Bitcoin tips and tricks

Hi guys 👋 welcome

Cryptocurrency guide
So whether you’re new to cryptocurrency and you're excited and ready to buy, or if
you've been procrastinating this decision for a while but you’re finally ready to
take that plunge… you’ve definitely made it to the right place.
Because in this article we’re gonna cover the Top 5 things that you absolutely need
to do before investing into cryptocurrency, so that you can get off to a good start, you
can sleep well at night, and manage your crypto assets like a BAWS.
Comin’ up!
We’re gonna be doing a lot of cryptocurrency reviews, as well as tips and strategy article
And in this article, we're going to be talking about a few products and services, and some
information that you might want to reference.
So without any further ado, let’s hop right in.
So I’ve been knee deep in the cryptocurrency market since 2014, so going on 5 years now.
And I've definitely made my fair share of mistakes along the way, especially in the
early days.
And I've been able to use those learnings and lessons to help my friends and family
get off to a better start than I did.
And my number 1 piece of advice to all of them is to learn the basics of cryptocurrency.
Educating yourself about cryptocurrency is definitely the most important thing you can
do to set yourself up for success.
For generations, we're used to storing our wealth in banks, and it's someone else's responsibility
to safeguard and protect our money.
But with cryptocurrency, that's flipped entirely around.
YOU are in control of your money.
And if you happen to lose access to your wallet, or if you send your coins to a dead-end or
the wrong person, there's no Help Desk or Support Center that you can call up to try
to reverse a transaction.
That doesn't exist with cryptocurrency.
It's paramount that you take security very seriously at the onset and understand how
these systems work.
For a lot of the cryptocurrency projects out there like Bitcoin and Ethereum, there's actually
no company.
There's no CEO.
There are no shares.
Instead, these are decentralized, peer to peer systems that operate much less like a
company, and a lot more like the Internet -- where no single person or entity owns or
controls it.
I won’t be going through all of the ins and outs of cryptocurrency works and what
is blockchain technology is in this video, but I will include links in the YouTube description
down below so you can check out those resources.
And if you’d like me to make a more general concept video about how these things work,
then leave a comment down below.
That bring me to Tip #2, which is to trust nobody and to do your own research.
Just like the Internet was in the 90's, cryptocurrency today isn’t all sunshine and rainbows.
There are a lot of Pump and Dump schemes out there, there are scammers that will try to
swindle you for your money if you're not careful (even on platforms like Twitter), it's kinda
crazy.
There are “shills” out there that are promoting these projects that they don’t
really believe in, they are just trying to make you be the greater fool.
So you really can't trust anyone, not even me.
And if someone is trying to tell you that "This is the next hottest coin that you have
to invest in", you should really think about what are their motives and why would they
be saying that?
If it’s someone on the internet saying this, chances are there might be something up there.
But if it's a friend or a family member, then there's less of a chance that they're trying
to trick you into something.
However, that doesn't mean necessarily that it's good advice.
You definitely need to do your own research, and not take anyone else's word for it.
And this is why my team and I are so passionate about building Cheddur, the social network
of cryptocurrency.
It's a one-stop-shop for you to be able to research objective information about any cryptocurrency
or crypto app that you might be interested in.
I’m going to open up the Cheddur app real quick, just to give you a quick demo of some
of the important things you'll want to do on here.
And we can take Bitcoin and Ethereum as examples again, as let's say that's the potential investment
that we're looking at.
If you were considering investing in either of these coins, it would be helpful to understand
the problem each of them is trying to solve, and figure out if it a small problem with
a small market, or if it is a BIG problem with a big addressable market.
The best cryptocurrencies out there are the ones that solve these giant, “hair on fire”
problems as they call it in the startup world.
And good news -- we can see here that Bitcoin and Ethereum are both doing that.
Now, you’ll also want to know how the price has been performing over the last month, 6
months, year, 2 years, so you can think about how you want to time your entry into the market.
You’ll definitely want to follow the coin and check the news and reviews to get a sense
of what the general market sentiment is like towards that coin and to figure out is it
being worked on, and if so, by who?
Are they no-names in the industry, or do they have serious street credit?
Is the project evolving?
Is it getting better, faster, cheaper, and easier to use?
More scalable?
These are very important things.
And if you see that the price is going up, but there doesn’t seem to be too much progress,
then that’s definitely a red flag.
But if you see the price staying flat or declining, but there seems to be massive progress being
made on the project, then that could be a sign that it’s a good time to get involved.
Now, before we get that far, you're definitely going to want to take a look at the economics
behind the coin in question that you're doing research on.
For example, how many coins are out there in active circulation for that currency?
Is the overall supply of coins capped and limited to a fixed number, or is there inflation
built into it on a yearly basis?
And the answers to these questions vary greatly from coin to coin.
So it's very important that you understand the supply and demand economics behind it.
Now, one of the coolest parts of the Cheddur app is this comparison feature.
If we go ahead and compare Bitcoin and Ethereum side-by-side, we can see that Bitcoin currently
has around 17.5 million coins in active circulation at the time of this recording and the supply
is actually capped at 21 million, meaning there will only ever be 21 million Bitcoins
in existence.
Now, when we look at Ethereum, there's currently over 100 million “ether” in circulation,
so roughly 5 times the maximum supply of Bitcoin, and on top of that there’s an annual inflation
of about 18 million Ether per year as well.
So with this information alone, we can now start to piece together some of the reasons
why Ether is trading right now at about ~$100 US dollars, whereas one Bitcoin is currently
trading at about $3,500 US dollars... partly because there is a big supply difference between
these two projects.
So again, if someone's telling you that this coin is the next hottest thing, and it's going
straight to $10, but then when you actually do the research on it, you find out that there's
a trillion coins in circulation, chances are it's not going to $10, at least any time soon.
There’s a lot other really cool features on the Cheddur app that you can use to do
you coin research.
I won't go into all of them in this video, but I will include links in the YouTube show
notes down below so that you can download the app on iOS, or Android, or check out our
website.
Do your own research, and hey, make smarter investment decisions.
So Tip #3 is to only invest what you can afford to lose.
I literally mean…
every dollar that you invest into cryptocurrency… do so with the understanding that it could
all go to zero overnight.
Because at the end of the day, cryptocurrencies are programs.
It's software.
And software is built using code, which comes from humans.
And we're not perfect, and code has bugs.
And it's possible that a bug could get discovered that leads to a “black swan” events that
could wipe out your entire investment overnight.
And aside from just bugs, there's a risk of a 51% attack on the network, or the fear of
quantum computing.
There are user errors, like if you put your coins on an exchange, and that exchange gets
hacked and the funds get stolen.
Or if you accidentally send your coins to an invalid address... the list goes on and
on.
Cryptocurrency has only been around as an industry for about 10 years now, so we're
all kind of learning on the fly how to do it.
It's very much so an experiment, it's early days, so make sure you're treating it as such,
and that you only invest what you can afford to lose.
Tip #4 is to have a plan and to stick to it.
Let's say you buy Bitcoin at $3,500 US dollars today, but then it sinks to $2,500 tomorrow,
and then $1,000 the day after that.
What's your plan?
Are you going to hold on to it?
Are you going to sell it and cut your losses?
Are you going to buy more?
Could you imagine the panic you'd be feeling if you didn't think this through ahead of
time?
Even on the flip side, so let's say you buy at $3,500 today, but then it goes up to $4,000,
and then $5,000 the day after that.
What's your plan then?
Are you going to take profits?
Are you going to stay in the market?
You have to think these things through.
So, some of the key things you need to be thinking about here are…
1.
What is your strategy for entering the market?
Are you going to put a lump sum down at a certain price?
Let's say Bitcoin goes to $3,300, that's my buy-in price.
Or are you going to take the other approach called “Dollar Cost Average” where rather
than doing a lump sum investment, what you do is you take your budget and you chop it
up into pieces, and over the course of time, whether it be weeks, months, or even years,
you slowly apply that budget into the market.
So rather than buying at a certain price and kinda being locked in, you're buying all of
the prices regardless of how the market is performing.
Number 2 is deciding, is this a short-term investment, or is this a longer-term investment?
Say 3-5 years.
And that's what I personally recommend because the cryptocurrency markets are so extremely
volatile in the short-term.
If you were to buy Bitcoin today at $3,500 US dollars, what if it hit a 6-month downturn
literally the day after you bought it?
And honestly, everyone feels like that's the case when they first get involved in crypto.
It's just kind of the right of passage it feels like.
If you have a long enough time horizon on this investment of 3-5 years, chances are
you can escape that short-term volatility and if it trends up and to the right, then
hopefully the future value of your investment is much larger than the initial investment
that you'd be making today.
Now, if this is a shorter-term investment for you, then in sub-tip number 3 here, you're
definitely going to want to set your stop losses and your limit orders on whatever cryptocurrency
exchange or mobile app that you're using to make trades.
Because again, if you were to buy today at $3,500, you need to know that if it sinks
to $3,000 tomorrow, that might be the price at which you'll want to pull your money out
and to preserve your capital.
And to cut your losses.
And on the flip-side, if it goes up to $4,500, maybe that ticks the objective that you set
for yourself.
That could be the profit margin that you're after.
You have to know these things ahead of time.
Set your orders, and trust me, by doing this -- by having a plan and sticking to it -- you're
going to be able to sleep so much better at night.
You're not going to be glued to your phone all day checking charts and prices, and you'll
be able to conserve a lot more of your valuable brain juice.
And finally, Tip #5 is to get a hardware wallet.
You see, in order to own cryptocurrency, you have to store your coins on what's called
a digital wallet.
And these wallets come in many shapes and sizes.
So there's Coinbase, for example, which is a service that will host the wallet for you.
There's apps that you can download and run yourself on a desktop or a laptop computer.
And then there are these physical, what look like USB sticks.
These are hardware wallets.
And they are designed with the sole purpose of safeguarding and protecting your crypto
assets.
And my general recommendation is that if you own -- or you intend to own -- about $1,000
worth or more of cryptocurrency, then it makes sense to invest in a hardware wallet such
as the Trezor, or the Ledger Nano X, or a KeepKey.
And most of these hardware wallets you can snag for about $100 or less, so it definitely
makes sense and it's not going to break the bank.
and check those out.
Question of the day!
Which coin or coins are you most interested in buying, and why?
Let me know in the comments section down below, and I'll see you in the next one!
Best cryptocurrency wallet Click here

Bitcoin tips and tricks

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