Waiting to receive your first crypto currency?
Before receiving the first bitcoin, knowing a bit about the cryptos might be an added leverage to you. A bit of knowledge on what’s a crypto and how to avoid the common mistakes while dealing with cryptos might be useful to you in many ways.
What’s a crypto currency?
Crypto currencies are a digital form of token currencies, frequently used as an alternative to traditional digital currencies. It can be used for making online payments, reliable for paying your utility bills, paying the restaurant bills, etc. It can also be converted in traditional currencies from multiple crypto exchange markets. Apart from these, as a holder of BTC you can buy stocks in a crypto share market as well.
But the biggest query is, as a crypto user how you’re benefitted? If you are planning to use it for the first time, these are a few things to remember,
Know the utility value of your bitcoin
It’s important for you to know the utility of the bitcoins at first. There are multiple ways to utilize a newly earned crypto currency. They’re:
- Using BTC credit card facility for buying from online e-stores like Amazon
- Paying your restaurant bills
- Holding the bitcoins to spike up the crypto value and use it for arbitrage trading
- Asking a third party BTC payment processor to pay on your behalf
A bitcoin has various other uses. Before purchasing a bitcoin try to evaluate which one of these suits your requirement well.
Watch your step before trading the bitcoins
Before trading the bitcoins, you better watch your step. That’s because, the bitcoin prices are quite volatile. The traditional currency prices are predictable, whereas the value of the bitcoins can’t be anticipated, as they’re volatile. You never know whether it’s going to take only a few weeks, months or might be a whole year to spike up the crypto price in the market.
Choose a secure wallet to store the cryptos
A secured wallet is another important factor that must not be overlooked while dealing with crypto currencies. A secure crypto wallet guarantees the safety of the bitcoins even if it’s not in use. That way, it’s easier for you to draw any amount of bitcoins from the wallet for meeting your requirements. The hot wallets are considered risky in comparison to the cold wallets. That’s because the private keys to the hot wallet is stored in an online third party server. If it gets compromised you might lose thousands of BTC’s from your bitcoin account wallet within seconds.
As a newbie trader, store nominal amount in your bitcoin wallets, so that even if it’s hacked, the loss won’t bother you. Save the rest of your bitcoins in your cold wallets which are stored offline. That’s comparatively less risky than storing your BTC’s in the hot wallet.
Try to start your BTC trade as a day trader in the beginning
As a bitcoin trader, never start your trading career with arbitrage or long term investment trade. It’s quite risky to invest a huge amount in a long term investment. It’s quite tricky to inform when the bitcoin price will spike-up. It would be wise to fit into the role of a day trader to keep those financial risks far from bay.
As a day trader, you need to make a profit by the end of the day. That’s why, in this form of trade, you have the option to open a trading position, or buy a crypto currency with your trading asset within a specific time limit. By making short investments you can earn bitcoin in day trade. This trading option helps you to earn crypto currencies by putting less risky assets at stake. It’s a good move as a beginner. When you understand how the crypto trade market functions, you can opt for arbitrage trade or swing trade later.
As a newbie crypto earner, if you think dealing with crypto currencies can be risky, you might take a look here. The app might assist you to analyse how crypto currencies can be used in replacement of traditional currencies in detail.