Tips for Crypto Trading Newbies
Trading crypto is not easy, but it is doable. That said, as a newbie trading crypto, you do want to follow the tips that we are about to outline here today.
Start with Cyber Security
One of the things that people seem to forget when it comes to trick crypto trading is cyber security. The reality here is that the Internet is a very dangerous place. It’s full of hackers and criminals who will do everything in their power to steal your identity and your money.
It is completely baffling how so many newbie cryptocurrency traders keep using the same password for all of their accounts and keep using the same bad passwords. People also tend to save their passwords in very weakly protected browsers. The fact of the matter here is that when it comes to your cryptocurrencies, cyber security is extremely important.
If someone manages to hack into your accounts or get into your Wi-Fi signal, then they may be able to steal all of your cryptocurrencies. It is very important that you use long and strong passwords and even better is if you use a professional password manager that will generate the world’s most secure passwords for you. You should also look into getting some very high end antimalware and antivirus software.
Don’t Store Your Coins in a Platform
Another very important fact that most people don’t know about crypto trading is the fact that cryptocurrencies are not insured. People when you have money in a bank, it is insured. When you have money on the stock market, it is insured. However, cryptocurrency, banks and crypto trading platforms are not insured.
Therefore, if a crypto bank or a trading platform goes belly up, then all of your money is lost. Therefore, it is very highly recommended that you not store any of your cryptocurrencies on trading platforms or in cryptocurrency banks. You only want to have those cryptocurrencies inside of platforms or coins that you are currently trading with. Any coins that you’re not currently trading with should be stored in a physical or computer based wallet.
Beware of Physical Crypto Wallet Security
What we recommend doing is storing all of your crypto coins on a physical crypto wallet. This is not unlike a wallet that you store your cash in. Besides the fact that it is more of a hard drive and than a leather wallet. What you need to be aware of here is that your cryptocurrencies, when stored in a physical crypto wallet, are susceptible to being lost.
In other words, if you drop your crypto wallet down a sewer drain, it is gone forever, and so will all of your cryptocurrencies be gone too. So if you plan on storing your crypto currencies in a physical wallet, be sure that you are very careful with it, because losing it will spell disaster for you.
Remember that Crypto Trading Income is Taxable
People seem to be under the impression that crypto currency trading profits are not taxable and that they are like a tax haven. People this is not true in the least because crypto trading profits are absolutely considered as taxable income. As you probably know, if you don’t pay your income taxes, you will be subject to heavy fines and possibly even criminal prosecution. Therefore, in no way should you avoid paying your income taxes on crypto trading profits. For instance, if you make $10,000 worth of profits through Bitcoin trading, then you absolutely must pay the income tax on that.
Diversify Your Crypto Investments
The next thing that you need to be aware of here when it comes to crypto trading tips for newbies is that you should absolutely diversify your investments in terms of the various crypto coins that you get. Yes, they point is of course the most valuable and profitable of the crypto currencies right now. So trading with it is of course highly recommended.
With that being said, there are literally hundreds of cryptocurrencies out there, so we recommend doing a bit of diversification. In the event that Bitcoin goes belly up and loses all of its value, if you have invested only in Bitcoin, then you will be in for a very big surprise. However, if you have diversified your investments and you own a variety of cryptocurrencies, even if one or some of them go under, you will still have the others to fall back on.
Diversify Your Investments in General, Not Just Crypto
This principle of market diversification is very important to keep in mind in general, not just for cryptocurrencies. What we mean here is that as a newbie crypto trader, you should really only invest around 5% or 10% of your total capital into cryptocurrencies.
The reality here is that cryptocurrencies are extremely volatile and we really don’t know what is going to happen with the month or even a year down the road. Therefore, you want to invest more money in the stock market in Forex, commodities and other such markets in order to make sure that you have a safety net in the event that cryptocurrencies build belly up.
Keep Crypto Market News & Economic News in Mind
On any given day, before you start crypto trading, you should always pay attention to economic and World News. The simple fact here is that news can have a big impact on crypto prices, so we should definitely pay attention to this.
Try a Good Crypto Trading Signals Service
The other thing that we want to mention before we call it a day is that if you want to make profits through crypto trading but you don’t know what you are doing, then you should try using a high quality signal service. The signal service will provide you with daily cryptocurrency signals that are already complete, which means that you just have to copy and paste them into your trading platform. It’s a really easy way to perform crypto trading without actually having to know what you are doing. We recommend taking a closer look at Crypto Trading Box, the world’s best crypto trading signals service.
Crypto Trading Tips for Newbies: Final Thoughts
We hope that the crypto trading tips that we have provided you here today are more than enough to get you started. Moreover, we hope that you will feel secure when crypto trading. Remember that if you are a newbie, one of the best things that you can do is to use a crypto trading signal service.