Cryptocurrency Made Simple For Beginners

Do you want to learn how to trade cryptocurrencies such as Bitcoin, Ethereum, or Dogecoin? If that's the case, gathering as much information on digital currency as possible before deciding on an exchange or trading platform is a good idea.

1. What Is Cryptocurrency and How Does It Work?

Digital currencies are referred to as cryptocurrencies. To conduct transactions and issue new "coins," they use digital cryptography. Bitcoin and other cryptocurrencies are appealing because they are decentralized. In other words, neither banks nor governments have control over currency access. Governments and banks, on the other hand, can more easily influence fiat currency.

Altcoins are Bitcoin alternatives that number in the thousands. Bitcoin's initial idea has been built upon other cryptocurrencies like Ethereum and Ripple, which have established variances in their currencies to support specialised uses.

Have you ever wondered how to get rich with Bitcoin even if you have no clue about technology? This simple video guide has the answers and makes it easy for you to get started.

2. What Is Blockchain and How Does It Work?

Because blockchain technology is what makes cryptocurrencies distinctive and valuable, if you've heard of cryptocurrency, you've probably also heard of the phrase "blockchain." As an example, let's look at Bitcoin. In its most basic form, blockchain is a technique of keeping all Bitcoin transactions in a ledger linked to each coin. From a digital standpoint, blockchain is a series of programmed blocks.

Each block contains information about the transactions, such as the dates, times, amounts, and traders involved. A chain is made up of all the blocks and operates as a publicly accessible, although encrypted, database. The Bitcoin ledger has structure thanks to blockchain. The ledger's contents are protected from hackers and can be copied to any machine due to cryptography.The use of encryption makes counterfeiting coins extremely difficult.

3. What Factors Influence Cryptocurrency Prices?

Cryptocurrency situations are often distinct from those that affect fiat currencies.

• Simultaneous volatility — The cryptocurrency market is known for its rapid peaks and dips. Multiple coins tend to rise and fall in lockstep, which is an interesting feature of cryptocurrency.
• Media coverage - When a currency makes the news, it is common to see a surge of new traders. This usually results in a price increase. Profit-taking can then be done by early traders. Other traders fear, and a stampede to sell ensues, resulting in a price decline.

• Impending regulation — Cryptocurrency dealers may be wary of the potential of regulation.
• Coin Idiosyncrasies - Different currencies are influenced by different circumstances. Support from the financial industry is the most typical reason for a cryptocurrency's increase in value, however other reasons (such as a security issue) might have an impact on per-coin pricing.

4. How to Begin Investing in Cryptocurrencies

We've put together some basic measures to assist you limit your losses before you start trading cryptocurrency. This quick guide will teach you all you need to know before you begin.

• Do your research on how the cryptocurrency market operates. You may come across new terms, so be sure you know the basics. In the Bitcoin world, supply and demand cycles are also distinct. Depending on the type of blockchain and the access to currencies by retail and commercial traders, coins are created and distributed in a variety of methods.

• Choose a platform and learn about the qualities that set it apart from others. Some platforms provide crypto derivatives such as CFDs, options, and FX, but check to see if the products you want to trade are available in your jurisdiction. Others provide genuine cryptos. Fees, account kinds, items available, approved funding methods, and platform availability (e.g. mobile/desktop) are just a few of the factors to consider. More information can be found in our comprehensive video course that will guide you step-by-step through the world of Bitcoin and cryptocurrencies.

• Practice with demo money. Plus500 and eToro, for example, provide a sample account where you can try trading bitcoin CFDs. However, if you live in the United States or the United Kingdom, you won't be able to do so because crypto CFDs are illegal in both countries. Binance is another popular cryptocurrency exchange that offers a sample account as well as a robust set of charting and analytics tools.
• Verify your account with a broker who charges reasonable fees and offers the crypto products you desire in your country. This usually necessitates proof of identification (passport, driver's license), as well as proof of address (e.g. utility bill). In some circumstances, you'll be requested to provide your social security number or a tax identification number.

• Encrypt your account with at least two-factor authentication, preferably SMS, and email authentication. Crypto brokers usually provide instructions on how to achieve this in a few simple steps.

• Start trading with real money after making a deposit. Keep in mind that you should only deposit what you can afford to lose. On your deposits and withdrawals, keep an eye on the costs charged by the broker and/or third-party payment providers.

• Exchange Costs: When converting tokens between currencies, exchange costs are charged. The fee amount varies according to the currencies involved.

5. Verification of Identity

Most traders will prefer to trade on an exchange that requires ID verification. Verifying your identity might assist you avoid engaging in unlawful or fraudulent conduct. There are some possibilities if you are concerned about your identity being tied to your Bitcoin for philosophical reasons. However, the market as a whole is shifting. LocalBitcoins ceased permitting this in mid-2019.

6. Currency Pairs Offered

Not all currency pairs are available on all exchanges. Some people concentrate solely on one type of currency, usually Bitcoin. Other exchanges allow you to trade hundreds of different altcoins. Kraken (over 30 unique cryptocurrencies with 85+ fiat/crypto and 65+ crypto/crypto pairs) and Coinbase (over 30 unique cryptocurrencies with 85+ fiat/crypto and 65+ crypto/crypto pairs) are two of the top exchanges when it comes to currency pairs variety (over 20 unique cryptocurrencies).

7. Selecting a Cryptocurrency Trading Platform

It can be tough to choose a CFD platform, but you should look for one that is regulated because:

• They must adhere to rigorous security and ethical requirements to ensure that deposited funds by traders are safe.
• They must abide by regulations designed to safeguard dealers. Let's go through some of the things you should think about before deciding on a crypto broker.

Learn how to get rich with Bitcoin even if you have no clue about technology and cryptocurrency!

8. Bitcoin Market Commissions

Because the bitcoin market is so competitive, only a few regulated brokers charge commissions. Instead, they profit by charging a commission on the spread. With low-value, high-density currencies, a spread is a percentage per "unit" (or token/coin), which can soon build up. The majority of regulated brokers, such as Markets.com, are upfront about their fees. They give a minimum spread per unit in US dollars (USD), so you can see just how much you're being charged.

9. Overview Of Some Crypto Coins

• Bitcoin: Bitcoin (BTC) was the first cryptocurrency, and it continues to be the gold standard for cryptocurrencies. It may now be used to purchase goods and services electronically, as well as to pay for items in foreign currencies without incurring transaction costs. Bitcoin is by far the most popular cryptocurrency, and it is where many crypto traders begin their cryptocurrency trading careers.
• Dogecoin: You'll probably smile if you recognize the meme that Dogecoin (DOGE) is based on. This altcoin began as a joke, but because to its supportive community, it has become a legitimate crypto coin. Dogecoin is used to tip people on Twitter and Reddit, which is a fitting testament to its lighthearted origins.

• Ethereum: Ethereum (ETH) is a major competitor to Bitcoin's market supremacy. Technically, this altcoin is a programming language that runs on a blockchain. Ethereum is a decentralized computer that is supposed to run without any downtime, fraud, or third-party influence. It can also be bought and sold like any other digital currency. Ethereum's prospective applications are really exciting.
• Ripple (XRP): was created as a bridge between cryptocurrencies and fiat currencies, gaining support from major financial institutions. Ripple's mission is to make global financial transactions more secure, instantaneous, and low-cost. Many banks utilize it as part of their settlement system. Ripple has the potential to be the most revolutionary cryptocurrency currently accessible.

This step-by-step video course is made by Marco, a real Bitcoin entrepreneur who has made six figures on Bitcoin. Learn the best strategies to get started with cryptocurrencies and how to start making money on Bitcoin.