Cryptocurrency is hot in 2019, a market that offers huge profit making possibilities. But it’s also extremely risky so before you dig in it’s better to be informed. Here are a few tips if you want to purchase cryptocurrency online in 2019. To start investing in Bitcoin and other cryptocurrencies you first need to sign up to an exchange which will offer you to buy cryptocurrency with cash. An exchange is basically an website that offers everyone to buy and sell Bitcoin as well as any other cryptocurrency that they have traded.
The best place to make your first Bitcoin purchase is on an exchange. There are a whole lot of exchanges out there, with varying performance. Some are less trustworthy than others and some can be quite limited, so it’s important to pick the right exchange to start with. We recommend using Coinbase, though there’s no harm in checking out the competition using a Bitcoin exchange comparison site.
If you’ve not heard of the term stop loss in trading, check out this link to help you understand what it’s all about. Every trade we get into requires us to know when to get out, whether we’re making a profit or not. Establishing a clear stop loss level can help you cut your losses; a skill that’s very rare in most traders. Choosing a stop loss is not a random activity, and perhaps the most important thing to note here is that you shouldn’t be carried away by your emotions – a great point to set your stop loss is at the cost of your coin. If, for instance, you acquired a coin at $1,000, set that as the minimum point you’re willing to trade your coin. This will ensure that if the worst comes to pass, you can walk away with what you invested in the first place.
Some investors, mostly beginners, want to make 20 trades a day. This is dangerous. Ultimately, many of them lose from fees or because they make bad trades a mistake and then trade more to recover their losses. Only to dig a deeper and deeper hole for themselves. The reality is that there aren’t 20 good trading opportunities in a day. Trading too much leads to poor decision making.
You can short crypto, or long crypto. You can go long in crypto, meaning you are betting on crypto going up (for example by buying crypto). Or you can short crypto, meaning you are betting on it going down (for example by short selling crypto). Meanwhile, if you have the skills, you can do both depending on the price action (you can even use short positions as a hedge). With that said, in the US, in many states, there are very few options for shorting crypto. If you are new to crypto, you should consider just going long. If you would go short, you can mimic a 1x short by selling and going to cash!
Technically speaking, cryptocurrencies are transactions or entries targeted in a restricted database. Specific conditions must be met to modify these transactions. Created with cryptography, transactions are protected with mathematics, not with people. Transactions are published in a database, but it is a special type of database that is shared is a peer-to-peer network. Read more info at Cryptocurrency Guy.