For beginners, it is important to start with the main cryptocurrencies that have high liquidity and consistently high popularity in the market. This will help to avoid too much risk and loss. Here are some cryptocurrencies that are considered reliable for starting:
Bitcoin (BTC) is the first and most well-known cryptocurrency, and is generally considered the "gold standard" of the cryptocurrency market. For beginners, Bitcoin is a good starting point.
Ethereum (ETH) is the second largest cryptocurrency by market capitalization. Ethereum not only serves as a "monetary unit", but also as a platform for creating decentralized applications.
Binance Coin (BNB) is a cryptocurrency native to the Binance exchange that is used to reduce fees on the exchange and in some other applications.
Cardano (ADA), Solana (SOL) are promising altcoins that offer alternatives for decentralized applications and smart contracts.
However, it is important not only to choose well-known cryptocurrencies, but also to understand their functionality and growth potential. For example, Ethereum may be interesting due to its widespread use in the world of DeFi (decentralized finance) and NFT (non-fungible tokens).$BTC $ETH $BNB
When to buy?
This question is one of the most difficult and requires market analysis. However, for beginners, it is important to follow a few simple principles.
Understanding the trend (Trend following)
Many novice traders face the problem: when to buy? To answer this question, it is important to understand what phase the market is in:
Bull market: When prices are rising and the market as a whole is in a positive trend. This is a good time to buy cryptocurrency because you can profit from rising prices.
Bear market: When the market is falling and the prices of cryptocurrencies are going down. Some traders may decide to sell their assets during this period, but for long-term investors, a bear market can be a good opportunity to buy cryptocurrency at lower prices.
How to understand a trend?
Look at the charts. A simple way to assess the trend is to use charts. If the price of a cryptocurrency is rising or staying high, it may be a sign of a bullish trend. If the price is falling, it is more likely a bearish trend.
Use indicators. Traders use technical indicators to analyze trends. One of the most popular is moving averages (MA). When the price is above the average line, this can be a signal to buy.
Expect Pullbacks
The best point to buy is not always when the price is at its peak. It is better to wait for a pullback - a small correction, when the price temporarily falls after growth. This is a good opportunity to buy at the "bottoms".
Follow the news
The cryptocurrency market is very sensitive to news, be it legal changes, major industry events or technological updates. For example:
The release of updates to the Ethereum network (for example, the transition to Ethereum 2.0) can cause the price of Ethereum to rise.
News of major companies accepting Bitcoin or Ethereum as payment could drive up their value$$
