Crypto Trading Tips for Newbies
Something that you might know is that the crypto market is currently extremely volatile and ripe for making profits. Bitcoin has been seen massive price fluctuations and it often has to do with things that Elon Musk says and does. Elon Musk and Tesla aside, the simple reality is that the cryptocurrency market is extremely profitable, at least if you know what you are doing. Crypto trading can indeed put big time dollars int your pockets.
That being said, the reality here is that crypto trading is not easy, not in the least. It takes a whole lot of skill and knowledge in order to be profitable in the world of crypto trading.
Now what you need to be aware of when it comes to crypto is the fact that you not only need to know how to trade, but you also need to know how to stay safe and secure. the fact of the matter is that the cryptocurrency market is not the safest in the world, which means that paying attention to your security is paramount. What we’re here to do today is to provide you with crypto trading tips for newbies, one that will keep you safe while in this brave new world.
Start Small & Diversify
Right off the bat, one of the biggest mistakes you can make when trading crypto is to put all of your eggs in one basket. People, the concept of market diversification has been around for a very long time and it’s one that you need to heed. The fact of the matter is that the crypto trading market is very new and it’s fairly dangerous.
Bitcoin has seen price fluctuation of several thousand dollars in the last few weeks alone, and in tens of thousands of dollars over the last few years. This means that it’s just not all that stable or secure.
As a beginner trader, the official recommendation is that you not invest more than 5% or 10% of your total trading capital in cryptocurrencies. As you become more skilled and confident in your crypto trading abilities, you can then start investing more of your capital into cryptocurrencies up to 25%. That said, you should still aim to invest the rest of your money in other markets, such as the stock market, Forex, and into commodities.
Diversify Your Coins
When it comes to cryptocurrency trading, yes, diversifying your investments into various markets is a good idea. But with that being said, you should also try diversifying the types of crypto currencies that you purchased in trade with.
Sure, Bitcoin is of course the most valuable crypto currency of them all, but with that said, there are still others that you can and should trade with.
The simple reality here is that you should never put all of your eggs in one basket because of that one basket breaks. Then all of your eggs break too. Therefore, you should try investing into a variety of altcoins, not just into Bitcoin. Whether it’s crypto trading or stock market trading, diversification is always something that you should pay attention to.
Crypto Trading Income is Taxable
People are always looking for a way to avoid paying taxes, and this goes for cryptocurrency trading people too. People seem to think that cryptocurrencies are totally anonymous and that there is absolutely no way to track them. However, this is simply not true. And yes, your local government will be able to see that not been making massive profits from crypto trading.
People seem to think that they don’t have to pay taxes on their cryptocurrency profits, but this is just not true. Any profits that you make through crypto trading are considered income and are considered as taxable. In other words, it is completely illegal to not pay income taxes on crypto trading profits.
Don’t Forget Cyber Security
When it comes to cryptocurrency trading is something that many people forget is security. People, the Internet is a dangerous place and there are always hackers looking to steal your information and your money.
Therefore it is completely baffling how so many crypto traders decide to use the same boring passwords for all of their accounts, passwords that are very easy to guess. People even save passwords in their browsers, which is of course very stupid. People when it comes to crypto trading, cyber security is of the utmost importance so you always need to use very long and strong passwords.
Even better is if you pay for a professional password manager that will create the most secure passwords for you. On that same note, don’t forget some good anti malware and antivirus software on your computer.
Use a Secure Wallet
When it comes to cryptocurrency trading, something that you should never do is to keep your coins stored on a trading platform or in a crypto bank. Did you know that crypto currencies are not insured at all? Which means that if a trading platform or a crypto bank goes under, if you have money stored with them, it all disappears.
People you absolutely want to use a secure wallet that is either installed on your computer, or even a physical wallet to store your cryptocurrencies.
Any and all coins that you are not currently and actively trading with should be stored in a cryptocurrency wallet that is on your hard drive or in a physical space in your home. That said, beware that if you get a physical crypto wallet, it’s just like losing a real wallet, and once you lose it, all the contents disappeared as well.
Start with a Crypto Trading Signals Service
The final thing that we are going to recommend for today is that you check out Crypto Trading Box, the world’s best supplier of crypto signals for you to trade with. These signals, up to 12 per day, come complete with entry and exit points, so all you have to do is copy and paste them into your broker or trading platform of choice. Making money via crypto trading has never been so easy.
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Crypto Trading: Final Thoughts
People, when it comes to crypto trading, the tips we have provided you with here today definitely make for a good starting point, especially in terms of your security and safety.