Welcome, Guest: Register On Nairaland / LOGIN! / Trending / Recent / NewStats: 3,198,942 members, 7,969,893 topics. Date: Tuesday, 08 October 2024 at 04:18 PM |
Nairaland Forum / Science/Technology / Programming / Everything You Need to Know About Cryptocurrency Before Investing Your Money (1725 Views)
7 Facts To Check Before Investing In A Binance Wallet Account / I'm Interested In Investing In A Technology Business / Things To Keep In Mind Before Investing In Mobile app (2) (3) (4)
Everything You Need to Know About Cryptocurrency Before Investing Your Money by Akinpedia(m): 12:45pm On May 16, 2021 |
Between dogecoin’s cameos on U.S. television and bitcoin’s growing acceptance on Wall Street, cryptocurrency is reaching a wider audience than ever before. Skyrocketing prices are surely tempting to newcomers, but they should be aware of the risks before jumping in. If you just started paying attention to cryptocurrency and are wondering whether to invest, here are a few things to know before buying. Even if you’re an old pro, you probably know someone who’s curious because they heard on TV or at the bar that the price of some coin is surging and they can get rich quickly trading it. Please share this post with him or her. This article is excerpted from The Node, CoinDesk's daily roundup of the most pivotal stories in blockchain and crypto news. You can subscribe to get the full newsletter there later. But I usually follow up as part of what I daily burn my data to know. Don’t put in more than you can afford to lose Crypto is riskier than many other investments. Nothing is guaranteed other than volatility. What’s more, it’s unregulated in most cases. There is no FDIC insurance for this stuff, nor is there a buyer of last resort. The prices of crypto coins swing wildly from minute to minute. While the market is basking in the glow of bull run, it has endured painful and protracted corrections and almost certainly will again. Read: Cryptocurrency Investment Secrets for beginners and everyone https://www.akinpedia.com/cryptocurrency-investment-secrets-for-beginners-and-everyone/ Danger varies in degree. Bitcoin, the original cryptocurrency, has been around for more than a decade and it’s significantly less likely to disappear than most other coins. But it’s not free of risk either. Hence, don’t bet the proverbial farm, or your life savings, on any coin. Research thoroughly Before you invest a significant amount of money in any digital currency, spend hours upon hours researching the technology so you understand the value proposition and the risks. Someone else will buy it from you for a higher price” is not a value proposition. Read everything you can find on the topic Listen to podcasts. Borrow books from the library, not only about digital currency but related fields like cryptography, game theory and economics. And even if you’re convinced, seek out sceptics (there is no shortage of them) and consider their arguments as well. Remember John Stuart Mill: “ He who knows only his own side of the cattle of that.” Once you think you’ve researched everything there is to know, do even more work. You’re probably not done yet. Resist 'fear of missing out If the only reason you’re investing in something is to avoid missing out, the only thing you won’t miss out on is losing everything. Fear of missing out (FOMO) is a sure way to destroy whatever wealth you may have accumulated over the years. The problem is that it’s a gut reaction to something that should be researched first. Trading based on your gut will quickly lead to an upset stomach. Know what you’re buying. Really know it. Going on a trading app and seeing a currency is up 30% or so over the past 24 hours isn’t research. It could be you’re the unlucky sap being sold a falling cryptocurrency. Every coin has pumpers (shameless promoters), even bitcoin. Don’t succumb to peer pressure. This isn’t high school. Think for yourself and evaluate the case for an investment on the merits. Research. Then research again. Beyond that, the field of cryptocurrencies is always expanding, and the next great digital token may be released tomorrow. While Bitcoin is widely seen as a pioneer in the world of cryptocurrencies, analysts adopt many approaches for evaluating tokens other than Bitcoin. If it sounds too good to be true, crypto is rife with charlatans. There are more than enough people promising their project will be the one to overtake bitcoin. But is it? There’s only one way to find out: Research. Buyer beware, but also borrower beware. Some crypto exchanges offer more than 100x leverage, meaning you can borrow up to 99% of the cost of an investment. This will juice your profits if a coin goes up in value, but if it goes the other way you could quickly be wiped out. It’s common, for instance, for analysts to attribute a great deal of importance to the ranking of coins relative to one another in terms of market cap. We’ve factored this into our consideration, but there are other reasons why a digital token may be included in the list, as well. If it sounds too good to be true, crypto is rife with charlatans. There are more than enough people promising their project will be the one to overtake bitcoin. But is it? There’s only one way to find out: Research. Buyer beware, but also borrower beware. Some crypto exchanges offer more than 100x leverage, meaning you can borrow up to 99% of the cost of an investment. This will juice your profits if a coin goes up in value, but if it goes the other way you could quickly be wiped out. Don’t trust, always verify Scammers abound in this market. Just this past weekend, some rascals on Twitter took advantage of Elon Musk’s appearance on television’s “Saturday Night Live” to defraud people out of $100,000 worth of various cryptos with a bogus “giveaway.” Impersonating the comedy show’s Twitter account, the miscreants instructed their victims to send small amounts of crypto to verify their addresses. If they did so they would get 10 times the amount back. That too-good-to-be-true proposition was a red flag. Read this, this and this for more telltale signs. Beware of 'unit bias' Just because a coin is trading around $1 does not mean it’s “cheaper” than bitcoin at $58,000. Not all coins are created equal. There are literally thousands of cryptocurrencies, some of which seek to emulate bitcoin and some of which try to solve other issues. They all have varying levels of developer support and decentralization. Determining the value of a coin means asking how and why was the coin created. What is its supposed utility? Who is working on it? How big is the developer community? How active is the repository on GitHub, where updates to the open-source software are usually logged? Like a building, a codebase requires maintenance, and neglect can leave a structure unsound. Crucially, what is the coin’s security model – proof-of-work, proof-of-stake or something else? If it’s the former, how does the hash rate compare to other PoW coins? If you don’t know what these terms mean, you’re not ready to invest. Not your keys, not your coins Cryptocurrency is a bearer asset like cash or jewellery, meaning the holder is presumed to be the rightful owner. Once it’s lost or stolen it’s gone. That is why advanced users will advise you not to entrust the cryptographic keys to a digital currency wallet to a third party, such as an exchange, because these firms are largely unregulated in many places and may be subject to hacks or exit scams. Decentralized finance (DeFi) platforms have fallen prey to numerous high-profile exploits over the past 10 months, and centralized platforms like Binance have been subject to their fair share as well. However, safeguarding keys yourself, on a hardware device or even a piece of paper with the string of numbers and letters written on it, can be a nerve-racking business, and it’s easy to mess up. This is why even some experienced investors prefer to use third-party custodians. Crypto is all about trade-offs. Do you trust yourself not to lose that piece of paper or forget the “seed phrase” (a password for a key that unlocks your crypto)? If not, you have to be comfortable with someone else storing your digital valuables, and history gives you every reason not to. (To mitigate the risks, there is something called a multi-signature wallet. These can be configured so that, for example, both Bob and Alice must sign off on a transaction to release funds from a wallet, or either Bob or Alice can do so, or three of Bob and Carol and Ted and Alice, and so on. But yes, it’s complicated.) Aside from exploits, exchanges may block you from withdrawing your funds at any time for a variety of reasons ranging from solvency issues to legal trouble. Even beyond that, some exchanges just don’t have the infrastructure necessary to remain up at all times If you aren’t running your own wallet, you can’t guarantee you have control over your coins That said, there are various reasons why you might want to use an exchange, so it’s important to check the user agreements and make sure you’re protected against different eventualities. You can buy a fraction of a bitcoin (and most other cryptos) You don’t need to buy a whole coin. Bitcoin, for example, is divisible to the eighth decimal. So if you’re curious about how this stuff works, you can purchase as little as $10 worth and just play around with it. As billionaire Mark Cuban recently said on television of buying small amounts of dogecoin, “it’s a whole lot better than a lottery ticket.” Unfortunately, he also encouraged viewers to spend doge on merchandise without mentioning the tax implications. Also read: Cryptocurrency as a Financial System: Good or Bad Option https://www.akinpedia.com/cryptocurrency-financial-system-good-bad-option/ Understand the tax consequences This is especially important for several reasons. First, the Internal Revenue Service (IRS) considers crypto property, not currency, for tax purposes. The upshot is if you buy a coin for $1 and it doubles in value and you spend that extra dollar to buy so much as a pack of chewing gum, you are required to report that capital gain and pay tax on it. There is no “de minimis exemption,” despite the crypto industry’s lobbying efforts. Also, centralized exchanges regularly send account information to the IRS. Sure, crypto isn’t as regulated like stocks or banks. However, the federal government is running a massive deficit and it won’t think twice about sending in folks with mirrored aviator glasses to visit you to ask about your crypto trades. It was out of this it was almost banned but later regulated. 1 Share
|
Re: Everything You Need to Know About Cryptocurrency Before Investing Your Money by buragoz: 1:42pm On Nov 30, 2021 |
And why invest in other cryptocurrencies when bitcoin is the most reliable? |
Re: Everything You Need to Know About Cryptocurrency Before Investing Your Money by mollyfq: 1:50pm On Nov 30, 2021 |
I always follow these rules when investing in cryptocurrency. I agree that bitcoin remains one of the most reliable cryptocurrencies. But it would be unwise to support all of your savings only in bitcoin. It increases the risk of losing all of your savings, so I prefer to diversify my profits. It seems much more logical to me to invest small amounts in ethereum, dogecoin, shiba inu cryptocurrency so that in case of any rise, I get income. In case of fall, I lose only a part of the money. In my opinion, it's much more interesting to invest in new cryptocurrencies, which haven't yet managed to gain global popularity. |
Re: Everything You Need to Know About Cryptocurrency Before Investing Your Money by penielrita: 11:30am On Dec 02, 2021 |
VERY EASY. I HAVE A QUICK CLASS HERE BUY THE <a href="https://www.marketncard.com/echoke-token/">ECHOKE TOKEN NOW</a> AND THANK ME BY JANUARY 2022. |
Re: Everything You Need to Know About Cryptocurrency Before Investing Your Money by jessatso: 3:52pm On Mar 03, 2022 |
I am happy that you have found the best currency and ways of getting money for yourself. Also, I am proud of people like you who are ready to give others the same information they gained to achieve everything you have. It is truly amazing how this modern world allows us to reach out for different methods of working, a thing that makes us believe in the future. Now, every site link is a door to a new universe of knowledge and achievements. Even people who don't have a degree can easily reach out for money, which is the best way to help people grow and help our civilization. I hope our future will be the best. |
Re: Everything You Need to Know About Cryptocurrency Before Investing Your Money by iFindhub(m): 11:28am On Apr 18, 2022 |
This is going to be a great read if you want to know the several benefits of cryptocurrency. https://cryptohodl.tech/benefits-of-cryptocurrency/ |
Re: Everything You Need to Know About Cryptocurrency Before Investing Your Money by TookyTooker: 12:16pm On May 17, 2022 |
I thought for a long time how to start trading on a crypto exchange, because, of course, this is a rather risky business. I am currently trading with the automated trading tool Bitcode Prime. To get started, I made a $250 deposit and it was credited to my account immediately. In addition, there is a demo account option for beginners, although I think it's better to start trading on a real trading account right away. |
Re: Everything You Need to Know About Cryptocurrency Before Investing Your Money by Xenisha: 9:51am On Jun 01, 2022 |
Hello, the field of digital money is full of words that are not always clear, even to experienced traders. Therefore, to work in digital money, you need to know and understand many terms. If you have already figured out the terminology and are ready to trade cryptocurrency, you must follow all the important events in the world of cryptocurrency. For this, you need to read crypto news. With the help of CoinsPaid Media, you can always be up to date with all major cryptocurrency events. |
Re: Everything You Need to Know About Cryptocurrency Before Investing Your Money by digitite: 7:40am On Jun 02, 2022 |
Invest in Crypto that is use for services. E.g, Filecoin can be used for file sharing, there it has a longtime value. |
Re: Everything You Need to Know About Cryptocurrency Before Investing Your Money by PhyllisEvans: 6:23am On Feb 01, 2023 |
Hey guys, I had a quick question. I don't know if this is the right place to ask but hopefully someone can help! I'm interested in trading, but don't know where to start. Would anyone be able to point me in the right direction? |
Re: Everything You Need to Know About Cryptocurrency Before Investing Your Money by Xirlondo: 12:35pm On Feb 01, 2023 |
An exponential moving average (EMA) is a technical indicator that provides an estimate of the longer-term trend. It's used in technical analysis, which is the study of predicting patterns in price using historical data. It's one of the most important indicators and you can read https://tabtrader.com/academy/articles/exponential-moving-average-ema-explained here about it if you are interested. |
Re: Everything You Need to Know About Cryptocurrency Before Investing Your Money by Jaxx123: 6:09am On Dec 12, 2023 |
One cryptocurrency is enough to transform your life! The wise African proverb goes, "The day you understand that what is good for you may not be for others, you will begin to pay more attention to some unidentified tokens." This timeless wisdom resonates profoundly in the dynamic world of cryptocurrency. Having delved into thorough studies, I've discovered numerous tokens showcasing excellence daily. It's imperative not to mirror others in crypto trading, both in perspective and market positioning. The key lies in conducting comprehensive research on the cap market, unearthing treasures that elude many. In the cryptocurrency realm, it's not about having favorites but identifying good soil for your investments. Success looms large, but it's crucial to avoid haphazard purchases. Instead, consider each investment as planting seeds in fertile ground, nurturing the potential for growth. Reflecting on the journey of a coin like ACA, which moved from 0.00004$ to an impressive 0.07$, underscores the transformative power of understanding and recognizing value. It serves as a testament that careful research and discernment can lead to financial blessings. Read the rest here and get more help and signal below http://www.clementmotivates.com.ng/2023/12/unlocking-hidden-crypto-treasures-power.html
|
(1) (Reply)
I Need Someone Who Will Teach Me Java And Sql Server 2008 / Let's Talk Python / Java JDBC Resultset.next PROBLEM
(Go Up)
Sections: politics (1) business autos (1) jobs (1) career education (1) romance computers phones travel sports fashion health religion celebs tv-movies music-radio literature webmasters programming techmarket Links: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) Nairaland - Copyright © 2005 - 2024 Oluwaseun Osewa. All rights reserved. See How To Advertise. 46 |