Important Things New Crypto Users Should Know in 2023
Cryptocurrencies today are no longer considered a scam. The crypto market has entered the mainstream with a bam.
Cryptocurrencies actually have become one of the most attractive investments by 2021, thanks to one of the longest bull cycles that started in 2020. But, since the crypto market is fully decentralized, it didn’t take long for it to fall back to a ‘bear winter.’
The market is still going through a bear cycle, which is the perfect time to compare different cryptocurrencies and make an investment. That being said, crypto trading can seem daunting, especially for new users.
However, most investors don’t want to lose the opportunity to reap great profits in the long run, and at the same time, they want to be aware of the risks associated with the crypto sector. If you are new to crypto, we’ve got your back. Below, we have compiled a list of the top things you should know as a new crypto user.
Business Support
You should also take into consideration cryptocurrencies that are supported by different businesses. Cryptocurrencies that are widely adopted typically will have a bigger market cap and are deemed more stable than other virtual currencies. Major cryptocurrencies like Bitcoin, Ethereum, Bitcoin Cash, Dogecoin, and Litecoin, and notably accepted by many prominent brands.
Some of the famous businesses that accept crypto are OkCupid, Overstock, Twitch, Tesla, PayPal, and many other small and less-known brands. So the support of the crypto sector is not limited to only well-known brands or other small online brands as well as brick-and-mortar stores that accept crypto payments. They can do that without additional costs except investing in a crypto wallet.
There are many benefits for any crypto user and business since the transaction fees are minimal and the processing times are instant. This is a major reason why competitive sectors like the iGaming industry accepted crypto payments. Many online casinos, like Big Wins, accept crypto transactions on their website. It helps them connect with another audience of crypto casino –players, and also, it is a fast and safe payment method for online casino members. So, anyone that would like to wager with their crypto funds can do that online.
Security and Storage
Before you start crypto trading, it is very important to take the security of your crypto funds seriously and invest in a proper safe crypto wallet. There are two kinds of crypto wallets based on their connection to the Internet – hot and cold crypto wallets.
The hot wallets are desktop, mobile, and web-based wallets. To use crypto wallets, you need private and public keys, the latter being your public address on the blockchain network.
The private and public keys are stored either on a third-party server or, in some instances, as with desktop wallets, under your control. When you use a mobile crypto wallet, you will install an app on your phone; web-based wallets are accessible on any device because they are based on a specific trading site.
As the name suggests, the desktop wallets are installed on your computer and only accessible on that device. In addition, you need to choose a secure provider because this is especially important when trading online.
In terms of hardware wallets, hardware wallets represent a high-end technology that offers a high level of security because cryptocurrencies and your public and private keys are stored offline. Moreover, there are paper-based crypto wallets where your public and private keys are printed on paper, which is why they are fairly accessible online. Still, you need to pay attention to the security of that paper.
Look for New Crypto Projects
The bear market conditions should not turn you away from the crypto market. On the contrary, you should remain to look for new coins with a growth potential of at least 50x their initial offering.
The next bull cycle is predicted to occur in 2025 or after Bitcoin halving in 20254. Even though no one could know what will happen, new investors could find excellent value by choosing wisely the virtual currencies in their portfolio with the next bull cycle.
It is also beneficial that there is an abundance of online trading sites to choose from, so it’s important to only register on a trustworthy and highly secure trading platform.
Read the White Paper
Every cryptocurrency has a white paper where the cryptocurrency’s creator explains the cryptocurrency’s goals, their projects, and how they want to attain those goals. Also, you can check the credibility of the cryptocurrency through a white paper and learn more about the technology behind the project.
This is extremely important for every crypto investor as there are over 10,000 altcoins in the market, and they are all very different. So, before considering adding a cryptocurrency to your portfolio, do thorough research and read the white paper of that specific currency.
Crypto Market News
The crypto market is still in its infancy, and bigger or smaller events and trends are making waves in the market and the value of cryptocurrencies. For example, based on historical data on the crypto market, after each Bitcoin’s halving, the crypto market enters a bull market phase, as well as Bitcoin.
In addition, since the market is distributed, other events, minuscule in comparison, can have a ripple effect on the market. So, whether you are following famous crypto influencers or you have set up alerts for specific events, it is very important to stay on top of the news in the crypto market because, in an instant, they can change the position of specific cryptocurrencies.
One example is Elon Musk and his tweets about certain virtual currencies that result in their subsequent spike in their value.
Conclusion
In conclusion, the crypto market is ever-changing and impacted by many factors, but this doesn’t mean you should pass on the opportunities offered here. The crypto market will remain volatile, especially compared to traditional markets that are not decentralized or based on blockchain technology.
But, it will always integrate new tech innovations that could yield better results for your portfolio. The newfound media hype around crypto proves that cryptocurrencies are the future, and the crypto market will continue to grow and evolve. We would expect cryptocurrencies to become more accessible and widely used in the mainstream for the years to come.
