You can engage in electronic money trading without leaving your home: transactions are concluded on online platforms. But this type of investment is considered risky because of the danger of losing all investments at once. We will also leave a link to the best cheap cryptocurrencies to follow. With it, it will be easier for you to understand where to start your bidding.
Differences between a cryptocurrency exchange and stock and currency markets
The difference between the cryptocurrency market and the stock market is that in the latter you will have to invest very solid funds. The entry threshold for beginners is very low here. To start making good money in the cryptocurrency market, you may only need 30$ – 70$.
The main thing is to choose undervalued cryptocurrencies or digital assets that have good potential for price growth. Further, everything will depend on the analytical abilities of the trader himself.
But the systemic factor here practically does not manifest itself in the same way as it happens in the stock market. Nevertheless, the volatility in the crypto market is very high, and there are almost no systematic events taking place here.
However, it cannot be said that technical analysis tools are completely inapplicable in trading on the crypto market.
The impact of news on the stock market is much more significant than on the cryptocurrency market. It is quite difficult to determine which cryptocurrency news can affect the price of a particular digital asset.
The main reason is that these news are published with a serious delay, when the market has already reacted to them.
Can a trader lose all the money?
Yes maybe. Funds are not protected from loss in case of unsuccessful transactions. You act at your own risk.
How to protect cryptocurrency from theft?
One of the potential dangers when working on an exchange is that hackers can break into an electronic wallet and steal cryptocurrency. A “cold” wallet will help protect you – that is, an offline secure storage. This can be a private key to access the wallet or even a flash drive (another device) that is connected to the computer if necessary. However, the connection and disconnection scheme can be inconvenient during trading, when reaction speed is very important. Therefore, it is still important to choose a large reputable exchange, which has a better security system.
