HomeTechnologyEight Things You Should Know Before Stepping into the Cryptocurrency Market

Eight Things You Should Know Before Stepping into the Cryptocurrency Market

Because investment is risky; therefore, research before investing is necessary. Especially the cryptocurrency market that goes up and down is like a rollercoaster sometimes. But it cannot be denied that this happened because many investors have turned into crypto investors. Because it is believed that the return is better than the deposit. The number of crypto investors noticeably increased. A recent survey at the end of April 2021 from the Securities and Exchange Commission (SEC) indicated that crypto investors and individual investors opened a portfolio of 698,000 accounts, an increase of about three times from the end of last year. The Crypto market is so volatile that many people call it a ‘fast market’. Unfortunately, a waste of time can also be a waste of time. If you want to start bitcoin trading check the crypto has been made even simpler

Currently, the crypto market is going down. Many people who follow the news may have ideas. Is it a good idea to invest? In addition to preparing money, preparing your heart, you also need to prepare your knowledge. At this moment, The MATTER volunteers to tell the truth. Things you should know about the cryptocurrency market, repeat! Investment is risky

High volatility market

It may remind you often that investing in the crypto market can fluctuate all the time. The asset can go up 1000%, and it can also go down 1000% because the market has no ceiling, no trading on any coin at certain times (circuit breaker), open 24 hours a day, no market closing time. Like the stock market and open trading with traders all over the world

The Thai crypto market even calls investors from western nations the “three gang” because foreign investors wake up to trade. That is why people worldwide wake up with more money or lost money. It’s not surprising.

Has not been regulated to be able to pay the debt according to the law

It’s another fact that you must know. Cryptocurrencies in many countries around the world are not legally regulated. But it doesn’t say it’s illegal either. And its value is also considered to be due to give. Investors are ‘shared value’, so it’s no surprise that central banks worldwide warn about the crypto market. The legal status means that the law allows the currency to be legally used for settlements within its territory, such as the Thai baht in Thailand.

However, for the private sector in Thailand or other countries to accept payments and purchases with crypto, it is possible if both parties have a mutual agreement. But will be forced to buy bitcoin. Accepting payments with crypto is impossible because the law cannot enforce the contract itself.

News and celebrity tweets affect the ups and downs of the coin.

Regular stock market Many stocks have a ‘good foundation’, which can be judged on the traditional assets that support the stock. Whether it is business growth, company revenue, new investment news, even the executives of the organization itself with credibility

But the crypto market is different; many coins have no basis. Some coins have supported projects but have not been developed yet. Having coins out to trade is to add liquidity to that project. Moreover, all crypto trading happens in the digital world where everything is spreading rapidly, especially ‘news’ that can be shared on social media 24 hours a day (Compared to stock exchanges, the news is often released during corporate opening hours). Therefore, various predictions in the crypto industry can create confusion and uncertainty quickly.

That doesn’t include celebrities and influencers who use their social media channels to speak out about crypto, including Donald Trump, Joe Biden, and regular Elon Musk, the owner of the Tesla Company, Who calls himself Techno King (King of Technology). And with the crypto, no underlying assets support the coin’s growth. Therefore, it is not surprising that news or celebrity voices can drag the coin’s value up and down because crypto is tied to trust. Including the confusion and fear of investors directly

 Behind the scenes of crypto is blockchain technology.

Blockchain can be called both the charm and the future of digital assets. Because blockchain developers believe it will be a technology that will make money transparent and decentralized in the future. Blockchain is a technology in which data is divided into blocks (blocks) and chains (chains). Its advantage is that everyone in the blockchain system can see the data of all transactions together. Another feature of blockchain is that it cuts off intermediaries and uses computers to verify transactions. When a transaction takes place, It distributes a copy to every computer in the system. Therefore, the transaction itself is difficult to counterfeit.

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