Increase and fall in cryptocurrencies: Starting guide to investing in the blockchain world
In recent years, the world of cryptocurrency has exploded into a global phenomenon. With prices and the will of the fall, it can be awesome for new investors to navigate this complex space. In this article, we look closely at the relationship between some key concepts with cryptocurrencies, including wallets, initial coin supply (ICO) and trend lines.
** What is Blockchain?
Blockchain is a decentralized digital ledger that records transactions on a network or computer. This is the underlying technology of cryptocurrencies such as Bitcoin and Ethereum. Each block of the chain contains a transaction set that is confirmed by the nodes of the network using complex algorithms. This creates an unenforceable record that can be a counterfeiting.
Walking: Clear harbor of cryptocurrency
The wallet is a digital storage system that allows you to handle cryptocurrencies. There are two types of wallets:
* Paper wallets: The thesis is physical, paper -based wallets that generate unique code for each transaction.
* Digital wallets: Software -based software -based wallets that can be accessed via various devices and platforms.
Choosing the right wallet depends on your personal preferences and needs. Some popular options are as follows:
* LEDGER NANO X: Very secure, portable wallet that supports multiple cryptocurrencies.
Binance coin wallet: Binance is a user-friendly digital wallet developed by Binance, one of the largest cryptocurrencies.
* Trust Wallet: A mobile application-based wallet that offers advanced security features and smooth integration with other platforms.
ICO (initial coin offering)
For Blockchain developers, ICO can earn capital in exchange for their cryptocurrencies. It works like this:
- Developers will create a new token: A group of developers will create a new cryptocurrency that will be sacrificed at that time via an ICO.
- Token Sale: Investors buy tokens, either online or directly on the blockchain.
- The tokens are distributed: tokens are distributed to investors in the form of a Fiat currency (such as USD) and all exaggerations are blocked.
Among the popular ICOs:
Parity Technologies: raised more than $ 12 million in Ethereum-based token due to parity.
* Ethereum: Launched in 2015, Ethereum is one of the most widely used blockchain platforms.
Trend lines: Visual representation of price movement
The trend line is a graphical representation of the price of the price of time. Traders use it to identify potential purchase or sell signals. There are many types of trend line:
* Simple Moving Average (SMA): The weighted average of recent prices, shorter -term lines indicate higher volatility.
* Exponential Moving Average (EMA):
is a line that follows 50% and 200% EMA for added smoothing.
Trend lines can be used to identify multiple key levels:
* Support Levels: The areas where the price bounced or stopped.
* Resistance levels: Areas where the price tends to fight.
* BROKOUT POINTS: The areas around which the price may break or turn.
Investing into cryptocurrencies: Tips and tricks
While investing in cryptocurrencies may be an excitation, it is essential to approach the market with caution. Here are some tips:
Do your research: Understand technology, uses, and the risks related to the privatular cryptocurrency.
* Diversify your portfolio: Distribute your investments between several coins to minimize risk.
* Set clear goals: Define your investment goals and risk tolerance before investing.
Conclusion
Cryptocurrencies have come a long journey since 2009 early days.