The DOs and DONTs of investing in Cryptocurrency

polysteamtoken · 09-03-2023 9:06pm

It is also a good idea to keep a "hot wallet" & "cold wallet" meaning use a mobile wallet like trust or metamask for smaller transactions which you make to purchase things online. Then use a ledger (physical hardware wallet) as your "cold wallet" where the majority of your funds go. I Do this and view my cold wallet as my bank & hot wallet as a normal wallet you use everyday. Much safer.

MeganLo · 23-06-2023 8:14pm

https://www.boards.ie/discussion/2057793437/the-dos-and-donts-of-investing-in-cryptocurrency

Hello, I am a new member of the forum, and I also invest in cryptocurrencies. Where can I post and share my experiences for everyone to discuss? Thank you!

WizardOfBoards · 28-06-2023 9:03am

The first #dont, is dont ever sell.. feeling so bad looking back at some of my old wallets

donsaudi · 04-07-2023 7:35pm

The first advice newbies must adhere to is; never input funds/amount you can't afford to lose in crypto and don't see crypto as a quick rich scheme. Take your time to understand the industry and when you decide to trade make DYOR (Do Your Own Research) your first point. Also choosing the right exchange to use for trading have a significant impact on your success in this industry because some exchanges have hidden charges that will drain your profits.

It is advisable to consider exchange ranking on CMC and CG and users are mostly advised to use an exchange with user-friendly UI, good CS, and offer earning opportunities. Based on my experience Binance, Bitget, Bybit, and Coinbase are good options of CEX to use.

skilltrader · 25-07-2023 11:33am

https://www.boards.ie/discussion/2057793437/the-dos-and-donts-of-investing-in-cryptocurrency

How should a newcomer choose a cryptocurrency to invest in?

You need to have a guide on legit cryptocurrencies from a reputable platform like coinmarketcap and coingecko. Choose a coin with good ranking. The ranking is done based on investors confidence, trading volume, liquidity score and market capitalization. Usually coins ranked from 1 to 100 are good to invest in.

How would an investor even start a risk assessment?

First, we need to look at the crypto that has wider use-case. This is evidenced in their market capitalization and liquidity score. Although there's a new market manipulation strategy called wash trading done to fake increase in trading volume. So, I don't really rely on trading volume as a factor for considering a coin.

There's also need to look at the price volatility during a unidirectional market season (that's either in a bull or bear season). If the coin is highly volatile, it's not recommended to invest in such coin but trading can be done with more attention given to your TP/SL tools.

Also, there's need to carefully choose an exchange to buy your coins because some exchanges doesn't have enough liquidity to cater for users demand whilst still charging outrageous transaction fees.

What hardware should a miner look at sourcing to start?

Well, I don't do hardware mining. I only do DeFi mining. So, I don't have much knowledge on that

Alex_11 · 28-08-2023 7:28pm

When investing in cryptocurrency, there are several key actions to consider. First and foremost, educate yourself about blockchain technology and the workings of cryptocurrencies to make informed decisions. Diversification is crucial; spread your investments across various cryptocurrencies to mitigate risks. Thoroughly research projects before investing, focusing on their legitimacy, technology, and real-world applications. Use reputable cryptocurrency exchanges and prioritize security by employing strong passwords and two-factor authentication. Stay updated on market trends and news that could affect your investments, and invest only what you can afford to lose without causing financial strain.

bikermartin · 22-09-2023 9:34pm

When diving into cryptocurrency, research is key. Don't get swayed by the noise; focus on the fundamentals. For newcomers, I'd recommend starting with well-known coins. Understand the technology they're built on and the real-world problems they aim to address. If you want to risk and invest in a less-known or less-hyped coin, begin with factors like the coin's market cap, historical trends, and the reputation of its development team.

As for mining, your choice between prebuilt rigs or custom builds boils down to two things: your budget and technical expertise. Prebuilt ones are convenient and hassle-free, great for those just starting out. However, if you're technically inclined, building your own can offer more flexibility. And don't forget electricity costs can make or break your mining profitability.

For newcomers, I can recommend this free bitcoin mining platform, where I earned my first tokens. They have a BTC faucet where I managed to earn about 0.05BTC in a month through tasks like surveys. It was a neat little bonus that I used as a starting capital in Crypto.

ProBTCpro · 25-10-2023 9:10am

Cryptocurrency investment can be a rewarding but risky endeavor. To navigate this rapidly evolving space, here are some essential DOs and DON'Ts to consider when investing in cryptocurrencies.

DO:

Research Thoroughly: Before investing, understand the technology and the specific cryptocurrency you're interested in. Learn about its use case, team, and community.
Diversify Your Portfolio: Spread your investments across multiple cryptocurrencies to reduce risk. Avoid putting all your funds into a single asset.
Use Reputable Exchanges: Choose well-established and reputable cryptocurrency exchanges for buying, selling, and trading. Ensure they have strong security measures.
Enable Two-Factor Authentication (2FA): Enable 2FA for your exchange and wallet accounts to enhance security.
Secure Your Wallet: Use hardware wallets or secure software wallets to store your cryptocurrencies. Always keep your private keys safe and never share them.
Stay Informed: Keep up with cryptocurrency news and market trends to make informed decisions. Join online communities and forums to learn from others.

DON'T:

Invest Money You Can't Afford to Lose: Cryptocurrency investments are volatile. Only invest funds you can afford to lose without affecting your financial stability.
Follow Hype Blindly: Avoid investing based solely on hype or FOMO (Fear of Missing Out). Do your research before making decisions.
Day Trade Without Experience: Day trading can be risky and requires expertise. If you're a beginner, consider long-term holding instead of short-term trading.
Ignore Security: Neglecting security measures, such as using weak passwords or sharing private keys, can lead to the loss of your assets.
FOMO and Panic Sell: Emotional decisions can lead to losses. Stick to your investment strategy and avoid panic selling during market fluctuations.
Neglect Taxes: Be aware of tax obligations related to cryptocurrency investments in your country and report your earnings accordingly.

In the cryptocurrency world, knowledge, caution, and security are your allies. By following these DOs and DON'Ts, you can embark on your crypto investment journey with a more informed and secure approach, potentially reaping the rewards of this exciting digital frontier.

Potatoeman · 14-12-2023 4:21pm

This is why you don’t connect a hardwallet to a soft wallet. Just setup a separate soft wallet if you have to and keep the hardware uncompromised. If you can keep an old laptop, wipe it reinstall the OS with a vpn and antivirus and only use it for this.

https://cointelegraph.com/news/multiple-dapps-using-ledger-connector-compromised

The DOs and DONTs of investing in Cryptocurrency

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