An Introductory Guide to Bitcoin and Altcoin Investment Basics
This course introduces the basic distinctions between Bitcoin, altcoins, long-term investing, and short-term trading, and compares fundamental analysis with technical analysis. Cryptocurrency volatility and risk are relatively high, so learners should conduct research in light of their own circumstances and avoid investing more than they can afford to lose.
Bitcoin, Altcoins, and Diversification
Bitcoin is a well-known cryptocurrency with relatively high market capitalization, while altcoins include a wide range of projects other than Bitcoin. Different projects may use their own blockchains or existing networks, and their functionality, development prospects, and risks vary. Holding multiple assets can mitigate the impact of a decline in any single project, but it cannot eliminate risk. In particular, beware of scams and conduct your own research.
Long-Term Investing and Short-Term Trading
Long-term investing generally involves purchasing an asset and holding it for an extended period, with a focus on the project's soundness and development prospects and less sensitivity to short-term price movements. Trading involves more frequent buying and selling in pursuit of short- to medium-term returns, requiring more time to analyze the market and taking on greater volatility and transaction costs. Regardless of the approach, the amount of capital should be consistent with your personal risk tolerance.
Two Analytical Approaches and Asset Management
Fundamental analysis examines factors such as a project's utility, team, white paper, development progress, governance, and long-term objectives, making it suitable for assessing a project's intrinsic value. Technical analysis primarily observes historical prices and trading volume, often in conjunction with candlestick charts, moving averages, and trend lines. When holding cryptocurrency, you should also understand management methods such as account custody and external wallets.
Original Tutorial
https://www.binance.com/zh-CN/academy/articles/how-to-invest-in-bitcoin-and-cryptocurrencies
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