Cryptocurrency Investment: Crypto is an entirely a new concept to the world. Many are still stuck at understanding how it works and some people were making a hell lot of money everyday trading crypto. One sure thing is, it is not an easy task to go and straightaway invest in cryptocurrency expecting millions.
Like any investments, Cryptocurrency investments also have specific precautions and education to be taken before investing the hard earned money. There are many things that are to be kept in mind before investing in Bitcoin or any crypto.
Cryptocurrency – Mother of all Volatile in the history
If you just glance at the market chart from 2011 to 2018, you will understand how volatile Bitcoin is in its value. The same happens with all the altcoins as they are bonded with the Bitcoin. The price of altcoins may go up 100% in a matter of few minutes and may come down by 150% in another few minutes. This kind of volatility is actually made by whales, they are artificially manipulating the market with the Bitcoin.
Crypto is not Get Rich Quick Scheme
One shouldn’t fall on this Cryptocurrency pump and dump schemes as there is a high chance of losing your money. The best to enter in the market is when price drops and stable at a certain point. Buying the pumping coin is like catching the running train. You may succeed, but at the same time, if you fall down, you will get hard hit on the track. So it is always better to stay away from these Pump and Dump altcoins.
Cryptocurrency Exchanges must be chosen Wisely
One should always be safe while selecting their cryptocurrency exchanges to trade Bitcoin and altcoin. Mankind always prefers the best one among all options. Coming to the crypto, the best and most secured exchange so far is Binance exchange. This has been started in the mid-2017 and the exchange is being run successfully in 2018 listing new altcoins periodically. Binance is the only exchange that offers very low trading fees.
They also have their own coin – Binance Coin (BNB) which can be used to purchase altcoins and people will get 50% discount fee if they prefer to pay via Binance coin. Signup on the Binance using the below link to avail 50% trading fee discount.
And it is always good to have an account on alternative crypto exchange. The other best alternative crypto trading exchange with low fees is Kucoin. Signup Kucoin using the below link and get discounts on a trading fee for a limited time.
Always Transfer Cryptocurrency to the correct Address
Crypto transactions are irreversible in nature. If you are about to send Bitcoin or any altcoin from one exchange to other exchange or from Hardware wallet to the cryptocurrency exchange, make sure and check twice the destination address and amount of crypto you are sending are correct.
Also make sure you are sending correct crypto to the correct address. If you send Bitcoin to the Ethereum address, you will lose that entire Bitcoin and it is impossible to get them back.
Stay away from ICO – Initial coin offering if you are completely new to crypto. Almost 80% ICO are spam and scam. They give you ERC20 token and ask for Ethereum. Once you send ETH to them, either they run away or they will stop the project. It is very important to choose ICO wisely as there is huge chance of losing than winning here.
Keep your Private Keys Safe
Private Keys in crypto are like ATM card Pin number. You will have a private key for your external hardware wallets and for some online wallets. If private keys are stolen, you will lose all your cryptocurrency. So it has to be kept safely and privately.
Always enable 2FA in trading exchanges. When you log in to the exchange from new IP or withdraw funds or crypto from the exchange, you will be asked for 2FA verification via mobile SMS or Google Authenticator app. Activate 2FA to escape from the hackers.
Last but not least, always stay safe while trading crypto. If you get in Pump and dump, you will lose money. If you invest in ICO in the beginning, there is a high chance of losing there. Remember, only invest what you afford to lose.