We’ve been hearing about the cryptocurrencies all the time and most of them call Bitcoin as the “Next big thing” in the world of technology. Bitcoin and other cryptocurrencies are a revolutionized the digital payments to an extent and allows you to make payments seamlessly without any geographical borders. We now have several crypto coins like Ether, Litecoin, Ripple, Monero and others to choose from and they each offer advantages over the other in terms of security, reliability and transfer speed.
Despite how lucrative the market might seem, it is very uncertain in nature and does not follow any pattern making It a gamble for many people. It is thoroughly adviced that one does their research well before making their investment as it does have some risk involved. We now have several platforms to choose from where you can invest, it is important to choose the right platform before making the investment as unreliable options might not abide by the latest security standards.
If you are looking to invest in the cryptocurrency market, then here are a few tips that might be helpful in a long run.
The market is a roller coaster ride and the rates are very volatile. The only thing constant about these markets are the change that they come with, we’ve seen users gleam about the 1000x returns that they got over an endured period of investment while we also hear several people cry about losing over 90 percent of their initial investment due to the wrong timing of investment and withdrawal.
Experts suggest that the best bet is to keep calm and be patient while investing in the market and only this can help yielding certain returns. By doing this, you can also free yourself of the day-to-day stress of continuously monitoring the prices, it might be a good choice to invest money and forget it for a while and only sell them when the coins reach your decided limit.
Be aware of the local laws
Be aware of the local laws in your country and the taxation that follows a bounty bonus. The market looks very lucrative, however, few countries don’t consider the trading of cryptocurrency to be legal and few others are yet to state their stance on the same. It is best adviced to do prior research to find the legality of cryptocurrency before making the investment. One should also be aware of the taxes that they would be bound to pay as a result of cryptocurrency gains. Also, most of the investments of crypto come with a risk factor and it is advisable to not invest more than 3-5% of your income unless you have a real idea of what you are getting into.
Knowing when to invest and withdraw
This question will probably stay unanswered for the longest time in the history of technology, there is no right time to invest as the market is very much unpredictable and even an approximate forecast is difficult to make. However, when the prices drop drastically, that might be the best time to get in and invest, this way there’s more scope for the coin to grow and for you to reap the benefits. It’s probably never too early or too late to invest.
Know your platform
It is very important to understand the platform that you are making your investments on. It is also highly recommended to make the investments using an exchange platform and not via brokers, this way, you will be saving a lot of money on fees that you will have to pay the brokers. Brokers charge a fee that varies at their convenience while the exchange platforms follow the same transparent market rate which is uniform across the platform without any discrepancy.
Know the duration
Before you plunge and make the investment, it is important to know the kind of investment time frame that you are comfortable with. You can either invest short-term and reap quick profits or go with the long-term strategy. Each country has a different tax rate on cryptocurrency exchanges and these rates also depend on the time frame of the investment. In general, long-term investments invite lower tax rates while short-term investments are bound to invite higher taxes as you pay the relevant taxes when you reap the benefits.
Know the market
When you make an investment, it is very important to keep yourself aware of the market conditions and it is adviced that one should keep themselves updated by reading about the market. It is important to know the technology, this way you have a better idea of the coins and the technology they are based on, this helps you decide on your investment choices instead of just leaping on to the coin that is growing the fastest. This is also important so that you are aware of the different coins and their conditions and for you to not make an ill-informed purchase. As a new trader, it is important to know the different technologies behind the different coins and then make the decision on the type of coin you wish to buy.
Chose reputed platforms for trading
Make sure that you go only with the reputed platforms for trading your crypto coins. There are several exchanges, some with fancy names, some with the more conventional names, it is important to do your homework and find out the better of the lot and then make a buy. Few platforms charge extremely high transaction fees for each transaction while some don’t offer the same security level for the wallet. It is important to opt for a secure wallet such as CoinBase or Warp Wallet. Always use a complex alpha-numeric password and opt for two-factor authentication whenever available.
Always exercise your decisions with due caution as the market is still in its early stages and not completely established such as the better-articulated stock markets. Be mindful of your investments and never invest more money than you can afford to lose in the gamble. There are chances that a particular currency value might heavily drop and you lose a huge share of your investment, it is thus suggested to start with small investments and grow only after you get a better understanding of the market. Most experts stage-in and stage-out regularly meaning, they invest small and in a gradual procedural way and withdraw accordingly.
Avoid storing on Exchanges for long
While buying the cryptocurrencies on the exchanges might be a good idea, it is not advisable to keep them in the exchange for very long. We’ve previously seen exchanges getting hacked and users losing all their money, to avoid such situations, it is recommended to use a digital wallet to store your cryptocurrency. We even have Mobile wallets such as Jaxx and Coinomi which are good for storing your investments online. This is important as these wallets are safe, reliable and more importantly protected from hackers.
While the above are a few tips on investing in cryptocurrencies, you should always do your own research and not just go by the word of mouth. While crypto trading does have several downsides, it could be a big boon if implemented properly.
Thanks for the tips team!! #Honor9LiteGiveaway