Stay away from cryptocurrency! It is not real! You’re being cheated! and the list goes on and on and on. Probably these are the reactions from your family, neighbour, friends or worse still, strangers.
Cryptocurrencies have always been seen as a negative approach and a huge risk by many, but it is undeniable that the number of people involved in digital assets has been increasing rapidly. Despite all the warnings and misleading information by those who are not well-versed with the sphere, investors, traders and tech enthusiasts are all vastly experimenting it in-depth to understand and succeed.
If you’re a newbie to cryptocurrency and you’re wondering what on earth is this, don’t worry, you’re not alone. Treat it as another subject at college and everything will be fine. Below is the list of what you need to know to master crypto.
Learn The Jargon
The first and foremost ground rule to understand crypto is to learn the jargon and get used to those words. At times it may look alien and technical when you read about crypto because of the words used are very unique to the industry.
So, when you can identify and understand the meaning of the jargons, it would make things way easier for you to comprehend the core of what is being explained. A heads up for grammar nazis would be, don’t be surprised to find words that may seem like wrongly spelt, but has a meaning for it, like HODL.
Among the jargons that are frequently used would be fiat, bearish, bullish, fork, ICO, moon, mining, market cap, halving, block, FOMO, ATH, COD, DYOR and so on. Therefore, quickly head over to our glossary to stop scratching your head when you come across a jargon the next time.
Know The Trend
Why is it important to know the trend? To explain in simple words would be, knowing the trend before trading crypto is like knowing the weather before planning your trip. It gives a rough idea and guideline when to trade and which coin to choose.
Usually, the trend or graph of a particular coin will be based on a fundamental event or incident relating to the coin. For example, if a new feature is applied to a coin, then the value of it automatically goes up. Therefore, you need to be aware and updated on what is going on in the crypto sphere.
So, where can you find the trend? CoinMarketCap or Cryptocurrency Market Capitalizations is the most reliable site to check on the market trend of the top 100 coins. It tracks most of the alternative coins that have hit the market as well as Bitcoins and shows users the current value in dollars and Bitcoins for each coin.
Follow The Leaders
Do you remember reading a textbook in school and not understanding anything until your teacher explains? Likewise, although you have learned to read the chart and trend, not necessarily you’ll be able to understand what will happen next.
Reason for this is because there are more than 2000 cryptocurrencies available in the market, and even the top 100 coins that appear on coinmarketcap are not all legit. In order to identify and know which coins to focus on, you need to follow a leader.
Time to time there will be crypto leaders sharing their stories and experiences that have led them to who they are now. It can be good and bad experiences that have taught them a great lesson for their involvement in the crypto industry. By following them you’ll eventually learn what to do, and most importantly what not to do as it ends up in disaster most of the time.
Master Each Coin And Token
Stop cursing, I know I just mentioned that there are over 2000 cryptocurrencies in the market and I do know it is not easy to learn each of them in and out. What I meant by master each coin and token is, after understanding the trend and getting the idea of which coin would bring profit, go all out on those coins.
You can ask me why you need to master them when you have leaders to tell you what to do, but you also need to understand that people tend to be biased at times. So, as mentioned in the jargon earlier, DYOR, Do Your Own Research because you never know what you might find out may turn out to be something that your leader overlooked.
In other words, it is always the best choice to be equipped with knowledge before fully getting hands-on something. This will ensure and avoid you from getting cheated like what your loved ones would have warned you before.
Lastly, Be Prepared To Lose Your Investment
Yes, you read it right, be prepared to lose your investment because this situation occurs in all sort of investment, anywhere in the world. There can be various predictions you come across every day, but you should realize those are just predictions. Nobody can vouch for their prediction to be 100 per cent true.
When you can come to a point where you truly understand that investment involves volatility, you will know what you need to do to avoid disappointments and great losses. Patience is the key because, in the long run, you can see great growth.
On that account, that now you’re all ready and geared up to master crypto, be ready to face all the rejections and prove that cryptocurrency is just another investment, you just need to know how to handle it with style.
