Bitcoin is shaping up to be another strong investment contender this year due to the influx of enthusiasts and big name celebrities pledging to the industry.
If you’re one of those who are interested in investing in cryptocurrency this year, here are 4 things you should know.
Digital Asset Means Cybersecurity
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Cryptocurrencies do not exist anywhere else but the world wide web. Owners can ‘store’ the keys to their digital wallets for safekeeping, but then it spends most of its time on exchange platforms and websites.
To protect your coins you won’t need an anti-theft bag; rather, you’ll want a robust and powerful software that can do the job. The simplest way to do this is to set a strong password that only you know. Don’t just copy and paste the passwords you have for your email or social media account; otherwise it will get stolen.
Get a Professional Crypto Friend
First time traders will probably not know how to make a profit in their initial trade. Chances are, they will get too eager and make it early and not make bank or make it too late and either suffer a loss or a break-even.
Waiting too long for the value of the cryptocurrency isn’t a wise decision as well. In this case you can get help in the form of websites such as the bitcoin trader website to get insights and recommendations when you should spring to action and when to wait.
You can supplement your investment by reading up on cryptocurrencies and how they work, or by checking on new coins and seeing if they’re worth your money.
The Misplaced Coin Dilemma
Investors lose their Bitcoin or other crypto assets just because it’s misplaced. As funny as it sounds it happens way more often than what you think.
You may forget the PIN, misplacing the hardware wallet that contains their Bitcoin or overwriting hard drives that contain the asset or wallet. You could even lose cryptocurrency by reformatting your computer’s hard drive and forget to back it up.
That said, in order to avoid this problem you can choose your crypto exchange platform wisely and always have a back up handy for your crypto storage. You can also choose to put it in a reputable website, where you just need your user name or password to gain access to it.
Factor in the Fees Before Making the Trade
In order for exchange websites and similar platforms to make money they usually charge a minimal fee or transaction fee to their clients. Factor in these additional details before you make the trade or else you’ll find yourself suddenly losing money instead of gaining them.
It’s recommended to only make an action if you could gain a higher profit after the transaction fee or moving fee is added. In the meantime, just leave the cryptocurrency in your wallet and it will gain value as long as it’s in holding. The less transactions you make the higher your returns because you won’t have to share as much.