Bitcoin: 5 do's
Here is my follow up to my first post.
OK If you follow these instructions you will get off to a good start trading or investing in bitcoin or any other crypto currency.
Here are your 5 Do's:
- Calculate: First, spend a few minutes calculating how much NON NERVOUS money you are willing to invest into this new venture. NON-NERVOUS money is money you can afford to lose, money that you don't need to pay a bill or educate your kid, or fix a tooth, or , or , or. Investing NERVOUS money, money that is going to make you say ouch if you lose it is one of the best ways to lose your money because it will affect your decisions to rather, buy or sell, hold or liquidate or just not turn on the computer and trade at all on any giving day.
2.Buy a bitcoin: Once you have arrived at a figure you feel is a safe reasonable amount to experiment with then you need to find an exchange to make your purchase and begin to trade or transfer to an online or offline bitcoin wallet. Caution here: I don't recommend using any online wallet to store anything except a small amount of coin. Online wallets are useful though because you don't have to download a wallet to your personal computer right away which can take 1-3 or more hours depending upon the crypto coin. New wallets are continuing to come out that load lightning fast like Jaxx that took me 15 seconds! plus the Jaxx wallet jaxx.io is multi coin and allows me to hold bitcoin, ethereum, ethereum classic, dash, and the DOA. For an exchange to buy bitcoin , Google it. I have used coinbase.com and blockchain.info to buy bitcoin with no problems but there are many to choose from . coindesk.com , a good news site for bitcoin and other crypto coins, has a good "how to get started page". Also bitcoin.org has a ton of information on getting started.
3.Buy a thumb/flash drive: This may be one of the most important things you do. One thing about bitcoin or playing the crypto market; You are the responsible party. There is no one taking care or watching over you. You are your own bank and you are the one responsible for security of your bank which is your computer and off line wallet. One of the best things you can do once you buy some bitcoin is to back up and encrypt your off line wallet and then back it up to your thumb drive or drives and keep these memory sticks in safe dry places so that if your computer ever fails or you somehow lose your coins in a wallet upgrade, ect, you will always have the data you need to reconstruct your wallet and your coin balance.
4.Make a paper copy of your wallet passwords. If you lose your password, you have lost your coin. There is no way and no one who can help you get into your wallet if you have lost or can't remember it as this password is encrypted. There are some newer wallets and services that claim that they can retrieve your password. I have not used one yet but it will be a great day when that risk is entirely eliminated.
5.Make a decision! You have got to decide rather you want to be a day trader, short term holder, or a long term investor. This is really very important to your success in making money in the crypto field or actually in any of the markets. A day trader has an entirely different set of criteria he or she uses in making a decision on what to buy. Day traders rarely hold positions overnite and make their money often in small movements of the market with larger bets placed. Short term traders will hold a position in a market from 1 day to a month or more. These traders are "getting the feel of the coin, or have a feel of its movement up and down and will buy and sell on similar criteria to the day trader but utilize longer trend lines and technical information to make their buying or selling decisions. Long term investors buy and hold for months or even years. They don't bother themselves much with watching the market trusting mostly in their gut feeling that their coins will someday go up in value ..... more to come tomorrow on the 3 Dont's)