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4 Cryptocurrency Investment Tips

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cryptocurrency investment tips

You know when you first heard that Bitcoin was at $10,000 in December 2017, and you rushed to buy, well you possibly know that was not the time to buy.

After probably making a loss you have sworn off cryptocurrencies. Although that doesn’t stop stories of people making money from cryptocurrencies sipping in. Stories of an acquaintance going on vacation with money they made from trading in cryptocurrency. Or of a cousin far removed who makes his livelihood from cryptocurrency.

Each time you hear these stories you itch to have your own positive story but the fear from your last experience still serves as a cautionary tale. so, should i invest in cryptocurrency? Here are

4 Cryptocurrency Investment Tips that could help you avoid your last experience.

Start with little

As much as you want to rush in and 2x your money it’s better to start with an amount that correlates with your risk tolerance level. With 200 naira you can buy bitcoin or any other cryptocurrency listed on Quidax. So there goes your concern about having to buy a whole Bitcoin.

You could consider buying a small amount when the prices are low, you can use CoinMarketCap to see the historical price of any cryptocurrency. On a monthly basis, you can continue buying small amounts. The idea behind this is that if the price increases you can sell. As opposed to buying when the prices have hit a high and hoping it goes higher.

Set Limits

When the price surges, you want to make money from the difference by selling. It is best to set an amount which when it reaches you can sell. Let’s say you bought ether when 1 ETH was 50,000 naira you could decide that once it hits 50,500 naira you want to sell.

Once it reaches your sell price, that’s the time you should sell. Here’s the tricky part hoping that the price would go higher. Don’t you hate stories of people that lost out in 2017 because they sold too soon? If this happens, remember that the pain of losing money is often worse than the joy of gaining money.

Alternatively, to avoid losing out you could sell in bits. When it reaches, 53,500 you could sell 50% of your holdings if it reaches 53,800, sell 25%, then if the bull run maintains you could hold offload the remaining 25% at once or break it further. You need to decide what works for you.

One might ask what if I hold just 3,000 naira in cryptocurrency, the gain doesn’t seem significant? Consider that you are doing this for the long haul and it’s in line with your risk appetite. So your formula could be Buy low, Sell high, Repeat.

Diversify

As you increase your holdings of one cryptocurrency, you might want to gradually increase your holding from one cryptocurrency to a couple. Holding several cryptocurrencies helps mitigate against prices drop on one and prices gains on another.

When deciding other cryptocurrencies to buy finding answers to questions like; what problem does the cryptocurrency aim to solve, who is the team behind it, how has it performed over time, what caused previous price surges/drop?

Asking these questions will help you make the right choice on which cryptocurrency you want to add to your portfolio or even the first cryptocurrency one you want to buy.

Schedule reminders/notifications

A couple of the tips above sound like a lot of work, especially if you have a demanding job. Your phone’s calendar notification can do you a lot of good here. You can set notifications to do your research when you have free time. When you are commuting to or from work or during lunch might work for you.

You can also use apps like blockfolio that allows track cryptocurrency prices and set price alerts for when the cryptocurrencies you hold or are interested in, hit your buy/sell limit price.

 

This content is for educational purposes only. It should not be considered as financial advice. You should consult your financial advisor before deciding to store, buy or sell digital currencies.

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Quidax is a European based digital assets exchange with a focus on Africa. We provide a seamless platform for users to send, receive, buy and sell cryptocurrencies using their local currencies.

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What is Cryptocurrency And How Does It Work? 

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Obiex finance website

Cryptocurrencies are decentralized digital assets that operate on blockchain technology that in turn operates by storing a ledger of every transaction on all nodes powering the blockchain. 

In layman’s terms, blockchain technology is like a record keeper, it collects data (in blocks) and links one block of data to another, forming a chain. The data on the blockchain is open for all to see and cannot be easily altered. Blockchain technology can be used for a variety of use cases besides cryptocurrency, ranging from voting to crowdfunding, keeping health records, etc.

Using Bitcoin as an example, nodes are computers connected to the network to mine Bitcoin,  – this collection of independent nodes working together is what makes the network decentralized.

The decentralized nature of cryptocurrency is down to the creators recognizing flaws in traditional banking & financial systems like governments and financial institutions acting only in their best interests and not in the best interest of the common man, leading Satoshi Nakamoto (the creator of bitcoin and blockchain technology) to take steps to rectify that.

Related: What are NFTs?

To make cryptocurrency transactions, you will need to have a set of both public and private keys that will act as passwords protecting your crypto wallet. 

The Public key is connected to your wallet address, allowing you to share the address with others to receive cryptocurrency, while the private key is known to only you and is what you will use to approve outgoing crypto transactions from your wallet. 

Trading Cryptocurrency on Obiex

Obiex finance website

With the popularity of cryptocurrency trading currently at an all-time high, the biggest challenge for many rookie traders is selecting which cryptocurrency exchange to trade on.

If you fall in this category, the immediate priority should be finding an exchange that allows rookie traders to make trades easily, doesn’t charge extra fees and is completely secure. That exchange is Obiex Finance.

In this guide, you will be shown how to navigate the Obiex mobile app & website easily and what to do to get started with making cryptocurrency trades. 

Getting started with Obiex Finance 

Obiex Finance is a digital asset exchange and financial technology (Fintech) platform that gives its users the ability to easily execute cryptocurrency trades from anywhere regardless of their skill level.

Their commitment to ensuring that users get the best experience is shown in how they allow instant swaps from volatile coins like Bitcoin to stable coins like USDT, and vice versa, without confirmations. In a market where the value of crypto can fluctuate wildly, this feature is especially valuable as it allows users to seamlessly switch between making profits to saving those profits in a more stable currency before the value drops.  

To create an Obiex Finance account, simply head over to their homepage, click on “sign up”, fill in the required fields and verify your email address. After that, create wallet addresses for your crypto assets and you’re ready to start trading!

The cryptocurrency available for trading on the Obiex Finance platform are: Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), Polygon (MATIC), Dogecoin (DOGE), Tether (USDT), Binance USD (BUSD), and USD Coin (USDC).

Getting Started with Cryptocurrency trading

After creating your Obiex account, you need to follow these simple steps:

  1.     Have a Trading Strategy: Trading cryptocurrency without having a strategy in place is the easiest way to lose your money. You will need to research the various crypto trading strategies thoroughly and choose the one that best suits your needs and temperament. For example, if you’re a patient person who is content to make smaller, safer trades over a long period of time instead of making riskier trades, then scalp trading is the best trading strategy for you. There are also other crypto trading strategies such as Swing trading, position trading, Arbitrage, dollar cost averaging etc.
  2.     Pick the cryptocurrency you’d like to trade: There are several cryptocurrencies available on Obiex Finance such as Bitcoin, Ethereum, Binance Coin, Tether etc. Selecting which cryptocurrency to trade is usually down to making a choice; whether to stick with the safer, more established cryptocurrencies like Bitcoin or to go with the more volatile coins that have a high upside and an equally high-risk factor like the Dogecoin which can move in either direction based on what Elon Musk tweets.

It is also important to note that when you pick a cryptocurrency to trade, it would be wise to ensure that the cryptocurrency matches the strategy you pick. For example, if your preferred strategy is patient scalp trading, then investing in volatile coins that have a high upside but carry a lot of risk is not the wisest move. 

To swap crypto on Obiex Finance, add the wallet of crypto assets you’d like to swap, send the crypto to the wallet you just created, navigate to the ‘swap’ option on your dashboard, and select the coins you’d like to swap. You will receive the swapped coin in your wallet balance immediately without waiting for network confirmations.

  1.     Securely store your cryptocurrency: The same way you’d protect your goods and profits if you had a physical store is the same way you need to protect your cryptocurrency so it doesn’t fall into the wrong hands.

You can store your crypto securely on your Obiex wallet but if you want an alternative, physical wallets are also an option. Physical wallets allow you to store your crypto in secure hardware, offline storage device reducing the likelihood of online hackers stealing your hard-earned crypto. This is a list of reliable physical wallets you can use.

Conclusion

If you’re a newbie to crypto trading, the keyword is patience. Taking the time to properly understand the market before making trades will stand you in good stead. While risks occasionally pay off, a patient, long-term strategy is required to make consistent profits. For more information about trading as a newbie, you can check this out to understand unfamiliar crypto terms and to learn more about spot trading and futures.

Obiex Frequently Asked Questions | Obiex FAQs

  • Will I be charged a fee when I swap coins on Obiex? 

No you won’t. While other crypto exchanges charge for trades and require confirmations to execute swaps, Obiex allows you to make free, instantaneous swaps without the delay that comes with waiting for confirmation. This also helps you avoid unnecessary losses.

  • Can I trade crypto on Obiex if I don’t know much about crypto? 

Yes, you can! The Obiex Finance platform allows both rookie and experienced traders to make easy, safe trades regardless of trading experience.

  • Can I send and receive crypto easily?  

Yes, you can. To send crypto, you will use your private key to execute outgoing trades and your public key/your wallet address to receive incoming trades. You can also send and receive crypto using just Obiex usernames.

  • Why do I need to swap coins? 

Swapping coins allows you to either acquire a coin you think is (currently) more valuable than a coin you have a lot of. You can also use swaps to ensure that your funds are invested in a more secure coin like USDT if you feel the volatile coin you’re holding is about to go on a bear run and lose value.

  • Do I get a referral bonus when I invite friends to use Obiex? 

Yes, Obiex has a referral campaign that rewards users that invite their friends and family to trade the minimum of $10 on Obiex.

 

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