THE BASIC UNDERSTANDING ABOUT TRADING AND INVESTING CRYPTOCURRENCY.
Trading cryptocurrency is not that what you think risky.
The risk is in control of your hands, psycological and emotional.
Let me share some stories of my trading experience.
I start year 2020 month of August. I already confuse about what is Bitcoin and cryptocurrency. Year 2017 start learning about it until now. Step by step learning about the basics and advance in crypto. While pandemic i lose 15,000 php (309 USD) because im out of control and become greedy to make a higher profit. Trading in advance makes me lose my money because of its liquidity.
But stil I wont stop trading. Losing for me means to learn from your mistake. So i trade again with a wise decision, making my own trading plan and a daily goal to make profit.
A capital of 23,000 turns into 57,000 and already cash out 15,000. Theres a lot of ways to earn without taking your time. No need to worry investing cryptocurrency, its global adaption.
Lets begin with the basic mathemathical understanding about Cryptocurrency "SPOT" trading.
The picture shown above this description is an information about this cryptocurrency.
Introducing XRP with the current market value of 65.01 PHP per 1 XRP.
When buying crypto in SPOT, its 1:1.
BUY
For example when buying crypto use the basic math by dividing those number or value.
CAPITAL/CURRENT MARKET VALUE = PURCHASED AMOUNT OF CRYPTO
If your Capital is 5,000 php then you would like to buy this crypto called XRP. You already got 76.9 XRP in total by using your 5,000 capital. Thats how trading works. Exchanging crypto or fiat money.
**HOW TO EARN? **
76.9 XRP is already yours and it shown in your wallet .
So how we notice that we're losing or earning?
Trading Spot is buying a crypto for longterm with 1:1 ratio mean the value of crypo you had multiply to the current market value is equal to your Current money in fiat currency at your country
TOTAL CRYPTO * CURRENT MARKET VALUE OF CRYPTO = CURRENT VALUE IN FIAT CURRENCY.
XRP current market value is 65 php per 1 XRP . Means that amount is your basis of losing or Gaining in a trade.
EARN
If the market value goes up to 80php per 1xrp means the total current value of your 76.9 Xrp in Peso currency is 6,152. From 5,000 capital purchase at 65 per 1xrp you made a profit of 1,152 if the market goes up to 80php per 1 xrp.
Selling your crypto means taking the profit of it. Thats how it works to earn easily without the risk.
LOSING
If the market value goes down to 50php per 1xrp means the total current value of your 76.9 Xrp in Peso currency is 3,845. From 5,000 capital purchase at 65 per 1xrp you lose of 1,155 if the market goes down to 50php per 1 xrp.
BUSINESS CONCEPT
This is just the basic understanding of buying and selling crypto. Think about the crypto is an apple cost 65 each apple then your capital is 5,000 the same as buying crypto explained above. So basically means you can buy a total of 76.9 or consider as 77 apples.
To make it profitble you must sell it at higher than the amount of purchased. If you bought it at 65, sell it higher than that value to make a profit.
The Risk is in your Hands.
Top Global echange platform.
Create an account and get verify, start trading.
https://www.binance.cc/en/register?ref=OJ0VX7K9
Thank you for this. I will reread and reread this to understand more.
Also i will continue posting about trading and investing cryptocurrency. That is just the first step on trading. There so many alternatives ways to earn.
thank you for sharing !
Welcome. Im here to help and educate people to learn about Cryptocurrency.
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there's always risk in trading. take for example your apple, will you sell it at a higher price knowing that it will rot in the next few days? or knowing that there are more merchant selling apples? or knowing that there is a way(planting) to produce apple and sell it right away to consumers? or knowing that there are consumers who prefer to eat oranges or bananas than apples? those are the risks.
to say that there's a little risk to none in trading is already a risk. but I understand, slowly you will learn those as you dive more in to crypto. keep sharing your experiences. I'd be willing to help if it's needed.
Thanks. I know that there's a risk in every investment but in my own opinion risk is manageable. Keep on reading my post. Thanks for the support i will explain more.
I don't agree that it is without risk. There is already a risk at the time someone bought crypto. It gives a false impression to it. You should highlighted that people should invest what they are willing to lose rather than giving a false hope that it is that easy to leverage is a better advice.
With regards to the computation, it is too simplistic. I agree that it how you get somehow what it intend to be, but you missed that there are gas fees to it. it is not that simple at it seems. It good to know that you are earning. Hence it is a basics guide to crypto (as what you have said); you only pointed out one extreme, which is when the market goes up, but how about it goes down?
By the way, the apple analogy is flawed. I agree with @themanualbot's comment. Risk is always associated to investment. Again, pointing out that someone should invest what he or she should willing to lose.
On a side note, you should be posting on Leofiance since you are posting blogging about crypto and trading. It will give you some leverage for your content.
Lack of research for those who saying its risky. Generalize those term, its Network fee not just Gas fee. Once again Risk is manageable. Risk is for the people who's afraid to change their life. Either for better or worst life must change.