The digital currency market is one of the nascent markets that has attracted the attention of many people from all over the world due to the unprecedented growth of some cryptocurrencies such as Bitcoin and Dogecoin. Although many people have entered this market and experienced cryptocurrency trading over the years, many of them suffered significant financial losses due to lack of knowledge and awareness. Therefore, if you are interested in participating in this market, you should start learning about digital currencies as soon as possible in order to achieve your desired efficiency in this market. In this article, we try to briefly introduce you to the educational concepts of digital currencies. To fully and deeply learn these concepts, you can participate in the digital currency course of the Academy.
What is digital currency?
Digital currencies or cryptocurrencies are a type of digital money designed by means of cryptographic protocols, and their value is independent of physical money. These cryptocurrencies use blockchain technology to secure their transactions. One of the most important features of these cryptocurrencies is their decentralization; That is, they are not under the supervision of any institution or government, and the management of all matters related to them is the responsibility of the owners of digital currencies. Immutability and high transparency are other features of digital currencies that originate from blockchain technology and the use of distributed ledgers. One of the main goals of creating digital currencies is to fight counterfeiting and fraud, quick and easy money transfer and eliminating middlemenmentioned in transactions. The transfer of cryptocurrencies has no restrictions; That means you can transfer any amount of digital currency from one point to another in the world at any hour of the day. The value of digital currencies is determined based on the demand of people to buy them, and the higher the demand for a digital currency, the higher its value. Today, with the expansion of the digital space and the use of cryptocurrencies in official and unofficial global transactions, we are witnessing a significant boom in the digital currency market or crypto market; So that today it has attracted the attention of many financial institutions as well as governments, organizations and banks. In order to learn more about digital currencies, we suggest watching the following video.
Familiarity with blockchain and the technology used in it
The word blockchain is made up of two terms block and chain. Blockchain literally means chain of blocks. In fact, blockchain is an information recording system that consists of a chain of blocks. Network information is first encrypted and then distributed among blocks or network members so that the possibility of hacking and manipulating the network is minimized and network security is increased.
Each block has a unique text string or hash that distinguishes that block from other blocks and prevents fraud in the network. In each of these blocks, various information such as date, time and transaction amount are recorded. In the blockchain network, each block is placed in the continuation of the previous block and in addition to its own hash, it also includes the hash of the previous block. The first block in any blockchain network that does not have another block before it is called “Genesis block”.
Making a small change in the information of a block can change the hash of the block and thus lead to the invalidation of the blockchain network. Blockchain uses distributed ledger technology, so all network information is not stored in a specific system or server. Each system that connects to the network receives a copy of the information. Each of these systems is called a “node” in the network. Any changes in the information of the blocks are allowed only if it is approved by all the members of the network. Otherwise, it will destroy the credibility of the network.
Cryptocurrency market from the past until now
The initial idea of digital currency was proposed by David Chum in 1980. In this idea, the digital currency “DigiCash” was born, which was a combination of electronic money and cryptography. After that, in 1989, it was time to design Bitgold, which is referred to as the forerunner of Bitcoin. However, Bitcoin is the first digital currency that gained a lot of attention from the general public and led to a boom in the digital currency market. This cryptocurrency was proposed by Satoshi Nakamoto in 2009 and was able to solve Bitgold’s big problem, i.e. respending, through decentralized blockchain technology. Making monetary exchanges through peer-to-peer transactions helped people to transfer their money directly to any part of the world with the help of Bitcoin, without the need for intermediaries (banks). This feature increased the price of Bitcoin and made it more attractive.
Currently, Bitcoin is known as one of the most powerful currencies in the market and has earned the title of the king of cryptocurrencies. On the other hand, during these years, another category of cryptocurrencies, called altcoins, were created with the aim of solving the problems of Bitcoin, which were able to gain a position close to Bitcoin. Ethereum and Tether are now the second and third place in the digital currency market after Bitcoin. In addition to solving the problems of Bitcoin, these altcoins have attracted the attention of users of this market due to their features and applications such as value stability, hosting of smart contracts and decentralized applications. Today, many digital currency market users, in addition to investing in digital currencies, use them for their financial transactions around the world.
What is meant by staking digital currencies?
Staking is an alternative method for mining coins, with the help of which you can earn digital currency by paying a fee and consuming less electricity. In fact, staking means making a profit by keeping purchased digital currencies. Only staking-capable cryptocurrencies use the Proof-of-Stake (POS) consensus algorithm to process transactions; However, methods such as Flexible Saving have also been added to the concept of staking by some exchanges such as Binance. The staking process can be done in two ways. In the first method, you can keep your digital currencies in your wallet and receive interest in return in different time frames. This method is called “cold staking”. In another way, holding digital currencies should be done through an exchange and the exchange will pay you interest in return.
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What is meant by digital currency mining?
The process that leads to the verification of network transactions or the creation of a new block in it is called extraction or mining. Also, those who verify these transactions are called miners. In exchange for this verification, a reward is paid by the network to the miners, which is different for each network. Blockchain networks need to produce new coins to create new blocks and remain stable. The mining of new digital currencies helps them to continue operating as a decentralized network without the need for a central core. Cryptocurrencies that use the Proof of Work (POW) consensus algorithm require a mining process to create new coins. Note that this process is different for each digital currency. Some cryptocurrencies can be mined with a mobile phone, laptop, computer or graphics card; But others require special devices with high processing power for extraction.
The growth rate of the most popular cryptocurrencies
In the following, we will introduce some of the most popular cryptocurrencies and learn about their growth rates over the last year.
Bitcoin is the first decentralized digital currency that has had a turbulent history and its price has undergone many changes over the years due to various events. The first significant price growth of Bitcoin was in 2013, when it was able to reach $1,000 for the first time. But over the following years, the price of Bitcoin fluctuated below $1,000. In 2017, Bitcoin experienced a significant price growth, so that its price reached more than 19 thousand dollars. Following this price growth, it suffered a sharp drop in 2018, and this price drop continued until the first quarter of 2019, when the price of Bitcoin increased to $14,000. After this incident, Bitcoin price fluctuations continued until in 2020 it was able to set a new record in its price and touch the price of 28 thousand dollars. 2021 was also a brilliant year for Bitcoin and its price increased to about 69 thousand dollars. In the last months of 2021, the price of Bitcoin started to fall and despite the price fluctuations, this fall has continued until now. At the time of writing this article, Bitcoin is at the top of the world’s top digital currencies with a price of around $17,000.
Ethereum is the most expensive and the most famous digital currency that was released to the market after Bitcoin in 2013; Exactly when Bitcoin was able to experience significant growth for the first time. This cryptocurrency had an independent blockchain network that hosts many cryptocurrency development teams. In 2018, Ethereum was able to reach its peak price by touching the price of $1,400. During the years 2018 to 2020, despite price fluctuations, it went through a downward trend. After that, the upward trend of Ethereum continued until in 2021, it was able to reach close to $4900.
Cardano is a decentralized network based on blockchain, which is known as the third generation of blockchain. The speed of transactions in this network is lower than that of Ethereum and Bitcoin. Also, he charges less than them. Hosting smart contracts makes it possible to implement decentralized applications on this blockchain network, making this cryptocurrency a competitor to Ethereum, EOS, or other smart contract platforms. Cardano is one of the cryptocurrencies that can be mined, and due to the use of the consensus proof-of-stake algorithm, it is easier to mine than Bitcoin and Ethereum. The native cryptocurrency of this network is called ADA, whose price began to fall from around $0.4 in mid-2018 and reached its price floor of around $0.02 in 2020. Then, it started a significant upward trend.
Binance Coin is one of the most famous digital currencies that was launched by the Binance exchange, the world’s largest digital currency exchange, and was able to be included in the list of other exchanges in a very short period of time. Binance Coin was initially launched by hosting the Ethereum network, but after the creation of the China Binance Smart Network, it was transferred to this network. Users who use this cryptocurrency for their transactions will benefit from a fee discount in the Binance exchange. The Binance Coin digital currency had a price of less than $1 at the beginning of its release, but in 2021, it was able to set a record price of $684.
Tron (TRX) is a decentralized digital currency that operates on its own blockchain network, the Tron network. The main goal of this network is to create a huge transformation in the entertainment industry and provide a global network for sharing free content in the field of entertainment. The cost of transactions in the Tron network is very low and close to zero. Users can pay the lowest fees by choosing the Tron network for their transactions. The lowest Tron price is about $0.0068, which happened in 2020, and the highest price it recorded so far is $0.179, which reached this price in 2021.
PancakeSwap is the most popular decentralized platform built on the Binance Smart Chain network. Cake cryptocurrency is the exclusive token of Pancake Swap platform. The Pancake Swap platform is used to exchange tokens with the BEP-20 standard. Despite many fluctuations, this cryptocurrency has managed to become one of the best digital currencies for investment. In 2021, Cake was able to set a price record of $44; But after that, it entered a downtrend and is currently trading at $73.3.
What is Bitcoin?
Bitcoin is the first and most famous decentralized digital currency that was introduced to the world in 2008 by Satoshi Nakamoto with the aim of storing and transferring money safely. This cryptocurrency, which is known as the king of cryptocurrencies, has taken a large part of the market value of digital currencies. Bitcoin can be used for investment, financial transactions and buying and selling. All Bitcoin network transactions are done on the blockchain platform and in a peer-to-peer manner. In fact, all records related to Bitcoin network transactions are stored in a ledger called the blockchain and distributed among network members. The Bitcoin network uses the Proof of Work (POW) consensus algorithm to verify transactions. The production of this cryptocurrency is done through the mining process and requires special devices with very high power consumption. For this reason, many countries believe that the production of this cryptocurrency is not profitable.
Features of Bitcoin
The following are the most important features of Bitcoin:
As we said, Bitcoin is a decentralized digital currency that operates on the blockchain platform; This means that no institution or government supervises the transactions of this network. All transactions related to extracting and verifying transactions are done in the network under the control of all network members.
Anonymity of people
Those who intend to transfer or store money in banks or other financial institutions must provide all their identity information to these institutions. This is despite the fact that to transfer bitcoins, identity information is not necessarily required and transactions can only be made through your wallet address. Of course, there is also a negative point of view in this case that some people think that this feature can be an opportunity to carry out dangerous and illegal activities.
High speed of transactions
Bitcoin allows you to make all your payments, exchanges and transfers in the shortest possible time, in about a few minutes. While transferring money through banks or other financial institutions, it requires time and going through complex mechanisms.
No time and place restrictions
Other features of Bitcoin include its lack of time and place limitations; That means you can transfer any amount of Bitcoin to any part of the world at any hour of the day or night.
Transparency of transactions
The anonymity of people in the network does not mean that the transactions are secret, because all the details of the transactions are stored in the blocks of the blockchain network, and this information can be checked whenever needed. If the public address of your wallet is known, anyone can see the amount of coins in it by referring to the blockchain account book; But it is not possible to track people and access identity information through the wallet address.
Bitcoin is designed in such a way that after each transaction and transfer of bitcoins, it is not possible to return it by the sender, and the only way to return the coins is to transfer them to the sender’s wallet address through the receiver. The purpose of this design is to guarantee the transaction and transfer of coins so that the recipient cannot claim that he did not receive the coins.
What is Altcoin ?
Altcoin is composed of two words “Alt” meaning alternative and “Coin” meaning coin. In general, all the coins in the market other than Bitcoin are called altcoins. Altcoins share many features with Bitcoin, such as peer-to-peer transactions, mining capabilities, and low transaction costs. In fact, altcoins are derived from Bitcoin and were created with the aim of removing its limitations. Each of the altcoins created their own blockchain network, which has led to the expansion of the blockchain network.
The difference between altcoin and bitcoin
As we said, altcoins are derived from Bitcoin and were created to overcome some of the limitations of Bitcoin, such as low speed, high fees, and poor privacy. So far, many altcoins have been launched, many of which were short-lived and disappeared. Therefore, you should purchase altcoins with full knowledge and consideration of various aspects. Here are some of the most important differences between Bitcoin and Altcoin:
1. One of the important and obvious differences between altcoins and Bitcoin is the difference in their value or price. There are different types of altcoins, each of which has been marketed at different prices, and the price of some of them is far from the price of Bitcoin. In addition, the market value of Bitcoin is such that it alone has been able to take a large part of the total market value and is placed against all altcoins.
2. Altcoins have high diversity and unique features that make them have more uses and capabilities than Bitcoin. Among these features, we can mention more privacy and security, host of smart contracts and low price volatility. Note that these features are not the same for all altcoins and can be different for each altcoin.
3. One of the main goals of creating altcoins was to solve the problem of high fees and low speed of transactions in the Bitcoin network. The mining process in the Bitcoin network is done through the Proof of Work (POW) consensus algorithm, which is expensive and dangerous for the environment due to high electricity consumption. To solve this problem, many altcoins use different algorithms such as Proof of Stake (POS) consensus algorithm to create a new block, which while reducing costs and increasing the speed of transactions, will not pose a risk to the environment.
Advantages of altcoins
1. Generally, the speed of transactions in altcoins is higher than in Bitcoin. Bitcoin can only process 7 transactions per second; Meanwhile, many altcoins, such as Tron, have the ability to process two thousand transactions per second.
2. One of the most important advantages of altcoins compared to Bitcoin is the lower transaction fees. Currently, with the significant growth of the price of Bitcoin and the increase in the traffic of this network, the transaction fees in this network are not very economical for ordinary users.
3. The high variety of altcoins has created a more competitive environment for investors. The use of altcoins in different fields has made investors in this field have a wider range to choose from and invest in different sectors of the digital economy to earn profit.
4. The abundant use of altcoins increases the probability of their survival. For example, Ethereum is one of the most widely used altcoins, which greatly reduces the possibility of its disappearance.
Disadvantages of altcoins
1. Mainly, the price of altcoins is influenced by the price of Bitcoin. For this reason, fluctuations in the price of Bitcoin will have a direct effect on the price of altcoins. Also, due to the short life of some altcoins, the risk of falling capital value threatens investors.
2. The decentralized structure of altcoins and their lack of support from the network has caused that no one is responsible in case of security problems and financial losses of investors. Also, due to the fact that some altcoins in the market are fake, the risk of capital loss threatens new investors.
3. Altcoins are often highly volatile. Although positive fluctuations can lead to profits for investors, sometimes a sharp drop in the price of altcoins causes heavy financial losses to investors. The best way to reduce such risk is to save profit and exit the upward trend.
4. There are many altcoins in the market with very low trading volume. Although some of them have high liquidity, they are subject to high volatility due to low trading volume. Eventually, many of them become dead altcoins; That is, there is no demand for their transaction.
Are digital currencies safe?
As you know, all transactions and exchanges of digital currencies take place on the Internet. Therefore, when you invest in the digital currency market, your capital is always exposed to risks such as hackers and fraud sites. On the other hand, the digital currency market is an emerging market and many countries do not recognize this market; Therefore, in case of any violation in this market, there is no legal authority to deal with these violations. Today, the development of the digital currency market and their application in various fields, including investment, international trade exchanges and business development, has made the issue of digital currency security a major concern for the market participants. One of the most important reasons for the increase in fraud in the field of digital currencies is the lack of sufficient awareness among users of this field about privacy and security methods, which leads to abuse by opportunists and fraudsters. In the following, we mention some methods of dealing with the risk of fraud:
1. Choose a high-security wallet to protect your digital assets. Software wallets work online; Therefore, they are more likely to be hacked than hardware wallets.
2. Be diligent in maintaining your wallet password; Because if you forget your wallet password, you will lose access to your assets. Also, do not share your wallet information with others.
3. Choose a reliable exchange that has proper support and facilities.
4. Be careful when transferring assets; Because these transactions are not reversible.
5. Try using a wallet other than your main wallet to buy from sites that promise free cryptocurrency.
6. To invest, choose cryptocurrencies that have high credibility and trading volume.
What is a digital wallet?
A digital wallet is hardware or software that you can use to store and store your digital assets. This wallet consists of two public keys (Public Key) and private key (Private Key), which are strings of numbers and letters. Each wallet has a public key or a unique address that verifies transactions and transfers cryptocurrencies through this key; That is, to transfer assets to another person, you must have his public key or wallet address. The private key allows you to access the digital assets in your wallet. To better understand the private key, it can be compared to a bank card password. If this password is given to others, they can effectively access the assets in your wallet. If the public key is made available to others, it will not create a problem for the security of your wallet.
Types of digital wallets
In general, digital wallets can be categorized as follows:
Paper wallet is the simplest type of wallet in which the private key is printed on a piece of paper and provided to the individual. Currently, the use of this type of wallet is obsolete.
Soft wallet (gram)
As it is clear from the name of this type of wallets, they are in the form of software that is installed on computers and smart phones or run through an internet browser. In any case, these types of wallets require the internet to run. Software wallets store and maintain your information online; Therefore, your wallet information and assets are exposed to cyber fraud.
Hardware wallet (cold)
Hardware wallets are designed as a special hardware like flash memory. Unlike other wallets that are offered to users for free, hardware wallets must be purchased. With the help of these wallets, you can store your information offline. For this reason, these types of wallets are more secure than software wallets.
Examining profit and loss through digital currency training
Definitely, every person considers a specific time for entry and exit to invest in the digital currency market and calculates the possible profit or loss in this time period. To check the profit and loss of digital currencies, you should always consider the two factors of the dollar rate and the bitcoin rate. Note that these two rates are always fluctuating
For example, suppose you bought 0.25 bitcoins with an initial capital of 20 million tomans and a dollar rate of 25,000 tomans, and after holding it for a certain period of time, the dollar rate reached 30,000 tomans and each unit of bitcoin with The price is $17,000. Therefore, your current capital is equivalent to 127,500,000 Tomans; That means you have made a profit of about 125,500,000 Tomans.
Fundamental analysis of digital currencies
Fundamental analysis is an analytical method in which the intrinsic value is calculated by examining the internal and external factors affecting the price of an asset. In traditional markets such as the stock market, by examining the country’s economic conditions and parameters such as sales and income, sales markets determine the rates affecting the company’s sales, the company’s profitability and its value for investment. The nature of technical analysis is the same for all financial markets, but the factors influencing the value of one asset are different from another. For example, in the digital currency market, parameters such as the project’s income, the use of its products, the technology used in it, and the interaction of users with this project should be examined to measure the value of a project’s tokens. In fact, the more popular digital currency is among users and the more it is used by large companies, the more valuable it will be. Another important factor affecting the price of a digital currency is the investment of famous people in that currency. For example, the publication of Elon Musk’s tweet and the purchase of 1.5 billion dollars of Bitcoin by the Tesla company, caused the price of Bitcoin to increase to 57,000 dollars. Therefore, the best way to have a proper fundamental analysis in the field of digital currencies is to check cryptocurrency news from reputable sites and follow the social pages of major investors. In order to fully learn this topic, we suggest you to participate in the Academy’s fundamental analysis course.
Technical analysis of digital currencies
Technical analysis is one of the analytical methods of financial markets, in which to predict the price of a digital currency in the future, the history of prices, the market trend and the volume of transactions are examined. The main idea of technical analysis is that financial markets behave according to certain patterns and prices tend to move in the direction of trends formed in the market. This direction of price movement will not change unless an external factor affects the digital currency. Every investor, with the aim of getting the most profit from the market, tends to buy the desired currency at the lowest price and sell it at the highest price. Technical analysis with the help of tools such as trend line, support and resistance lines, patterns and indicators will help you to determine the best entry and exit point and exit the market with maximum return. Using technical analysis along with fundamental analysis can give you a broad view of investing in digital currencies. In order to learn all the concepts of this subject, we suggest you to participate in the Academy’s technical analysis course.
Familiarity with digital currency exchanges
A digital currency exchange is a platform that allows users to buy or sell their desired digital currencies. Also, through cryptocurrency exchanges you can exchange cryptocurrencies with each other or with common fiat currencies. Another feature of digital currency exchanges is the display of daily prices of digital currencies. Users can trade their desired digital currencies based on these prices and earn daily profits. Due to the fact that digital currencies have not been recognized in Iran so far, domestic exchanges cannot be directly involved in this issue.
Digital currency market users can use Iranian exchanges to make their transactions easier, some of the best domestic exchanges are:
Nobitex exchange is one of the first active exchanges in the field of digital currencies, which started its activity in 2016. Authentication is one of the mandatory conditions for registration in the Nobitex exchange, and this process is a bit difficult. The volume of transactions in this exchange is very high and this has increased its liquidity. You can start trading in this exchange with a capital of 300 thousand tomans. One of the most important advantages of this exchange is instant withdrawal, support for profit limit and loss limit, and keeping assets completely cold and safe.
Wallex exchange _
Valex Exchange is one of the most reliable Iranian exchanges, which was launched by the students of Sharif University of Technology, and currently more than 86 thousand users are members of this exchange. This exchange has a strong support team that is ready to respond to users 24 hours a day. The most important advantages of this exchange are fast authentication, support for profit limit and loss limit, support for trader robot and safe storage of assets in cold wallets. In addition, the Valx app allows Android and IOS users to access their property and the international market anywhere. The fee of this exchange varies between 0.2 and 0.4 and is measured based on your quarterly activity.
Bitpin exchange has less history compared to the aforementioned exchanges, but due to its beautiful atmosphere and easy user interface for both beginners and professional users, it has attracted the attention of users in this field. Varied services, low fees, telephone and online support are among the advantages of this exchange. The commission of this exchange varies between 0.06 and 0.32. You can start trading in this exchange with a capital of 100 thousand Tomans.
In the following, we will try to introduce you to some reputable foreign exchanges to make it easier for you to make a decision on choosing an exchange.
Binance exchange _
Binance exchange has become the largest and most popular digital currency exchange in the world with a short history and has increased its daily trading volume to more than 1.2 billion dollars. One of the most important reasons for the attractiveness of this exchange is the maximum fee of 0.1%, which decreases as the volume of user transactions increases. In the Binance exchange, many cryptocurrencies can be purchased using US dollars, which saves users’ exchange fees. Other advantages of this exchange include the high variety of digital currencies, the provision of mobile phone software, the high speed of transactions, and the provision of advanced trading charts and data charts. The lack of support in all American states and preventing the activity of Iranian users is one of the most important disadvantages of the Binance exchange.
Coinex exchange _
Coinx exchange has started its activity since the end of 2017 in the city of Hankuk. This exchange has been able to achieve high popularity among Iranian users due to the support of Iranian users and the ability to provide services in Persian language, so that 60% of the users of this exchange are Iranians. The most important advantages of this exchange include support for futures, spot and margin contracts, the possibility of withdrawing up to one million dollars without authentication and support for more than 1,100 digital currencies.
Coinbase exchange _
Coinbase exchange is the most famous and widely used digital currency exchange in the United States, which started its operation in 2012. This exchange is the best option for those who have just entered the digital currency market. Coinbase has extensive educational content on blockchain and volatility and encourages its users to get rewarded for learning this content. Also, the two-step authentication in the platform versions and storing 98% of users’ cryptocurrencies offline have greatly increased the security of transactions in this exchange. This exchange charges a high commission of 1.99%, which has caused many users to abandon transactions in this exchange. Also, due to the lack of support of this exchange for Iranian users, its popularity among Iranians has decreased.
Kucoin exchange _
Kocoin is another foreign exchange that was launched in 2017 and currently offers digital currency trading services to about six million users. This exchange usually lists cryptocurrencies on its site that have high growth potential while having a low market value. Also, tokens that are less known in the market are available on the site of this exchange. Fee discount for those who hold the native cryptocurrency of this exchange (KCS) is one of the other services of Kocoin exchange; So that 90% of transaction fees are returned to these people. Other benefits of this exchange include support for spot, margin, futures and P2P transactions, lending and staking services. Also, due to the non-mandatory authentication in Kocoin exchange, Iranian users can register in this exchange and withdraw one bitcoin daily.
How to register in the Binance exchange
As we said, Binance exchange is the best digital currency exchange in the world, which has the first place in the world in terms of the volume of transactions. Binance exchange, like many other foreign exchanges, has banned Iranian users; But considering that daily transactions up to 0.06 bitcoins do not require authentication, Iranian users can start their transactions in this exchange under these conditions. Also, users who use the native currency of this network (BNB) in their transactions, their transaction fee will include a discount. To register in the Binance exchange and start working, you must go through the following steps:
1. Due to the ban on Iranian users, first of all, you need a filter breaker with a static IP (VPS) to enter the Binance exchange site. Note that authentication in Binance exchange is required for Germany and America; Therefore, avoid registering with the IP of these countries. Today, there are many websites that sell and rent VPS and you can buy a subscription from them.
2. The next step in the Binance exchange registration process is to have a Gmail address to receive all emails from the exchange.
3. Download the Google Authenticator app from the Google Play Store and install it on your mobile.
4. After going through the above steps, you can visit the Binance exchange site.
It should be noted that your password must be at least 8 characters long, including numbers, English letters and symbols. Then activate the box to agree to the rules of Binance and finally, click on Create Account option.
5. After completing the above steps, an email will be sent to you containing a six-digit code.
6. After entering the six-digit code, your email address will be activated and a page like the one below will be displayed for you. Now you need to perform two-factor authentication to activate account deposit and withdrawal.
7. Then you will be presented with two options, one of which is authentication via SMS and the other is two-factor authentication by scanning the QR Code or the 16-digit code that is available on the Google Authentication application page.
In this way, your registration in the Binance exchange is completed and you can make your deposits and withdrawals.
Step-by-step training on buying digital currency from the exchange
So far, we have discussed the basic concepts and everything that is required to trade digital currencies in the market. In the following, we will try to introduce you to how to buy digital currency from exchanges. Every trader needs a secure wallet that supports their desired digital currency before starting to trade. TrustWallet, for example, is one of the wallets that has an easy-to-use interface and is therefore suitable for people who have just entered the field.
After choosing a wallet, it is time to choose a reliable and safe exchange. In the following, we will teach you how to buy digital currency from the Inans exchange with the help of a phone and a computer. After visiting the Inans exchange site and logging into your account
After clicking on the option to buy digital currency, the following page will be displayed for you, where you can choose the cryptocurrencies available in the exchange from the “buy digital currency” box.
After selecting a cryptocurrency, a screen similar to the image below will appear asking you to enter your wallet address. Please note that Inans exchange does not keep digital currencies purchased by users
Be careful when entering your wallet address. Each digital currency has a specific address. To get the address of the desired currency, just enter your wallet and after selecting the desired currency, click on the Receive option. Then by copying the address and pasting it in the requested field, continue the process of buying cryptocurrency.
Note 1: Note that you must choose a network that matches your wallet network. It means that your wallet supports the desired digital currency in that network. To view the digital currency network, you can refer to the address of the currency in your wallet.
Note 2: Each network has its own fee. For example, the ERC-20 network charges higher fees than other networks. While the BEP2 network has a lower fee than the ERC-20 network. The BEP20 network (BSC) is one of the networks where the transfer is very fast and has low fees.
In the next step, you need to specify the number of digital currency and the amount to be paid. In the image below, there are two boxes that show the number of coins and the payable amount. By entering the currency amount, the shipping amount will be displayed for you. Also, by entering the desired amount, you will be shown the number of cryptocurrencies that can be purchased.
An important point in this section is the digital currency transfer fee. The transfer fee is the amount of digital currency that is paid to confirm the transaction on the blockchain network. This fee is the responsibility of the buyer. Each cryptocurrency has its own transfer fee. Also, the number of purchased cryptocurrency is not related to the fee and the amount of the transfer fee is fixed for each transaction.
The phrase “minimum purchase” in the last box means that due to currency transfer restrictions, the user will not be allowed to purchase amounts less than this amount. In the last step, after going through all the above steps, just click on the option to complete the purchase.
If you have a discount code, you can enter it in the box above. Then, check all the displayed information. If the information is correct, click on the payment option to complete your purchase process.
Price action in digital currencies
Price action is an analytical method and strategy in which traders make their trades based only on price data and formed candles. In this method, indicators and other technical analysis tools (which signal with a delay) are useless. To use price action, you must be familiar with all types of candles. Candlestick charts are one of the most common tools used in price action for better and faster interpretation of market trends. Candlestick patterns can be mentioned among other useful tools in price action. Among the most important of these patterns, we can mention the doji, curl, hammer, pusha and harami patterns.
There are different types of price action, but the most common and famous price action methods that are used by many traders today are:
Price action RTM
Price action RTM is a method where the trader follows the footsteps of the big traders in the market and tries to find price nodes. The meaning of the price node is the point where the market sees heavy entry or exit by large investors. Price nodes are very important points in the market, after which we usually see sharp movements in the price. Therefore, if we use other price structures such as patterns in addition to price nodes, we can make tremendous profits by taking positions that have high risk to reward.
Price Action ( Smart Money )
Smart money is money that is controlled by professional investors or large institutions such as central banks. Smart Money price action is the newest analysis style in the world, which is a combination of supply and demand style price action and classic style, and has a high chance of winning and high risk-to-reward rate; Two features that traders are always looking for. Because smart money is invested by professionals who have the most knowledge about the market; Therefore, using this method means that your capital will be invested in the best way by these people and will give you the most profit.
Price action supply and demand
In this method, you must first know the supply and demand levels. Supply levels are the levels in the chart that are placed between two price peaks and between these two peaks we see a decline and then a rise in price. To understand these levels, you must be familiar with the concept of Japanese candlesticks and how to find clusters. After recognizing these levels, traders gain profit by taking a short position.
Demand levels are the levels in the chart that are placed between two price peaks and between these two peaks we first see an increase and then an increase in price. To understand these levels, you must be familiar with the concept of Japanese candlesticks and how to find clusters. In order to fully understand all these concepts, we suggest you to participate in the price action course of the Academy.
How to check the price of digital currency?
There are many sites that help cryptocurrency market users to check cryptocurrency prices online. In the following, we mention some reliable and useful sites in this field:
The Coin Market Cap site is one of the most reliable and most visited sites in the field of digital currencies. By referring to it, you can see the list of all digital currencies and tokens in the market. Digital currency price changes are displayed online on this site. You can even see the price of each digital currency in the exchange. On the Coin Market Cap website, by clicking on the name of each cryptocurrency, you can access information such as rank, price based on bitcoin and dollars, market value, volume of 24-hour transactions, number of currencies in circulation and the total number of available currencies and the maximum currency that can be produced. have access
Among other sites that can help users in this area in terms of price, is the Worldcoinindex.com site, which, in addition to displaying prices and charts, has provided you with the ability to create a watch list and portfolio; Although some new cryptocurrencies are not listed on this site.
TradingView is one of the other useful sites in the field of digital currencies that, in addition to displaying the price of cryptocurrencies, you can view price charts and implement your technical analysis on the charts with the help of the technical analysis panel on the web.
Factors affecting the price of digital currencies
In order to have the best performance in digital currency analysis and accurate prediction of their price trends, you must familiarize yourself with the factors that play a significant role in digital currency price changes. Therefore, we introduce you to some of the most important factors affecting the price of digital currencies:
Supply and Demand
Supply and demand is one of the main factors affecting the price of digital currencies. Supply and demand is a simple parameter in economics that plays an important role in determining the price of many goods. For example, part of the value of precious metals comes from their limited supply. In another example, we can mention the Bitcoin cryptocurrency, which is used for many international exchanges due to its low fees, high speed, and lack of time and place restrictions, and the demand for its purchase is increasing day by day. On the other hand, the Bitcoin halving process every four years has caused the speed of Bitcoin supply to decrease. Therefore, every four years, after Bitcoin halving, its price increases significantly. The price of other digital currencies is no exception to this rule. As the demand for a cryptocurrency increases while its supply is limited, the price of the cryptocurrency increases.
GOVERNMENT RULES AND RESTRICTIONS
Determining rules and creating restrictions by governments can have a significant effect on increasing or decreasing the value of cryptocurrencies. For example, the recognition of a cryptocurrency by governments can increase the demand for its purchase and thus increase the price of that cryptocurrency. Also, a cryptocurrency being banned or restricted by governments can have negative effects on the price of this cryptocurrency. In another example, if governments impose strict rules on paying taxes, hiding assets with the help of cryptocurrencies can be a good way to avoid taxes; Therefore, with the increase in demand for buying these currencies, their prices increase.
Celebrity endorsement and media influence
Media and social networks provide a reflection of people’s opinions about digital currencies, and in this way, they can be considered a suitable option for measuring public sentiment. On the other hand, these networks can influence the emotions of traders and encourage them to buy or sell with their support and advertising. The comments of the authorities of countries, reputable companies and famous people about digital currencies can have a significant impact on the price of these currencies. For example, Elon Musk’s tweet about the purchase of Bitcoin by Tesla led to a significant increase in the price of this currency.
The goals of digital currencies and the competition between them
Some digital currencies that enter the market serve no purpose, but others are created with the aim of developing decentralized payment systems and the digital economy. Those who intend to hold digital currencies are looking for currencies that have long-term goals and a clear future. The demand for buying cryptocurrencies that have various uses is definitely higher and this issue can be effective in increasing the value of these cryptocurrencies.
Today, the expansion of the space of digital currencies and the increase of tokens and coins in the market has created a competitive environment between cryptocurrencies. Also, futuristic digital currency projects are being launched in the market, which try to create a strong and functional network by removing the current limitations. Therefore, the competition between these cryptocurrencies can be effective in determining their value.
How to mine and network security
The way of mining and its cost can affect the price of cryptocurrencies that can be mined. In networks like Bitcoin, it is the miners who provide the power of the network and the trust between nodes. As the number of miners increases, the difficulty of the network increases as a result of the security of transactions in the network. Therefore, cryptocurrencies with simpler mining protocols attract more users and provide them with more security. This issue can increase the demand to buy these cryptocurrencies and thus increase their price.
Movement of whales
Whales are investors who enter the digital currency market with huge capital and do their transactions in high volumes. These people usually do not want to move capital; Therefore, when they intend to exit or enter a cryptocurrency, it indicates that there is probably news on the way. Usually, most of the sharpie market moves happen after whales enter and exit. Therefore, their movement can have a significant impact on the value of a currency.
If a digital currency is offered by several exchanges, more people will buy this currency and as a result, the volume of transactions of this cryptocurrency will increase. An increase in the volume of transactions is one of the signs that a cryptocurrency is valid. This issue will increase the price of cryptocurrency. Also, the supply of a digital currency by reliable exchanges that support more cryptocurrencies can increase the demand for its purchase and its price growth; Because buying a cryptocurrency from different exchanges will increase the fees; Therefore, traders prefer to buy their desired cryptocurrencies from an exchange that covers the most cryptocurrencies.
What are the benefits of investing in digital currency?
The digital currency market is an emerging market, but it has been able to compete with other financial markets such as the stock market, gold, housing, etc. and attract many investors from all over the world. This market has advantages that distinguish it from other financial markets, which include:
1. The digital currency market has no time or place restrictions. The participants of this market can transfer any amount of their digital assets to any part of the world at any time of the day or night.
2. Sanctions cannot be an obstacle to activity in the digital currency market.
3. Despite the low history of digital currencies, their efficiency and profitability have been higher than other financial markets during this period. The instability of the digital currency market is the main reason for this; That is, the digital currency market has the potential to bring significant profits to investors in a short period of time. Of course, this feature is like a double-edged blade and there is a possibility of losing investors’ assets in the blink of an eye.
4. Those who invest in the digital currency market benefit from the benefits of a decentralized economy. Considering that digital currencies are not controlled by any specific government or organization and the only person who is allowed to interfere with your property is yourself. The decentralization feature allows you to access your assets when you move anywhere in the world, only through your wallet. This is despite the fact that transferring currency between two countries through traditional banks requires paying high fees and spending time.
5. The transparency of transactions in the digital currency market is very high and every investor can access all the transactions made around the world.
6. Due to the use of blockchain technology in the digital currency market, financial transactions in this market are very safe and have reduced the amount of fraud and fraud.
7. The features and uses of digital currencies have made these cryptocurrencies to be included in the investment portfolio of large companies such as Microsoft, Google, Amazon, Apple, etc.; Therefore, we can hope for the future of digital currency as a common currency.
Frequently asked questions about digital currencies
What is digital currency?
Digital currency is a type of digital money based on blockchain technology, designed by cryptographic protocols, and its value is independent of physical money.
What are the top digital currencies?
Bitcoin, with a market value of $17,800, is the top digital currency on the market. Ethereum, Tether, USD Coin and Binance Coin are next.
How does blockchain work?
Blockchain is a distributed information recording system that consists of a chain of blocks, and in each of these blocks, various information such as date, time, transaction amount, etc. are recorded. Any changes in the information of the blocks are allowed only if it is approved by all the members of the network. Otherwise, it will destroy the credibility of the network.
How to check the price of digital currencies?
Coin Market Cap and TradingView are among the best and most reliable sites in the field of digital currencies that display the price of digital currencies online.
Digital currency is a type of decentralized digital money that became known to the world with the birth of Bitcoin. In traditional money exchange networks such as banks, a central core is responsible for managing and controlling all network financial exchanges, while in the space of digital currencies, this central core has been removed and replaced by all network users. In fact, in the digital currency market, everyone is equally involved in the network’s decisions about how the blockchain works.
Operating in this market and making profit from it requires deep training and learning. In this article, we tried to briefly introduce you to the types of digital currencies and their functions.