10 Useful Tips For Cryptocurrency Beginners
There are a lot of opinions about cryptocurrencies. There are many advocates, but many opponents too. Despite the price swings in this relatively new market, cryptocurrency can be a very profitable investment. The following 10 tips will show you the way.
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-Think Long-term Not Short-term
The values of crypto coins vary on a daily basis. View the statistics over longer periods of up to one year or more. This will show you the upward trends that you are after.
– In Safety and Security We Trust
Don’t let your hard work be ruined by hackers or other criminals. Keep your pc or phone clean and protected. Make sure you keep your data like passwords and your private key in a safe place.
– Plan Your Budget Carefully
Do not invest more money in cryptocurrency than you can afford to lose. There are not yet guaranteed winners in the cryptocurrency space.
– Making Money with Cryptocurrencies
An investment in for example Bitcoin, is an investment in you. It will build wealth for you over time. Do not make panic sells when your currency dips. Quality coins will bounce back.
– Save on Transaction Fees
Are you using Coinbase to buy your cryptocurrency? If you do, you can save transaction fees by buying your currency through their parent company GDAX. Instead of paying .3% you will pay no transaction fees. There is a link (GDAX account hack) in the references below that explains the exact procedure so you can save money.
– Research before Investing
To be on the safe side you want to make sure the currency meets these requirements:
- It solves a legitimate problem as mentioned under the diversity tab
- It has a credible company or team behind it
- They have a long-term vision. Not like a pump and dump type of coin.
– Diversity in Application
Beside usage as money, cryptocurrency solves a legitimate problem. Ethereum has smart contracts, Filecoin offers a storage application. Zcash has a high level of anonymity.
– 95 Percent of Cryptocurrencies are Scams
If you want to win big, you have to choose your coins wisely. We are still in the first inning and the scams haven’t been flushed out yet. Be careful!
– Become Part of a Crypto Newsletter or Community
Good advice is pricey, but if you are part of the right team, it will pay for itself. Another option is to find and follow influencers on Twitter.
– Plan Carefully and Stick to Your Strategy
Investing in cryptocurrencies requires some planning and having a strategy in place.It takes real research to qualify a coin before you can consider it worthy of investment. If you master the basics it is very doable to successfully build up a profitable cryptocurrency portfolio.
Reference: Cryptocurrency Explained