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✅️What can you do with cryptocurrency? ➡️There’s a wide range of things you can do with cryptocurrency, and the list grows with time. Here are a few ways to get started, from participating in everyday activities to exploring new technological frontiers: 🔴Donate to causes: There are benefits to donating and accepting crypto, and many nonprofit organizations accept bitcoin donations. 🔴Travel the world: Because cryptocurrency isn’t tied to a specific country, traveling with crypto can cut down on money exchange fees. There’s already a small but thriving community of self-titled “crypto nomads” who primarily, or in some cases exclusively, spend crypto when they travel. 🔴Buy property in a virtual gaming world: Decentraland, which also runs on the Ethereum blockchain, is the first virtual world entirely owned by its users. Users can buy and sell land, avatar clothing, and all kinds of other stuff while partying in virtual nightclubs or mingling in virtual art galleries. 🔴Explore decentralized finance, or DeFi: A wide variety of new players are aiming to recreate the entire global financial system, from mutual-fund-like investments to loan-lending mechanisms and way beyond, without any central authorities. Learn Crypto✅️

What is volatility? In the context of crypto, “volatility” describes the ebbs and flows of cryptocurrency prices. High volatility is a hallmark of the crypto market, whereas traditional stock exchanges are relatively stabler. The following has a profound impact on volatility: — Market sentiment — Liquidity — Speculation — Regulation — News. However, myriad other unpredictable factors may also impact volatility Therefore, investors of all levels should take into account influencing factors that could sway the markets to reduce risks. Learn Crypto✅️

Why do I need diversification? Asset diversification is an investment strategy in which you allocate your assets in various areas to minimize the risk of loss. If one of your coins in your portfolio starts to fall, your portfolio can remain stable (or even show profits) at the expense of other coins. In crypto, diversification is crucial. Since digital assets are extremely volatile, investing in just one coin can cause huge losses. Moreover, it is recommended to diversify even stablecoins—just in case one of them suddenly collapses—you don’t lose all your money. Learn Crypto✅️

What is short and long? “Short” and “long” are standard trading terms (not only in crypto, by the way). Long means buying assets and expecting their prices to increase in the future. That is, you buy a coin believing it will appreciate. Short, on the contrary, means betting on the fall of the asset price. You “borrow” assets from a marketplace, sell them now, and repurchase them later if/when the price falls. In fact, both strategies have a lot of nuances, but this post is for a general understanding. Learn Crypto✅️

Support level and resistance level Today’s post is serving up a little bit of trading theory, so let’s discuss two important concepts. “Support” and “resistance” levels are key terms in the cryptocurrency market. A support level is a price point where a coin’s rate falls but cannot break down. That is, investors consider this point attractive to buy the asset and, thus, stop its fall by actively buying. A resistance level is a price point that a coin’s rate is hitting but cannot overcome upward. Because investors begin to sell actively, and the price goes down. Analyzing these levels helps to predict further price movements and form a successful trading strategy. Learn Crypto✅️

🟢What is a market cycle? 👉You may have heard the phrase that “the market moves in cycles”. A cycle is a pattern or trend that emerges at different times. Typically, market cycles on higher time frames are more reliable than market cycles on lower time frames. Even so, you can eventually find small market cycles on an hourly chart just as you may do when looking at decades of data. 🕯Markets are cyclical in nature. Cycles can result in certain asset classes outperforming others. In other segments of the same market cycle, those same asset classes may underperform other types of assets due to the different market conditions. 🕯It’s worth noting that it’s almost impossible to determine in any given moment where we currently are in a market cycle. This analysis can be done with high accuracy only after that part of the cycle has concluded. Market cycles also rarely have concrete beginning and endpoints. As it turns out, being in the present moment is an exceptionally biased viewpoint in the financial markets. Learn Crypto✅️

Crypto speak: Spread A “spread” is the difference between the best buy price and the best sell price of a cryptocurrency. Imagine you have become the owner of a currency exchange. Customers come to you and can buy dollars at a certain price, but if they want to exchange dollars back, you offer them a slightly lower price. The difference between those two prices is the spread! In the world of cryptocurrencies, spreads play an important role among traders. It is like a navigator that helps us to assess the “weather” in the market. If the spread is small, it means the market is stable and you can buy and sell cryptocurrency without large additional costs. If the spread is large, it means that this asset is “volatile,” and with each trade, you can lose more because of these additional costs. Honestly, if you are a beginner and not a trader, you shouldn’t dive too deep into this topic =) But you should have a general idea about the spread! Learn Crypto✅️

👉Diversification As the old saying goes, you should not put all your eggs in the same basket. In other words, diversify your portfolio. In theory, a well-diversified portfolio offers more protection against massive losses compared to a portfolio made up of only one single asset. If you hold a crypto asset in a diversified portfolio, the maximum damage you would receive if its price tumbles is a percentage of your portfolio. On the contrary, if your portfolio is completely made up of a single asset, then you could potentially lose 100% of your portfolio’s value. 👉Risk-reward ratio The risk-reward ratio calculates the risk that a trader will be taking relative to the potential reward. To calculate the risk-reward ratio of a trade you’re considering, simply divide the potential loss by the potential profit. So if your stop-loss is at 5% and your target is at 15% profit, your risk-reward ratio would be 1:3, meaning that the potential profit is three times higher than the risk. Learn Crypto✅️

👉Stop-loss and take-profit orders Stop-loss orders allow traders to limit losses when a trade goes wrong. Take-profit orders ensure that they lock in profits when a trade goes well. Ideally, stop-loss and take-profit prices should be defined before entering a position, and the orders should be set as soon as the trade is open. Knowing when to cut losses is essential, especially in a volatile market where prices can tumble rapidly. Planning your exit strategy also prevents poor decision-making from emotional trading. The stop-loss and take-profit levels are also essential for calculating the risk-reward ratio of each trade. 👉Hedging Hedging is another strategy traders and investors use to mitigate financial risk. It consists of taking two positions that offset each other. Simply put, traders can hedge one trade by making an opposing trade of similar or equal size. It may seem counterintuitive to enter positions in opposite directions, but if done properly, hedging can reduce the impacts of a market move. For instance, imagine that you are long BTC and holding it in a personal wallet. If the market enters a downtrend, you could take a short position to offset your long position without having to move your BTC. This is what we call a market-neutral strategy. Learn Crypto✅️