From my little knowledge. Cryptocurrencies are primarily used to buy and sell goods and services, though some newer cryptocurrencies also function to provide a set of rules or obligations for its holders.They possess no intrinsic value in that they are not redeemable for another commodity, such as gold. Unlike traditional currency, they are not issued by a central authority and are not considered legal tender.
I need help in understanding the crypto market and investment advice in order to invest effectively on bitcoin market
Three principles of safe investment
You should start with this. Cryptocurrencies are a system based on freedom, and there is no freedom without responsibility!
The first rule of safe investment: invest as much as you can lose. Investments can be divided according to the degree of security. Cryptocurrencies are considered risky for two reasons. Firstly, due to the possibility of state interference, and secondly - due to the possibility of virtual theft. Just like before the second threat, you can protect yourself (about this in the further part of the article), so there is no insurance against decisions of democratic politicians.
The second rule: diversify the products in which you invest. The fact that Bitcoin can be gold 2.0, and Monero's most anonymous way of storing money does not mean that you have to buy cryptocurrencies for all the savings! Just as it is not worth keeping all the money in one bank, it is just as risky to invest in one product.
The third rule: think long-term. Putting PLN 1,000 in bitcoin in 2009, today you could draw almost 100,000. zł. However, if during the great drop in value in 2013 you would get scared and pull out money, you would lose most of your capital.