Are you looking for trading cryptocurrency? Or Cryptocurrencies instead? Well, you must be aware of the allegation cryptocurrencies have on them. Allegations ranging from being called as a bubble to a scam. The money you invest in is at absolute stake.
Sure, cryptocurrency prices are fluctuating just like equity prices are. But that’s how the market works, isn’t it? That’s what keeps the market running? Imagine a market with dead straight price, what would you reap on your investment? The story that cryptocurrency was originally brought in use to make the payment system easier. However, it has been running this way since the beginning and this is not changing any soon.
In this post, we will talk on cryptocurrency tips that you should know to not only invest higher but also lose as less as possible. If you are a serious investor, this guide will help you in a lot of ways to save a huge chunk of your money in the long run. Hence, this guide will take 15–20 minutes of your time and trust us, your time is invested in the right place.
Without further ado, let’s begin.
Disclaimer
- Whatever mentioned in this post is absolute observation and out of an experience. We still recommend to do your homework right and make your move.
- We have affiliate links in this post
Cryptocurrency Trading Tips
Get yourself some coffee as this is going to be a long post. We don’t want you to lose focus from this as this involves your investment.
Cryptocurrency tip #1: Learn learn learn
In order to win at something, you should learn about it by heart. While cryptocurrency is growing inch by inch every second. It’s really important for an investor to keep sharpening knowledge of cryptoverse. Better you know, safer you’ll be while investing. If you’re unaware of the investment you make, it’s uncertain that how well you and your investments will do in long run.
Follow the news on the web and other publications to keep yourself updated. This will help you understand which digital asset to invest in. Sure, there’s Bitcoin and then there’s rest other digital assets. That’s doesn’t mean they’re not performing well. You should always keep yourself up to date when it comes to digital assets. There are so many cryptocurrencies and token coming up every other day. In fact, according to Coinmarketcap, there are way over 2000 cryptocurrencies and token as of 18th Oct 2018.
Cryptocurrency tip #2: Follow top crypto leaders and profiles
The social media is full of data. If you even consume a very small percentage of it, you’ll be wise enough to decide which digital asset to invest in. There’s Reddit, Twitter, bitcointalk and many other forums that have live people continuously talking about everything about cryptocurrencies.
Pick up the most followed and authoritative profiles and consume everything they put on the table. Though not invest, you will have enough knowledge to become an investment consultant. Who says, you have to invest money to reap profits.
Time is money.
You invest time learning from the top contributors & profiles, you’ll reap profits by helping others keep their money safe.
Cryptocurrency tip #3: Research thoroughly before you put in even a single cent
Let’s face it. The world is denser than it was a couple of years ago. People are believing almost everything that their eyeballs fall on. That’s not right. There’s truth beyond all the rumors. But it needs a lot of digging. As the saying goes, “Not all that glitters is gold”
Here are the four questions you should ask yourself to research well
- Which market is the digital asset affecting the most? Not all cryptocurrencies are made to disrupt fiat money.
- What is the technology behind the cryptocurrency? Sure it will be blockchain, but the architecture also matters.
- Who are behind the cryptocurrency? This will help you analyze the potential of that digital asset
- What is the USP? How this coin differs from the other
Cryptocurrency tip #4: Understand the risks involved
Investment is a gamble. There’s zero guarantees or promise of the prices. You are putting your money into an experiment, you’d naturally expect good results but there’s no system in place to judge it.
We know this is frightening, but this is the truth. We want you to understand this first. There is a risk of losing your money as much as there is a probability that you’d make several times more than you actually invested.
In 2010, a guy bought 2 Pizzas with 10,000 BTC. In coming years, we won’t be surprised if someone buys 10,000 Pizzas with 2 BTC. Here’s a tweet from 2011 that you’d find astonishing.
https://twitter.com/GregSchoen/status/70261648811761665
- GregSchoen
This guy already regretted not keeping his Bitcoins as the price shot up to $8. Well, the Bitcoin price right now is beyond $6500. This is the greener side of the grass which is exactly why you should understand the risk. If not already, the Bitcoin price almost touched $20k mark in Dec’17. So there were people hoping to make more throughout 2018. But the price went on a free fall since Jan’18 and still hovering around $6500.
Sure, there are so many bullish predictions on Bitcoin by top leaders in this space which is keeping people hooked on to this thing.
Cryptocurrency tip #5: Buy cryptocurrencies with minimum fees
This is complex. There are a ton of cryptocurrency exchanges that you can use. But which one’s the best and has the least fees? We’d recommend
- Coinbase: Coinbase is the best place to have your investment but it has very few cryptocurrencies listed. So if you’re someone who tries all sauces, coinbase cannot be the only exchange to rely on.
- CEX.IO: Established in 2013 as the first cloud mining provider, CEX.IO has become a multi-functional cryptocurrency exchange, trusted by over a million users.
- Binance: Binary plus finance makes Binance.This is a whole marketplace with multi-coin support across multi fiat support. The system is powerful enough to carry out 1,400,000 orders per second.
- Bitfinex: Here you can trade for a lot of cryptocurrencies against both fiat and cryptocurrencies. Bitfinex is one of the oldest cryptocurrency exchanges in the cryptoverse.
- Changelly: Changelly is more or less like Binance or Bitfinex. However, the only difference is that it is a crypto to crypto exchange, i.e you cannot exchange crypto to fiat currency.
- GATE.IO: GATE.IO is a huge trading marketplace with almost all top performing cryptocurrencies being traded for fiat currencies. Check out the fee page before you
You will have to check multiple sites before you can invest in it. Sure, it takes time but it will save you money which in turn help invest that eventually earn more. While you do this, make sure you don’t transfer small amount among exchanges, most of them will charge a fee for this. Though the fee percentage will be less, the amount that goes as fees will leave little to nothing to be called as ‘profit’.
Cryptocurrency tip #6: Engage in ICOs
ICOs are nothing but initial coin offerings which the cryptocurrency owners do to market their coins and also allow investors to buy it before it’s launch. Kind of advance booking. We recommend you to do a thorough research of it before investing your money in ICOs, as most of the ICOs are a scam and it’s simply to pump money out.
First keep an eye on the upcoming ICOs on Coinschedule, their rating on ICORating and discussion about it on BitcoinTalk board.
Most of the ICOs needs you to have Ethereum wallet and/or Ethereum. However, it is not a rule to have this way. The companies can have anything instead of Ethereum. Check the ICOs website to know which coin they accept for ICOs.
Cryptocurrency tip #7: Earning free coins/Mining
Cryptocurrency Mining is one of the most lucrative ways to make money. If you can get into mining you’ll not only save the money you spend on exchange for buying or exchanging it for other cryptocurrencies, but you will also earn more than you invest.
Sure, Bitcoin mining is saturated and is dominated by a handful number of mining pools. But there are so many other cryptocurrencies that you can mine.
Like Ethereum, Bitcoin Cash, Ripple, Dash, Monero etc. All these cryptocurrencies are doing so good that you will find yourself in a profitable position sooner than you could imagine.
Cryptocurrency tip #8: Keep your coins secure
This is important. As long as your coins are safe, you’re in a good position to make further investments. The most important element in cryptocurrency security is the private key. There are two elements in this regards, that you should know.
- Private Key/Private address
- Public Key/Public address
Imagine your digital wallet as a facebook account. If someone wants to send you a message on facebook, they would need your profile address or username. And to read that message you will need to enter username & password to log in.
Here, the username is the public key, which you can share with anyone to let them get in touch with you. Furthermore, the password is the private key, which you don’t share with everyone.
We recommend you to not share private key with anyone. One that has the private key is the owner of the coins in the wallet. The system has no other verification mechanism other than private keys.
If you lose your private keys, whoever has it is the owner of your wallet. There’s no way to block the wallet. Another thing we would like to tell you is that all the exchanges need you to share the private key of your wallet. Since those exchanges are centralized, this is required.
While those exchanges have policies to not misuse it in their benefits. But there have been fraud cases like Freewallet who were involved in stealing fractions of coins from millions of accounts. Above this, there are decentralized exchanges coming up which won’t require sharing private keys and the whole process will be decentralized.
Cryptocurrency tip #9: Have a portion your investment for long-term
It’s out of an experience that the best performing coins shouldn’t be traded often. On one side, keeping the coins for long will bring the price down. And on the other side, keeping it for long will be profitable for you.
We recommend you to balance between the two. Since cryptocurrency trading is community-based activity, what you do for yourself will affect everyone in the community and eventually, to you too. Therefore, having a small portion of your investment stored for long will help you a lot.
Furthermore, we also recommend having that portion in the whole number so that it is easy to calculate how much profit you’ve made.
Bonus Cryptocurrency tip: Know when to stop
Trading is never ending tunnel. It’s a game of chance. You never know the price will shoot up of fall down. This benefit of doubt has taken away more money than anything else in the history of trading. If you’ve following bitcoin for past 14–16 months, you would agree with this.
Bitcoin almost touched $20k mark by the end of Dec’17 and people hope that after Christmas would continue even in Jan’18. But it wasn’t the case. The bitcoin price kept falling and it fell so deep that it is stagnant around $6.5k.
For those who considered the new year factor and withdrawn before bitcoin went for a free fall, they’d not find anything else be happier. That’s why it’s important to know when to stop.
How to know it? Well, trust your instincts and don’t let greed overpower it. This space works on knowledge, involvement, and instincts.
Final thoughts on cryptocurrency tips
Cryptocurrency is a slippery road. It’s always gonna be greener on the other side. That’s why you should have these tips by heart so that you don’t lose your hard earned money.
Furthermore, there will always be projects that would not let you feel peace without investing in. You should make bold choices for your own good. Also, with the launch of digital currencies, it is even tougher to walk away from the fear of missing out.
If you like this post, feel free to share it on social media and help other crypto investors.
Originally published at https://www.bitfolio.org/cryptocurrency-tips.