If there’s anything that could rightfully be termed as the “rage of the hour”, its Cryptocurrency.
Here’s a brief introduction to the World of digital currency aka cryptocurrency:
The advancement of cryptocurrencies has opened the doors for investors globally . A “digital stock market” might have sounded like a far-fetched dream years ago, but now thanks to the advancement of technology and human craving for instant gratification, it’s now seen as world’s largest platform for business and development.
Cryptocurrency trading isn’t like the conventional stock exchange. It just doesn’t work that way. Yes, the level of anxiety and excitement might be the same, but you need to understand the economics of cryptocurrency before plunging into it and making an investment. Cryptocurrencies do have an economic and political impact on society just like other currencies.
Just like before one sets foot onto a foreign land, it is advised to become acquainted with history, guidelines, and requirements.We recommend that one should get familiarized with the subject, the hot news, the terminologies, and the loopholes. Therefore, it is binding to have a thorough understanding of the 4 W’s and 1 H of the Cryptocurrency trading- What, When, Why, Which, and How.
Why should I invest in cryptocurrency ?
What exactly is cryptocurrency? What will I reap from my investment?
Which is the best platform I can use to start trading cryptocurrency?
When is the best time to start my investment? When should I pull out my investment, and when should I double it?
How do I get started? How do I buy my first bitcoin? How many should I be buying?
And most importantly… Where does cryptocurrency gain its actual value from?
Cryptocurrency gains its value from its utilization & demand in the trading industry, and finally, its reputation.
How can a particular cryptocurrency be utilized? What are its use cases? How can it be traded? Is it flexible? Does it hold value outside the world of cryptocurrencies? All these factors need to be kept in mind before buying your first cryptocurrency.
DEMAND AND SUPPLY:
What’s the purpose of buying a particular cryptocurrency if it is scarce in the market? What was the purpose behind creating this cryptocurrency? Does it serve a unique purpose? Does it have a large investor community to support its value? It is pointless to invest in a digital asset, without thoroughly analyzing the demand and supply chain of the cryptocurrency you are about to purchase.
Is there a community of investors and regular traders who can actively support the cryptocurrency you are about to purchase? Do people trust their stake? What is the acceptability of the cryptocurrency ? Are people willing to trade that currency in the market? These are some of the factors that add to the value of a cryptocurrency.
When it comes to making a financial decision, good amount of research work is required. Before making an investment, know your venture from the ground and level upwards. Cryptocurrency is a promising field for sure, but you can never guarantee its performance in the market.