Acquiring crypto assets often times feels like walking into a bazaar and buying a ticket to any vendor which guarantees that you’ll make money in minutes. The first issue one encounters is figuring out which ‘platform’ one is going to purchase from. Some of these ‘platforms’ are optimized for maximum ease of use and others look like they have been designed by engineers with a deliberately counterproductive agenda. More often than not, a users pays with the value they perceive of user friendliness, low transaction costs, or balance of the currencies. my blog
Here, the absence of misleading pieces stands out the most. Placing a protective badge over your money is a cold wallet that resembles a semi-secured vault and is comparable to a smartphone app. Newbies are worse off because they tend to leave their money on an exchange which is comparable to a bike rack in a highly dense area, or worse, ‘locked up.’
The next step is the volatility in the price of the cryptocurrency which is changing all the time. The way roller coasters captures the movement of the price is ingenious. There are traders who spend hours in front of a screen predicting the next tick. There are also some who dolarcost averaging which is a strategy where small portion of an asset is bought to reduce stress and risk to a portfolio.
The tortoise and the hare can easily be used as the the analogy due to the fact that he wins is because he has a stepwise approach. Along with price changing constantly, the risk of scams is always there. If you get an unsolicited sms or email stating that you can ‘for sure’ earn money with no risk, it’s a scam. Always check the links and the wallet addresses in order to use your instincts. Opportunities which come with a sense of urgency or fake promises, you need to be very careful.
Taxes are a different animal. With every buy, sell or trade you make, there is a possible tax consequence. Delaying tax matters is an unfortunate situation, but if you spend the time recording the transactions, you will eliminate being unprepared. The key point is to treat bitcoin as any other speculative investment, which means only invest what you can afford to lose. Many people describe scenarios whereby they invested the money meant to buy groceries, only to end up screaming in panic when the market drops within a night. It is better to invest money which will not change your life, especially when you lose it.
The excitement of being able to buy crypto is unsurpassed, however, the most successful people are those that are interested, and also thorough. The most successful strategy is to keep learning, exercising patience, and applying rational strategies in order to eliminate as much noise as possible. This balance optimizes the path, and also prevents the dangers of over complicating the path.