What is Cryptocurrency?

Written by Edward Gonzales

February 1, 2021

There are numerous reasons why cryptocurrency trading can make you more money than stock trading or forex trading. By trading crypto, you can take back control of your money by accessing a market that is decentralized from governments and open 24/7. Being open 24 hours a day allows you to trade the cryptocurrency market alongside other responsibilities you may have. The crypto market also offers traders greater flexibility than the forex market or the stock market by putting no restrictions as to how many trades you can make in a day or even a week. This means you can buy and sell as many times as you want/can in a day. As a result of this, the cryptocurrency market is much more volatile, which means that you can see much greater percentage movements opposed to the stock or forex market. In addition, the cryptocurrency market also offers greater leverage than the stock market and forex market – a factor that can potentially amplify gains if used the right way.

What is Cryptocurrency?

“A cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. Many cryptocurrencies are decentralized networks based on blockchain technology – a distributed ledger enforced by a disparate network of computers. A defining feature of cryptocurrencies is that they are generally not issued by any central authority, rendering them theoretically immune to government interference or manipulation.” – Source

In other words, a cryptocurrency is a way of storing value. There are many different cryptocurrencies that exist just as there are many types of fiats, and they can be exchanged against each other for higher or lower values. This is known as “trading,” and can be done on what is called an exchange.

You should always research a crypto coin before trying to trade it. Each cryptocurrency should have what is called a “whitepage” and will tell you all about the specifics of the coin. Unfortunately, many cryptocurrencies appear each day and disappear the next in what is known as an “exit scam.” Never invest in a coin you haven’t researched to protect yourself against scammers.

Cryptocurrencies are usually held in what is called a “wallet” and can be transferred to another wallet. The transferring of funds from wallet to wallet could be considered a transaction. Each crypto coin has its own wallet and a specific combination of letters and numbers assigned to it known as a wallet address. Sending the wrong coins to the wrong wallet address can result in total loss of funds. Be sure to check the wallet address for errors if you are sending or receiving digital currencies.

The number one cryptocurrency at the time I write this is Bitcoin. Bitcoin is the original cryptocurrency founded by Satoshi Nakamoto – an alias for a man not known. Bitcoin can be broken down into smaller segments known as “satoshi.” You can trade Bitcoin against almost every other digital currency on the market. Bitcoin is good to have in general. In the long term, the value of Bitcoin could surpass a value of $100,000 USD per Bitcoin.

If you want to be a successful cryptocurrency trader, you must treat crypto like any other business. In any business how do you make money? You make money by buying something and selling it at a higher price. For example, if you own a restaurant then you’re buying ingredients and people’s time to cook the meals. Then, you sell these meals at a higher price on the menu. You keep the difference as profit. That’s how you make money in the restaurant business. It’s no different in a crypto trading business. The only difference is you’re not buying and selling physical products, instead, you’re buying and selling currencies. It’s one of the best businesses you can get into for a few reasons.

First, it requires a minimal investment. If you wanted to open a restaurant or a store it would take you tens, if not hundreds of thousands of dollars. You can start trading crypto with as little as a $50 account. Most people start with $1,000 or $2,000 because the returns for each trade are higher. If you don’t have that money however, you can start with $500, or even as little as $50. The minimum balance to make a trade is $10 on Binance exchange.

Second, as a crypto trader you are your own boss. This means you don’t have to work 8-12 hour shifts. Even as a beginner you don’t need more than 3 to 6 hours a day to become a successful full-time trader. If you aren’t trading full-time, then 2 hours a day is more than enough to generate a decent income once you have the skills required.

Third, there are no other costs to your business: no employees, no rental, no inventory; so you don’t have to pay any upkeep to sustain and maintain a crew or a product.

Fourth, trading is a recession-proof job. Unlike other businesses where recessions can be the end of your business, in crypto trading you can make money regardless of whether a cryptocurrency pair is rising or falling in price. If a currency pair is going up then we go “long” on it, and if a currency pair is going down then we “short” it. Therefore, as crypto traders, we make money regardless of whether the market is going up or down.

Being successful in cryptocurrency trading is very much like being successful in business. You need to work hard and master the skills required. I have people ask me all the time if trading cryptocurrency is easy, and the answer is, “No, it’s not.” That’s like asking if business is easy or if maintaining good health is easy. No, of course it’s not easy because if it was then everyone would be a multi-millionaire, and everyone would be fit and healthy. If it was easy then everyone would just stay at home, press a button to make trades, and reap the easy profits. This is a business, not an easy way out like so many people think it is when they show up to the market.

To become successful at crypto trading, you must master the skills and learn the required knowledge. Anyone can start trading crypto with no knowledge and make a 50% return on their first trade, but that is just luck. For every trader that does this, there is another trader that lost 50% of their investment on their first trade instead. Trading like that is nothing but gambling. Trading isn’t just about making money, it’s about how to make money consistently – and making sure you don’t lose this money.

The good news is that learning a skill like crypto trading is infinitely faster and easier than learning how to grow your own business or getting a degree and than finding a good job that you’re qualified for. Luckily for you, we can teach you the knowledge and skills required to understand and navigate the crypto market to become a successful trader. We offer real education through our online academy Crypto University.

If you are a complete beginner, don’t worry. We offer multiple affordable courses to take you from entry level to professional levels of trading. Just start the courses from the beginning and by the end of them, you’ll know more about crypto trading than most people that claim they’re experienced.

Please don’t hesitate in contacting us if you have any questions throughout your learning process. We are here to provide as much value as we possibly can to make sure that one day you become a full-time trader just like us. Shoot us an email at [email protected] if you have questions about your order. Once your order is confirmed, you will gain access to our private telegram community where I am very active with students along with other mentors and admins.

If you are already an experienced trader and simply looking to advance your trading game, check out this short article regarding our Nitros Bull indicator.

Written by Edward Gonzales © Crypto University 2021

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2 Comments

  1. Gift Sydney Kaluwa

    Would like to hear more coz am interested

    Reply
    • Edward Gonzales

      Glad to hear you are interested. Please check out our cryptopedia for free resources or our available courses for paid educational content.

      Reply

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