Uncertainty and Education in Cryptocurrency Trading
In this age of instantaneous information, readily available high-quality tier-one research and little or no transactional fees, few people actually understand what cryptocurrencies are or how to trade them. According to a recent survey by CNBC, one third of crypto buyers don't know what they're doing. While digital assets are a new and rapidly growing area of the investing world, not doing research or understanding what you are investing makes navigating the volatile markets even more difficult.
There are a number of very good sources of information on cryptocurrencies starting with reading the White Paper for each coin. If you don’t fully understand the technical structures or what problem the crypto is designed to resolve, the trading exchanges offer educational videos and other educational resources. Beyond Coinbase, Kraken or the Binance exchange there are other educational sites like Investopedia, CoinDesk or Coin Telegraph. Additionally, there are companies like LunaVulcan that provide educational resources about cryptocurrencies trading platforms and general cryptocurrency knowledge along with signaling alerts to help investors figure out when the market enters or exits an up trend.
If you think “block-chain” is a type of fencing and “baking” is for cookies or buy Dogecoin because Elon Musk posts a dog on the moon, educating yourself on crypto assets can help you better understand the market and your portfolio.