Cryptocurrency is a new venture everyone is stepping into. Everyone seems to be either very excited or confused about what they should make of this digital currency.
Is it a currency?
Then why does it have volatility attached to it when it comes to the price structure? However, there are many who believe that it is illegal or it has no taxes involved with it.
Yes, Cryptocurrency is decentralized, but the other two points are a myth. First, Cryptocurrency is not illegal since it is being used by celebrities and business tycoons all over the world. On the other hand, it might not have government-imposed taxes, but it is definitely not something free.
You surely have to pay transactional charges whenever you make a trade through Cryptocurrency. The only difference, it is less than what you would pay in terms of credit card transactions.
What Is Cryptocurrency?
Cryptocurrency is a digital payment system that carries out most of its transactions with Crypto coins like Bitcoin, Dogecoin, and Ether. All the transactions carried are through a digital ledger called the Blockchain, and these remain in the digital world, having no presence in the real world.
The bank doesn’t need to verify Cryptocurrency transactions since all the verifications happen in the decentralized ledger itself. The first Cryptocurrency ever to commerce is called Bitcoin. It was started by an individual or a group of individuals under the name of Satoshi Nakamoto (which is a pseudonym).
You can store the Cryptocurrency in digital wallets. They come in all shapes. You can have online wallets with a private key or a hardware wallet, or now you can even avail of paper wallets that have an OR code. They can allow transactions between two parties face to face. Since then, many travel agencies have started to accept Cryptocurrencies for any travel plans.
Cryptocurrency transaction histories are saved in a public ledger called Blockchain. Each transaction is secured in each Block, and it is impossible to delete records from these Blocks, making it one of the safest forms of transaction.
However, cybercrime has managed to penetrate the Cryptocurrency market as well. If you are a first-time investor, this is how you can invest better and protect your earned Cryptocurrency.
Being A Pro Cryptocurrency Investor
Here are some of the expert tips!
1. It Is Not Gambling
Cryptocurrency is a volatile market where the prices will fluctuate all the time. However, it is still known for giving investors long-term opportunities. Therefore, do not try to gamble with Cryptocurrencies and test your luck here.
You might end up losing everything. Yes, take calculated risks, and measure your profit and loss with price prediction.
2. Use Credible Wallets
Do not fall prey to scams and advertisements which claim to double your investment if you place your digital currencies in certain wallets. You are likely to get these unethical offers through emails and even social media.
Your Crypto wallet is the most important part of your Crypto investment, and you should always pick a credible wallet. You can stake your Cryptocurrency to earn some rewards, but there is no such as doubling money in your wallet.
3. Protect Your Wallets
– Multiple authentications.
– Password protection.
– Not saying your private keys.
These are some of the common security methods you should always be careful about. Along with that, there are others like not falling prey to scams and sharing your private keys or saving all your wallets online. Try to keep your Crypto savings in hardware or even paper currencies.
4. Invest The Loss You Can Afford
Only invest the amount which you can afford to lose. Not saying that your first-time investment will automatically be a loss. But, many are scared to dip their toes into the Crypto market because of the fear.
One loss will always teach you how to place your next step. So, never be too scared of taking risks; all you need to do is invest the amount you could lose for the first time.
No Place For FOMO!
Cryptocurrency will require a calculated mind with an analytical soul. You can never be too impulsive when you are handling digital currency.
So, if you wish to be a pro, stray away from FOMO!