5 important rules for a “crypto-newbies”
In the course of the all-time highs from December 2017, and the associated media coverage surrounding Bitcoin, Ether, and co., more and more people have been in the past weeks and months, to the crypto currency market. Because of this, however, –especially for newcomers in this area – some of the pitfalls, we would have you here at crypto Ticker.io is a brief summary of the most important basic rules when buying and trading crypto-currencies:
1) ONLY INVEST AS MUCH CAPITAL AS YOU TAKE CAN TO LOSE!
The “Golden rule” when buying or trading with crypto-currencies is also transferred to other areas of the Plant (e.g. the stock market). Investors should never put more money than you could lose to be absorbed. One must be constantly aware that the risk of a (Total)loss is always present. Money, which is for example used to Cover everyday costs such as rent or food, should be used by you also, and not in a highly speculative form of investment, as it (most) crypto-currencies are set! Some people go so far as to take out loans to invest in crypto-currencies. Even if the project might sound at first so promising, putting your entire existence at risk, because sooner or later you’ll get burnt your Finger.
2) “BE YOUR OWN BANK” ALSO MEANS “BE CAREFUL”!
If you are in the case of a Bank transfer, something goes wrong and you need to transfer, for example, accidentally money to the wrong account, so you have a Central contact person who can help to revise the error. In a decentralized System, which is the most crypto-currencies represent, has to take care of each user to ensure that his Portfolio is safe and its Transfers, since the land where they are supposed to.
One of the most important points when dealing with crypto-currencies represents all the safe-keeping of the Coins and tokens. In no other Ecosystem are more scammers and hackers that are practically employed around the clock in order to bring other people out of their money. The A&O for each, of the be must in the crypto world moves to protect its private keys against outside access. Tips on how to the best makes you can find here. Furthermore, it is extremely important to check before each Transfer carefully whether you have the recipient’s address and the amount to be sent is entered correctly. If you transfer the Coins/tokens by Mistake to a wrong address, or even to many, they are lost in the majority of cases, unfortunately.
3) “USE OF NAME-LIKE EXCHANGES”
“Real money” in crypto to swap currencies you should in the best case only “trusted” exchanges use that have a certain volume of trade. Depending on the Coin/Token you want to buy, you should as described here coinmarketcap.com check on what stock exchanges is the appropriate crypto-currency is traded, then the name of the most select from the list. As an example, Kraken, Binance, Bitstamp, or Coinbase would be to call, but should you choose and check what is the stock exchange seems to be the most trustworthy or which you like of the user interface, etc. best. Many small stock exchanges often turn out to be a fraud or are usually secured less good as the big names and to avoid, therefore, better. For the purchase of Bitcoin (Cash) and Ether, is bitcoin.de swap another (relatively safe) way to Fiat money into crypto-currencies. This Portal is more like a private marketplace and you need to transfer the money directly to the Bank account of the respective seller, and, after validation, the Bitcoin will be credited to your Wallet on bitcoin.de . Why you should get your Coins then, however, only in exceptional cases, on the stock exchange, is explained in point 4).
4) “YOUR KEY, YOUR COINS – NO KEY, NO COINS”
What is understood for “crypto-newbies” often difficult, is the meaning of the Private Keys for the possession of the appropriate Coins. You often hear people say “I bought now at “eToro” Bitcoin.” And this is exactly where the error lies: At trading sites such as “eToro” is not only betting on the price of BTC, you buy the right free on the “purchased” Bitcoin. Otherwise manage the crypto-exchanges (“Exchanges”). Here you can not arise in principle the right of your purchased crypto-currencies of the exchange to be deducted and send it to one of you managed (= only you know the Private Key) Wallet, as long as you do this, however, and the Coins/tokens in your exchanges Wallet are let, you guys – to put it crudely, nothing more bought as a Modification of the digits of your account status at the time of the relevant stock exchange.
The well-known “Bitcoin advocate” Andreas Antonopoulos once said: “If you have the Private Key in control of YOUR Bitcoin. If you don’t you’re only in a slave relationship to a Bank (or Exchange)“.
More you can find in our article
“How do I secure my crypto-currencies at best”
5) HANDLE EMOTIONLESS!
Far too many investors let (bad) emotions and miss because of either the correct date for the entry into a Coin (keyword: “FOMO”) or worse, the right time to get Off (the keyword is “FUD”/”Weak Hands”). In the highly volatile crypto market rate fluctuations of +/- 10 to 20% within 24 hours of everyday life. Don’t be fooled and don’t fall in panic when your Portfolio may have lost once, overnight, 20% of its value. Time has shown: The courses can also go just as quickly to the top!
Much success in your investing! If you use our tips beach test can already (almost) nothing will go wrong.