When starting with Bitcoin, there are a few things to recall. In recent years, the number of people who fall victim to private digital currency hacking has increased. Let’s start with Bitcoin (virtual currency) after reading the precautions carefully in order not to get stuck.
- Start with surplus funds
- Don’t over-leverage
- Take anti-hacking measures.
Start with surplus funds
If you’re just getting started with bitcoin trading, start modestly and with extra money. Start small and with spare funds if you’re getting started with bitcoin trading. The price of bitcoin has a reputation for fluctuating more quickly as compared to other financial items. Use small investments like savings investments if you are a beginner to expand your understanding and expertise.
Don’t overleverage
A leveraged service allows you to trade amounts greater than the original capital. While it is a service that can aim for high returns if used well, it is also a service with a risk of causing large losses.
Among beginners, it is a good idea to accumulate experience by repeating cash trading of Bitcoin (virtual currency) and then apply leverage little by little.
Take anti-hacking measures.
In recent years, asset outflow damage due to cryptocurrency hacking has been increasing.
Attacks that cause the cryptocurrency exchange itself to be hacked cannot be countered on the user side, but you can take measures yourself to prevent hacking on an individual basis.
- Don’t use reusable passwords
- Always use two-factor authentication.
- Don’t trade over public Wi-Fi.
Also, in the case of overseas exchanges, it will be difficult to solve if there is any damage. Therefore, for beginners, we recommend using domestic exchanges rather than overseas exchanges.
Tips for not failing in Bitcoin trading:
Although you are interested in Bitcoin, one of the factors that make it difficult to start is the anxiety of “What if I fail, what if I lose a lot?” Unfortunately, there is no way not to fail, but there are “tips” to reduce the risk of failure.
Buy and sell at different times
A method that is easy to practice and has a high-risk reduction effect is the method of “buying in multiple times.” If you invest a lot of money at once, the fluctuation of profit and loss will be huge. For example, if the price falls by 10% after buying 1 million, you will have an “unrealized loss of 100,000.”
On the other hand, what happens if you invest 1 million in 10 installments? Since you will buy it in multiple installments, the “purchase price” will also be born in 10 ways. It implies that there are instances when you can pay more and purchase less.
If you invest 1 million dollars in a lump sum for the first time, the average purchase price will be 3.3 million dollars. But if you diversify the purchase timing, it will be “3.05 million dollars.” In addition, by dispersing the purchase timing, the “price movement of the valuation value” will also be small. So, it will also lead to a “mental margin”. By the way, the investment method that determines this investment amount and diversifies the investment timing is called the “dollar cost averaging method.”
Cryptocurrency savings investment
Cryptocurrency accumulation (accumulation investment) is an investment method that accumulates and increases virtual currency by a certain amount. Since the range of price rises and falls tends to be larger than other investment products. A certain number of people think that the price will rise in the long run, and cryptocurrency accumulation is famous among beginners as an investment method that reduces risk. It is said that it is possible to avoid unnecessary losses by buying and selling based on the “rule of accumulating a certain amount” determined in advance.
Conclusion
Before taking any action, you need to make sure that you are fully informed about cryptocurrencies and all the available options to trade them. in fact, one can get to see how digital money and their respective values are helping people to accomplish many tasks. So, it is more than convenient to buy and sell goods and services or exchange them for monetary and other kind of profit. Consider reading the review for more clear insights.