Cryptocurrencies are hot right now. Bitcoin continues to rise above $50k. Other good cryptocurrencies like ETH and ADA are also gaining momentum. If you haven’t invested in crypto yet, you have to do one more thing before you deposit your initial investment—study the truth about cryptocurrencies.
Knowledge is power. If you know enough about cryptocurrencies, you won’t get lost when you start investing in them. As an investor, you should at least know the basic and general facts about the portfolio you are investing in. For newbies, I will share in this blog the truth about cryptos like Bitcoin, ETH, and ADA. Use this information to make sure that you are investing in the right market.
One of the things that make cryptocurrencies volatile is the absence of their fundamental backing. You won’t find any financial statements, expansion plans, earnings per ratio, and similar fundamental indicators that stocks have. If you are willing to sacrifice your time to study technical analysis more, then cryptocurrencies are good investments. Remember that you can’t use your fundamental analysis here. You only have the charts, the technical indicators, and catalysts from the news if there are any. Even central banks don’t have anything to do with cryptocurrencies. To invest in Cryptocurrencies click here.
Catch me in my live training events! (quick plug)
The heart of why I do these seminars is I want to build a generation of Filipinos with the right foundation in stock investing. I want to bring smart investing to every Filipino around the world! If you would like to know more about how you could time the market check out the training below.
Without miners, cryptocurrencies are not produced. Imagine cryptocurrencies like minerals. If there are no mining companies to find them, there are no minerals to list in the market. The same applies to crypto. The only difference is that miners use excellent technologies to mine cryptos. Actually, you can find these miners in the stock market as most of them are listed and publicly traded. Miners use technologies such as graphic-card hardware. You will observe in the market that as cryptocurrencies go up, miners’ stock prices go up too. The same happens to the suppliers of technologies like NVIDIA and Advanced Micro Devices. To have a Bitcoin Wallet click here.
Decentralized means that there is no individual or banks controlling the flow of cryptocurrencies. The computers used to record and make the transaction possible are spread out around the world. This kind of makes cryptocurrencies a good investment since only the demand and supply will determine their prices, unlike when it’s controlled by central banks. Since the beginning, cryptocurrencies have been using a decentralized network. Those computers making up this network work as lightning when they connect to put the pieces of information together.
Yes, there’s no break. The crypto market is open 24/7, which means you can buy and sell at any time you want. This is a good investment for those who want to trade every day. This is the only market that is always open. The stock market opens usually from 9:00 am to 5:00 PM. Forex is only open on weekdays. The Crypto market is a good place to earn your profit on weekends but make sure you are using your trading plans and strategies. The market being open 24/7 doesn’t mean that you have to trade all the time. You can also rest.
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.