Earnings on cryptocurrency – it's not such easy money. But many in the pursuit of quick earnings, they lose their minds. We have prepared for you a number of useful recommendations to get you paid in the cryptocurrency trading with the minimum expenses of forces and nerves.
- Prepare thoroughly
There is no such a textbook "Introduction in the sphere of cryptocurrencies". Here the "scandals, intrigues, investigation." So do not take for granted the incredible success stories, which are broadcast in advertising. Think with your head, with the awareness of the riskiness of gambles, on that go.
The network of bitcoin is a very interesting substance. But it can be confusing, if only to trust the rumors.
Yes, someone can afford Lamborgini nothing about its engine. After all, if he starts to act up, it is always possible to get to the service. In crypto everything is different, because here you are acting alone.
According to Paul Kuskovsky, CEO and co-founder Coinfirm, the more you understand about the principles of the cryptocurrency market and technology of the blockchain as a whole, the best for you.
Do not head in the dreams of fabulous wealth. Just take it and see what laws there lives the field of cryptocurrencies. Many prominent figures of this field, like the founder of Wireline Lucas Geiger will tell you about the same.
We suggest to start with the origins. Carefully read the WhitePaper Satoshi Nakamoto. Jacob Eliasov who is the Manager of the Fund Crypto says about the article Nakamoto:
"If you are the owner of a technical mindset, be sure to familiarize yourself with the article. It'll take you no more than 10-15 minutes, because it takes up only 8 pages. I think this work is brilliant. Personally, it inspired me and made to move in the right direction."
And the most pleasant feature of cryptocurrencies is that with the release of new coins into the market, the developers tell everything about her. Teams aim to attract more investments, including those from traditional sectors of the economy. Therefore, exchanges and investment kriptolodzhika implemented futures. They lead investors to understanding how a particular cryptocurrency.
- Be careful
Any investment is a risk. But cryptocurrencies have high volatility, especially bitcoin. So there are risks even higher. In this regard, Eliasov from the Fund on Crypto braset attention:
"This case was and remains very risky. Therefore, only risk the money loss which your life will not change!"
The Internet is full of success stories of those who earned fabulous money on cryptocurrencies. But these lucky ones actually one. And not the fact that you will become one of them. At first, do not forget about caution. Even trade bitcoins will not bring you immediately coveted million. Unreasonable risk and can result in large losses and problems.
Here's a tip from an experienced entrepreneur Marshall of Svata:
"Start in small steps, invest at first a small part of your means."
Council Tim Enneking, managing Director of Crypto Asset Management similar to the previous item:
"Do not pursue exchange rate for bitcoin. Define the entry point and wait. If selected for investment with bitcoin, the vector of price movement you will hardly miss. Most importantly, successfully choose when to buy/sell coins".
Investments can be guided by different strategies. Bitcoin could work any of them. But practice shows that the greatest chance of success just from those who are cautious and know how to wait.
For example, bitcoin works well strategy, called "dollar cost averaging". According to it, each month you invest in bitcoin of the same amount in dollar terms. This strategy effectively helps to avoid the consequences of volatility.
- Do not stop at one bitcoin
Bitcoin is the first, most scandalous and controversial coin. In General, at the moment, the cryptocurrency market, there are about 1.5 million coins. Among them there are those which are increasing in price much more stable and faster than bitcoin.
Diversification is good because while bitcoin is falling, other cryptocurrencies are rising and Vice versa. Businessman Oliver Isaacs advises:
"Do not put eggs in one basket, protect yourself from volatility. Everything works the same as in the Forex market: diversify your assets to manage risk".
Here's advice from investor Ronny Mousa:
"Don't buy everything with bitcoin. Select from the top 50 successful coins ten, and divide the money between them."
- >Don't store money on exchanges
In the field of cryptocurrencies is full of scams. Hackers know that the exchanges always have money, and what would secure the exchange, they in the end will bypass the protection. Therefore the only buy and sell coins. Let your tools are always in the wallet. After all, only you control it and no one knows how many tokens you have there.
Users of the exchanges in the history of cryptosphere have already lost millions of dollars due to hacker attacks. Of course, to hack servers in large markets are not so simple, but the craftsmen have reached and closed exchanges like BTC-e or hacked Coincheck, resulting in a lot of people lost a considerable amount.
Here is the solution problems from the founder and CEO of iComply Investor ServicesInc. Matthew Unger:
"Some part of the money you carry in your wallet in cash, another part of you left in my Bank account, and the most valuable things you are likely to hide in a fireproof safe. With cryptographic currencies is to do the same."
- Be equally ready for the decline and the rise of
So bitcoins have a high volatility, that many investors are of the traditional sectors of the economy simply did not dare to come to the stock market. Even if you're holding coins, which suddenly collapsed in price, use your head. Emotions there is a bad adviser.
Good insurance is diversification. It partially compensates for the volatility of the cryptocurrency. But to juggle "set" coin is harder than, for example, to buy bitcoins and just wait. Although the latter way are many, and often they succeed.
Of course, your right to choose or nott this strategy. But if you bought bitcoins, try not to become a slave of the stock market. Because the constant surveillance of course you are simply exhausted.