Help me understand the cryptocurrency market

[jamisky]

From my little knowledge. Cryptocurrencies are primarily used to buy and sell goods and services, though some newer cryptocurrencies also function to provide a set of rules or obligations for its holders.They possess no intrinsic value in that they are not redeemable for another commodity, such as gold. Unlike traditional currency, they are not issued by a central authority and are not considered legal tender.
I need help in understanding the crypto market and investment advice in order to  invest effectively  on bitcoin market

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[bitChipper]

You already have a pretty good understanding from what you have said.

I think it's important to realize that crypto-currency is an emerging new asset class, it's hard to compare it to any existing assets.

Aside from that understanding the crypto markets is a whole different beast, these markets are brutal and are insanely volatile, my best advice would be to not invest anything that you are not willing to look at like a retirement account that you wont touch for years.

Wish you the best of luck, could be a good time to buy by the way, markets have really been dipping hard lately.

[franky1]

From my little knowledge. Cryptocurrencies are primarily used to buy and sell goods and services, though some newer cryptocurrencies also function to provide a set of rules or obligations for its holders.They possess no intrinsic value in that they are not redeemable for another commodity, such as gold. Unlike traditional currency, they are not issued by a central authority and are not considered legal tender.
I need help in understanding the crypto market and investment advice in order to  invest effectively  on bitcoin market

first i think you need to learn the basics of finance.. excuse any sarcasm.. its meant as humour not arrogance, so smile while reading what im about to say.

traditional currency redeemable for gold? .. umm.. hello 1930's where have you been?
....
'intrinsic' value. is based on the labour needed to own it..
EG cost to mine gold/btc/crypto. and also its function or purpose adss some intrinsic value to the currency held.

for instance traditional currency. USED TO (generations ago) be backed by gold which value came from the cost to mine gold.
these days traditional currencies intrinsic value is only backed by minimum wage. EG US/UK min wage is ~£$7.50 meaning a £$10 bank note is intrinsic value of 1 hour 20 minutes of sweat laabour.
where by law if you do 1 hour 20 minutes of obvserved/provable labour (employment) you will get £$10 atleast
....
yes in traditional currencies, and in gold markets the PRICE is not exact and fluctuates. but that is called speculation..

speculation is the bubbly bit of foam ontop of a value waterline. speculating can inflate or pop which is why PRICES change, but the underlaying VALUE is more stable
this is why at times of massive speculation. they say something is in a bubble period. because there is more bubbles than underlying value (price is more then double value)

...
a bubble does not mean a currency/property/market is fake. it just means the PRICE is over inflated.
houses are real and houses have and always will have value. but the housing market has had bubble periods
..

what you will find is that in crypto's HOW the coin is released to the community shows its intrinsic value and gives you a good starting point to calculate it.
periodic release coins are not all thrown out in one go. they are released slowly. giving it value as there is not a full supply right from the start
pre-mine coins are a term where the coins already exist befor public release and literally thrown out to the community. usually worth less value because of it

mined coins. involve actual computational work to be done. this can add costs like electric, equipment and time.. which usually means value would be higher(imagine robot labour) we call it (PoW) proof of work

stake coins. involve no 'work' as such. just proof of minimum investment to then be trusted to sign/validate. whereby its not labour lost but if the signer makes a mistake they lose the investment they used a proof. usually this means the coins value is less because the labour/cost is small. (imagine pre-nup/divorse papers, cheat and the wife takes it all) we call it (PoS)proof of stake

then there comes the featurs and utility.
some features are defined as unchangable(indelible, natural, esssentia) set in stone features. such as the coin supply(scarcity) which can add to the value.

but then there are features that can change and that then starts going into the speculative 'foam on top the water area'

[franky1]

you will find many coins people term as crapcoins. because they are premined/not mined. no cost of creation. their purpose or function is not proved.
99% of coin announcements and ICO (initial coin offerings) are in this 'crap coin ' category

next is to look at which coins have stood the test of time of sustainability. look at what they do, how they are used and by who. the three main functional coins that have purpose are bitcoin litecoin and ethereum.

bitcoin and litecoin are more like currencies and are MINED (actual cost to create)
ethereum is more like contract agregators/ escrows for other functions.. ethereum is moving to PoS(costs to create are going to be near zero)

..
i wont go through the whole list of coins as there are 1500+ of them and 99% of them are crapcoins as i said,

next would be to look at the prices of the coins. if you dont want to do the maths of cost of mining. the simplist thing would be to IGNORE the all time high(ATH) price of a coin first.
and instead when looking at the charts. take any period length.. EG 6 allotments if only a couple years of chart-12 monthsallotmnts of many years of charts
and find the all time LOW of each period and draw a line between each of those ATL's .
there you will find good indication of where 'VALUE' is. because no one is foolish to sell for less than it cost them to obtain it.

again for emphasis ignore the ATH (bubble price).. look for the ALT(value waterline)

then that will help you guage comparing ATL of most recent period, evaluate if all periods are on a upward or downward movement.

then compare the most recent ATL to the current price
and then comparing the current price to the ATH price

you can then see if the price is at a nice discount (near value) or if its way too much of a premium(near ATH)

[bocyaj]

From my little knowledge. Cryptocurrencies are primarily used to buy and sell goods and services, though some newer cryptocurrencies also function to provide a set of rules or obligations for its holders.They possess no intrinsic value in that they are not redeemable for another commodity, such as gold. Unlike traditional currency, they are not issued by a central authority and are not considered legal tender.
I need help in understanding the crypto market and investment advice in order to  invest effectively  on bitcoin market

At first, bitcoin is used as a payment for games,then it moved to the one of asset.Now many people inverse their money in bitcoin than in Gold and Silver. The simple reason for this is percentage of profit in bitcoin is greater than the gold and silver.You can inverse in bitcoin with 10$,it is additional advantage.

[NABILA AKTER SHILA]

Cryptocurrency is a valuable resource, it is used as a payment to people in all their transactions, exchange, money transfer and shopping. Now many people are investing in it for profit. Buy Bitcoin prices when the market decreases and keep it until the price is high. There are different coins in the market, you will invest in the best bet.

[Skieleton]

From my little knowledge. Cryptocurrencies are primarily used to buy and sell goods and services, though some newer cryptocurrencies also function to provide a set of rules or obligations for its holders.They possess no intrinsic value in that they are not redeemable for another commodity, such as gold. Unlike traditional currency, they are not issued by a central authority and are not considered legal tender.
I need help in understanding the crypto market and investment advice in order to  invest effectively  on bitcoin market

Three principles of safe investment
You should start with this. Cryptocurrencies are a system based on freedom, and there is no freedom without responsibility!

The first rule of safe investment: invest as much as you can lose. Investments can be divided according to the degree of security. Cryptocurrencies are considered risky for two reasons. Firstly, due to the possibility of state interference, and secondly - due to the possibility of virtual theft. Just like before the second threat, you can protect yourself (about this in the further part of the article), so there is no insurance against decisions of democratic politicians.

The second rule: diversify the products in which you invest. The fact that Bitcoin can be gold 2.0, and Monero's most anonymous way of storing money does not mean that you have to buy cryptocurrencies for all the savings! Just as it is not worth keeping all the money in one bank, it is just as risky to invest in one product.

The third rule: think long-term. Putting PLN 1,000 in bitcoin in 2009, today you could draw almost 100,000. zł. However, if during the great drop in value in 2013 you would get scared and pull out money, you would lose most of your capital.

[jamisky]

From my little knowledge. Cryptocurrencies are primarily used to buy and sell goods and services, though some newer cryptocurrencies also function to provide a set of rules or obligations for its holders.They possess no intrinsic value in that they are not redeemable for another commodity, such as gold. Unlike traditional currency, they are not issued by a central authority and are not considered legal tender.
I need help in understanding the crypto market and investment advice in order to  invest effectively  on bitcoin market

first i think you need to learn the basics of finance.. excuse any sarcasm.. its meant as humour not arrogance, so smile while reading what im about to say.

traditional currency redeemable for gold? .. umm.. hello 1930's where have you been?
....
'intrinsic' value. is based on the labour needed to own it..
EG cost to mine gold/btc/crypto. and also its function or purpose adss some intrinsic value to the currency held.

for instance traditional currency. USED TO (generations ago) be backed by gold which value came from the cost to mine gold.
these days traditional currencies intrinsic value is only backed by minimum wage. EG US/UK min wage is ~£$7.50 meaning a £$10 bank note is intrinsic value of 1 hour 20 minutes of sweat laabour.
where by law if you do 1 hour 20 minutes of obvserved/provable labour (employment) you will get £$10 atleast
....
yes in traditional currencies, and in gold markets the PRICE is not exact and fluctuates. but that is called speculation..

speculation is the bubbly bit of foam ontop of a value waterline. speculating can inflate or pop which is why PRICES change, but the underlaying VALUE is more stable
this is why at times of massive speculation. they say something is in a bubble period. because there is more bubbles than underlying value (price is more then double value)

...
a bubble does not mean a currency/property/market is fake. it just means the PRICE is over inflated.
houses are real and houses have and always will have value. but the housing market has had bubble periods
..

what you will find is that in crypto's HOW the coin is released to the community shows its intrinsic value and gives you a good starting point to calculate it.
periodic release coins are not all thrown out in one go. they are released slowly. giving it value as there is not a full supply right from the start
pre-mine coins are a term where the coins already exist befor public release and literally thrown out to the community. usually worth less value because of it

mined coins. involve actual computational work to be done. this can add costs like electric, equipment and time.. which usually means value would be higher(imagine robot labour) we call it (PoW) proof of work

stake coins. involve no 'work' as such. just proof of minimum investment to then be trusted to sign/validate. whereby its not labour lost but if the signer makes a mistake they lose the investment they used a proof. usually this means the coins value is less because the labour/cost is small. (imagine pre-nup/divorse papers, cheat and the wife takes it all) we call it (PoS)proof of stake

then there comes the featurs and utility.
some features are defined as unchangable(indelible, natural, esssentia) set in stone features. such as the coin supply(scarcity) which can add to the value.

but then there are features that can change and that then starts going into the speculative 'foam on top the water area'

Thank you very much for your input. This goes a long way

[funchiestz]

First of all, you need to learn about technologies like blockchain, tangle, and crypto money. There is plenty of information on the internet for these. Before you start buying and selling trades, you should do good research and watch the market for a while.

[kofibee12]

The simple way to get is to equate the market to stock market where several companies are listed and you invest in them, but this time in tokens.if the company goes up,your token appreciate if not you lose money

[Jin xiou]

BTC is what you need to understand. Some people tell that it is dead but it is not. It is worth remembering that after several price drops, many people stopped considering Bitcoin as digital gold. Yes, the bitcoin rate continues to be volatile today, but before we mourn its decline in price, let's think about whether this has happened to stock markets. What about oil? Or gold? Or coal? Even mature assets fall in price due to a variety of factors.

[pooya87]

Cryptocurrencies are primarily used to buy and sell goods and services,

the goal of a cryptocurrency is this and their function should be as a currency. but their primary use is not at all as a currency.
bitcoin is different. bitcoin is the one and only cryptocurrency that is actually used by millions of merchants as payment and millions of dollars is changing hands this way. the rest is the traders.
but when it comes to altcoins they have no usage.

They possess no intrinsic value in that they are not redeemable for another commodity, such as gold.

when something is a currency you can use it to "redeem" anything including gold. and intrinsic value has nothing to do with that. Franky explained it better.

Unlike traditional currency, they are not issued by a central authority and are not considered legal tender.

bitcoin is not issued by a centralized authority but it is a legal tender in many countries.

I need help in understanding the crypto market and investment advice in order to  invest effectively  on bitcoin market

the questions you asked have nothing to do with wanting to invest!
investing is a very different story, for that you want to make profit not use them as a currency or know their value,.... for investment you can even buy one of those "crap coins" that was mentioned above and make a lot of profit.
understanding the market is not something that can be taught in a comment though.

[ParveZ219]

From my little knowledge. Cryptocurrencies are primarily used to buy and sell goods and services, though some newer cryptocurrencies also function to provide a set of rules or obligations for its holders.They possess no intrinsic value in that they are not redeemable for another commodity, such as gold. Unlike traditional currency, they are not issued by a central authority and are not considered legal tender.
I need help in understanding the crypto market and investment advice in order to  invest effectively  on bitcoin market

First of all bitcoin is nithing but a currency...but everybody accepted it as like its a share market... People are trading between bitcoin and other altcoins...Or just bitcoin...with which they can make a huge profit.

[olubams]

From my little knowledge. Cryptocurrencies are primarily used to buy and sell goods and services, though some newer cryptocurrencies also function to provide a set of rules or obligations for its holders.They possess no intrinsic value in that they are not redeemable for another commodity, such as gold. Unlike traditional currency, they are not issued by a central authority and are not considered legal tender.
I need help in understanding the crypto market and investment advice in order to  invest effectively  on bitcoin market

If you really want to understand the way the crypto currency marker works, you need to just let go of whatever residual knowledge you concerning the causality and effect of the way the traditional currency works because this market, more of go against it than agreeing with it which makes it more difficult to understand. When you do that, you can then start bringing in fresh ideas from readings and understanding the market. Its as simple as that and that is when all the suggestions provided will start to make sense.

[jamisky]

Cryptocurrencies are primarily used to buy and sell goods and services,

the goal of a cryptocurrency is this and their function should be as a currency. but their primary use is not at all as a currency.
bitcoin is different. bitcoin is the one and only cryptocurrency that is actually used by millions of merchants as payment and millions of dollars is changing hands this way. the rest is the traders.
but when it comes to altcoins they have no usage.

They possess no intrinsic value in that they are not redeemable for another commodity, such as gold.

when something is a currency you can use it to "redeem" anything including gold. and intrinsic value has nothing to do with that. Franky explained it better.

Unlike traditional currency, they are not issued by a central authority and are not considered legal tender.

bitcoin is not issued by a centralized authority but it is a legal tender in many countries.

I need help in understanding the crypto market and investment advice in order to  invest effectively  on bitcoin market

the questions you asked have nothing to do with wanting to invest!
investing is a very different story, for that you want to make profit not use them as a currency or know their value,.... for investment you can even buy one of those "crap coins" that was mentioned above and make a lot of profit.
understanding the market is not something that can be taught in a comment though.

Thank you very much for your input . I have a clearer understanding now

[karashika0577]

Cryptocurrency market  is strange for people who are unaware. But the transaction by it is still difficult, it is not a paper currency. It is possible that people can use it to buy or sell services soon. It is beneficial to buy it now because of low prices, it is a market full of prospects and risks which makes it even more difficult. For a long time, its prices have not increased, which makes investment more risky.

Thank you all for understanding this even better!

[yudi31]

strategies and tips on trading CryptoCurrency below will help you in running the business.

1. Actually, the right trading strategy is just a theory and will become a reality if you want to practice it properly. Just by testing, you can prove whether the strategy is working properly or not.

Therefore, you can try this CryptoCurrency business by starting with a small fund. Slowly you can also refine the strategy, because the big trade will affect the level of stress where you can later make mistakes.

2. Planning before execution of trading and learning to understand an effective strategy is needed in doing CryptoCurrency business because later on you can provide consistent results.

[MiukoOk]

The simple way to get is to equate the market to stock market where several companies are listed and you invest in them, but this time in tokens.if the company goes up,your token appreciate if not you lose money

I think he should find out on youtube will be more appropriate, when I just entered the Crypto market I still up on youtube to learn experience and self-tinkering, so soon develop themselves, especially We must strive to learn and analyze when the instructor teaches us.

[Dudeperfect]

Well, you got it perfectly. Bitcoin or cryptocurrencies are payment systems at the core but since we are in the early phase of development, there is high volatility in the market and it creates opportunities to make profits. If you are looking to invest in Bitcoin then I would suggest you, investing your time before investing your money and try to understand the market behaviour. Always do your own research before making any investment decision instead of blindly relying on the other's opinion.

[PaulTrace]

You nees to invest your time and analyse the crypto market very carefully to understand it.