Cryptocurrency (bitcoin, ethereum, litecoin, dash, monero, ripple, bitcoin cash, etc) has thousands of investment opportunities you might want to tap into, but how do you minimize losses in the course of your cryprocurency journey?
Bitcoin is worth $12,931.70; ethereum= $1,149.39; bitcoin cash= $1,939.71; ripple= $1.60; dash= $951.62; while bitcoin gold was worth $229.11 at the time of publishing this post (18:57, January 20, 2018).
They continue to rise and fall. At the time of putting this post together, the pioneer cryptocurrency rose in value by 11.64%, while ethereum rose by 9.76% in value. From all indication it means investing in digital money is one of the coolest ways to gain financial freedom, but there are risks because it’s volatile investment.
Here are some of the cryptocurrency tips to guide you as you take a plunge into investing in bitcoin, ethereum, litecoin and other internet of money.
Don’t invest what you’re not ready to lose
Bitcoin has risen in value from nothing to over $19k USD early December 2017 before it plummeted to its present price $12,931.70. It continues to rise and take a slight dip with time. It has been predicted to reach $50,000 to $100,000 before the end of 2018.
That’s a great opportunity, right?
Ooh yeah, you could get 700% fold of your investment, but do you also know that you could lose virtually everything if you invested your entire savings?
Be patient, monitor the trend, and prepare for losses because it’s a volatile investment. Prepare for gain and losses. Don’t be afraid to take risk, but don’t risk what you can’t lose.
“The biggest risk is not taking any risk… In a world that’s changing really quickly, the only strategy that is guaranteed to fail is not taking risks,” Mark Zuckerberg said.
Dig into cryptocurrency investment platforms/sites
Cryptocurrency market is booming and it has been flooded with a lot of fraudulent bitcoin investment platforms that promise you 20% daily profit on your investment, how they plan to achieve that you won’t be told.
Don’t be carried away by their first pay out. Some of them operate for a short period of time and eventually run away with your money.
Bitcoin investment platforms like btccycling and thousands of them out there don’t have sustainable business model…they have ponzi scheme features. Steer clear.
Beware of Initial Coin Offering (ICO)
ICOs means Initial Coin Offers, a way of launching a new cryptocurrency into the digital market with the aim of getting people onboard. While there are real ICO, research has also shown that fraudsters are taking advantage of this to dupe investors.
ICO fraud could happen in two ways, says Larry Johnson, a guest writer at entrepreneur.com:
- When criminals create a fake ICO and steal any money investors invested
- When hackers impersonate a legitimate ICO firm and lure investors into paying them instead of the legitimate company.
Do your due diligence on an ICO, ask friends, do personal research before jumping in.
Use search string like: “ICO’s name+reviews” into Google or any of your preferred search engine to read honest opinions what people have written about it, not opinions of writers who condemn other products for them to promote theirs.
“Check industry sites like coindesk to verify the legitimacy of a claimed ICO. Don’t fall for hard sell tactics or too good to be true offers,” says Larry.
There are some websites you can check whether an ICO has been listed into the cryptocurrency market or not, three of them include
Does cryptocurrency investment worth it?
You need to ask yourself: Does cryptocurrency worth it? Follow your instinct. If you feel it doesn’t don’t jump into it because others are doing so. Study it, how it operates, and for how long would you be able to leave your money in there.
Don’t put all your eggs in one basket
Cryptocurrency is a risky venture which requires caution.
“Your capital should be broken into smaller lots for multiple positions at different price levels. Do not invest your life savings or money that may change your life drastically in the event of a loss,” digital coins enthusiast advised.
Due to the existing level of uncertainty that still exists within the crypto market, it’s advisable to hold a portion of your savings elsewhere.
“Digital currencies are volatile and the prices can go up and down,” Coinbase Chief Executive OOfficer Brian Armstrong, said late last year (2017).
Understand the Market before taking a plunge
You have to constantly keep up with market trading and prices. The price might go up 100 folds now and drop by 20% some moments later. Understanding the market is a continuous process for you to take the right decision at the appropriate time.
“It is very crucial to do research and be up to date with current trends. Know when to cash in. It is important to stay focused, unemotional and professional,” coinbase founder advised.
Read cryptocurrency investment forum
While I can’t specifically get any cryptocurrncy forum at the time of writing this, there are global forum where you can get bitcoin advice, ethereum guide, litecoin investment strategies and lots more.
In Nigeria here, nairaland is another forum where you can get genuine investors as well under the investment category
Caution: don’t share your personal details with anyone on a public forum. Don’t be lured into too-good-to-true investment. Use forum to widen your knowledge about how you can benefit from thousands of opportunities digital money holds.
Protect Your Cryptocurrency (Coin) Wallet With Two-Factor Authentication
Digital currency wallets can be likened to your conventional bank account details. You’re told never to share your online banking username and password (code) with anyone, that’s how btc wallet, ethereum wallet work too. They are prone to attacks.
Voices in the business advised that authorizing two-factor authentication in your account is one of the ways of securing your finances.
Google Authenticator has proven to be more secured than SMS two factor. If you already have a wallet you can head straight to Google Play Store to download Google Authenticator and link it with your wallet provider.
You’d need a code from the Google Authenticator any time before gaining access to your wallet dashboard.
Consider Hardware Wallets for your coin
A hardware wallet is a physical electronic device, built for securing bitcoins against online hackers.
Hardware wallet is one of the new innovations after cryptocurrency boom. It must be connected to your PC before bitcoins can be spent.
There are more than five bitcoin hardware wallets, but three most popular ones are:
- Ledger Nano S
Hardware keeps all your important private keys in offline environment, even when your hardware is plugged into a computer that is infected with malware or virus.
“As bitcoins are digital, cyber-criminals could, potentially, target your computer’s “software wallet” and steal them by accessing your private key.
“Generating and storing private keys offline using a hardware wallet ensures that hackers have no way to reach your bitcoins,” Jordan Tuwiner founder of buy bitcoin worldwide advised.
Check And Cross Check Bitcoin Address Before Making Transfer
Bitcoin transactions are irreversible; once sent digital coin to a wrong address that’s the end, it is not possible to reverse it.
“Please note that the same wallet can have multiple incoming addresses. The Bitcoin protocol ensures that Bitcoins are not sent to an address that does not exist, but they can be sent to addresses which are inactive or not controlled by anyone,” remitano advised.
Bitcoin address doesn’t have space before or after it. Be careful when you’re copying address from another platform to which transaction is to be made.
Other tips given by Chip Smith, blockchain expert in Harvard-Westlake School, include:
Stay Away From Bitcoin Datrading, And Spammy Hyped Up Programs
Most of the hyped programmes pay unbelievable profit daily, but run away with investors’ money when everyone seems to be pumping in huge amount of money.
Buy and hold for years. Be patient
Digital currency investment is best suitable for those who can be patient. It pays to hold for years before selling them. The BTC Whales in the world today were the earliest investor who bought thousands of dollars in bitcoin more than seven years ago.
While there is possibility for price to fall, there is still plenty of room for price to go up and crypto is an exciting prospect for those who are willing to take the risk. It worth taking, beware of fake bitcoin wallet as well. Get BTC wallet with tested and dependable firm.
Local trading site Vs global cryptocurrency platform
There are local cryptocurrency platforms where you can securely buy and sell bitcoin, ethereum and ethereum, deal with them first. Some of them in Nigeria include: luno, remitano, jostpay, paxful, localbitcoins, bitkonga and lots more.
When you understand how cryptocurrency trading works using your local provider you can then go buy and sell coin on international trading platform like binance, bithumb, iqoption, bitssa etc.
How can you invest in bitcoin, ethereum and other promising coin? Find out in our next post.
Want to explore bitcoin or ethereum?
Contact me (for free guide)
@OpeQuadri on Twitter