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5 things to keep in mind if you want to throw yourself into the arms of cryptocurrencies

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1. Investing in some video cards and mining cryptocurrencies or transactions for a simple person?

For most market watchers, mining is not an option, a solution, because microinvestment equipment is extremely high. Profit is a very low percentage and can be quickly swallowed by market volatility. For the classic coins, with antiquity, mining is not a variant, a solution.

In some specific cases it may still be, but it is still, in the end, a stake in price appreciation.

When the phenomenon was in its infancy, Dogecoin could be mined and at that time it was not profitable at all because the prices were very low. It was a tiny gain. If someone had kept those coins, that’s where the gain would have come from, just like Ethereum, Bitcoin and other virtual currencies.

If we don’t have a passion for hardware, watching updates, some wrote software in the beginning to make mining more efficient. If we have this level of expertise, yes. Otherwise, market participation by holding, but not at any time and not at any price.

2. The difference between good and bad cryptocurrencies: is there such a thing?

There is. Time separates them. We understand many things after a while. At any moment we have a certain visibility. Experience and intuition help us. The seriousness of the participants. Age may be a factor, but it is not from one point to another because it can also mean that technology can be overtaken from one point to another.

Efforts are being made to optimize the operation of the network for Bitcoin and Ethereum. Otherwise, operating costs tend to become high. Continuous innovation is needed in this area.

The line between innovation and speculative balloons is very thin. Many projects pass in the area where there is a website, a promise, a white paper and a table of enthusiasts. Some master a certain art in creating agitation around the respective projects, not necessarily aiming to complete the project, but to sell the coins. There are thousands of such projects at the moment. Some of them I think will prove to be a remarkable success. Many do not think they will succeed. On the contrary, more than 3 quarters will end up being worthless in 1-3 years at most.

3. How does someone choose a good currency?

If we want a little more security, we go to the older ones. (More details in the Video).

Good coins are those that have a chance to last, that respond to a real present or future need. That need should be long-term, not short-term enrichment.

The team behind it has to show some seriousness. Let’s have a certain history. It’s also about everyone’s intuition because there are projects that I find very interesting. Many seemed interesting to me a few years ago, and of the 5-7 I was watching, I would say that one or two proved it.

It’s not that simple in the long run. It seems very simple in the short term, but it is not.

We would rather miss some potential gains than lose 90% of the money on some fake projects.

So an attention to the classic titles and in a portfolio of virtual currencies can be room for 10-20% of projects that seem innovative.

4. It is necessary to know the technical analysis, otherwise waking up to reality is not pleasant

The wave of excitement has brought a number of people who are just starting out. I like the enthusiasm I see there. Enthusiasm has no place in preparation. It’s very easy at a time when everything grows to think you’re Warren Buffet or Elon Musk of virtual currencies.

This is very easy, but waking up to reality is not a pleasant thing to do. Preparation is essential.

Technical analysis is at times the central factor. In the long run it is not, but it is to enter the market at optimal times. The technical analysis tries to give an idea about the energies in the market, feeling and to transpose them. There are some experts who read beyond certain potential tricks, that there is also this on the chart, certain false breaks, certain incomplete constructions. The cost of a lack of training is absolutely huge.

If we look at the candlestick, it’s a book by Steve Nison. This is in the subfield of technical analysis which matters a lot in certain periods.

5. Do we have a bubble on the crypto market?

It is a bubble of varying sizes. Some soap bubbles are not very big, but others are huge. The differences are huge between the smallest and the largest. We are talking about a bubble in formation for virtual currencies on average, but with huge differences. Some projects are soap bubbles, others have a certain value. Some of them are currently relatively undervalued. Very few compared to the huge category that is up.

It will be a very painful moment of awakening for those who are now throwing themselves with unbridled enthusiasm.

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