Important tips for Bitcoin newbies

While knowledge is an asset in the cryptocurrency world, a higher IQ is not a requirement of investment profit. Everyone is looking for a swift and simple way to wealth and happiness. It seems to be social nature to continually hunt for a dark key or some unusual bit of information that quickly leads to the top of the Bitcoin rainbow. Tips on investing strategies can be found here

In the search for profit, people often neglect the most important tools available to them: time and the magic of analysis. Investing systematically, bypassing needless financial risk, and letting Bitcoin news and crypto market work for over a period of years and decades is a special way to gather notable assets. Here are several tips that should be followed by Bitcoin newbies.

Invest Only As Much Capital As You Can Trust To Lose!

The “Golden Rule” when buying or trading in Bitcoin is also to be transferred to other investment areas (eg the stock market). Investors should never use more money than they could afford to lose. You always have to be aware that the risk of (total) loss is always present. Money, which is needed, for example, to cover everyday expenses such as rent or food, should therefore also be used by you and not in a highly speculative investment form, as the (most) cryptocurrencies are! Some people even go so far as borrowing to invest in cryptocurrencies. Even if the project may seem promising at first, never put your entire existence at risk.

Set Long-Term Goals

Before investing, you should understand your target and the expected time in the eventuality you may need. If you want your returns within a few years, consider another investment; the crypto market with its volatility gives no assurance that all of your money will be available when you need it.

It is also essential to not make the error of trusting someone else with your money; that beats the whole idea of Bitcoin, which was designed to allow everyone with actual control of their money without trusting any third-parties such as the banks. It is remarkably simple for scammers to ride on newbies’ innocence in this unregulated market. This, therefore, calls for additional attention.

Be Your Own Bank

In the traditional banking system, if you accidentally transfer money to a wrong account, then you have to contact the bank which can help to correct the error. In a Bitcoin decentralized system, every user has to make sure that his portfolio is secure and that his transfers land where they should. One of the key points in dealing with cryptocurrencies is the safekeeping of coins and tokens. There is hardly any other ecosystem that has more cheaters and hackers who are busy around the clock in getting other people to pay for their money.

The A & O for anyone moving in the crypto world must be to protect their private keys from unauthorized access. Furthermore, it is extremely important to check carefully before each transfer if you have correctly entered the recipient address and the amount to be sent. If you accidentally transfer the coins/tokens to the wrong address, or even too many, they are unfortunately lost in most cases.

Benefits Of Named Stockings

In order to exchange “real money” in cryptocurrencies, you should only use “trustworthy” exchanges, which also have a certain trading volume. Depending on which coin/token you want to buy. Check on which exchanges the corresponding cryptocurrency is traded, and then select the most prominent one from the list. As an example Kraken, Binance, Bitstamp or Coinbase should be mentioned here, but you should select yourself and check which stock exchange appears most trustworthy or which you like the most about the user interface.

Many small exchanges often turn out to be a fraud or are usually less well secured than the big names and therefore better to avoid. For the purchase of bitcoin (cash) and ethers, bitcoin.de is another (relatively safe) way to exchange fiat money in cryptocurrencies. This portal is more like a private marketplace and you transfer your money directly to the bank account of the corresponding seller and after confirmation, the Bitcoin will be credited to your wallet on bitcoin.de.

“Your Key, Your Coins – No Key, No Coins”

What is often difficult to understand especially for “Bitcoin-newbies” is the importance of the private keys for owning the corresponding coins. You often hear people say “I’ve bought Bitcoin from eToro.” And that’s where the mistake lies: trading sites like “eToro” only make invest on the market value of BTC, but you do not get the right to dispose of the “purchased” Bitcoin. The crypto-exchanges (“exchanges”) handle things differently. Here, you basically get the right to withdraw your purchased cryptocurrencies from the stock market and to send to one of you managed (= only you know the private key) wallet.

The well-known “Bitcoin advocate” Andreas Antonopoulos once said:

If you control the private key, it’s YOUR Bitcoin. If you do not do this, you are only back in a slave relationship with a bank (or Exchange)

Handle Your Emotions

Far too many investors are controlled by (bad) emotions and therefore either miss the right time to get into a coin (keyword: “FOMO”) or even worse, the right time to get out (keyword “FUD” / “Weak Hands “). In the highly volatile crypto market, price fluctuations of +/- 10 to 20% are part of everyday life within 24 hours. Do not be fooled and do not panic if your portfolio has lost 20% in value overnight. Time has shown: The courses can also go up as fast again!

Conclusion

A person who thinks negative about the Bitcoin market or Bitcoin News is described as a “bear,” while their positive equivalent is described as a “bull.” During market times, the never-ending conflict between the bulls and the bears is displayed in the continually varying Bitcoin price. These short-term actions are inspired by stories, speculations, and beliefs – sentiments – rather than logic and methodical analysis of the Bitcoin market. If you are a beginner then the above-mentioned tips can be useful.

Disclaimer: This information should not be interpreted as an endorsement of any cryptocurrency. It is not a recommendation to trade. The crypto market is full of surprises and overhyped assets. Do your research before buying anything. Do not invest more than you can afford to lose.

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Disclaimer:

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.