5 Tips for first time cryptocurrency investors 

 

Investing in your future is a smart endeavor that many do not participate in until they are interested in retiring. However, it is highly advisable that you begin investing in your retirement on the first day that you obtain a full-time job. Whether you invest in your company’s 401k, you open a savings account or you choose to invest in cryptocurrency, you are smart to plan for your future. If you are new to the cryptocurrency investment platform, this article will provide some tips to help you get started. By the end of this article, you will feel more comfortable with taking the first steps to investing in Bitcoin or other cryptocurrency.

1. Research exchanges before investing. Before you start to invest, be sure to conduct research on various exchanges and look for their location, payment options, fees, security, and level of anonymity. It can be quite time consuming to look up each exchange individually so it is advisable to use a website such as BestCryptocurrencyExchanges.net to help you find as much information as possible in one place. This will save you a great deal of time and time is money.
2. Storing your cryptocurrency. When you first start out investing, you may think that you can leave your digital currency stored safely on the exchange in which you purchased them. While this may be true, it is best to avoid storing them on an exchange if at all possible. There has been a history of shady behavior that occurs on exchanges and they have been hacked more times than one can count. The best thing to do is to store your cryptocurrency yourself.
3. Storing cryptocurrency yourself. The best way to store your digital currency is to download secure software that will allow you to store our crypto in a digital wallet. Only you will have access to the wallet and it’s contents which gives you great autonomy. It is critical to be hyper diligent with storing your coins however, because they could be gone in a flash. For example, if your computer crashes and you don’t have a copy of your wallet anywhere, your coins could be gone forever. Be sure to backup your wallet consistently on a flash drive. In addition, be sure to print out the private key to your wallet and put it in a safety deposit box for safe keeping.
4. Avoid investing more than you can afford to lose. The first thing that you need to understand is that when you are making an investment, you are risking the amount of money you are putting at stake. That is part of the “fun” in investing. It can be like a gamble. When the market does really well, you can make a good amount of money. However, if the market does poorly, you could lose your investment.
5. Taxes. If you begin investing in cryptocurrency a great deal and you begin to make money, you will need to consider the tax implications. There are some tax professionals that are knowledgeable about cryptocurrency and some who are not. Make sure that you work with a reputable accountant to help you with your taxes if you have revenue to claim.

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