A New Trader’s Crypto Guide To Pricing, Buying, And More

Did you know that over 47 percent of Americans have started trading crypto? As you can imagine, everyday people interested in expanding their investment portfolios grow by the numbers. But, with so many new investors, you can expect that some of them aren’t sure of what they’re doing.

That’s why, in today’s post, we’ll give you a thorough yet brief crypto guide. Moreover, even though this will be a beginner’s guide to crypto, we’ll cover certain terms that even some crypto experts aren’t aware of.

Understand The Market Trend Lingo

This wouldn’t be a crypto beginner’s guide if it didn’t include a section that explains market trend lingo. There are three terms you’ll want to know about: technical, fundamental, and sentimental trends. Let’s now briefly explain each one.

Technical Trends

As you can imagine, the crypto market is quite similar to the traditional stock market since there are ups and downs throughout the day. The only contrast is that the crypto market is a lot more unpredictable, which is why it’s crucial to study a crypto trading guide. Techincal trends analyze the technical aspect of a crypto coin (historical volume and activity) which involves price trends.

Fundamental Trends

This type of trend is quite different than technical trends, as it ignores the market charts and focuses on what is influencing the rise or fall in cryptocurrency prices. Basically, you’re trying to understand what supports the value of the coin. So here are some questions you can ask yourself about a certain coin:

• What is the company doing with the investments?
• What are the company’s tokenomics?
• What are the end goals for the company?

As you can expect, fundamental trends may not always lead to financial success. But, there are plenty of cases where an altcoin does well thanks to its developers. For example, Cardano price has dramatically increased thanks to properly managed tokenomics.

Sentimental Trends

As you can guess, a sentimental trend ignores all other factors and only focuses on investing in the most popular crypto coins. For example, Dogecoin started as a sentimental coin but quickly became one that merited investment. So, be careful when you invest in a cryptocurrency with sentimental value, as it may come crashing down.

Diversify Your Portfolio

The most important part of any crypto buying guide is diversifying your portfolio. As you can imagine, the best way you can double your profits is by investing in several different crypto coins. But, keep in mind that you should limit your portfolio to only four or five different coins.

Follow This Crypto Guide For Success!

Hopefully, with this thorough crypto guide, you’ll be able to score big in the crypto market! But, of course, creating a successful trading portfolio takes time, so don’t feel frustrated if you don’t see any major gains. And don’t forget to save this post, so you can refer to it whenever needed!

Did you find these tips useful? If so, feel free to check out our other crypto-related posts before you go!