Understanding crypto terms
Understanding basic crypto terms is crucial
The first thing you need to do when entering the crypto world is to understand the basic terms of cryptocurrency. These terms will help you understand the asset you want to buy and the basic concepts of crypto.
Here are some basic crypto terms you should know:
- Blockchain: It is the technology that allows the creation of crypto assets. It is a decentralized data storage technology.
- Bitcoin: It was the first cryptocurrency and the reason why the crypto industry could become as big as it is today. In addition, Bitcoin is the most valuable crypto asset whose price movements affect the entire market.
- Altcoin: Term used to describe cryptocurrencies other than Bitcoin.
- Bearish-bullish: Both terms are used to describe market sentiment. Bear/bearish = market conditions are unfavorable and prices are falling. Bullish/bullish = market conditions are good and prices are rising.
- Whale: Owner of a large number of crypto assets that can affect price fluctuations.
Volatility of the crypto market
One of the most important things you need to understand before investing in cryptocurrency is the volatility and volatility of its market. Unlike stock exchanges and other assets, price fluctuations in crypto assets occur in a short time and in large amounts. Cryptocurrencies can experience a 100% increase in a matter of hours. Unfortunately, it can experience the same decline at the same speed.
Therefore, you need to understand the major risks of investing in crypto assets. Investing in crypto requires extra patience to be able to deal with large price drops and increases.
Be wary of information from social media
As you begin to learn about cryptocurrencies, you will find many impressive and popular figures who offer a variety of content, from education to financial advice. You should be careful when watching and reading content like this because there are many cases where creators are paid to promote certain crypto assets. Before investing in cryptocurrency, it would be better to read it on your own rather than listen to others.
You need to try to find an unbiased source of crypto information that describes the advantages and disadvantages of an asset in a balanced way. In addition, try to find as many sources as possible so as not to be overwhelmed by a single piece of information.
Beware of scams
Before investing in cryptocurrency, you need to understand the scams. While crypto is technologically safe, there are weak points that criminals and scammers can take advantage of.
One of the most common examples is phishing, which uses links from email or social media. Also, there are many scammers offering crypto business or asset management. If you are interested in the crypto world, the safest way is to try it yourself, without relying on others.
Research, research and research!
One of the principles you’ll often hear in the crypto world is DYOR, short for “Do Your Own Research.” It means do your own research. DYOR is an incentive that doesn’t encourage anyone who wants to invest in cryptocurrencies to do their research independently and follow other people. This means that you need to read, ask questions, and discuss with others to learn about cryptocurrencies.
You can also learn about crypto from the following news portals:
- Coin Desk: Crypto asset media offering the latest news from the crypto world
- Coin Telegraph: Crypto news portal with a weekly review section
- Decrypt: Crypto asset news site that often creates in-depth content
- Coinvestasi: Crypto news portal from Indonesia
- Blockchain Media ID: Cryptocurrency media from Indonesia
Understanding Momentum
In the world of crypto investing, momentum and timing are everything. One of the principles to follow in crypto trading is to buy low and sell high. The timing of when you buy an asset is usually just as important (and sometimes even more important) as the asset you are buying.
Basically, no matter what the fundamentals and potential of a crypto asset are, you will most likely lose a bit if you buy it at its highest price. On the other hand, if you buy crypto with strong fundamentals at a low price, your chances of making a profit increase even more. To perform this strategy, you need to have good technical analysis as well as an understanding of what bear
bear market
and bullish trends are before investing in cryptocurrency. All of this will come out as your experience grows.
Start Slow!
The last thing you should pay attention to when you want to invest in crypto assets is the initial investment amount. The best decision for beginners who are new to the crypto world is to start slowly and in small amounts. When you are experienced and able to understand the market situation, you can increase your investment more safely whenever you want.
