UNDERSTANDING THE CRYPTOCURRENCY – Introduction
If you’ve already begun your journey to learning about Cryptocurrency, the first step is to understand the two stages of the journey.
When people learn about Cryptocurrency, they usually start with stage one and work their way up.
This article provides an intro to the two stages that are involved when a person is studying Cryptocurrency.
Details About CryptoCurrency
The first stage is known as the Forex market cycle. This stage is the length of time that a typical investor will hold their position.
During this stage, many investors who participate in the Forex market will only be focused on the short-term profit potential of particular currencies rather than the long-term potential for profit that could be gained by investing in Cryptocurrency itself.
For those investors who hold onto their positions for a longer period during the Forex market cycle, they may become frustrated by the inability to gain any long-term profits and begin to look at other opportunities.
At this point, some of these investors will begin to educate themselves on the basics of investing in Cryptocurrency to open themselves up to potential long-term profit.
Some will even attempt to use analytical skills to determine if there may be a correlation between the stock market sentiment and the price increases and decreases of specific Cryptocurrency pairs.
During the second stage of learning about Cryptocurrency, an individual investor will begin to determine which Cryptocurrencies they may be interested in trading. At this point, the investor will have chosen which currency pairs they would like to trade.
On the flip side of the sentiment, we are currently in the “no investment” stage of understanding the Cryptocurrency market when the market is completely driven by sentiment.
What are the changes expected in the new cryptocurrency bill?
The cryptocurrency bill is still waiting in the cabinet. However experts from different spheres believe that bill must have to classify the standard qualifications of the crypto.
When can we expect Cryptocurrency to be legalized in all the countries?
In countries like India and China, the authorities are more likely to pave the path to CBDC’s and not existing cryptocurrencies, as there is no legal backing.
What would be the best way to implement the cryptocurrency laws as there is no precedent on its regulation?
Firstly, the government will consult its stakeholders as we are still in the drafting stage of the bill.
Secondly, the government should do a detailed SWOT analysis to understand the implication of introducing the law.
Some Important Measures
While investors may not be investing in the top 10 or even top 20 of Cryptocurrections right now, they are certainly getting involved in some sentiment-driven investment.
From here, we study the trends and volatility that are associated with the various domestic currency pairs. Trends typically occur over a longer period, but there are instances when the trend can happen much quicker.
Volatility is most commonly associated with larger values, such as the GFL and USD, but this is not always true. Watch crypto frauds to know more
In addition, there are many other important indicators for you to learn about, including those provided by the Cryptocurrency Research Society.
Cryptocurrency trading is a great way to make money from home if you properly analyze it. Once you have learned the basics of the process, you will never stop wondering what might happen next!