We have seen Bitcoin soaring above 90,000 dollars and reaching an all time high.
We are also likely to witness a mammoth increment once Donald Trump has been inaugurated in January 2025.
But should you join the rush?
What is Bitcoin?
Bitcoin is a crypto currency that is decentralized and is stored in a block chain. It has a limited amount and it's mined by some energy consuming special computers.
Little is known about the creator and founder of Bitcoin but he is known as Satoshi Nakamoto.
Satoshi's identity is yet to be known but it's safer for the ecosystem that he's unknown. Because once he's known the global finance is at risk.
The value Bitcoin has its due to his limited quantity and demand. The higher its demand, the higher its pricing so it has no intrisic value of its own.
ALT COINS
These are alternative coins to Bitcoin such as Ethereum, Solana, Cardano, Tron and many more. Most of these coins are built on Smart contracts and Ethereum background.
Ethereum appears to be the next valuable coin to Bitcoin. Ethereum was created by Vitalik Buterin and most coins could be built on its foundations.
We had developers using the Ethereum technology to develop NFTs.
NFTs are unique art works or digital property that are unique and cannot be recreated.
NFTs are sold in crypto markets and can cost a fortune.
MEME COINS
Meme coins are otherwise known as Shit coins. This is because they have no fundamental store of value and can be created by any developer. Examples of Meme coins are Doge coin, Hamster Kombat, Pepe coin and many more.
They can be a way to make money for the early investors but soon will drop in value.
HOW TO INTERRACT WITH THE CRYPTO MARKET?
The first thing to consider is your risk appetite.
The second thing is your financial goal.
The third thing is the knowledge of the fundamentals of the market.
The fourth thing is the capital you have.
The fifth thing is the choice of exchange to use and the best wallet to store your digital assets.
If you are risk averse, then you should go for Stable coins like USDT.
If you have a moderate risk appetite you can consider Bitcoin, and alt coins like Ethereum, BNB, Solana and Cardano.
If you bear any risk for the gains you can try Meme coins and Shit coins like Dogecoin.
If you're thinking long term, you can hold HODL, buy your ALTCOINS like Eth and BNB then forget it.
But if you are trader that wants immediate gains, you can buy the dip (buy low) and Sell high.
Another thing to consider is the exchange to use.
Some years ago FTX, a top US crypto exchange crashed and traders lost their money. So you have to use top exchanges like Binance.
Also, learn to store some of your shitcoins in your wallet like trust wallet.
I hope this made some sense?
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