In order to trade cryptocurrency successfully, an investor needs to have knowledge of market analysis technologies and to understand the details of the blockchain world. Of course, without it, it will be able to earn income. However, its size will be limited.
Experts recommend using only those assets that are familiar and understandable to the investor. This is what Warren Buffett spoke about. Deep knowledge of technology and rules are not required. When buying shoes, it is not necessary to dive into the rules of leather dressing or the process of nailing heels.
Likewise, the fundamentals of crypto trading do not include programming courses or constant monitoring of each hardfork. However, the investor must understand:
By answering these questions, he will significantly increase his chances to invest his capital profitably and not to make mistakes. Therefore, it is immediately worth exploring them in more detail.
When Bitcoin appeared, the states together called it an asset for tax evasion. It was said that only drug dealers and criminals would wish to start a Bitcoin account. However, it turned out that the blockchain allows you to solve many problems at the global level. Even now, crime does not show any interest in it.
Bitcoin has become an excellent means of accumulation, a crypto wallet will be the most reliable repository while observing elementary safety rules. Tokens have become a profitable investment asset, many have been able to earn on its growth.
Even banking structures recognized its advantages. Now JPMorgan is developing its own blockchain transfer system. Besides, in 2017, the head of JPMorgan also argued that this technology is only interesting for drug barons from Colombia.
To understand the fundamentals of crypto trading, it is not necessary to start a digital wallet at all. Any crypto exchange provides this service and will provide storage for tokens itself. In addition, the usual financial brokers conduct operations with the most liquid coins. Although not tokens are used there, financial instruments for the price difference.
Thanks to that, trading conditions turn out to be the most profitable. The costs, in this case, are much lower, and the time of the operation is measured in fractions of a second.
What influences the cryptocurrency rate:
It is impossible to single out any factor of influence on the rate of cryptocurrency. Since the number of digital financial assets has exceeded 2000, even minor crises or discoveries can resist their pressure on charts. However, most of all quotes obey the decisions of governments. After years of resistance, they put up with new technologies.
Now the fundamentals of cryptotrading first require careful monitoring of the effect of regulators. The two largest economies of the world, the USA and China, have not yet put an end to the issues of control over the turnover of tokens.
In the United States, cryptocurrency was recognized as a commodity, and the corresponding turnover rules are used. The Commodity Markets Commission did not allow public trading of ETF funds, but institutional investors are already buying bitcoins and altcoins through private funds.
The situation in the PRC is even tougher. Here, authorities have prohibited commercial organizations from using digital financial assets for trading. Therefore, they were forced to cease operations or move to neighbouring countries. Any news from these countries can significantly change the course of bitcoin.