cryptocurrency promise a guaranteed profit. Most likely, it is a pyramid scheme.
  • The repository with the project code on GitHub is almost never updated. This means that either the project as such does not exist at all, or no one is engaged in it.

The cryptocurrency market is at its peak. New cryptocurrencies appear every day, and the price of the old ones has already managed to grow by 100 times or more since their release. Nevertheless, we should not forget that it is a high-risk market that should be handled with extreme caution.

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