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Important Advice before Invest in Cryptocurrencies

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Cryptocurrencies in recent years have become one of the investments that are loved by people almost all over the world because they are considered the future of the financial system that will replace the conventional financial system. There are many things to understand before investing in crypto assets because the market price of cryptocurrencies is very volatile, some things we need to know before investing in cryptocurrencies:

Understand cryptocurrency terms

It is important to know before starting to invest in cryptocurrency to understand the terms in it, learning it will make it easier for us to know the basic concept of crypto assets to avoid scams and fraud. The basic terms to know are:

1). Blockchain: The technology used in cryptocurrencies where all transaction data uses Blockchain as a decentralized storage place.

2). Bitcoin: The cryptocurrency that first appeared and is currently the number one crypto asset in terms of market capitalization and price.

3). Altcoin: Cryptocurrencies other than Bitcoin like Ethereum, BNB, Solana, Polkadot, and many more.

4). Coins and Tokens: Coins and Tokens have different meanings, Coins are created on major networks of Blockchain like Ethereum, BNB, etc. Whereas Tokens are created from networks at layer 2 like Shiba Inu, MANA, Sand, etc.

5). Bullish: The term for market conditions that are rising or on Uptrend.

6). Bearish: The term for market conditions that are down or downtrend.

7). Whale: A Rich investor who can usually influence the market price of cryptocurrencies.

8). HODL: The term used by crypto investors who hold their crypto assets for a certain time.

Many other terms are commonly used in cryptocurrencies, you can read about them here - LINK.

Doing Research before trading Cryptocurrencies

This is a very important thing to do before investing or trading crypto assets because if we lose no one will be responsible, and poverty cannot be avoided, it is important to do DYOR (Do Your Own Research) without relying on other people's opinions because of the risks that will be experienced no one to bear except yourself.

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Read references from credible portals that discuss cryptocurrencies, join forums, and attend academies like Binance Academy, Watcher Guru, Coin Desk, and others as additional information for research before investing in certain crypto assets.

Performing Fundamental Analysis is a basic thing that can be done as information that will gradually be added with technical analysis will produce a strategy that can be used for short or long trading.

Understand that the Cryptocurrency market is very volatile

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Before entering into crypto asset investment, patience is needed and not making decisions impulsively when going to sell or buy crypto assets, and the thing to avoid is FOMO (Fear of Missing Out) by not directly trusting information from other people.

Beware of scams

Cryptocurrency is one of the investments whose market is increasing in terms of users with investors growing every day making cryptocurrencies vulnerable to fraud with various actions. Like the case that happened to Solana in the last few weeks, we as investors need to be careful in storing confidential data and not trusting anyone.

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Final Thought

Investing in Cryptocurrencies provides many opportunities to profit by trading or hodling potential crypto assets in the future, but keep in mind that research and strategy are required to be successful in cryptocurrency investments.

**Disclaimer*: Every investment decision is in your hands. Learn and Analyze before trading crypto assets. I have no responsibility for any actions or financial decisions you all take.

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Posted Using LeoFinance Beta