As an AI language model, I cannot provide financial advice. However, I can provide some information on how to be a successful crypto investor and some factors to consider when making investment decisions.
Research and Learn: Before investing in cryptocurrency, it is crucial to research and learn about the market, the various cryptocurrencies, and the risks involved. The more knowledge you have, the better equipped you will be to make informed investment decisions.
Diversify Your Portfolio: It is essential to diversify your portfolio to minimize risk. Don’t put all your money into one cryptocurrency; instead, spread it across several different ones.
Keep Your Emotions in Check: Don’t make investment decisions based on emotions or hype. Stay rational and make decisions based on facts and data.
Keep Track of Market News: Keep track of market news and trends to stay informed about the latest developments and potential opportunities or risks.
Use Dollar-Cost Averaging: Consider using dollar-cost averaging to invest in cryptocurrency regularly over time. This strategy can help you avoid the volatility and risks associated with trying to time the market.
Follow a Long-Term Strategy: Cryptocurrency investment is not a get-rich-quick scheme. Follow a long-term investment strategy and be patient.
Set Investment Goals: Set clear investment goals and stick to them. This will help you stay focused and avoid making impulsive decisions.
Have an Exit Strategy: Define an exit strategy before investing in cryptocurrency. Decide on a profit-taking strategy and a loss-cutting strategy.
Choose Reliable Exchanges: Choose reliable and reputable cryptocurrency exchanges to buy and sell cryptocurrencies. Do your research and read reviews before selecting an exchange.
Understand Fees: Understand the fees associated with buying and selling cryptocurrencies. High fees can eat into your profits, so be sure to choose an exchange with reasonable fees.
Keep Your Cryptocurrency Safe: Use a secure wallet to store your cryptocurrency and follow best practices for online security, such as two-factor authentication and strong passwords.
Avoid FOMO: Don’t invest in cryptocurrency just because everyone else is doing it. Always do your own research and make informed decisions.
Avoid Scams: Be aware of cryptocurrency scams and frauds. If an investment opportunity sounds too good to be true, it probably is.
Join Communities: Join cryptocurrency communities to stay informed about the latest developments, news, and trends. Participating in these communities can also help you learn from other investors.
Follow Successful Investors: Follow successful cryptocurrency investors and learn from their strategies and experiences.
Be Prepared for Volatility: Cryptocurrency is a highly volatile market. Be prepared for price swings and unexpected events that can impact the market.
Understand Tax Implications: Understand the tax implications of investing in cryptocurrency. Consult with a tax professional to ensure that you comply with tax laws and regulations.
Stay Updated on Regulations: Stay updated on cryptocurrency regulations and laws in your country. Cryptocurrency regulations can change rapidly, so it is essential to stay informed.
Don’t Invest More Than You Can Afford to Lose: Only invest money that you can afford to lose. Cryptocurrency investment comes with high risk, and you should never invest more than you can afford to lose.
Consult with a Financial Advisor: Consult with a financial advisor or investment professional before investing in cryptocurrency. A professional can help you navigate the risks and benefits of investing in cryptocurrency and help you develop an investment strategy that aligns with your financial goals.
In the past, investors have been extremely successful as the value of cryptocurrencies has been increasing steadily since 2011. Additionally, it is far easier, safer, and more affordable to invest in Bitcoin, Ethereum and other, similar currencies than it is to invest in mutual funds.
Cryptocurrencies also offer you a level of privacy that cannot be obtained when making other investments.
The best part is, you don’t need to be an investment wizard to get started – just a good grasp on investing basics and some funds to invest with. The following points will help you to determine if you have what it takes to be a successful Cryptocurrency investor.
Table of Contents
Getting to Know the Cryptocurrency Market
It is a good idea to get to know the market before investing in cryptocurrencies. You will want to decide what type of investments to make, how much money to put on the cryptocurrency market and at what point you want to sell. Following the market and keeping up with the latest cryptocurrency news can help you make wise decisions.
At present, you can either invest in the blockchain technology behind the cryptocurrency exchange market or purchase one or more types of cryptocurrency outright. Following is an overview of each cryptocurrency purchasing option and what they entail.
Use the Right Sites and Software
There are plenty of websites and pieces of specialist software out there that have been specifically designed to help you to get the most out of your cryptocurrency investments. Sites like HodlRate.com can help you to find the best interest rates in cryptocurrency at any given time!
Investing in Blockchain Technology
While there isn’t necessarily a single best cryptocurrency investment option, investing in blockchain technology can be less risky than purchasing a single cryptocurrency. Blockchain technology will automatically grow with the cryptocurrency market even if one or two particular currencies don’t make it in the future.
Professional advice in this field can help you make wise investment choices and provide you with access to investment opportunities that are simply unavailable elsewhere. Blockchain Capital run by Crypto Entrepreneur, Brock Pierce, is the leading venture capital firm investing in the technology behind various cryptocurrencies and the firm’s portfolio includes leading Blockchain companies such as Bitgo, Blockcypher, Ethcore, Gocoin, and Kraken. Blockchain Capital encourages investors to diversify company investments by picking anywhere from five to ten cryptocurrency companies to invest in.
Investing in Actual Coins On Cryptocurrency Exchanges
Alternatively, you may want to consider investing in one or more actual cryptocurrencies. Well known cryptocurrencies such as Bitcoin, Ethereum and Litecoin can be purchased from exchanges such as Coinbase, Kraken, and Gemini. You simply need to provide some personal information to verify your account and then decide how to purchase the coins you want.
Those who want to invest in lesser-known cryptocurrencies can do so on Poloniex and Livecoin. However, these websites don’t accept traditional currencies. You will need to purchase Bitcoin or Ethereum coins first and then use these to trade for other up and coming cryptocurrencies.
Once again, it is wise to choose more than one investment option. A diversified investment will reduce risk and has the potential to yield good results. Cryptocurrencies that were of little value in the past are currently gaining value at an astounding rate so don’t overlook seemingly small investments.
Do You Have What it Takes To Be A Successful Cryptocurrency Investor?
Only you can decide if you have what it takes to be a successful cryptocurrency investor. There are risks involved as the market is relatively new and some currencies are volatile; even so, the potential rewards can be well worth the bumpy ride. What is more, these investments are not necessarily riskier than many traditional paper investments. Potential cryptocurrency investors simply need to get acquainted with the market, choose their investment options with care, and then get started. You can also get started with micro investing.
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Do you have some spare funds and want to make a promising investment? Here are 8 reasons why you should consider a cryptocurrency investment.
There are those who are optimistic about cryptocurrency’s future. Then there are others who are skeptical about the legitimacy of this type of trade.
If you’re curious about cryptocurrency investment but uncertain if you should proceed, here are 8 reasons to invest:
Cryptocurrencies Aren’t Going Anywhere
The crypto market capacity continues to grow. This makes it an attractive option for investors everywhere. Cryptocurrencies haven’t been around for very long. Yet history has proven that patient investors have been reaping the big profits.
It can be hard to overlook day-to-day market fluctuations. But many cryptocurrencies have stayed strong despite the economic downturns.
Many leading banks have even used cryptocurrency trading in their daily operations. The rise in Bitcoin’s value has laid the foundation for other cryptocurrencies adoptions. As this adoption spreads, today’s “coins” will continue to increase in value.
Initial Coin Offerings (ICOs) Promise High Returns
Those who invested $100 back in 2010 would find that their investment is worth over $28 million today. Those who didn’t jump on the bandwagon years ago can still invest.
There are lots of opportunities to enjoy a good ROI with cryptocurrencies. Be aware that new ICOs pop up on almost a daily basis so it’s important to be able to recognize credible source since they can’t all succeed.
Cryptocurrencies Put the People in Control
Blockchain technology could potentially alter the way advertising, online exchanges, and governments operate. Many businesses are rushing to take advantage of its potential. This has resulted in over 1900 types of cryptocurrencies available today.
Blockchain technology does away with the middleman and while lessening the risk of hacking and cyber-attacks.
With cryptocurrency exchanges, all transactions are recorded which ensures against manipulation and fraud. Their public ledger can’t be changed after an entry is confirmed. This helps further guard against any online alterations.
With cryptocurrency, the power taken from institutions and transferred to the people.
New Protective Regulations Are Emerging
Some people who deal in cryptocurrencies dislike the idea of regulations. To them, rules seem like an imposition or an unwanted obstacle. But, regulations are necessary and provide some much-needed security for investors.
With the right rules in place, investors will be better protected. They’ll also be less likely to become the victim of cyber scams.
Though specific regulations have not yet been put into place, it’s just a matter of time. Basic rules will likely be established in the near future.
Cryptocurrency Technology Is Likely to Grow Quickly
The earliest adopters of this new technology have made a lot of money. As knowledge of cryptocurrency methods has grown, so has their popularity. This has made some investors think that it’s too late to take advantage, but this isn’t exactly true.
For the most part, altcoin technology is still underdeveloped. Bitcoin, for example, keeps evolving and adding new technology and features. Other similar currencies are being developed with potential value growing as well.
Not every new currency will succeed. But the risk involved makes for a greater opportunity for a big payout for those who invest.
Cryptocurrency Opportunities Are Expanding Across Countries
Countries like Japan have passed laws to protect cryptocurrency exchanges. They’ve done this by establishing anti-money laundering legislation. Other developed countries are following suit.
In many developed countries, digital payments are already the preferred method of payment. Cash will never go away but digital payment technologies are rapidly growing. This growth paves the way for cryptocurrency technologies to continue to grow.
Chances are high that we will all use these types of currencies in the future. Why not get a head start and make some money in the process?
Cryptocurrency Is Flexible and Easy to Access
Transferring funds and investing money is still a complicated process. There’s usually a lot of paperwork required when these transactions happen. The exchange usually requires photos, proof of address, etc.
With a Bitcoin transaction, there’s no paperwork required. The user is only required to create a wallet and address for the transaction to take place. Users can have as many addresses as they desire.
Bitcoin is accessible to the masses making for smooth exchanges online and most cryptocurrencies can be purchased and sold with ease. A huge part of the appeal of cryptocurrencies is how easy it is for two people to conduct a transaction online.
Cryptocurrency users can pay for their coins on their own smartphones or anywhere else they have internet access. Purchasers don’t ever have to travel to a store or bank to buy a product, and personal information is not required to complete a transaction. This also makes traveling much easier for those who feel held up by wait periods and authorization requirements.
Bitcoin and other similar cryptocurrencies are free from any third-party intervention. The online database for transactions keeps a copy/online receipt of every exchange that an investor is making.
The user’s online wallets detail their number of bitcoins and the time of the transaction which can’t be tracked or viewed by anybody else. The only exception is if a wallet user chooses to disclose their wallet address.
This pure, peer-to-peer method of exchange is one of the biggest benefits of cryptocurrencies. No bank, government, or other financial institution can intervene in the transaction or place any hold on accounts. This provides a high level of freedom for users and adds to the overall appeal of this method of payment.
Learn More About Modern Investment Options
Learn more about cryptocurrency investment options as well as many other useful tips for investing in general.
Saving money is one important aspect of a strong financial future. But savvy investing will take you to the next level.
Browse our website for lots of helpful articles on making money online, getting out of debt, and smart investing. Whether you’ve got a family to provide for, dreams of financial independence, or retirement to consider, you’ll find lots of helpful advice from our financial experts. Also, learn how to invest with a smaller amount by mirco investing.
However, even with it’s dip over the last few months, the industry is still around 20 times larger in November 2018 than it was in November 2017. So while interest has surely dipped, there are still thousands of new people interested in joining the market as investors.
Before you can ever trade, buy or invest in crypto, you need to register for an exchange. Unfortunately, the choice of “which exchange to choose?” isn’t an easy one. There are dozens of different exchanges from all over the world that are all trying to bring in the next generation of crypto investors.
So with so many different options out there, how do you know which cryptocurrency exchange to choose? This article is going to help you learn how to evaluate a cryptocurrency exchange. It will also make sure you are using the best cryptocurrency exchange for your needs.
Look at the Fees and the Fee Structure
When considering a number of exchanges to work with, it is important to know the fees that you will be charged each time you trade currencies. These fees might seem small and unimportant at first glance, but if you plan on doing a lot of investing/trading, a lower fee can equal a lot of saved money.
If a site is reputable, there is a good chance they will list their fees on their website. However, be sure to investigate for hidden fees as well. Some exchanges will offer a flat fee for each trade, while others will use a dynamic fee that will change depending on the size of the trade. Either way, it is important to be clear on both fees and fee structure before ever making a trade on a platform.
Ensure the Exchange is Safe and Secure
Unfortunately, some platforms out there have experienced hacks that have cost users a lot of money. In order to ensure that you don’t find yourself on that list one day, you should be sure to do all you can to choose an exchange that is safe and has security safeguards in place. This includes things like robust verification requirements, integrity checks on transactions, and two-factor authentication.
A simple Google search of a platform or exchange should be able to show you whether they have fallen victim to cybercrime attacks and how they have redeemed themselves. Many companies (especially those who have struggled with security in the past) should be very public about how their technology and platform are secure and what measures they have in place to maintain a high level of security.
Make Sure It Supports the Currencies You Are Interested In
While Bitcoin is the largest cryptocurrency by market cap by a large margin, it is far from the only cryptocurrency you can invest in or trade. There are thousands of different cryptocurrencies out there, and as you might expect, no exchange will have them all.
Certain exchanges will only support certain currencies. So, before you register for an exchange, make sure it supports the investment you want to make. Exchanges are always adding and supporting new coins. However don’t expect your favorite will get added, it’s much safer to choose an exchange that already offers it. Also, before you go all-in on any cryptocurrency, it is important to perform your own research and make sure it’s the right investment for you.
Hopefully this article has helped you discover how to successfully and accurately evaluate a cryptocurrency exchange. Of course, there are other things to consider when evaluating which exchange to use. However, these are among the most important things to remember.
Looking for an exciting new investment? Try Cryptocurrency. Here’s our guide on how to invest in cryptocurrency. 6 steps to help you invest with success!
Would you like to be a millionaire or have 2 large pizzas?
On May 22, 2010, a programmer named Laszlo Hanyecz purchased two pizzas with 10,000 bitcoins. At the time the digital currency was worth less than a penny. Today those same coins are worth millions of dollars.
Laszlo Hanyecz claims to be happy with his purchase despite the virtual money’s unpredicted rise in value. However, as delicious as pizza is, most of us would prefer to be a millionaire.
Every week, there are new millionaires emerging from the digital money market. Are you ready to stake your claim in this new-age gold rush? Here’s our 3 step introductory guide about how to invest in cryptocurrency.
1. Formulate a Strategy
First, you’ll need to formulate a strategy. This is true for any level of investing in any type of currency. Having a strategy helps you avoid making costly mistakes based on emotions. It is good to start investing in small increments.
Take a moment to decide the type of investment you want to make.
- Long-Term Investment
- Short-Term Investment
2. How to Invest in Cryptocurrency
Keep your strategy at the forefront of your mind when getting started with cryptocurrency. You’ll be given a variety of options to choose from. Your choice will need to complement your strategy.
This is a good crypto investment for beginners. The risk is low and you can work with stable digital currencies. Those currencies include:
Risky Small Projects
Small projects backed by large communities can yield extremely high rewards. These projects are for new technologies that are still in the development stage. Thorough research is required to make sure the project is a reputable one like:
Early Stage Projects
These projects are in an even earlier stage than the risky small ones. The risk is higher because the development of the technology hasn’t started yet. With a strong team developing a plan the discount can be worth the potential reward.
- ICO’s initial coin offerings
- Biggest risk
- Highest reward potential
3. Design a Budget & Find the Best Projects
Learning how to invest in cryptocurrency is about more than statistics and research. You have to be disciplined and avoid making impulsive decisions. Only invest money you can afford to lose.
Sources to Find Best Project
This part is pretty simple, research before you spend any money. Use different sources to learn about what currencies are worth investing in.
- News site
- community channels
- Cryptocurrency trading broker
- ICO trackers
Start Generating Income
Do you know what type of crypto-player you want to be?
At the Fortunate Investor, we are dedicated to helping investors learn how to build long-term wealth. We have more featured articles available to help you accomplish your financial goals.
Do you still have questions about how to invest in cryptocurrency? We’re here to help you with whatever you need. Contact us today for help with:
- Financial Coaching
- Questions or Feedback
- So much more!
Cryptocurrencies have risen in popularity in 2018, thanks in some part to the introduction of blockchain technology to the financial world. When it comes to business, it is not surprising that a one-world approach no longer puts the same value on a single currency exchange system. As the world adopts a multidimensional view on cryptocurrencies, it is rewriting the rules on global currency exchange and traditional business model practices.
Before the invention of bitcoin in 2009, banks processed financial transactions. Even after the emergence of bitcoin, it originally was a private investment entity. As more information came out about it, investors began to see a disruption in worldwide industries. It has been the media coverage that has led the charge on how cryptocurrency technology had the power to create a global entity that no longer required banks to perform critical transactions.
Bitcoin Paves the Way
As the values grew, so did the notice of the industry giants who first complained and then invested in cryptocurrency to stay relevant in the financial sector. It is the interest in it that helped bitcoin grow beyond interest and into a global financial anomaly worth investing. It was the initial interest in bitcoin that emboldened other companies to venture into cryptocurrency transactions which expanded the financial security of blockchain technology standards.
While investment in cryptocurrency has been relatively limited in scope to global consumers, its popularity is widening the gap between traditional and nontraditional financial obligations, which means that as its usage expands so will the access to it. Mainstreaming cryptocurrency will undoubtedly expand company policies to include consumer-related investment opportunities.
Business expansion will also see many breakthroughs since crowdfunding is now enabling startups the opportunity to use blockchain technology to support their growth and development. Such usage of cryptocurrency also has helped bitcoin network anywhere in the world as transactions pass through decentralized applications. Newer cryptocurrencies like ethereum, litecoin, dogecoin, and EOS also can scale products and services by adding decentralized applications that make them a better choice for consumers socially and economically.
Cryptocurrency also enables developing nations the opportunity to bypass traditional financial systems, which is why digital currencies like bitcoin soar about price norms since companies traditionally lose revenue sending and receiving money across multiple borders.
A New Source of Payment
Now that companies are integrating cryptocurrencies as financial assets, it is changing how quickly they connect with their buyers and sellers worldwide to close out transactions.
Not only do companies transfer money across borders easily but they lower their overhead costs and run their business functions more efficiently. While it seems easy enough, it should be noted that buying and selling with cryptocurrency is not a perfect answer to financial business dealings, but it is an ideal secondary source for businesses and consumers who offer digital currency as an alternative source, which includes rather than excludes market participation.
Even with the onset of bitcoin, it took the world by storm. While initially, the financial institutions tried to prevent its expansion into their local markets, consumers set the record straight and promoted its usage as a form of transaction payment. Traditionally, those institutions controlled assets by offering credit cards and bank accounts. Now that the digital age has entered financial transactions, it has forced those same institutions to invest in cryptocurrencies to stay relevant.
As financial institutions change their business models to include cryptocurrencies, it will begin to disrupt not only transactions but consumer practices as well. Most people who are born into the digital age see cryptocurrency as a norm. It is the more conservative consumers that are untrusting of digital currency, which is where disruption occurs. Some consumers want to store dollars in traditional formats, and there may also be a distrust of online digital storage. As more millennials tend to prefer digital stores, the market is adjusting more quickly to their uses.
Governments Getting into Blockchain as Well
Now that governments are moving their currencies to digital wallets and determining new ways for moving their assets, their citizens will also feel more comfortable with digital storage. You will also see more federal and state agencies turn to digital currencies for public utilities or parking meters. As more markets invest in and accept cryptocurrencies, it will disrupt industry standards further. As smaller businesses take advantage of open currency systems, Bitcoin Loophole review applications will further help them compete with larger entities like Amazon or Walmart.
When looking at industries from a financial standpoint, it is not difficult to imagine larger companies like Uber and Airbnb using smart contracts to disrupt their industry further. There are jobs being created as developers get into cryptocurrency. By using digital tokens to perform typical business transactions, it opens up products and service access while using tokens to retain financial control of their assets. It also opens up the availability to consumers of previously unavailable products and services as cryptocurrency redefines how global business operations restructure to make way for blockchain technology transactions.
Cryptocurrencies and blockchain technology are disrupting more than just the financial sector as they transcend into multidimensional organizational levels. It also affects self-employed contractors and local-level companies who may not have previously had the infrastructure to invest in cryptocurrencies. While these smaller industry players were limited in their local markets, cryptocurrencies and digital access now make them more marketable globally. As more cryptocurrency networks become available for public participation, it will cause a ripple effect that will eventually form into a shock wave felt all around the world.
More Investment Opportunities
Until this year, cryptocurrencies were alternatives to traditional payment methods. With several high-profile press releases that spotlighted cryptocurrency and blockchain expansion, their prices soared, which caused publicly traded stock markets to take notice. As more notice reflects trending support for the digital currency, it will also put pressure on businesses to invest before their availability max out such as we see taking place with bitcoin. Perhaps it is the reason why lesser traded cryptocurrency coins have rallied recently in anticipation.
As bitcoin successfully infiltrated markets, investors are also now looking for the next bitcoin opportunity. As they proved time and again, if the value of cryptocurrency can triple in value in just a single week, the same mindset connects to the rising value of stocks whose portfolios have cryptocurrency and blockchain technology attached to meet the supply and demand.
Although it’s still fairly new, the cryptocurrency market is expected to become valued at $1 trillion soon.
It has even become so popular and that some universities are offering crypto training programs.
Lucky for you, you don’t have to enroll in a course to get started with investing. Continue reading for our guide on cryptocurrency trading for beginners!
Cryptocurrency Trading for Beginners
Trading cryptocurrency can be very lucrative, but if you’re new to it, you may not know where to begin. These tips will get you started on the right track!
1. Create a Strategy
Before you start trading cryptocurrency, you need to decide on the type of trader you want to be. You will do so by deciding on important factors like how adventurous or risky of a trader you are.
Here are the three main categories your strategy may fall into:
Day Trader: When you’re a day trader, you’re participating in the riskiest of trading strategies. With it, you aren’t committed to trading a specific type of coin and you work with volatile shifts within the market.
Day trading is often reserved for those investors who are experienced.
Long-Term Holding: If you want a low risk, more relaxed way of trading, you should consider becoming a long-term holder. With this strategy, you will buy a few different coins to keep for a year or more.
Mid-Range Investing: As the name implies, this strategy falls into the middle of day trading and long-term holding. You might keep some coins as long-term investments, but you will also have some that you swap out frequently.
With this strategy, you’ll probably have a combination of large and medium-sized market cap coins.
2. Select a Type of Cryptocurrency
Don’t simply jump into trading cryptocurrency just because you’ve heard of a particular coin that’s popular. You should always do your research and find out things like the purpose of the coin and what problems it solves.
You can find these types of details in its white papers.
3. Choose an Exchange
Choosing your exchange is another decision you should be careful about making. Each exchange will have pros and cons for different types of traders.
And they will also differ in the types of coins they have available. The first step to finding the exchange that’s right for you is to see if it supports the types of coins you’re interested in trading.
There some great options you can compare here.
4. Security and Safety Tips
As with all internet-based programs, you have to protect yourself while trading cryptocurrency. Here are some security and safety tips you’ll need to implement:
- Keep your antivirus programs and firewalls up to date
- Only trade on secure networks
- Use a strong password
- Use data encryption
When crypto thieves get ahold of your accounts, it is highly likely that you won’t be able to recover your funds. Cryptocurrency wallets aren’t backed up the way bank accounts are.
5. Common Mistakes to Avoid
The smartest thing you can do when starting a new venture is to learn from the mistakes of others. Here are some common mistakes you need to avoid:
- Not analyzing losing trades
- Buying in on other people’s trades
- Over or under trading
It will certainly take some time to get into your trading groove, but these tips will make the transition easier.
Bitcoin and other cryptocurrency is a bit of a controversial subject in the investment world. There are a lot of stories about people that made millions from it when it was a new investment strategy but there are just as many stories about people losing everything. Some people maintain that it’s a good strategy and you can see good returns from it while other people insist that traditional investment strategies are always superior because cryptocurrency is too unreliable. The truth is, like any other investment strategy, it depends on how you do it. If you invest in cryptocurrency in the right way, it can be very lucrative, but if you do it wrong then you can easily lose a lot of money. The people that insist that it’s never a good option are usually making some simple mistakes and that’s why they don’t see any good returns. If you want to start investing in cryptocurrency, you need to make sure that you avoid these common mistakes.
High Exchange Fees
When you buy cryptocurrency, you need to do it through an exchange and there are a lot of different ones to choose from. You’ll have to pay an exchange fee and a lot of people make the mistake of choosing an exchange that has very high fees. When you’re making regular trades, those fees eat into your profits and that often leads to the view that it’s not worth investing in cryptocurrency. However, if you choose the right exchange and find one that has reasonable fees, you can avoid this problem. When you’re looking at the fees, make sure to read through the rates and understand them properly because some exchanges will charge a flat fee while others will charge a dynamic fee based on the size of the trade. If a site doesn’t clearly list a breakdown of all of their fees, you should avoid them because you’re likely to get stung.
Automated Trading Scams
Automated trading platforms are a great option for beginners that don’t really have much experience with cryptocurrency trading or hands-off investors that want somebody else to handle the trading for them. However, you’ve got to be careful because there are a lot of automated trading scams that will just take your money. There are some legitimate ones and according to Mike Brown, Bitcoin Code is one of the best ones. If you’re going to use an automated trading platform, just make sure that you do some extensive research first so you can be sure that it’s not a scam.
Keeping Everything In One Wallet
When you buy your cryptocurrency from an exchange, you need to move it into your own wallet. However, these wallets are always at risk of being hacked and you could lose everything that’s in there. If you put everything in one wallet, you’re risking a lot, especially if you’ve invested a considerable amount. It’s best to be safe and split your cryptocurrency into multiple wallets so you don’t lose everything in the event of a hack. It’s also important that you protect your wallets properly to reduce the chance of being hacked.
Trading cryptocurrency can be a good investment choice, but only if you avoid these common mistakes when you first get started.