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Need to Know: Three Essential Tips for All Cryptocurrency Traders

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Cryptocurrency is one of of the hottest buzzwords to hit the market and traders can barely contain their excitement.

From obscurity to notoriety, it’s been a a rags to riches, and riches to rags story for many of us.  In 2017, prices rallied from just pennies on the dollar to nearly $20,000.  A year later, that price was halved.  And while there are concerns for growth moving forward, there are still plenty of bulls calling for higher highs.

Michael Novogratz’s Opinion on Cryptocurrency

Billionaire Michael Novogratz for example says it could rally to $20,000 by the second quarter of 2019, for example.

However, before this happens, Novogratz explained that Bitcoin needs to run above a key level of resistance at $6,800.  That’ll happen, he notes, shortly after the launch of the Fidelity Digital Assets Services programs, as well as the launch of Bakkt.  Both launches should attract a significant amount of institutional investment.    “There’s going to be a case of institutional FOMO [fear of missing out], just like there was in retail.”

However, before you run to buy, consider these quick tips for all traders

Experts warn traders must be diligent, and do their own due diligence prior to investing.

In fact, many only recommend buying Bitcoin from reputable sources. Failing to do so could result in serious problems, including the very real potential for fraud and loss. Investors need to know how to buy right from the best sources.

It’s not always about when to buy, though.

It’s also about knowing when to sell.  In fact, many of us don’t know when to sell at all.

Granted, it’s tough to sell when your coin is skyrocketing, but sell too late, or not at all, and you can kiss any hard-earned money goodbye.  We’ve all seen it happen.

Buying a stock is the easy part.  Knowing when to sell and walk away – that’s the hard part. Traders are afraid of pulling the trigger and selling because they’re fearful of what could possibly happen.

How to tell when to run

But to be honest that’s just not a smart way to trade.  One of my favorite ways to tell when it’s time to take my money and run is with technical tools, such as Bollinger Bands (2,20), MACD, RSI and Williams’ %R.  Or, if news begins to turn bearish, that’s a good time to get out.  You can always buy back in on pullbacks.

Protect Your Money with a Wallet

Bitcoin and the other digital currencies are digital. They’re not going to sit in your wallet like fiat.  Instead, they’re going to remain secured in a digital wallet.

With that being said, you need to make sure that you’re choosing the right digital wallet. Otherwise, there is a good chance that you’re never going to be able to access, use, or sell your Bitcoin.

The difference between the various wallets

Desktop wallets refer to those found at Exodus.io and Jaxx.io for example.  A desktop wallet is one that is accessed from and lives on your personal computer.

Mobile wallets can be stored on your phone.  Sites such as Exodus.io and Coinomi.com are reputable programs to use.

Online web wallets such as Coinpayments.com and Jaxx.io are reputable.  In this case, a third party stores your coins in the cloud and can secure i with multi-signature wallets.

A cold wallet can help maintain higher-levels of security to protect your coins by storing them offline. Offline storage keeps your coins and data out of the reach of potential hackers.  This is arguably one of the safest ways to secure your assets.

To ensure that traders can store and trade their coins without any threat to cyber-security, they have to pick one of the best wallets.

When it comes to choosing a digital wallet, there are several factors to consider. Some of these include convenience, portability, security, and accessibility.  It’s why we like the following wallets.

The top three wallets to store your Bitcoins

Ledger Nano S

Built by a French startup, Ledger Nano  S is a hardware wallet. Therefore, it gives users access to their currencies even when they don’t have Internet. This quality is what makes hardware wallets so secure and popular with traders. Because it is small, Ledger Nano S is very portable.

It has no battery; therefore, it starts up only when connected to a computer or mobile device. Also, it has no sticker that can prevent tampering. Instead, it uses the cryptographic technique to verify the instrument integrity.

It has an OLED screen with two buttons on its side. These buttons are used to navigate the device easily.  When initialized for the first time, it creates a backup key for the user and displays it on the screen. Traders can use this to access their wallet securely. Also, this private key serves as a recovery key since it restores the Bitcoins at any time.

MyEtherWallet

MyEtherWallet is a free and open source web-based crypto wallet. It is also available in the form of a smartphone app that facilitates adding your custom coins. Despite not being a hard wallet, it is incredibly secure with features like anti-phishing. It also allows users to create wallets that are supported by the Ethereum platform.

Ever since its release in July 2015, Ethereum experienced rapid growth. Today it is second only to Bitcoin regarding market cap. MyEtherWallet offers significant flexibility when it comes to storing the ether tokens. It is a client-side interface that helps traders to interact with the Ethereum blockchain.

While MyEtherWallet allows the creation of new wallets in the user’s web browser, the information isn’t stored on the MyEtherWallet servers. The user’s computer saves all the data. It is because MyEtherWallet is an online wallet. MyEtherWallet eliminates any vulnerability that comes with the prospects of saving funds online.

Edge Wallet

Launched in February this year, it is one of the latest soft wallets. Initially, developers created it specifically for Bitcoin. But they had to rebrand it due to security reasons. Today, it is one of the most secure wallets, thanks to its integration with Spaceshift technology. It is easy to use and supports multiple currencies including Bitcoin.

Edge is compatible with both Android and iOS devices. It supports the sending, receiving, storing, and exchanging of coins for a range of cryptocurrencies. It also facilitates the trading of ERC20 tokens. Since 2014, the wallet team worked tirelessly to create security solutions that are user-friendly for traders. Initially, they started with a Bitcoin wallet and merchant database. But they moved on to create a wallet that now supports multiple currencies including LiteCoin, Monero, Ripple.

 

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