Getting Started in the Cryptocurrency Market: A Practical and In-depth Guide for Beginners - Nash.io
May 16, 2024

Getting Started in the Cryptocurrency Market: A Practical and In-depth Guide for Beginners

Introduction

Welcome to the complex and fascinating world of cryptocurrencies! This expanded guide offers a deeper insight to help you start your investment journey safely and informed.

1. The Origin and Exponential Growth of Bitcoin and Ethereum

Bitcoin, created in 2009 by an anonymous entity under the pseudonym Satoshi Nakamoto, emerged as an innovative response to the 2008 financial crisis, proposing an alternative to centralized financial institutions. Ethereum, introduced in 2015 by Vitalik Buterin, was developed to expand blockchain functionalities by introducing smart contracts that automate the execution of digital agreements.

  • Bitcoin (BTC):
    • 2009: Virtually valueless
    • 2010: $0.08
    • 2015: $315
    • 2020: $28,990
    • Currently: Fluctuates around $62,000
  • Ethereum (ETH):
    • 2015: About $0.75
    • 2016: Rose to $10
    • 2020: Reached $730
    • Currently: Trading around $3,000

2. Understanding Security and Custody in Cryptocurrencies

Investing in cryptocurrencies requires not only understanding the market but also the nuances of asset security and custody:

  • Security: Cryptocurrency security involves protecting your private keys that access your assets. Tools like hardware wallets and multi-layer security solutions are crucial for protection against hacks and fraud.
  • Custody: Distinguishes between centralized custody, where a third party like an exchange holds your assets, and decentralized custody, where you maintain full control over your keys and, by extension, your assets. Nash promotes decentralized custody, aligned with the philosophy of empowerment and security.

3. Centralized vs. Decentralized Systems

  • Centralized Systems: Operate through a central entity controlling all aspects of the platform. While they may offer faster transactions, they also present increased risks of centralized attacks and single points of failure.
  • Decentralized Systems: Spread control across multiple nodes in the network, enhancing security and reducing risks of censorship and organizational collapse. Decentralized platforms like Nash allow greater control over your assets and increased resilience against external attacks.

4. Why Do Cryptocurrency Values Fluctuate?

Cryptocurrency volatility is a notorious feature of the market, driven by factors including:

  • Supply and Demand: Most cryptocurrencies have a set supply cap, which can increase competition and, consequently, prices as demand grows.
  • Speculation: Many investors treat cryptocurrencies as speculative assets, buying with the hope of selling at a higher price without considering the underlying value. This can lead to rapid price changes.
  • Regulatory Changes: News about new regulations or policy changes can significantly influence the cryptocurrency market, both positively and negatively.
  • Global Events: Significant events like economic crises or technological developments can also impact cryptocurrency values.

Learning to Navigate Volatility:

For new investors to understand and navigate this volatility, gaining continuous knowledge about the cryptocurrency market is essential. Here are some recommendations to get started:

  • Education: Spend time learning about cryptocurrencies, from the basics to technical and market analysis. Resources such as online courses, webinars, and books can be extremely helpful.
  • News Monitoring: Stay updated with market news using reliable sources to gather information about the latest developments in the cryptocurrency space.
  • Social Media and Communities: Joining online communities, such as forums and cryptocurrency groups, can offer valuable insights and advice from more experienced investors.
  • Practice with Simulation Tools: Many platforms provide demo accounts where you can practice cryptocurrency trading without financial risk. This helps understand how market fluctuations affect prices and to develop trading strategies.

By equipping yourself with the right knowledge and tools, investors can better position themselves to make informed decisions and minimize risks in the dynamic cryptocurrency market.

5. Nash as Your Cryptocurrency Investment Platform

Nash not only provides a secure platform compliant with legal regulations but also offers a user experience that is transparent and centered on user custody. This means you always have full control over your investments, with the security of robust and regulated infrastructure.

Conclusion

Choosing the right platform is crucial for success in cryptocurrency investments. With Nash, you gain a combination of security, compliance, and innovation essential for protecting your investments.

Disclaimer: This post is for informational purposes only and should not be considered financial advice. Cryptocurrency investments carry risks, and it is essential to conduct your own research before investing.

seun
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Compliance and Registration

Nash was the first Crypto Platform in Europe registered by the Financial Market Authority (FMA) of Liechtenstein. Nash is also registered with the De Nederlandsche Bank N.V. (DNB).
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Industry Leading Security

Nash’s Crypto Platform and Investment App uses state-of-the art, audited security measures and is fully non-custodial.
What makes Nash so safe
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Rates may vary over time. Crypto-powered earnings on Nash are not covered by any deposit guarantee schemes like bank savings accounts and involve risks unique to the underlying technologies: (i) Exploitations of the smart contracts used; (ii) Forex fluctations between your national currency and the US dollar, which underlies crypto earnings assets; (iii) USD stablecoins losing their peg. 
Nash is a trademark of Neon Exchange Aktiengesellschaft. Neon Exchange Aktiengesellschaft is an exchange bureau registered with the FMA of Liechtenstein (TT Exchange Service Provider Nr. 261096 as defined by the Token- und VT-Dienstleister-Gesetz / TVTG, 3 October 2019)
Nash Exchange B.V. is registered with De Nederlandsche Bank N.V. (DNB) as a provider of crypto services. DNB conducts supervision and monitors Nash Exchange B.V.’s compliance with the Money Laundering and Terrorist Financing Prevention Act and the Sanctions Act 1977. Nash Exchange B.V. is not under the prudential supervision of DNB nor under business conduct supervision of the AFM. This means there is no supervision of financial requirements or business risks and no specific consumer financial protections.
Neon Exchange Aktiengesellschaft is a partner of Modulr Finance B.V., a company registered in the Netherlands with company number 81852401, which is authorised and regulated by the Dutch Central Bank (DNB) as an Electronic Money Institution (Firm Reference Number: R182870) for the issuance of electronic money and payment services. Your account and related payment services are provided by Modulr Finance B.V. Your funds will be held in one or more segregated accounts and safeguarded in line with the Financial Supervision Act – for more information please see this link.
Neon Exchange Aktiengesellschaft also provides fiat-crypto exchange services. These are separate and unrelated to the account and payment services you receive from Modulr Finance B.V.