Four things all cryptocurrency traders should know 

This is not financial advice. Please do your own research. I am not a financial advisor nor have I trained under one. This is just my personal opinion on a subject that I like but know surprisingly little about. 

Supply and demand

Regulation

Application

Nobody can predict the future 

Supply and demand

Bitcoin for example has a max coin supply of about 21 million coins. It is an example of a deflationary currency. As the demand grows, so will the value of each unit, and vice versa 

Regulation

There's always the risk of a country trying to impose restrictions on the use of cryptocurrency. On the other hand, widespread acceptance or legalisation such as in the case of El Salvador can help increase the value of the asset. 

Application

There are a number of coins without a clear roadmap or function. It difficult to keep a track of all the various meme coins and even rugpulls. The functionality and applications usually imply that the coin/token has great potential to increase in value. Ofcourse it isn't always the case as is evident from the number of "Ethereum killers" and bitcoin replacements that we keep hearing about. 

Unpredictable events

Wars, disease, and natural calamities are often quite unpredictable and can have a serious effect on the entire financial system. Cryptocurrencies are no exception to this rule. 

In a future article I would go on in more detail about the above mentioned four points and maybe add a few more as they come to me. 

Do let me know what you guys think of this. 

Cheers,

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