As the industry still continues to evolve and grow, it is surprising to learn that still only a very small relative percentage of people have holding of cryptocurrency. Undoubtedly this is influenced a lot by market movements at any given time which can generate huge amounts of hype.
Another point though which can stop investors from joining the market are the perceived difficulties when it comes to getting started. A fear of the unknown often plagues many. So, how easy is it to actually get started and buy your first crypto?
Research and Budget
As with any form of investment, this is key. It doesn’t matter where you’re from, getting into crypto in Australia or Azerbaijan holds the same initial principles. Make sure you carry out your own extensive due diligence on your investment, and as you will hear time and time again, only invest as much as you are willing and able to comfortably lose.
Exchange & Wallet
Once you have educated yourself a little, getting involved is very easy. Simply log on to one of the many crypto trading exchanges such as Coinbase. Register and provide the necessary information at this point, deposit some of your hard earned cash and you are ready to trade.
Once you have made some trades (careful with your bankroll) and are happy with your holdings, you should store them in a secure wallet. This set up is also simple, and exchanges like Coinbase can also provide this service. Keep your passwords and keys safe (this point is vital).
Again, these can originate from your exchange holdings or those in your wallet and are really easy to perform. Simply enter the address of the wallet you want to send to, take care of the related small fees, and you are all done. It really is that simple.
Perhaps it is some misinformation which people pick up on, or other unrelated factors which influence them to believe that getting into crypto can be difficult and unsafe. That is simply not the case. Although it is a very simplified version, by following the above steps, you have become involved in the industry and completed your first trades.
Bitcoin prices have slumped under $8000 today, taking at least some of the shine off what had been a very impressive month in terms of market action. Having recovered by as much as 20% during the month from record low prices, the falloff in the last 24 hours should not be of huge concern to investors. This is especially true considering the positive financial outlooks from many in the industry.
Mining giant Bitmain has reported profits of around $1 billion for the first quarter of 2018 with forecast estimating another $2-3 billion to follow in the rest of the year. This is positive news for the industry along with news of huge profits from other companies in the sector. This kind of news is sure to keep the market outlook buoyant in the coming month.
The Bitcoin price dip has not gone unnoticed in the Alt-Coin Markets. These have also taken a dip with Ethereum trading at $417 at the time of writing. Other Alt-Coins such as Stellar, EOS, and Cardano have seen losses around the 9-10% area in this end of month sell off.
How to Handle a Price Dip
The crypto markets can generally see quite a lot of movement on a daily basis. This is a well known fact when compared with traditional markets. Essentially, this means that you should not react too rashly to any one movement which happens within the market. It is important to retain your positions and not be swayed by psychological factors in the market.
Some will even see the opportunity in a price dip to invest more heavily in their positions or open new positions in other currencies. This could be a risk worth taking if you have faith in the long-term future of the coins. Be mindful though not to overstep yourself financially which could lead to pressure selling at a later date.
If you are following the cryptocurrency sector, chances are you may be tempted to get into trading for yourself. It can be all too easy to assume that everything is sunshine and rainbows for crypto traders and they are all driving in their much sought after “lambos”. In the overwhelming majority of situations, this is not the case. There are a variety of challenges of varying degrees which confront crypto traders. Here are just a few to consider if you are thinking of joining the ranks:
If you are of a nervous disposition, then a career as a crypto trader may certainly not be suitable for you. The markets are vulnerable to change just like any others. With crypto, these swings can be more pronounced on occasion. This can cause untold stress on crypto traders just as we see it being an extremely taxing pursuit on wall-street. If you value the color or amount of your hair, it may be best to steer away from this career choice entirely.
Nobody has unlimited capital. This may lead to situations where traders can see a good move with fantastic potential but they simply can’t act on it due to a lack of available capital. This is often the dilemma of traders, even outside of the crypto sector. Should they trade out of one position and into another? These are the types of decisions which can live long in the memory depending on which way they swing.
Fear of Missing Out
This is likely to be the biggest mental challenge for any trader. They have been monitoring forums on the likes of Bitcointalk all day when suddenly, wind of a strong move comes down the channels. This may not have been a move which was in the original plans of the trader, but it is human nature that we are interested when we hear of opportunity to be had. This fear of missing out is something which can be a huge negative weight for traders, forcing them into often poor positions. The mental fortitude to move on and forget about these moments is a key asset to any industry insider.