Learning digital currency is the primary condition for entering the cryptocurrency market, and it is better not to involve your capital in complicated buying and selling transactions until you have mastered the basic concepts of this market. If you are interested in working in this market, you should also learn it from scratch, stay up-to-date with new market events, and grow shoulder-to-shoulder with the market.
In the following, we explain the concept of blockchain, bitcoin, and the content related to analysis training, trading terms, methods of earning money from digital currency, training to buy and sell it, and training to make a digital currency wallet.
Digital currency learning roadmap
In learning digital currency, you must first familiarize yourself with the nature of the crypto market and the factors influencing the price of digital currencies, and you should know blockchain technology and valid cryptocurrency projects well. After that, you should learn various ways to earn money from this currency and find the proper method for your personality type.
In the next step, it is necessary to learn the techniques of cryptocurrency market analysis. After acquiring sufficient skills in this field, you will find the cryptocurrency exchange you want, considering the price of Bitcoin as a leading market asset, the purchase and sale transactions of this Start cryptocurrency, or any other types you are considering.
Finally, after buying digital currency, you should choose a suitable wallet to store your cryptocurrency assets according to your investment vision.
What is digital currency, and what factors affect the price of cryptocurrencies?
It is better to start learning digital currency by understanding this market’s unique nature and characteristics. The terms “digital currency,” “cryptocurrency,” “encrypted currency,” or “cryptocurrency” all refer to a new form of property created based on blockchain-based cryptographic technology. Unlike today’s current currencies, such as the dollar, which are printed and issued by governments, digital currencies are decentralized. They are not under the control of any central institution or individual.
If we want to tell you what digital currency is in one sentence, the phrase “decentralized money with wide applications” is the most appropriate explanation. One of the main questions of active users in the cryptocurrency market is, “How to price digital currency.” Cryptocurrencies are a type of digital asset whose price is determined based on the principle of supply and demand.
By entering into the transactions of buying or selling an asset, it is the traders themselves who cause its value or decrease its value. In other words, it can be said that digital currencies do not have any physical support, and people’s inner belief in the bright future of Bitcoin and other valid cryptocurrencies in the upcoming digital world makes them valuable.
The first important point in learning digital currency is to know that due to the unique nature of the crypto market and the broad effects of investors’ emotions on the price of cryptocurrencies, the market faces wide sudden fluctuations when faced with positive or negative news, which can limit the Profit and loss of transactions. Activate many. Therefore, it is better to consider these wide fluctuations as an inseparable part of this market and be aware of the nature of the ground you are playing!
Accepting the fluctuating nature of prices and getting to know the factors affecting the price of Bitcoin in the crypto market from the very beginning will help you learn digital currency and find the best trading strategies.
What is blockchain, and what does it do with digital currency?
The second step in learning digital currency is getting to know the concept and applications of blockchain. Blockchain is a new technology for storing information that records and maintains all types of data in a decentralized, transparent, and secure manner so that no individual or institution alone can change them.
Blockchain technology was introduced to the world simultaneously with Bitcoin and has taken root in many businesses. The primary purpose of blockchain is “decentralization” in various world affairs. In its evolution, it provides a platform so people can do all their work as quickly as possible without intermediaries.
Digital currency is a part of the blockchain that makes it possible to carry out financial affairs on the platform. Using blockchain technology and digital currency, you can transfer money at high speed and low cost, at any hour of the day and night, and to any part of the world you want. The only tools you need for this transfer are internet access and a digital currency wallet.
Essential terms in learning digital currency
Due to its emerging nature, the cryptocurrency market is full of new concepts. At this stage of learning digital currency, we will explain the most important trading terms, market psychology, and the basic concepts of the crypto market to you.
Bullish Market
A green market where prices are rising is called a bull market. The reason for this name is that the old traders interpret the bull market as if a bull is pushing the price up with its horns.
Bearish Market
On the contrary, a bear market is a situation where prices are in a downward trend. The reason for choosing the bear name for this type of market is that traders believe that bears attack the price with their claws and knock it down.
Pump and dump price
A sudden jump in digital currency’s price is called a pump, and a sudden price decrease is called a dump.
Price ceiling (ATH) and price floor (ATL)
The highest historical price of an asset (Time High) is called ATH, and the lowest historical price (Time Low) is also called ATL.
Profit Limit (TP) and Loss Limit (SL)
Take Profit is the price that leads to the closing of a profitable trade. On the contrary, the stop loss is the point that leads to the conclusion of a losing transaction and prevents further losses to the capital.
FOMO
“Fear of missing out” is called FOMO (Fear of Missing Out). Fomo refers to a situation where prices rise, and people enter into ill-considered buying transactions because they do not want to miss the opportunity to make a profit.
FUD
The feeling of “Fear, Uncertainty, and Doubt” is called FAD (Fear, Uncertainty and Doubt). Fad refers to a situation where negative news dominates the market, and traders feel doubtful about the value of an asset and may decide to sell and exit the market. Not getting caught up in feelings like FOMO and fad are the most critical topics in learning digital currency.
Bull Trap
When traders get a false bullish signal from the price chart, they assume that the downtrend is over and enter long trades. In such a situation, traders are said to have fallen into a “cow trap.”
Bear Trap
When traders get a false bearish signal from the price chart, they assume the uptrend is over and enter sell trades. This condition is called a “bear trap.”
Fear and greed
The flow of buying and selling transactions in the market is formed based on the feeling of fear and greed in traders. When the sense of dread overcomes people, the volume of sales transactions increases, and prices decrease. On the contrary, when traders are greedy, the importance of buying transactions increases, and digital currencies approach the price ceiling ranges.
The term To The Moon
This term is used when traders are very optimistic about price growth and believe that the price of cryptocurrencies will rise so much that it will reach the moon!
Whale
A whale is a person who owns a large amount of cryptocurrency. Whales are the leading players in the cryptocurrency market, and with their buying and selling transactions, they create high price fluctuations.
Coins and tokens
Coins and tokens are two different forms of digital assets. The difference between a coin and a token is that a coin (such as ETH) is created on its blockchain, Ethereum. However, the token is a cryptocurrency without a blockchain and is built on another blockchain. For example, Shiba Ino digital currency is a token that does not have a dedicated blockchain and was built on the Ethereum blockchain.
Transaction Hash
A unique statement called transaction hash or TXID is generated for each transaction in the blockchain, and the transaction status can be checked through it. This particular phrase is the transaction tracking code in the blockchain.
Altcoin
All digital currencies introduced to the world after Bitcoin are called altcoins. Altcoin is an abbreviation of Alternative Coin, which includes the concept of an alternative currency to Bitcoin.
All-season
An alt season is a market period when investing in altcoins is more profitable than investing in Bitcoin.
Digital Currency Airdrop
In response to the question of what airdrop is, it can be said that the process of distributing digital currency for free by the development team of a cryptocurrency project aimed to market that project and introduce it to the cryptocurrency community is called a digital currency airdrop.
Learning how to make money from digital currency
In the third step of the digital currency learning roadmap, you should get acquainted with various methods of generating income from the crypto market. The cryptocurrency market has wide dimensions, and if you spend time acquiring new skills, it is possible to earn money from this market in various ways.
Long-term investment in the digital currency market
The easiest way to operate in the digital currency market is long-term investment. It is enough to identify the best digital currency for a long-term investment with a little study and research, and in the right price situations, make step-by-step purchase transactions and keep your cryptocurrency assets in a suitable wallet until the time to sell.
Daily trading of digital currencies
The cryptocurrency market is known worldwide for its wide daily fluctuations. By acquiring trading and market analysis skills, you can earn daily income by quickly buying and selling various cryptocurrencies. Pay attention that learning to fluctuate digital currency requires a lot of practice.
Digital currency mining
Digital currency mining is another way to generate income from this market, which does not require much expertise but has a high initial cost.
Depositing digital currency (Staking)
Digital currency staking means you buy some cryptocurrency and deposit it on specific platforms. Stake bonus rates of different cryptocurrencies have different values. For example, suppose the Ethereum Stake bonus rate for one year on a forum equals 6%. In that case, it means that by depositing one Ethereum unit at the end of the deposit period, 6% of your Ethereum balance will be added to your account.
Financial consulting and content creation in the field of digital currency
Suppose you have sufficient mastery of the cryptocurrency market and continuously update your knowledge. In that case, you can make money by holding training courses or providing financial advice to people who want to invest in this market.
Bitcoin training
At this stage of digital currency training and learning, it is time to get to know the most popular asset in the market. Bitcoin is the first digital currency introduced to the world, which has taken nearly 50% of the total volume of market transactions. The total number of available bitcoins equals 21 million units, which will be mined by 2140 AD.
One of the reasons for Bitcoin’s value is its limited supply, which, unlike today’s current currencies, cannot be printed and distributed without limits. The price ceiling of this cryptocurrency is equal to $69,000, and analysts believe that BTC will reach a new price ceiling in the range of $100,000 in the not-too-distant future.
Learning how to mine bitcoins with a phone is one of the topics that is searched for by many users. The difficulty of mining Bitcoin is increasing daily; if you want to become a Bitcoin miner, you need to have more advanced hardware equipment than a mobile phone.
It cannot be said that it is not possible to mine Bitcoin with a phone, But it is not the best way to make money from this market! Because to profit from mining Bitcoin with your phone, you have to spend a lot of time and use it more than the average capacity of your mobile phone and disrupt its performance! Such an issue ultimately leads to a decrease in the productivity of your mobile phone and does not give you significant income.
Digital currency analysis training
In the fourth step of learning digital currency, considered the most crucial step, you should master different market analysis methods. Digital currency market analysis is done in three ways: technical, fundamental, and intranet. None of these methods alone can guarantee your positive performance in the market, but you must be familiar with all three ways and use all three together.
In the fundamental analysis of the digital currency, you examine the total value and structure of that project and then read the importance of this project and its position in the market. You read the price chart in technical analysis and identify potential price reversal levels. Finally, you manage your transactions according to the economic conditions prevailing in the world.
In simpler terms, you use fundamental analysis to answer the question, “Should I buy this cryptocurrency?” If your answer to this question is positive, you should use technical analysis to determine the best entry point for the purchase transaction.
Trading View platform is the best digital currency technical analysis site. On-chain data analysis also informs you about the cryptocurrency’s network status and its users’ activity in learning digital currency. Cointelegraph and Glassnode platforms are the best digital currency analysis sites in fundamentals and intranet, respectively.
Learning to buy and sell digital currency
One of the most critical topics in learning digital currency is knowing the types of buy and sell orders. In general, the buying and selling of digital money is done by traders with two goals:
1- Buying and selling digital currency for long-term investment
If you intend to invest long-term, you should choose the top digital currencies of the market with a high market cap and solid fundamentals and make your purchases in the price floor ranges step by step using the DCA strategy.
2- Buying and selling digital currency for daily trading and fluctuation
Suppose you want to trade in lower timeframes. In that case, you should also create a watch list of Bitcoin and those altcoins with high daily volatility and manage the changes in the price of digital currencies by technical analysis and following fundamental news.
How to buy digital currency
In the final stages of the digital currency learning roadmap, it is time to learn how to buy cryptocurrencies. Buying and selling digital currency is only possible through cryptocurrency exchanges. First, you need to create a user account in a digital currency exchange, and by charging the user account, learn how to buy digital currency and make the desired transaction.
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