5 Tips and Tricks You Should Know Be a Successful Crypto Trader

  If you are going to put money in cryptocurrency for the first time, we suggest that you get at least a basic understanding of the industry. In this article, we are going to give you 5 tips and tricks that will help you become a better investor. Keeping these tips in mind, it will be easier for you to achieve success as a beginner.

1. Look for Reputable Sources of News

You will find different opinions about the world of cryptocurrency. According to some people, crypto is nothing but a fad, while others think that it is a great investment, especially if you are looking to invest your money for the long term.

If you are sure that you can benefit from Crypto, you should stay tuned to trustworthy sources and don't listen to non-believers. For achieving success as an investor, you should consider some facts and then keep investing your money wisely.

2. Get Ready for Volatility

Unlike regular currencies, cryptocurrency is not that stable. A few months back, the value of one of the most popular cryptocurrencies called Bitcoin was around $40000. But it has now dropped back to $30000. So, what you need to do is make your decision wisely. If you become greedy, you may suffer huge losses.

Even if you ask expert crypto traders, they will say that even they don't have the mastery of the art. So, you need to be careful when it comes to you investing in crypto as cryptocurrencies are quite volatile.

3. Consider other Altcoins

As far as cryptocurrency is concerned, you are not just restricted to Bitcoins. Therefore, it is not a good idea to put all your eggs in one basket. In other words, you should invest your money in other types of cryptocurrency as well.

So, what you need to do is do your homework and find out which ones are doing well. In other words, you should choose the top 5 cryptocurrencies and invest your money in them.

4. Learn about Hot and Cold Wallets

Although crypto is a digital currency, you can still store them on the internet in your hot wallets. But if you are just starting out, you may want to give a go to offline wallets as they are quite useful and versatile.

On the other hand, it is true that cold wallets offer protection against hackers. So, if you want to diversify your assets, we suggest that you get familiar with both hot wallets and cold wallets.

5. Be Vigilant

Although cryptocurrencies have high safety standards than conventional currency, we suggest that you follow precautions https://www.mediasnet.net/. So, what you need to do is be careful when it comes to investing a large amount of money in the digital currency of this type.

You should find about different methods to handle your transactions and see how you can effectively manage your cryptocurrency in a responsible manner.

Everyone has heard how Bitcoin and other crypto currencies have made millionaires of those who bought as recently as a year ago. Gains of 1,000% or more are not just possible, they have been common place with many of these crypto currencies. Someone who bought Bitcoin in May 2016 at less than $500, would have had a gain of 1,400% in about 17 months. Then over the past few days, we saw Bitcoin lose almost $1,000, so to say these crypto currencies are volatile would be a massive understatement.

Since the inception of Bitcoin in 2008, we at Trend News have been skeptical of crypto currencies' ability to survive, given that they present a very clear threat to governments who want to see and tax all transactions. But while we may still be cautious on the actual crypto currencies, we are very aware of the potential of the underlying technology that powers these electronic currencies. In fact, we believe that this technology will be a significant disruptor in how data is managed, and that it will impact every sector of the global economy, much like how the internet impacted media.

Here are some questions & answers to get us started...

Q: What are Crypto Currencies?

The most well known crypto currency (CC) is BITCOIN. It was the first CC, started in 2008. Today there are more than 800 CC's, including Ethereum, Litecoin, Dash, Zcash, Ripple, Monero, and they are all "virtual". There are no "physical" coins or currency.

Q: How do CC's work?

CC's are virtual currencies that exist in very large distributed databases. These databases use BLOCKCHAIN technology. Because each Blockchain database is widely distributed, it is thought to be immune to hacking, as there is no central point of attack and every transaction is visible to everyone on the network. Each CC has a group of administrators, often called "miners", who validate transactions. One CC called Ethereum uses "smart contracts" to validate transactions. Crypto TREND will provide more details in upcoming news publications.

Q: What is BLOCKCHAIN?

Blockchain is the technology that underpins all CC's. Each transaction for the purchase, sale, or exchange of CC's is entered into a BLOCK that is added to the chain. This technology is complex and will not be explained here, but it has the potential to revolutionize the financial services industry, as transactions can be executed quickly and easily, reducing or eliminating fees. The technology is also being examined for applications in many other industries.

Q: Are CC Exchanges regulated by government?

For the most part, the answer is NO, which, for some users, is a big attractions of this market. It is the "wild west" right now, but governments in most developed countries are examining this market to decide what regulation may be needed. A big decision is whether to treat CC's as a currency or a commodity / security. Canada and USA have so far declared that CC's are legal, however the situation remains fluid as for reporting and tax implications. Crypto TREND will be following and reporting on these developments.

Q: How do I invest in this market?

You can buy, sell, and exchange CC's using the services of specialized "Exchanges" that act as a brokerage. You start by selecting an Exchange, setting up an account, and transferring fiat currency into your account. You can then place your BUY and SELL CC orders. There are many exchanges around the world. Opening an account is fairly simple and these exchanges all have their own rules about initial funding and withdrawals.

Crypto TREND will be recommending CC Exchanges in future.

Q: Where do I keep my CC?

To have the freedom to move your crypto currencies around, and to pay bills, you will need to have a digital wallet. These wallets come in several formats, such as desktop, cloud based, hardware (USB), mobile phone, and paper. Many of them are FREE, however, security is a big factor as no one ever wants to lose their wallet or have it stolen. Crypto TREND will be recommending digital wallets in future.

Q: What can I do with my CC?

As well as investing in CC products, you can also use crypto currency for some financial transactions, such as money transfers and paying bills. The list of companies accepting crypto currency is growing fast, and includes big hitters like Microsoft, GAP, JC Penny, Expedia, Shopify, Bloomberg.com, Dish Network, Zynga, Subway, and WordPress.

Q: What's next?

As we start off, we will keep each of the Crypto TREND articles short and keep the scope of each one as narrow as possible. As we noted earlier, we believe that the crypto currency technology will be a game changer and potential investment opportunities like this come by once or twice in a lifetime. Make no mistake, early investing in this sector will be only for your most speculative capital, money that you can afford to lose.

Even if you are not wanting to invest at this time, gaining an early understanding of this new disruptive technology will put you in an advantageous position to profit from our recommendations as we move forward.

Expect to see more news and specific recommendations from Crypto TREND as we start this journey into what may seem to be a foreign jungle at first. This is a volatile market and may not appeal to all investors, however, Crypto TREND will be your guide if and when you are ready.