Earlier than you create your accounts on any exchanges, it’s best to know what you’ll do along with your cryptocurrency when you get some.
There are typically three issues you are able to do:
- Day-trade (Very dangerous)
- Maintain it on the alternate till you need to promote (Delicate danger)
- Retailer your cryptocurrency your self (Nonetheless some danger)
Let’s break these down individually.
Personally, I don’t encourage day-trading. Everybody thinks they’ll get wealthy in per week or two by doing this. However you most likely gained’t. In actual fact, nicely over 90% of day-traders lose cash. If you happen to actually need to, go forward. I can not cease you. Simply be cautious of the dangers.
If you happen to day-trade, your cryptocurrency will keep on an alternate till you determine to promote it or commerce for one more cryptocurrency. The necessary factor to recollect right here is that this:
You’ll lose all of your cryptocurrency if the alternate closes.
That is why it’s best to solely hold your cryptocurrency on respected exchanges. Personally, I exploit Coinbase (and Coinbase professional), however another good choices are Kraken and Gemini. Every alternate has professionals and cons. I strongly recommend researching every alternate to see what works finest to your state of affairs. Right here’s an article to assist out.
Retailer your cryptocurrency on the alternate
It is a pretty in style choice with many people. However as I simply talked about, there’ll all the time be the opportunity of the alternate being closed or hacked.
On the finish of the day, you don’t have full possession of your cryptocurrency when its on an alternate. It isn’t actually yours.
That is why the third choice is arguably the perfect.
Storing your personal cryptocurrency
That is probably the most safe choice. However it comes with some danger. If you happen to ship your cryptocurrency to the flawed tackle it will likely be gone perpetually.
However in case you do it appropriately, no individual on Earth can take your cryptocurrency from you.
There are a number of choices for storing your personal cryptocurrency. Some are higher than others. However right here they’re.
- Hardware wallet — storing on a safe system
- A paper wallet — storing your keys/password your self
- Digital wallet — storing your crypto on a digital pockets
Every of those is completely different. Storing your cryptocurrency on a paper pockets is troublesome to arrange. However it’s safer than a digital pockets. Once more, I strongly recommend you do your personal analysis and do what you assume is finest to your state of affairs.
No matter you find yourself deciding on, make certain to completely perceive each step of the method earlier than you buy your cryptocurrency. Having a plan on what you’ll do will prevent from feelings.
This market is extraordinarily unstable. And it may be an emotional roller-coaster. Don’t fall sufferer to feelings. As a result of you’ll lose in case you do.