Cryptocurrency is increasingly gaining popularity among Ukrainians who are seeking new investment opportunities and financial freedom, especially during wartime. However, for newcomers, this market can appear complex and risky. In this article, we will explore how to safely purchase cryptocurrency, which strategies to choose, and what influences asset prices. Reported by TSN. This information is provided by Kontrakty.UA.
How can a beginner buy cryptocurrency in Ukraine?
It is possible to buy cryptocurrency in Ukraine through various online exchanges. The largest and most reliable option currently is Binance, making it a trusted choice for newcomers.
Before purchasing cryptocurrency, it's important to familiarize yourself with it. The best place for this is CoinMarketCap - the most popular site for tracking prices of crypto assets in the cryptocurrency space. After analyzing the top 10, you should choose the currency that appeals to you the most based on:
- the size of the cryptocurrency and its popularity;
- analysts' forecasts and expectations for price growth;
- the underlying technology of the cryptocurrency, meaning its uniqueness and usefulness compared to others.
After familiarizing yourself, return to Binance, register (a blank portfolio is created automatically), and purchase cryptocurrency for the amount you are willing to spend. Next, you can check your portfolio to see how many tokens of each currency you have bought.
However, to also keep track of the price itself, you can create an additional portfolio on CoinMarketCap, where you can also see statistics on the currency's price changes. Then, you can choose a strategy for earning.
Most common cryptocurrency earning strategies
Buying during a "Bull Run" and selling before a "Bear Market."
"In a 'Bull Run,' it is crucial to be the first to buy, as this marks the beginning of price growth. Conversely, before a 'Bear Market' begins, you should be the first to sell. The key is not to wait for the maximum price, as it may drop rapidly, and the profit will remain as numbers on the exchange balance, significantly lower than anticipated," advises Oleksiy Dehtiarov, who has over 5 years of experience in cryptocurrency trading.
Dollar Cost Averaging (DCA) – gradually buying cryptocurrency in small amounts to reduce volatility risks. This strategy helps minimize the risk of emotional buying, thereby reducing risk (for example, buying currency worth $50 every month, regardless of price fluctuations).
What events influence cryptocurrency prices?
"The cryptocurrency market typically follows the U.S. stock market. As the largest financial market in the world, it impacts the global economy, and cryptocurrency is just a part of it, accounting for less than 4%. The market tends to react inversely to news: good news does not always mean further growth, just as bad news does not always lead to a decline. Does someone's comment on platform X affect prices? Yes, but locally. Very often, the price moves in the opposite direction than predicted," says Oleksiy Dehtiarov.
Factors influencing cryptocurrency prices:
- Macroeconomic changes – inflation, U.S. Federal Reserve monetary policy.
- News and statements from thought leaders – for example, Elon Musk's tweets can cause fluctuations in Dogecoin's price.
- Regulation – the introduction of restrictions or legalization of cryptocurrencies in different countries.
- Investor behavior – the phenomenon of FOMO (fear of missing out) and panic selling.
- Supply and demand.
- Market sentiment.
- Capitalization and liquidity.
Are there strategies that accurately predict cryptocurrency movements?
"No strategy provides a 100% accurate prediction. However, analytical methods can enhance success. The main goal is to minimize losses and maximize profits using trading strategies, indicators, and risk management," explains Oleksiy Dehtiarov.
This means that an effective strategy anticipates that the expected profit is twice the potential risk. If this condition is met, even with a 50% success rate in trades, the investor remains in profit.
Key analysis methods:
- Technical analysis – studying charts, trends, support, and resistance levels.
- Fundamental analysis – investor activity and cryptocurrency development.
Is there currently a "Bull Run" happening?
A "Bull Run" is a period of prolonged growth in cryptocurrencies.
On Binance Square, Wallet Investor warns in a post: "The best advice for new investors starting to trade cryptocurrency is to start small and only use funds they can afford to lose." Only after achieving success should they consider using larger capital.