Basics Of Cryptocurrencies
A cryptocurrency is a type of digital asset created using blockchain technology. These cryptocurrencies are as valuable as the money in your wallet. However, cryptocurrencies are purely digital assets and cannot be seen as physical like ordinary banknotes.
Bitcoin, the world’s first cryptocurrency, was first introduced in 2009 by a person or group alias Satoshi Nakamoto. Until now, no one knows exactly who this person or group is.
The process of creating a cryptocurrency is called Crypto Mining. Simply put, this mining process lends you the computer you have to test the accuracy of other people’s crypto transactions. What happens is that by solving a complicated problem, you can ensure that the data on cryptocurrency transactions that have taken place over some time is accurate.
In this way, a certain amount of cryptocurrency is given as a fee to the computer that successfully solves the problem. At the same time, as the number of computers that mine cryptocurrencies increases. So does the complexity of the math problem that these computers have to solve. While many cryptocurrencies are being mined by now, these problems have become so complex that our average computer cannot solve them. Because it is challenging to work on a normal computer.
So we can join hands with a group of cryptocurrencies miners like us, collect the processing power of each of our computers and solve these problems. Such an organization is called a Mining Pool. From the moment you install a small piece of software on your computer and transfer the relevant processing power to the Mining Pool. You can use computers explicitly designed for that purpose and Crypto Mining by using Miners designed to connect to a Mining Pool and earn the relevant Rewards.
But even if you use a normal computer and connect to a mining pool, it is complicated to make a profit as the processing power of a normal computer is relatively low. Therefore, if you want to earn significant income from Crypto Mining, using a specially designed computer system is best.
Marketplaces dedicated to buying and selling cryptocurrencies are called Crypto Exchanges. Through these Crypto Exchanges, you can pay the normal amount you have and get cryptocurrencies instead.
You can see more popular Crypto Exchanges like this. In this article, we will focus on the Binance Exchange. The Royal Q Trading Bot program we are talking about can be run on either Binance or Huobi Exchange. Since most of these people use Binance Exchange, we will pay attention to it.
Next, we will see what Crypto Trading is. As a simple example, let’s assume that the value of a Bitcoin at the moment is $ 45000. Assuming we buy at this price of 0.001BTC
It costs us $ 45 and If we keep the amount of Bitcoin, we have in this way and the value of a Bitcoin increases to $ 50,000, we can sell the invalid 0.001 BTC for $ 50. Then we can make a profit of $ 5. Here we refer to this process as Crypto Trading.
Now you must be wondering if it takes a long time for prices to go up and down like this. Of course not. Cryptocurrencies are known as very volatile currencies. The reason for this is the ability to move up and down the value of these very quickly.
On the one hand, it is very advantageous to trade-ups and downs.
If you are involved in Crypto Trading, you need knowledge and patience to bear the losses mentioned above and eliminate them. At the same time, remember that this trading is always done using a pair of cryptocurrencies. An example is the pair of BTC and USDT.
We call USDT a Stable Coin. This means that the value of the USDT cryptocurrency is always very close to the US dollar.
So by stabilizing one of the pairs, we can better understand how the other cryptocurrency moves up and down relative to the stable cryptocurrency.
In this article, we are talking about a type of crypto trading called Spot Trading, which can be done through Binance Exchange. Even if the price of the cryptocurrency you bought at the wrong time goes down, there will be no change in the amount of cryptocurrency you bought. This price decrease is called Floating Loss.
Now you wonder if it’s possible to go down and not come up again.
To get rid of this problem, you need to have some knowledge about Cryptocurrency and Cryptocurrency Market. Before you choose a cryptocurrency to trade, you need to determine whether the cryptocurrency’s price is going up (uptrend) or down (downtrend).
For this, we use things like candlestick, bar, line charts that show the change in the price of a cryptocurrency.
This type of study is called Technical Analysis. After choosing the right cryptocurrency in this way, even if there is a floating loss mentioned earlier, the probability of avoiding it quickly increases. However, it would be best if you kept in mind that Technical Analysis may be subject to long-term Floating Loss due to inaccuracies or other factors. Still, such situations can be easily avoided if you have good crypto knowledge.
Spot Trading & Leverage Trading
In addition, although there are leverage trading methods such as Future Trading, the risks associated with them are very high. In leverage trading methods, in addition to the money we have, we take a certain amount of money as a loan and use it to trade. You can get loans from 1x to 125x at Binance Exchange. For example, if you have around 10 USDT.
- 10x -> 10 * 10 = 100USDT
- 20x -> 20 * 10 = 200USDT
- 50x -> 50 * 10 = 500USDT
- 125x -> 125 * 10 = 1250USDT
Put, using 10x leverage means using ten times the amount you trade for a trade. Trading 10USDT with 10x leverage means trading with 100USDT. But the risk of this is that even if you continue to lose the trade, you will recover a portion or the entire amount of the trade to cover the damage to the loan you gave. The loss of the entire amount in this way is called Liquidate.
Due to this, the risk associated with these Leverage Trading Methods is higher than Spot Trading. However, many people agree that trading with low leverage is the best way to make less risk and profit.
Many people have questions like how to get the right entry into a trade, get the most profit and exit at the right time, and manage messy things with their other work.
As a solution to this, we can introduce the Royal Q Robot or Royal Q Intelligent Platform that we will talk about. However, if you do not use this platform properly, you may not get the benefit you expect.
For this reason, in the next part of this article, we will talk about how to use the Royal Q Robot and the risks, advantages, disadvantages, do’s and don’ts, etc.
You can also use the link below to join the Royal Q Platform.
I hope you have gained a basic understanding of CryptoCurrencies with this description. Not everyone you understand with this description can contribute to this Crypto Mining Process. So we need to buy from someone else to get these cryptocurrencies when we need them. Then we will look at where to buy cryptocurrencies.