Cryptocurrency markets are the world of buying, selling, swapping, and storing digital currencies like Bitcoin. They’re also the place where prices go up and down depending on supply and demand — just like stock market prices. There are hundreds and thousands of cryptocurrencies that can be traded on the market. Each cryptocurrency has its own primary function, such as a payment token, dApp development and deployment platform, or blockchain oracle. But most cryptocurrencies are also available as investments, meaning you can purchase them with the aim of making money.
The value of a crypto depends on a combination of factors, including its quality, how hard it is to create new coins, and how popular it is. Its price can also be driven by speculation – like buying and holding baseball cards to increase their collector’s value – or by a lack of clear regulations protecting investors from unethical management practices, as well as the risks of software bugs or hacks that lead to significant losses.
Like stocks and other investments, a successful investment strategy includes doing your homework. There are plenty of resources out there, from reputable websites that publish research reports to forums where experienced investors share their knowledge. In addition, there are advanced tools for investing in cryptocurrencies, such as cost averaging (buying more when prices are low) and automated trading (setups executed on predefined prices by software programs like Kriptomat’s Recurring Buy). This makes it easier than ever to invest in cryptos, even without access to high-end technology that was once only available to brokers and investors.
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