Beginner Tips for Trading Crypto
Cryptocurrency market is currently as volatile as it has ever been. And yes, this means that trading crypto can be extremely profitable. Now, with that being said, trading crypto is not easy and it takes a whole lot of practice, knowledge and skill to do so properly.
Today what we’re here to do is to provide you with a list of beginner tips for trading crypto so you can not only be successful, but also keep yourself safe. Fair warning, today’s beginner tips for trading cryptocurrencies are mostly about the security aspect of things as opposed to the actual trading side of things.
The simple reality is that trading cryptocurrencies can actually fairly risky in terms of side of security, so you need to do everything you can to keep yourself safe. Yes, we will provide you with a few trading tips, but most of what we’re talking about today will be focused on cyber security and your own safety. Let’s get right to and provide you with some of the most important beginner tips for trading crypto, so you can be both successful and safe.
Use a Bitcoin or Crypto Wallet
One of the absolute largest mistakes that newbie crypto traders make is to keep their coins stored on trading platforms and in crypto banks. People, this is one of the absolute biggest mistakes that you can make and the reason for it is because cryptocurrency trading platforms and crypto banks are not insured. Crypto currency trading is not like stock market investing.
Whether it is the stock market platform or the bank, your investments are covered, which means that if that trading institution goes under, your money is insured. Folks, crypto banks and trading platforms are not insured, so if for any reason the platform or crypto bank in question goes under, you lose everything.
This means that every single coin that you are not currently and actively trading with should be stored in an offline wallet, not in a crypto bank or trading platform. You can choose to use a digital wallet that is installed right on the hard drive over your computer, or you can use a physical hardware wallet too.
Crypto Income is Taxable as Income
Many people try to use cryptocurrencies as a way to avoid paying taxes. However, this is something that you absolutely cannot try to do. The reality here is that world governments are currently paying more and more attention to cryptocurrency income. Moreover, cryptocurrency income is taxable income.
In other words, if you buy Bitcoin for $20,000 and then sell it for $30,000, that $10,000 difference is considered taxable income. If you get caught making profits from cryptocurrency, trading and investing, and you don’t pay your taxes, you will be liable to legal repercussions. Your income taxes on your cryptocurrency incomes. It is the law.
Cyber Security is No Joke
Although this really has nothing to do with trading itself, the simple reality is that it’s very important to follow proper cyber security protocols. The fact of the matter is that there are tons of people out there who are very careless or just extremely lazy when it comes to cryptocurrency trading and their cyber security. People will use the same passwords for everything or just use super simple passwords. Some people even save their passwords in their browsers.
Folks, if someone asks into your computer, they will instantly have access to all of your information and all of your finances. Need to make sure that your passwords are difficult and long. Even better is if you use a password manager that creates super difficult passwords that you don’t even have to remember yourself. Moreover, make sure that you have proper cyber security programs installed on your computer, such as antimalware and antivirus programs.
Pay Attention to Transaction & Exchange Fees
What you need to know about cryptocurrency trading is that even if the financial institution of your choice that you’re trading with is not charging your transaction fees, which is very unlikely, There were also the additional transaction fees simply because you were trading with cryptocurrencies. No, this does not come from your financial institution, but because every single transaction that happens with cryptocurrency is recorded on the so-called blockchain.
Recording anything on the blockchain costs money, so whenever you trade crypto, it costs a small transaction fee. Although the transaction fees can be very minimal, the simple reality is that they do add up overtime. Therefore, the recommendation is that you only move around cryptocurrencies when you absolutely have to, because every single transaction will cost money on that same note, you should also look for trading platforms and crypto banks that charge very minimal transaction fees.
On that same note, what you also need to keep in mind here is that exchanging one type of crypto currency for another is also going to cost you money. Not unlike when you exchange one type of currency for another. It costs a fee when you convert Canadian dollars into American dollars, and so does it cost a fee when you convert Bitcoin into anything else. Therefore, not only should you look for a trading bathroom with minimal cryptocurrency exchange fees, but also ensure that each exchange you make is the right one.
Diversification Helps, In More Ways Than One
Really, the only actual crypto trading tip that we want to provide you with here today is that you should always diversify your investments. For one, you don’t want to just buy Bitcoin, but other cryptocurrencies as well. It’s never a good idea to keep all of your eggs in one basket. On that same note, it is also recommended that at this time, especially as a beginner, you don’t want to invest more than 10% of your portfolio in crypto currencies. Do some stock market in Forex trading as well.
Use a Crypto Signals Service
Crypto Trading Box is at this time one of the best signals services out there. For a very low price, you can get up to 12 highly accurate crypto trading signals per day. They allow for up to 95% accuracy. Signals come complete with entry and exit points, so all you have to do is copy and paste the signals for fast and easy profits.
Crypto Trading Tips – Final Thoughts
Now that you have a good grasp on what you need to do in order to start trading crypto safely and effectively, as well as access to profitable signals, it is time to start making money!