Cryptocurrency is becoming ever popular around the world and is fast becoming a go-to currency for trading and general transactions. Cryptocurrency or blockchain technology is changing the way we operate.Recently, online casinos have started implementing cryptocurrency into their payment methods which is evidence that enough players are using the currency. However, due to it being a new player in the market, there are some unknowns surrounding the use and transferring of this invisible currency.
We will look to briefly outline some things to look out for when trading cryptocurrency and some of the common misconceptions and errors surrounding the use of it.
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Getting Started with Crypto: Explore different options
There are many different types of cryptocurrency and it would be wise to learn most of them if not all of them. The reason for this, is that they all have their individual markets. So, if Bitcoin, hypothetically speaking, does plummet, which is very possible with the current economic climate, then you can fall back on Litecoin and Ethereum to continue trading effectively. This also goes to say that it is worth keeping an eye on each of the markets. Rates can change in the blink of an eye and there is huge potential for gains and losses. So different types of cryptocurrency are not the same and should be treated individually.
What security is there?
People worldwide have been sceptical about how secure trading cryptocurrency is and continue to be. You would think that something intangible might be difficult to secure but instead, technology is providing a strong framework to keep cryptocurrency out of the hands of online hackers. The Crypto Currency Security Standard is the main pillar for security.
In a nutshell, it’s a set of requirements that covers all information systems involved in cryptocurrency transactions. There is a score given once 10 security aspects of a system have been assessed. The advancement of encryption technology also provides further assurance that transferring cryptocurrency is safe.
Furthermore, to help yourself sleep easier at night, there are some other simple tricks that you yourself can implement.
- Secure your Keys: Your private keys are, well, key (excuse the pun) to accessing your wallet and transactions so keeping this secure is vital. This can be done by keeping your private key offline and therefore away from online hackers.
- Back up your wallet: It might also sound simple but by simply backing up your wallet, you are protecting yourself against your technology failing. For example, your hard drive dies and your computer is no longer useable. Or your phone or computer gets stolen. By having a backup, you can avoid losing your wallet completely. Backups can be stored on different devices in different locations if needs be. If you are familiar with Blockchain (if not now, you should get to know it), you can acquire records of your transactions.
Find the Right Trading Platform
Like with the variety of cryptocurrencies to choose from, there are also many different platforms to trade on. It is often difficult to differentiate between what different platforms offer as many offer the same services, such as charting software and market analysis. However, titles such as MetaTrader 4 & 5 and WebTrader are popular platforms currently used by many brokers.
This is also covered in the forex market, with demo accounts and Forex bonuses available to helping traders. Like with anything, there are layers of learning with cryptocurrency and like a computer game, it is wise to build up your knowledge slowly. The difference in platform could be similar to using an Apple Mac or a Windows Surface, both with different, unique ways to navigate, one you might be comfortable with and another you might dislike completely.
Find the balance
With balance, we are not actually talking about how much is sitting in your account here, but we are alluding to finding the right balance between committing to an investment and more importantly when and how much. Timing is something that improves with experience, when you start to notice patterns quicker. There is always an opportunity to make profit, but also the chance to make more profit with a bit of patience. It also goes without saying like with gambling, it is important to know your limits, especially with a particularly volatile market.
There you have it. As we mentioned, it is critical to get set up right and know what you’re getting into. Occasionally, you will run into mistakes and having a positive outlook and clear way of getting yourself focused is key. If you make an error, read our article on How to Fix an Unconfirmed Bitcoin Transaction or learn more about how blockchain technology is changing everything here.
